New York-led AG suit challenges offshore wind lease buyout deals

Today, Governor Kathy Hochul (D-NY) and Attorney General Letitia James announced that New York is leading a coalition of six other attorneys general in suing the Trump administration over its unlawful cancellation of a major offshore wind lease.

In response, Oceantic Network has released the following statement from Liz Burdock, President and CEO: “For more than a year, offshore wind has faced an unprecedented and unrelenting campaign of political interference despite billions in private investment, state commitments, and court rulings. These continued attacks on offshore wind are not just an assault on a single industry—they are an attack on American workers, energy affordability, national security, and the states' right to shape their own energy future. We commend the Northeast Governors for standing up again against actions that threaten jobs, investment, and the nation's ability to meet growing electricity demand with an affordable and reliable energy source.”

Oceantic estimates the cancellation of a single 1 GW offshore wind project permanently erases $8.5–$9.5 billion in U.S. economic output, based on peer reviewed modeling and operational project benchmarks from the East Coast. On average, about 3,350 construction jobs nationwide are lost, with substantial impacts on the in-state workforce depending on the project’s location, accompanied by hundreds of millions of dollars in lost wages.

Background Information (not for attribution):

• The lease settlements are targeting a limited amount of overall market potential, which is likely to be re-leased in the next administration. These actions are intended to create market uncertainty and make headlines following a string of court losses.

• Most developers in the U.S. market have made significant supply chain and workforce investments in addition to their lease fees, which would not be returned in these deals. There is a limit to how far this approach can go.

• Significant legal uncertainty remains around the recent settlements, which has sparked Congressional oversight.