UPDATED: Dominion Sues Feds Over Offshore Wind Project Halt, With Action Possible on Others Shut

UPDATED: Dominion Vitality, proprietor of one in every of 5 massive East Coast offshore wind vitality tasks for which the U.S. Inside Dept. ordered an immediate construction pause Dec. 22 as a consequence of claimed nationwide safety considerations, filed a federal lawsuit Dec. 23 towards the motion affecting the two.6-GW Coastal Virginia Offshore Wind challenge (CVOW) off Virginia Seashore, Va., which is about to start operation subsequent yr. Dominion and OSW Venture LLC, the entity that features challenge non-public investor co-owner Stonepeak Companions, mentioned they search a temporary restraining order and may file for a everlasting injunction.

Along with that challenge, Inside mentioned the preliminary 90-day pause that may very well be prolonged, applies to the 800-MW Winery Wind 1 challenge off Massachusetts, which already has half of its 64 generators working; the 810-MW Empire Wind and 920-MW Dawn Wind tasks off New York; and the 704-MW Revolution Wind challenge between Rhode Island and Connecticut that confronted a earlier Trump shutdown order overturned by federal courtroom order. 

Inside Secretary Doug Burgum mentioned the pause would enable added “overview of rising nationwide safety dangers,” together with claimed potential radar interference from massive offshore wind installations and claimed “evolving adversary applied sciences.” 

All 5 tasks have acquired multi-agency federal approvals, together with from protection companies, and collectively symbolize about $28 billion in investment, based on BloombergNEF.

The Virginia challenge go well with filed in U.S. district courtroom in Norfolk mentioned Inside’s order “units forth no rational foundation, can’t be reconciled with … prior issued [federal ocean] lease phrases and approvals, is bigoted and capricious, procedurally poor, violates [federal law] and infringes upon constitutional ideas that restrict actions by the Government Department.” The Dec. 23 Dominion motion mentioned the “unlawful order is inflicting severe, irreparable hurt to [the owner] and its clients, and should be instantly, after which completely, vacated and enjoined.”  

These impacts embody $5 million per day in prices associated to its idled offshore development vessel, and associated expense for crews and saved gear, the go well with mentioned.

“If granted by the courtroom, it will enable the challenge to renew work,” mentioned a Dominion spokesman. “On the identical time, we are going to work to hunt decision by way of cooperation with the companies and the White Home, with a give attention to attaining a sturdy resolution.”  Dominion mentioned it has already spent greater than two-thirds of the whole $11-billion challenge growth value.

The authorized motion “highlights the arbitrariness of Inside’s halt of CVOW actions divorced from any CVOW-specific findings,”  Dominion mentioned. The go well with doesn’t pertain to the opposite halted tasks, however the vitality agency termed the Virginia challenge pause order “the newest in a collection of irrational company actions attacking offshore wind after which doubling down when these actions are discovered illegal.”

However calling the order “much more lawless and erratic” than the stop-work order for Revolution Wind struck down by a federal courtroom in September, Connecticut Legal professional Basic William Tong (D) mentioned the state is “evaluating all authorized choices, and this will probably be stopped identical to final time.” 

In a Dec. 23 joint statement, governors of Connecticut, Rhode Island, Massachusetts and New York mentioned the federal lease pause “can even inject additional uncertainty into the markets.” They didn’t verify nor rule out any joint or separate lawsuits, however additionally they search to barter with the administration associated to fuel pipelline funding, according to comments by Connecticut Gov. Ned Lamont (D) to The New York Instances. 

The governors on Dec. 24 additionally despatched a joint letter to Burgum outlning robust considerations with the challenge halt rationale and demanding a categorised briefing associated to claimed nationwide safety dangers, based on a posting on  New York Gov. Kathy Hochul’s web site.

Neither outgoing Virginia Gov. Glenn Youngkin, a Republican, nor just lately elected successor Abigail Spanberger (D), is iisted as a part of the governors’ group and has not commented on state actions to reverse the shutdown, though each have strongly supported the CVOW wind challenge in previous statements.

In the meantime, Senate Democrats Sheldon Whitehouse (R.I.) and Martin Heinrich (N.M.) mentioned Dec. 22 they might abandon present bipartisan negotiations on federal allowing reform laws until the administration reverses the lease pause. 

Authorized and Regulatory Context

The motion follows a Dec. 10 ruling by U.S. District Choose Patti Saris in Boston vacating an earlier directive that paused federal allowing for onshore and offshore wind tasks nationwide. That case was introduced by 17 states and the District of Columbia, difficult a Jan. 20 presidential directive that halted federal wind approvals pending further overview.

Earlier this yr, the Trump administration additionally moved to halt work on the Empire Wind and Revolution Wind tasks, actions later reversed following discussions with New York and New England officers and, within the latter’s case, a court-ordered restraining order sought by its builders, Orsted and personal investor Blackrock.

In a analysis notice. sector analyst ClearView mentioned the pause “is probably not a coincidence” with the Boston courtroom ruling, mentioned a report by wind sector publication Recharge. “Merely put, the administration could view [halt order] as a ‘counterpunch’ to judicial setbacks.”

Denmark-based Orsted, additionally developer of the halted Dawn Wind set to finish by the second half of 2027, mentioned it might need to faucet into an estimated $9-billion investor funding infusion gained earlier this yr if tasks need to be taken down. The agency’s inventory fell 13% on Dec. 22 after the federal government announcement

The developer mentioned 44 of the challenge’s deliberate 84 turbine foundations and its offshore substation have been put in this yr, and that development of its 106-mile transmission cable from Smith Level, Lengthy Island to the wind-energy lease space is greater than 40% full.

