U.S. offshore wind permitting reform faces risk as Trump administration revives project challenges

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U.S. offshore wind permitting reform risk

Highlights

The Trump administration asked federal courts in October to reconsider approvals for Ørsted’s Revolution Wind, U.S. Wind’s Maryland Offshore Wind, and Avangrid’s New England Wind projects, citing inadequate environmental assessments.
These court filings have shaken Democratic support for the Bipartisan American Affordability and Jobs Act, which aims to accelerate permitting and shield infrastructure from future presidential obstruction.
About 45 gigawatts of wind energy projects remain stalled amid administrative reversals, legal challenges, and new White House statements on national security risks and trade restrictions for wind energy components.

Court challenges unsettle permitting negotiations

As reported by Financial Times, the Trump administration is asking federal courts to revisit approvals for three offshore wind projects, arguing the Biden administration did not properly assess effects on marine life, the fishing industry and coastal scenery. The motions seek to send the plans back to the Department of the Interior and cover Ørsted’s Revolution Wind, U.S. Wind’s Maryland Offshore Wind and Avangrid’s New England Wind.

The justice department filed for reconsideration of Revolution Wind on October 9, Maryland Offshore Wind on October 13 and New England Wind on October 20. Revolution Wind is set to begin operating at full commercial capacity by the end of 2026, while the other two projects have not yet started construction.

The filings come weeks after signs that the administration would ease pressure on renewables to help win Democratic backing for the Bipartisan American Affordability and Jobs Act, introduced in late September. The bill is designed to accelerate project approvals and limit the ability of future presidents to block infrastructure on ideological grounds.

John Miller, an energy transition policy analyst at TD Cowen, says the latest action is negative for the bill because Democrats believed there was a handshake agreement. The lawsuits underlying the filings were brought by project opponents including Rhode Island group Green Oceans, the Maryland city of Ocean City and Nantucket-based ACK for Whales.

Wind sector impact widens across U.S. projects

The new court moves add to a broader pattern of shifting administration policy on wind power. In April last year, the administration ordered construction halted on Equinor’s Empire Wind project off New York before reversing course a month later after talks with state officials, while later blocking that project and four others on national security grounds before losing in court.

Last year, the Pentagon also delayed approvals for hundreds of onshore wind projects over radar interference concerns. After slow progress in complying with a court order to keep those projects moving through the process, the administration offered to release dozens of them and improve its treatment of renewables in an effort to build support for the permitting bill.

About 45 gigawatts of wind energy have been stalled by the administration. Jason Grumet, chief executive of the American Clean Power Association, says the White House needs to follow both the substance and spirit of the legislation if the bill is to pass, while Senator Martin Heinrich says movement on two onshore wind projects is welcome but leaves hundreds more in limbo.

On Thursday morning, the White House says it advanced two onshore wind projects. Later the same day, it issues a proclamation stating that wind energy poses unique national security risks compared with other power sources and says the commerce department should limit imports of turbines and other components.

Administration officials reject claims they are acting in bad faith. A White House official says the lawsuits date back to the Biden administration and the government is responding to court deadlines, but critics dispute that explanation and note the government sought deadline extensions in all three cases, including in September, before filing challenges shortly after the bill was unveiled.

Tony Irish, a former Interior Department attorney and senior counsel at Public Employees for Environmental Responsibility, questions whether the timing is credible. Industry insiders say the administration is using the motions as leverage by increasing pressure over what could happen if the legislation does not pass.

In our earlier article, we examined an Ontario court case over unauthorized shoreline work along the Sturgeon River that damaged endangered Lake Sturgeon habitat within a conservation reserve. The court imposed fines and ordered payments and remediation steps for the companies and an individual involved, underscoring how permit violations and environmental harm can trigger costly enforcement and legal risk for development projects in sensitive areas.

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