The Biden Administration has recognized significant offshore wind projects, even with internal cautions about potential risks for taxpayers, as shown in documents acquired by the watchdog group Functional Government Initiative (FGI).
For instance, there’s a notable “revolutionary” project planned near Rhode Island and Connecticut, originally based in Denmark. This project received final approval in August 2023, despite some exceptions made by the current administration. According to the documents, the company was allowed to defer funding for its decommissioning, extending the timeline to 15 years. This decision has raised eyebrows, especially since internal warnings indicated that such exceptions could pose risks to federal taxpayers. The estimated decommissioning costs for projects like this one, and another called Vineyard Wind, are staggering—around $325 million and $191 million, respectively.
FGI spokesperson Roderick Law pointed out that this situation highlights two main issues: wind energy’s lack of readiness for widespread use and the administration’s apparent disregard for the financial implications. “They decided to push these projects through regardless of the taxpayer risks or the questionable benefits,” he remarked. He further referenced how the Trump administration prudently halted work on the projects to ensure thorough reviews of potential environmental and safety impacts.
In an internal memo from May 2021, the Bureau of Safety and Environmental Enforcement (BSEE) alerted the Office of Marine Energy Management (BOEM) that the delay in securing financial assurances increased the risks to taxpayers. Typically, federal regulations require that companies pre-fund decommissioning to safeguard against potential project failures. However, the Biden administration has permitted Ørsted and others to postpone such funding, even as they pursue relatively untested offshore wind projects, while cracking down on more established energy sources.
The BSEE memo stated that the failure to adhere to these financial guidelines is concerning. The risks associated with delayed financial guarantees include unexpected events that might necessitate early access to decommissioning funds.
The documents reveal that Ørsted sought a 15-year delay on financial guarantees for the Revolutionary Wind project in November 2023, which was eventually approved in March 2024, despite prior work stoppage orders set for August 2025. An Ørsted spokesperson defended the situation, stating, “Revolution Wind, LLC complies with all financial assurance requirements, including decommissioning,” adding that the project is 80% complete and aims to power over 350,000 homes upon completion.
The Biden administration has been actively promoting offshore wind development, despite past criticisms from the Trump administration, which labeled such projects as costly failures. Trump’s first day in office saw a presidential order aimed at suspending new wind power leases, pending reviews.
In previous reports, FGI highlighted issues with the Vineyard Wind project, which faced debris challenges off Nantucket but also received a similar extension in 2021 under the Biden administration. “This represents a $191 million risk with taxpayers’ money,” Law commented during the first discovery of these cost delay exceptions, indicating that previous leadership hurried projects that could endanger public funds.
FGI argues that the exemptions granted to failed projects under the Biden administration weren’t surprising, as the Revolutionary Wind has faced delays and was set on a course for review when requests were made during Trump’s presidency.
BOEM plans to implement new “Modernize Renewable Energy” regulations in May 2024 that might offer wind companies more flexibility regarding decommissioning costs. This could allow businesses to bypass upfront payments for these expenses if they provide adequate proof of financial capability. Meanwhile, several significant offshore wind agreements have been canceled over recent years due to financial viability concerns.
Furthermore, the National Oceanic and Atmospheric Administration (NOAA) verified that the administration did not conduct proper reviews of various offshore wind projects prior to their approvals, raising concerns. Environmentalists have also voiced their worries, suggesting that offshore wind farms might disrupt marine life.
