In a memorandum issued Jan. 20, 2025, President Donald Trump halted federal offshore wind energy leasing and directed federal administrative agencies to cease the issuance and renewal of permits and approvals for onshore and offshore wind projects. The memorandum is sure to disrupt the wind energy generation development industry, at least until its scope is better understood.
As it relates to offshore leases, the memorandum withdrew all areas within the Outer Continental Shelf from new or renewed wind energy leasing, effective Jan. 21, 2025, and continuing until the memorandum is revoked. The memorandum does not alter existing leases, however, it directs the secretary of the interior to “conduct a comprehensive review of the ecological, economic, and environmental necessity of terminating or amending any existing wind energy leases.”
Applicable to offshore and onshore wind projects, the memorandum orders a comprehensive assessment of federal wind leasing and permitting practices, considering environmental impacts to wildlife and “the economic costs associated with the intermittent generation of electricity and the effect of subsidies on the viability of the wind industry.” The memorandum does not specify a timeframe for completion of the assessment. However, until the assessment has been conducted, the memorandum requires that “relevant agencies … not issue new or renewed approvals, rights of way, permits, leases, or loans for onshore or offshore wind projects.”
It is too early to grasp the full impact of this pause in federal leasing, permitting and other agency action, even for projects that require only state and local permits and authorizations. However, the broadly written memorandum signals the new administration’s stark policy shift related to wind projects.
McGuireWoods will continue to track executive or administrative action and the industry response.
