Among President Donald Trump’s directives issued on his first day in office was a Presidential Memorandum targeting wind energy, which has been a significant source of new electricity generation in the United States over the past decade, totaling around 10% of utility-scale generation. Among other things, the Memorandum “temporarily” withdraws the entire ocean off the United States from further offshore wind leasing, pauses the issuance of new approvals or loans for onshore and offshore wind projects pending a cross-government review of wind development’s environmental and economic impacts, and encourages the Department of Justice to seek stays in any pending wind project litigation.
The Memorandum creates potential confusion for the wind industry regarding the president’s Executive Order, also issued on day one, that declared a national energy emergency; announced the need for immediate action to expand and secure the nation’s energy infrastructure to ensure a reliable, diversified, and affordable energy supply; and required federal agencies to review permitting procedures that accelerate or hinder approvals, including those under the Endangered Species Act (ESA). The Executive Order also places a freeze on the issuance of new regulations, requires federal agencies to withdraw any rules submitted to the Office of the Federal Register that have not yet been published, and directs federal agencies to re-evaluate any rules that have been published but have not yet taken effect.
Given the breadth of the Memorandum and the Executive Order (collectively, the Directives) and their similarity to executive actions under the Biden Administration targeting oil and gas production that were halted in court, we anticipate that many elements of the Directives will be litigated soon. The following is an overview of the most significant elements of the Directives and a brief discussion of some of the many questions that will need to be answered in the days, weeks, and months to come.
Offshore Wind Presidential Memorandum and Onshore Permitting Impacts
- Offshore Wind Leasing: The Memorandum directed the “temporary” withdrawal of all areas within the Outer Continental Shelf (OCS)[1] from wind energy leasing, from January 21, 2025, until the directive is revoked. Notably, while the president has the power under Section 12(a) of the Outer Continental Shelf Lands Act (OCSLA), to withdraw OCS areas from leasing, reinstating those areas requires an act of Congress –...
