Key Permit for New Jersey Wind Farm Trump Opposes Is Voided

(Bloomberg) -- A critical permit for an offshore wind farm planned near the New Jersey Shore has been invalidated by an administrative appeals board, seven weeks after President Donald Trump declared he hoped the project was “dead and gone.”

The decision to remand an Environmental Protection Agency air pollution permit for the Atlantic Shores South venture is the boldest strike yet against a wind farm since Trump took office in January and froze federal permitting of the projects. It is also an unusual decision — coming nearly six months after the EPA issued that final air permit to the wind farm that has been a joint venture of Shell New Energies US LLC and EDF Renewables North America. 

The action came at the hands of the US government’s Environmental Appeals Board, after a challenge mounted by area residents who oppose the project and say they are concerned about possible destructive effects. 

In late February, the EPA asked the appeals board for a voluntary remand, with the permit sent back to the agency for reconsideration. That remand was granted Friday, over the developer Atlantic Shores Offshore Wind LLC’s objections.

“Atlantic Shores is disappointed by the EPA’s decision to pull back its fully executed permit as regulatory certainty is critical to deploying major energy projects,” the developer said in an emailed statement. 

Environmental Appeals Judge Mary Kay Lynch said the decision was appropriate given Trump’s executive order directing an immediate review of wind leasing and permitting on federal land. Trump’s directive also charged the Interior Department with reviewing the “necessity of terminating or amending any existing wind energy leases” and “identifying any legal bases for such removal.”

The decision was applauded by Save LBI, a group made up of residents on Long Beach Island who challenged the EPA permit, arguing it was issued after a flawed analysis, including improper air quality modeling. 

“To my knowledge it is the first time that a federal approval for any offshore wind project has been overturned, and it highlights the lack of full disclosure and questionable science and mathematics that has characterized other applications and approvals,” said Bob Stern, who leads the Save LBI coalition. “We are hopeful other federal agencies” will take note of the move “and reconsider their prior approvals.”

Trump has repeatedly criticized the offshore wind industry, and his early moves against the nascent sector have spooked developers of even existing projects. Lawsuits challenging wind farm approvals present an additional opportunity for Trump’s Interior Department to revisit earlier approvals, by voluntarily agreeing to remands sending authorizations back to federal agencies for additional review. 

Trump had singled out Atlantic Shores for particular scrutiny. In a Jan. 23 social media post, he decried a “large scale Windmill DISASTER off the coast of Southern New Jersey.” He added: “Hopefully the project is dead and gone, as almost all unsightly and environmentally unsound Windmill project should be.” 

Just days later, Shell said it had written off almost $1 billion and was backing out as an equity partner in the project. 

Energy advocates warn that yanked permits and uncertainty could discourage much-needed investments in all kinds of power generation as American electricity demand climbs. 

“Blocking planned and permitted energy projects is going to put real pressure on the grid and consumer prices,” said Jason Ryan, a spokesperson with the American Clean Power Association. “This could chill investment in the US for all types of infrastructure if a project permit is canceled for political reasons and not because of real impacts.”

Earlier: Trump’s Offshore Wind Review to Consider Status of Projects 

Offshore energy projects in federal waters — be they oil platforms or wind turbines — are uniquely vulnerable to political shifts in Washington. They are built on leases sold by the US government and their construction generally depends on permits from federal authorities, too. 

That includes air pollution permits. Offshore energy projects located within 25 nautical miles of state seaward boundaries are generally required to meet air quality requirements and secure permits from the Environmental Protection Agency. 

Atlantic Shores, planned about 8.7 miles (124 kilometers) off the New Jersey coast, is meant to encompass as many as 200 wind turbines and provide as much as 2.8 gigawatts of power. 

(Updates with comments from project opponents and other details, from seventh paragraph.)

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