A federal judge ruled this week that President Trump’s moratorium on offshore and onshore wind permits is unlawful, a significant, if temporary, victory for states such as New York, Connecticut and Massachusetts, which have collectively invested hundreds of millions of dollars to develop wind energy resources and increase power supply.
Plaintiffs characterized the decision as critical to preserving billions in clean energy investments and maintaining momentum toward state climate mandates. The U.S. District Court for the District of Massachusetts ruling orders the Trump administration to resume processing applications, but the administration may appeal the decision. Even if the administration does not appeal, it could still resume processing applications and either deny them outright or subject them to lengthy reviews.
Still, wind developers have some hope that projects will move forward and stalled work will resume. When this occurs, Harris Beach Murtha’s experienced Energy team, which successfully represented the Sunrise Wind project in its Public Service Law Article VII application to the New York Public Service Commission, stands ready to assist offshore wind developers. Our energy attorneys regularly assist offshore wind and other energy developers with every phase of large and small-scale energy projects, including siting and permitting, regulatory compliance, environmental, land use and real estate due diligence, contract drafting, negotiation, public/community outreach, public finance and other funding, tax issues and more.
The Moratorium on Wind Energy Permits
On this first day in office, President Trump issued a memorandum suspending all new permits, leases, and other authorizations for offshore and onshore wind energy projects. In addition to halting new development, the order threatened the completion of several ongoing projects, including several in advanced stages of planning and construction.
This executive action represented a continuation of President Trump’s policy preference for fossil fuel development over renewable energy — particularly wind — citing authorizations from the Biden administration that are alleged to suffer from various legal deficiencies.
According to the Energy Information Administration, wind energy is the United States’ largest source of renewable energy, providing approximately 10% of the electricity generated in the nation. In New York State, the Climate Leadership and Community Protection Act calls for the development of 9 gigawatts of offshore wind energy by 2035.
Attorneys general from 17 states and the District of Columbia, joined by the Alliance for Clean Energy New York (ACE NY), filed suit in federal district court, challenging the President’s order, claiming it violated the Administrative Procedure Act. The plaintiffs argued that the ban violated the law because it was not supported by reasoned explanation for categorically suspending all permitting activity. Plaintiffs also argued the ban jeopardized billions of dollars in planned investments and state-level renewable procurement programs and undermined the federal government’s obligation to process applications within a reasonable time.
Judge Patti B. Saris of the U.S. District Court for the District of Massachusetts vacated President Trump’s order, saying it was “arbitrary and capricious and contrary to law,” in violation of multiple provisions of the Administrative Procedure Act.
Judge Saris has scheduled a status conference with the parties next week to discuss the implementation of her order by the relevant federal agencies. Following entry of final judgment, the government has 60 days to file a notice of appeal.
Plaintiffs Hopeful Decision Reinvigorates Wind Industry
New York Attorney General Letitia James issued a press release celebrating the decision.
“As New Yorkers face rising energy costs, we need more energy sources, not fewer,” she said. “Wind energy is good for our environment, our economy, and our communities. I am grateful the court stepped in to block the administration’s reckless and unlawful crusade against clean energy.”
Connecticut Attorney General William Tong also issued a press release praising the decision.
Marguerite Wells, executive director of the Alliance for Clean Energy New York, a plaintiff in the lawsuit, acknowledged this is likely not the end of the administration’s campaign against wind energy, but that she is certain it is a key component of the nation’s future.
“It is currently one of the most cost-effective ways to generate power, and is being used successfully not only in the United States, but across the world,” she said. “With this ruling behind us, projects can now be judged on their merits. We thank the attorneys general who helped us get this case over the finish line.”
The Trump administration has not yet indicated whether it intends to pursue an appeal, leaving the matter unresolved. We will continue to monitor this case and related matters and provide updates as significant information becomes available.
If you are a developer and need assistance with a wind project, please reach out to attorney John T. McManus at (518) 701-2734 and jmcmanus@harrisbeachmurtha.com or the Harris Beach Murtha attorney with whom you most frequently work.
This alert is not a substitute for advice of counsel on specific legal issues.
Harris Beach Murtha’s lawyers and consultants practice from offices throughout Connecticut in Bantam, Hartford, New Haven and Stamford; New York state in Albany, Binghamton, Buffalo, Ithaca, New York City, Niagara Falls, Rochester, Saratoga Springs, Syracuse, Long Island and White Plains, as well as in Boston, Massachusetts, and Newark, New Jersey.
