Renewable energy advocates received some small wins from the Trump administration on offshore wind development. But the House-passed budget reconciliation bill could present a new set of problems.
The bill that passed the House on Thursday makes sweeping changes to the structure of tax credits available to wind developers as part of the Biden-era Inflation Reduction Act. Those include moving up the deadlines for when developers must start construction on renewable energy projects and place them in service, or ensure they meet a series of Internal Revenue Service guidelines
The future energy development for wind is uncertain. Supporters are hoping President Donald Trump will help enough to at least keep current development going, thanks to his administration’s recent decision to allow a wind project off the coast of New York and New Jersey to move forward.
The week started on a positive note for renewable energy backers. Empire, a subsidiary of wind developer Equinor, said Monday evening that the Trump administration lifted its stop-work order for Empire Wind 1
“I’m happy that the administration came to their senses,” Rep. Dan Goldman, who represents one of the districts that will house Empire Wind’s offshore operations, told NOTUS. He added that he hopes it’s an indication that Trump officials could be more open to wind development going forward.
Trump issued an executive order issued
That order is still in place, and the decision to move ahead with Empire Wind 1 surprised and disappointed some opponents in Congress. That includes Rep. Chris Smith of New Jersey, who called the project an “alarming development” in a letter
“I spoke to the interior secretary at length about it and he was all in on the importance of it,” Smith said of the stop-work order after NOTUS informed him the project was now moving forward.
“I love the whales, that’s all real issues, but the one that trumps it all is the security and risks to boats and planes colliding with each other because of the radar issue, and nobody has answered that,” he added. Smith has pushed for reports
Backers of wind energy development seem to be losing out in Congress. Along with the tax credit changes, the reconciliation bill rescinds funding dedicated to wind-generated electricity transmission planning and analysis.
Some moderate Republicans pushed
In spite of the setbacks, fans of wind energy are hopeful that ongoing projects will at least see a smooth path forward.
Some of their optimism comes from allies in the Trump administration, including Kate MacGregor, the deputy interior secretary.
MacGregor’s portfolio wind backed
Other Trump administration nominees have also signaled they’re open to diverging from the president when it comes to wind. In a nomination hearing with the Senate Energy and Natural Resources Committee, Leslie Beyer, Trump’s pick for an assistant secretary position that oversees land and minerals management at the Interior Department, said she supports “all forms of energy we can get our hands on.”
When Sen. Martin Heinrich echoed concerns about how stop-work orders could deincentivize private sector investment in new energy projects, Beyer responded, “I agree with you.”
Trump himself has criticized wind energy on multiple occasions, calling turbines “disgusting claims spoke
“I am encouraged by Governor Hochul’s comments about her willingness to move forward on critical pipeline capacity,” Burgum wrote
A spokesperson for Hochul told reporters
Still, wind supporters like Goldman are unsure how much the wind industry can hold its own under a Trump presidency.
Though Goldman said he feels “great” about Empire Wind getting back on track for completion, he said there are still risks that come with the administration’s restrictive approach to offshore development.
“It’s terrible, terrible policy to cancel projects that have already started,” he told NOTUS. “It not only would have lost future revenue, you know, future investment, but would have rendered the investment to date completely a waste, totally wasteful, and it disincentivizes anyone else around the world from investing.”
Shifra Dayak is a NOTUS reporter and an Allbritton Journalism Institute fellow.
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