EPA Rescinds Permit for New Jersey Offshore Wind Project
The U.S. Environmental Protection Agency (EPA) has withdrawn a crucial permit for New Jersey’s first offshore wind farm, potentially halting the project indefinitely.
Court Orders EPA to Reevaluate Air Permit
A judge from the Environmental Appeals Court has sent back a Clean Air Act permit, originally issued in September 2023, for further review by the EPA.
This decision comes less than two months after U.S. President Donald Trump called for a review of federal leasing and permitting processes for wind energy projects and ordered a temporary halt on offshore wind leasing in the outer continental shelf.
In a presidential memorandum issued in January, Trump directed an immediate review of federal wind leasing and permitting practices. The directive instructs executive branch agencies, including the EPA administrator, to pause all new and renewed permits, leases, rights of way, and loans for both onshore and offshore wind projects until a comprehensive review is completed.
Impact on the Atlantic Shores Wind Project
Following Trump's order, officials filed a motion requesting the Environmental Appeals Court to remand the permit, allowing the EPA to reassess the environmental impact of the proposed Atlantic Shores wind farm.
In early March, Atlantic Shores opposed the motion, arguing that there was no “good cause” for the permit withdrawal and that such an action would be inefficient both administratively and judicially.
Despite this challenge, the withdrawal was upheld. The EPA stated that it would collaborate with other federal agencies to further evaluate potential environmental consequences, including impacts on wildlife, bird populations, fishing, and other environmental concerns highlighted in the presidential memorandum.
Broader Implications for U.S. Offshore Wind Projects
Industry experts warn that this interpretation of Trump’s executive order could place many offshore wind projects at risk, even those that have already begun construction.
Large-scale industrial projects often require permit modifications, meaning regulatory agencies could halt progress mid-construction by denying necessary amendments.
Current offshore wind projects under construction that could be affected include:
- Vineyard Wind 1 and Sunrise Wind (off Massachusetts)
- Revolution Wind (off Rhode Island)
- Empire Wind 1 (off New York)
- Dominion’s Coastal Virginia Offshore Wind Project
Financial Impact on Atlantic Shores Developers
The financial repercussions of regulatory uncertainty are already being felt. In late February, project developer EDF recorded a $940 million loss on its stake in Atlantic Shores. Its former partner, Shell, also adjusted the project’s valuation downward in January.
As the EPA conducts its reassessment, the future of New Jersey’s first offshore wind farm remains uncertain, with broader implications for the offshore wind industry in the United States.