Trump Issues Executive Order Directing Drastic Clampdown on Offshore Wind Leasing
What You Need to Know
Key takeaway #1
The Executive Order prohibits new offshore wind leases while allowing existing onshore and offshore ones to renew but only after a comprehensive review of Federal wind leasing and permitting practices.Key takeaway #2
It is unclear at this time of the full impact of Trump’s wind power Order.Key takeaway #3
Stayed tuned for updates as Trump’s administration follows through with his new directive.
Client Alert | 2 min read | 01.22.25
On January 20, 2025, President Trump issued an Executive Order directing the withdrawal of all areas on the Outer Continental Shelf —an expansive area of submerged land under federal control— from eligibility for offshore wind leasing. This Executive Order was one of several energy-related executive orders reportedly intended to increase oil and gas production and curtail the deployment of clean energy resources signed by Trump shortly following his inauguration. The Order is premised on stated concerns for meeting “the country’s growing demand for reliable energy,” maintaining a “robust fishing industry for future generations” and providing “low cost energy to [U.S.] citizens.”
While the prohibition does not immediately affect the rights of current leaseholders, potential new standards for permits could place current onshore and offshore wind energy projects at risk.
The Order greatly restricts wind power development by prohibiting new offshore wind leases while also subjecting existing ones to review. Specifically, the Order directs the Secretary of the Interior to conduct a comprehensive environmental, economic and ecological assessment of the necessity of terminating or amending existing wind energy leases and identify any legal bases for such actions.
The Secretary of Interior, along with other agencies including Treasury, Agriculture, Commerce, and Energy, as well as the Administrator of the Environmental Protection Agency, are also prohibited from issuing new or renewed approvals, rights of way, permits leases or loans for onshore or offshore wind projects pending a comprehensive review of the Federal government’s wind leasing and permitting practices. The Order justifies this assessment by pointing to alleged deficiencies in the environmental review for wind projects under the National Environmental Policy Act (NEPA) as well as “the economic costs associated with the intermittent generation of electricity and the effect of subsidies on the viability of the wind industry.” The Biden Administration previously increased scrutiny under NEPA to include considerations of a project’s contribution to greenhouse gas emissions and climate change. See Crowell alert. The Trump Administration is likely to revise NEPA standards, changing the factors under which potential projects will be assessed.
The full impact of Trump’s new Order is unclear but certainly demands attention from industry. This Order raises concerns both for existing wind projects and new lessees alike. Existing leaseholders should be prepared to face administrative scrutiny and defend existing wind projects under these new standards.
While this Order appears potentially drastic in its halting of offshore wind projects, the fact remains that wind power counts for more than 10 percent of U.S. power sources today with Texas leading the industry. See Texas State Comptroller statement. The industry also employs an impressive number of people throughout the United States on both federal and private land. This Executive Order by its terms does not affect projects on private land.
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