LawFlash

Executive Order Halts Offshore Wind Leasing, Orders Review of Federal Leasing and Permitting Practices for Wind Projects

January 22, 2025

The Trump-Vance administration issued an executive order temporarily halting offshore wind leasing and calling for a review of the federal governmental leasing and permitting practices for all wind projects.

The White House issued an executive order on January 20, 2025 covering the following key provisions:

  • Halts new or renewed wind energy leases in the area of the Outer Continental Shelf (OCS)
  • Subjects existing leases to review by the secretary of the interior
  • Halts new or renewed permits and approvals for onshore and offshore wind while a review and assessment of the federal wind leasing and permitting practices is conducted
  • Places a moratorium on federal approvals for the Lava Ridge Wind Project being developed on Bureau of Land Management land in Idaho
  • Orders an assessment of the environmental impact of idle and defunct "windmills"

In addition to the executive order, the US Department of the Interior issued on January 20 its Order No. 3415, which suspends department bureaus and offices from taking the following key actions related to the executive order:

  • Issuing any onshore or offshore renewable energy authorization, including but not limited to a lease, amendment to a lease, right of way, amendment to a right of way, contract, or any other agreement required to allow for renewable energy development

NEW AND RENEWED OUTER CONTINENTAL SHELF LEASING

The intent of the order is to halt new leasing activities for offshore wind energy development on the OCS. The withdrawal goes into effect on January 20, 2025 and remains in effect until the memorandum is revoked.

The OCS is defined as (1) all submerged lands lying seaward and outside of the area of lands beneath navigable waters as defined in the Submerged Lands Act, and of which the subsoil and seabed appertain to the United States and are subject to its jurisdiction and control or within the exclusive economic zone of the United States and adjacent to any territory of the United States; and (2) does not include any area conveyed by Congress to a territorial government for administration (43 USC 1331).

The order does not apply to leasing on the OCS for other purposes, including oil, gas, minerals, and environmental conservation.

IMPACT ON EXISTING LEASES

The rights of existing leases in the areas of the OCS are not immediately impacted but existing leases will be subject to review by the secretary of the interior in consultation with the attorney general. Such review will cover ecological, economic, and environmental necessity of terminating or amending any existing leases and shall identify any legal basis for such revisions or termination.

ONSHORE AND OFFSHORE FEDERAL WIND LEASING AND PERMITTING PRACTICES

Temporary stop and comprehensive review assessment and review of the federal wind leasing and permitting practices are also required by the order. There will be no issuance of new or renewed approvals, rights of way, permits, leases, or loans for onshore or offshore wind projects pending such review.

LAVA RIDGE WIND PROJECT IN IDAHO

The secretary of the interior must temporarily halt activities under the Record of Decision (ROD) for the Lava Ridge Wind Project due to alleged legal deficiencies and public interest concerns. A new analysis of the interests implicated by the project and potential environmental impacts is required.

IDLE AND DEFUNCT "WINDMILLS"

The secretary of the interior, the secretary of energy, and the administrator of the Environmental Protection Agency will assess the environmental and community impact of idle or defunct "windmills" and propose measures for their removal.

DEPARTMENT OF INTERIOR ORDER

The order issued by the Department of the Interior suspends authority to issue any onshore or offshore renewable energy authorization, including any lease, amendment to a lease, right of way, amendment to a right of way, contract, or any other agreement required to allow for renewable energy development.

The order does not limit existing operations under valid leases. It also does not apply to authorizations necessary to (1) avoid conditions that might pose a threat to human health, welfare, or safety; or (2) avoid adverse impacts to public land or mineral resources.

IMPACT ON STAKEHOLDERS

  • Renewable Energy Companies: Delayed or canceled offshore wind projects may disrupt timelines, financing, and market positioning. Companies should prepare for heightened regulatory reviews and potential litigation.
  • Energy Markets: The withdrawal could impact energy pricing and supply, particularly in regions reliant on wind energy.
  • Legal and Compliance Teams: Companies must assess existing leases for compliance and prepare for potential challenges stemming from new environmental reviews or litigation.

CONCLUSION

Renewable energy developers should closely monitor developments and engage with regulators to navigate the evolving landscape.

STAY INFORMED

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Contacts

For assistance in understanding how this policy may affect projects or to explore strategic responses, contact any of the following:

Authors
James T. Tynion III (New York)
Ashley Keenan (Boston)
Jonathan Wilcon (New York)
Kirstin E. Gibbs (Washington, DC)
Arjun Prasad Ramadevanahalli (Washington, DC)