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Trump bans new offshore wind leasing, increasing uncertainty around NC projects

Wind  turbines offshore
David Boraks
/
WFAE
Two wind turbines off Virginia Beach, Va., are a pilot for a 176-turbine wind farm that Dominion Energy is constructing.

President Trump touted an “all-of-the-above” approach to powering the country. During his inauguration speech, he reiterated his pledge to “unleash American Energy.”

“Today, I will also declare a national energy emergency,” Trump said. “We will drill, baby, drill.”

Now, it looks like “all of the above” does not include offshore wind energy. Trump issued a presidential memorandum on Monday banning new offshore wind leases. This is Trump’s first attempt to codify his skepticism of wind energy, using the same law that allowed Biden to withdraw areas from oil and gas leasing to withdraw all areas on the outer continental shelf from wind leasing indefinitely.

North Carolina already has two lease areas off its coast. Neither is under construction. The memo also bans new permits for existing projects until federal agencies review current regulations. Depending on how long the temporary ban lasts, it may impact development in these leasing areas, according to Katharine Kollins, president of the Southeastern Wind Coalition.

But Kollins says it would be far more detrimental if the administration starts going after existing projects. The ban does not impact existing leases but directs the Secretary of the Interior to review leases for any legal basis to terminate them.

“If they start attacking existing projects, there will be immediate lawsuits. And those projects — I have no doubt — are gearing up for those right now,” Kollins said.

The memo also bans new and renewed leases, rights of way, permits or loans for onshore and offshore projects until the Secretary of the Interior completes a review of wind leasing and permitting practices.

The comprehensive assessment would investigate any possible “negative impacts on navigational safety interests, transportation interests, national security interests, commercial interests, and marine mammals,” like the endangered right whale.

Justin Somelofske, an attorney with the N.C. Sustainable Energy Association, said these are important concerns — but regulators already take these matters into account when issuing permits.

“Most of these review processes that were indicated within this memorandum are not so different from the permitting processes that occur already,” Somelofske said.

Somelofske said the memorandum could delay plans to develop offshore wind, but more imminently, the temporary ban on permitting could also delay or otherwise compromise the development of onshore wind farms, based on the latest Duke Energy Carbon Plan proceedings. The N.C. Utilities Commission ordered the utility to procure 1.2 gigawatts of onshore wind power by the early 2030s — a figure that would substantially offset the 8 gigawatts of coal power Duke must retire by 2036.

A single wind farm can cost billions of dollars to build. The memo creates more uncertainty for developers and utilities, like Duke Energy, that are deciding whether to make a similar investment. Following Monday’s executive orders, a Duke Energy spokesperson provided WFAE with the following statement:

“We are evaluating all the Presidential Executive Orders that have come out this week, including the Executive Order on offshore wind. We look forward to working with the new Administration on constructive outcomes to ensure reliable and affordable energy for our growing customer base.” 

Zachary Turner is a climate reporter and author of the WFAE Climate News newsletter. He freelanced for radio and digital print, reporting on environmental issues in North Carolina.
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