EPA Withdraws Atlantic Shores Offshore Wind Permit Amid Environmental Review

March 19, 2025

Staff Writer

The Environmental Appeals Board (EAB) of the U.S. Environmental Protection Agency (EPA) has granted a motion for voluntary remand, effectively withdrawing the Clean Air Act permit for the Atlantic Shores Offshore Wind Project. The March 14, 2025, decision follows a petition by Save Long Beach Island, Inc. (SLBI), citing environmental concerns, and aligns with a broader federal directive to reassess offshore wind permitting practices.

Environmental Concerns Prompt Permit Reevaluation

Atlantic Shores Offshore Wind, a joint venture between Shell New Energies US LLC and EDF Renewables North America, aims to construct two offshore wind facilities off New Jersey’s coast, with a projected capacity of 2.8 gigawatts (GW) — enough to power over one million homes. However, the project’s Clean Air Act permit, issued in September 2024 by EPA Region 2, was challenged by SLBI due to concerns over potential air emissions and environmental impacts on marine ecosystems, wildlife, and local fisheries.

In January 2025, a Presidential Memorandum 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 directed federal agencies, including the EPA, to halt new offshore wind project approvals and conduct a comprehensive environmental review. Citing this directive, EPA Region 2 requested the EAB to remand the permit for reevaluation, emphasizing the need to address potential impacts on air quality, endangered species, and coastal ecosystems.

Atlantic Shores’ Objection and Legal Ramifications

Atlantic Shores opposed the motion, arguing that the permit was already final and that the EPA had not demonstrated “good cause” for withdrawal. The EAB, however, clarified that the permit had not reached final agency action and that granting remand was consistent with agency policy and legal precedent favoring thorough environmental review before final permit decisions.

According to the EPA’s response, the remand will allow for reassessment of the permit under updated environmental standards and enable coordination with other federal agencies under the Endangered Species Act (ESA) to ensure compliance with all relevant environmental laws.

Meanwhile, broader industry shifts have emerged, with Shell announcing a $996 million impairment related to its involvement in Atlantic Shores, and New Jersey canceling its fourth offshore wind solicitation, reflecting a cautious stance amid regulatory reviews.

What’s Next?

The EPA’s voluntary remand of the Atlantic Shores Offshore Wind Project permit marks a significant pause for a major clean energy initiative. While the project holds substantial potential to contribute to renewable energy targets, this decision reaffirms the federal government’s commitment to rigorous environmental oversight. The outcome of the permit reassessment will set a critical precedent for future offshore wind developments in U.S. waters.