Trump Executive Order Pumps Brakes on Federal Wind Approvals

On January 20, 2025, President Trump issued an Executive Order titled “Temporary Withdrawal of All Areas on the Outer Continental Shelf from Offshore Wind Leasing and Review of the Federal Government’s Leasing and Permitting Practices for Wind Projects” (the “Order”). The Order halts all offshore wind leases in federal waters and temporarily pauses the issuance of approvals, permits, and loans for both onshore and offshore wind projects. This freeze on federal approvals and permitting for wind projects will remain in place while the Secretary of the Interior conducts a comprehensive assessment of federal wind leasing and permitting practices.

Offshore Wind

Section 1 of the Order applies specifically to offshore wind projects and instructs that “all areas within the Offshore Continental Shelf (OCS) as defined in section 2 of the Outer Continental Shelf Lands Act” be withdrawn from consideration for wind energy leasing. The Order purports not to impact rights under existing wind leases in the OCS, but additionally instructs the Secretary of the Interior, in consultation with the Attorney General, to conduct a comprehensive review of the ecological, economic, and environmental necessity of terminating or amending any existing wind energy leases, and to identify potential legal bases for removal.

General Federal Wind Permitting

Section 2 of the Order covers general federal wind project permitting and approvals. The Order contains a general permitting freeze and instructs pertinent federal agencies to “[…] not issue new or renewed approvals, rights of way, permits, leases, or loans for onshore or offshore wind projects pending the completion of a comprehensive assessment and review of Federal wind leasing and permitting practices.”

This “comprehensive” review of federal wind permitting practices will consider the environmental impact of onshore and offshore wind projects on wildlife, such as birds and marine mammals. It will also consider potential economic costs associated with the intermittent generation of electricity and the effect of subsidies on the viability of the wind industry.

Hodgson Russ Insights

Trump's executive order has serious implications for the continued viability of both onshore and offshore wind projects. Taken together, the two sections of the Order effectively create a moratorium on further action by federal agencies whose approvals are required for both onshore and offshore wind projects until the administration completes a review of permitting practices.

Beyond the clear impact to offshore wind projects, the Order’s permitting freeze provisions will impact wind projects on private land, which often require federal permits pertaining to wildlife, waters of the United States (including federal wetlands) and other environmental matters. Additionally, the Order’s ambiguous instruction to the Attorney General and Secretary of the Interior to explore the possibility of “terminating or amending” existing leases raises concerns for offshore projects which have already received federal approvals.

In New York, the Order will likely create regulatory tension with the state’s mandate under the Climate Leadership and Community Protection Act (“CLCPA”), which calls for the development of 9,000 megawatts of offshore wind energy by 2035.

With these issues in mind, developers of wind projects should be mindful of the federal permits and approvals required by their projects, particularly those which have not yet been obtained. Hodgson Russ will continue to monitor the Order’s implementation through the regulatory process, as well as pressing developments related to other environment & energy related executive orders issued by the Trump administration. For further information, please contact John Dax, Michael Hecker, or any member of the Hodgson Russ Renewable Energy Practice.

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