“Ørsted is evaluating all choices to resolve the matter expeditiously,” the corporate mentioned, together with evaluating “potential authorized proceedings.” 

Norway-based Empire Wind developer Equinor mentioned it’s “evaluating the order and looking for additional data from the federal authorities.”  The agency had been making ready for the 262-ft development vessel ECO Liberty, to begin putting in its 54 generators, every 15MW, subsequent spring. The ship, one of many first manufactured within the U.S., was launched in June from its Louisiana fabrication web site. 

The administration final Might agreed to challenge completion after talks with Hochul that reviews say additionally enabled renewed motion to progress two fuel proposed pipelines in New York. The estimated $5-billion Empire Wind challenge, which is about to supply energy to New York Metropolis and together with improve of the South Brooklyn Marine Terminal, had employed greater than 4,000 staff earlier than the present halt.

Hochul posted on social media that the administration will “search for any excuse to proceed its assault on clear vitality—and the 1000’s of good-paying jobs these tasks deliver— however there is no such thing as a credible justification for this stoppage. The actual risk to nationwide safety is in undermining our vitality independence,” she mentioned.

Sector growth specialists additionally famous lack of element used to assist the administration place.

“All tasks topic to the development pause already underwent a nationwide safety overview once they have been permitted,” Philip Totaro, CEO of offshore wind marketing consultant IntelStor, informed ENR. “There are greater than 80 GW of offshore wind tasks working globally, and whereas some did have reputable radar interference points, these have been handled throughout the allowing course of.”

Federal analysis has lengthy acknowledged that wind generators can create radar “litter,” though research by the U.S. Vitality Dept. additionally say mitigation applied sciences and operational changes can cut back these results.

Inside mentioned it is going to work with Protection Dept. leaseholders and state companions to judge whether or not mitigation measures are possible.

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Collective Push Again

Dominion Vitality warned that the CVOW challenge pause may threaten grid reliability in one of many nation’s main army hubs and fastest-growing energy markets. 

“The Coastal Virginia Offshore Wind Venture is crucial for American nationwide safety and assembly Virginia’s dramatically rising vitality wants,” mentioned Jeremy Slayton, firm spokesperson. “Stopping it for any size of time will threaten grid reliability for a few of the nation’s most necessary war-fighting, AI and civilian property.”

Slayton mentioned the challenge helps 1000’s of jobs and was authorized by Virginia regulators in 2022 following an in depth overview. 

Environmental and clean-energy teams criticized the pause of all tasks. The Conservation Regulation Basis mentioned it revives arguments courts have beforehand rejected, exposing the federal government to extra authorized challenges. Ted Kelly, director and lead counsel for U.S. clear vitality on the Environmental Protection Fund, mentioned the administration was “recklessly obstructing the build-out of unpolluted, inexpensive energy for thousands and thousands of Individuals.” 

Massachusetts Gov. Maura Healey mentioned Inside had made “unfounded and unspecified claims” about nationwide safety dangers associated to offshore wind. “It’s harmful to halt development in the course of a challenge,” she mentioned, including that Winery Wind has agreements in place with the Protection Dept. and U.S. Air Power to handle safety considerations. The challenge is owned by Avengrid and Copenhagen Infrastructure Companions.

Regional grid operator ISO New England mentioned pausing Winery Wind and Revolution Wind may trigger energy provide shortfalls. “Each tasks are included in our near-term and future modeling and analyses to make sure ample electrical energy for New England,” it mentioned.

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Labor leaders additionally warned of quick workforce impacts. Kendall Martin, president of the Ironworkers District Council of the Mid-Atlantic States, mentioned pausing work in Virginia would sideline staff who’ve spent almost two years constructing the challenge.  “Halting [its] development and operations … is nothing wanting devastating for the employees,” he mentioned, including that they have been informed the pause would remove their jobs for at the very least 90 days.

Frank Callahan, president of the Massachusetts Constructing Trades Unions, mentioned the suspension order amounted to “a layoff discover for a lot of union trades staff simply three days earlier than Christmas.”

However Inexperienced Oceans, a bunch crucial of offshore wind vitality growth, mentioned the motion is a proactive effort to handle missile-defense vulnerabilities tied to offshore infrastructure.

Inside didn’t instantly launch project-specific stop-work orders or element how the lease pause will have an effect on development schedules, marine operations or supply-chain contracts. Builders and state companies mentioned they have been reviewing the announcement and awaiting formal path from federal regulators. 

IntelStor’s Totaro urged challenges to the pause.

“Builders must get snug with defying these shutdown orders as a result of the results of defiance truly pale compared to the billions they stand to lose in the event that they pause development,” he mentioned. “Tasks may actually run out of funds and by no means end development, and the [U.S.] authorities is aware of this. It’s their technique.

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He added: “The truth that it is a deliberate order issued in dangerous religion, and that builders have grounds to show is why they need to be allowed to defy the order. They might additionally search compensation from the federal government for deliberately interfering with the challenge growth course of.

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Totaro pointed to Equinor specifically, noting its “settlement in place” as “proof of dangerous religion” by the federal government, additionally suggesting that the sovereign wealth fund of Norway, which is the agency’s majority proprietor, has $850 billion invested within the US, “examine pulling a few of that out.”