80% completed project suddenly stopped! Two state governments join forces with a wind power giant to sue Trump.
The states of Rhode Island and Connecticut, along with a wind farm company supported by Orsted A/S, jointly sued the Trump administration in an attempt to restart a nearly completed offshore wind project that was abruptly halted by the government last month.
The state of Rhode Island, Connecticut, and a wind farm company supported by Orsted A/S have jointly sued the Trump administration in an attempt to restart a nearly completed offshore wind project that was abruptly halted by the government last month. On Thursday morning, Revolution Wind LLC, owned jointly by Orsted and global infrastructure partner, filed a lawsuit in the Washington federal court, and a few hours later, the two states in the New England region announced that they had joined the lawsuit.
These two cases have triggered a major legal battle, focusing on a series of recent executive orders issued by the Trump administration, reflecting Donald Trump's long-standing hostility towards the wind power industry, and threatening billions of dollars in investment, hundreds of jobs, and new electricity supply.
During the press conference announcing the states' lawsuits, Connecticut Attorney General William Tong harshly criticized Trump for launching a "full-scale war" against wind power. Democrat Tong said: "This is a completely illegal, baseless work stoppage, frankly, both meaningless and foolish."
White House spokesman Taylor Rogers stated in a declaration that the Biden administration had given unfair advantages to wind farms. Rogers said: "President Trump instructed agencies on his first day to review leasing and permitting practices for wind projects, while considering the increasing demands for reliable energy, the impact on American household energy costs, the importance of marine life and fisheries, and the impact on ocean currents and wind patterns."
Revolution Wind company seeks an emergency ruling to overturn the government's work stoppage order issued on August 22 and allow them to complete the project off the coast of Rhode Island. The company stated that the project is 80% complete, and the abrupt halt violates their constitutional due process rights.
The lawsuit documents reveal that the project aims to provide energy to hundreds of thousands of households in Rhode Island and Connecticut, and has been approved after extensive environmental and national security reviews by multiple agencies and three presidential administrations.
Revolution Wind stated that they have invested or committed around $5 billion in the project, and if the project is canceled, they would incur over $1 billion in standalone costs. The lawsuit states: "Revolution Wind reasonably relied on the defendant's approval and authorization of this project, expended these monies, and undertook financial obligations, expecting to lawfully engage in the due process."
The states cited in the lawsuit filed in Providence, Rhode Island, that Trump's work stoppage order for the project was arbitrary. The states stated: "The order did not cite any illegal activity, an imminent security threat, or require a halt mandated by a judicial decree. For over a decade, the states, Orsted, and the federal government have worked together to build wind energy facilities off the coast of Rhode Island."
The state case was assigned to U.S. District Judge Mary S. McElroy appointed by Trump, while the "Revolution Wind" case was assigned to U.S. District Judge Royce Lamberth appointed by Ronald Reagan.
Since taking office in January, Trump has issued a series of orders to hinder the emerging offshore wind industry in the United States. Trump has long held a contemptuous attitude towards the industry, claiming that large wind turbines will kill birds, cause cancer, and drive whales "crazy."
In January, Trump signed an executive order halting wind project approvals, leading to a suspension of construction at an offshore wind farm near New York, which was later restarted after negotiations with New York Governor Kathy Hochul. The lawsuit also mentions concerns regarding whales, stating that "overwhelming scientific consensus is that offshore wind activities are not a leading cause of marine mammal mortality," with such deaths primarily being caused by ship strikes and entanglement in fishing gear.
In a statement, Revolution Wind stated that they will continue to work with the government to resolve the dispute, but filing the lawsuit was a necessary step. Trump's attacks on the wind power industry also include suspending new leases and permits, withdrawing hundreds of millions of acres of ocean development land, and cancelling tax credits. In August, the U.S. Department of Commerce launched an investigation into imports of wind turbines and components, which could lead to further tariffs. On August 22, the U.S. government issued an order to block the "Revolution" project off the coast of Rhode Island on national security grounds.
Just hours before this decision was made, Danish Foreign Minister Rasmus Mller signed a climate agreement with California Governor Gavin Newsom, which led Danish people to speculate that Trump's move was a retaliatory action. Earlier this year, Trump issued a similar work stoppage order for another project being developed by Norway's Equinor ASA, but the order was lifted a few weeks later.
This conflict comes at a critical time for Orsted. The company is set to hold a shareholder meeting on Friday to approve a capital increase of 600 billion Danish kroner to strengthen its financial position. This move is largely due to Trump's pressure on offshore wind power, which has prevented the company from selling its stake in another wind farm - Sunrise Wind, under construction off the coast of New York.
Since the beginning of this year, the company's stock price has fallen by over 40%, causing a market value loss of nearly $8 billion, and Trump's pressure has disrupted Orsted's planned sale of 60 billion kroner in stock. The lawsuit by Revolution Wind also names Trump administration officials, including Interior Minister Douglas Burgum and Acting Director of the Bureau of Ocean Energy Management Matthew Giacona.
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