Energy lobby puts on full court press before Trump-era offshore moratorium kicks in.

Offshore wind energy has enjoyed significant momentum as the star of the next phase of the world’s renewable energy revolution. Yet, just as the U.S. is getting started on their effort to catch Europe in offshore wind capacity, a moratorium is set to place that would block off likely a quarter of the country’s offshore space for renewable energy. 

As the 2020 election came to a head, former president Donald Trump signed a 10-year moratorium on all offshore energy leasing off the shores of the southeastern U.S., from North Carolina, down to Florida, extending around the southern tip of the Sunshine State and into the eastern Gulf of Mexico. The moratorium includes leasing for all types of energy, not just renewable energy, which raises further questions about Trump’s motivations for signing the executive order. 

The moratorium is set to go into effect on July 1 of this year, and does not impact any leases signed before July 1, which has created something of a mad dash across the finish line. Late last month, the U.S. Bureau of Ocean Energy Management announced the award of an offshore lease to Wilmington East project, which sits on the fence between North and South Carolina. According to reports, the project is estimated to have a capacity for up to 1.5 gigawatts of power. 

A study by firm Wood Mackenzie estimates the stakes are high for the order. The U.S. has a goal for 30 gigawatts of offshore wind power by 2030, and 110GW by 2050, and would generate tens of thousands of jobs and billions in investment. To cut the southeast off from this projected economic boom would hurt both the southeastern local economies, and the country’s ability to reach its offshore goals. 

Since Trump signed the decade-long moratorium as an executive order, President Joe Biden cannot simply reverse it. Taking the moratorium off the books will require both houses of Congress to pass bills aimed at undoing the order. This has set off another mad dash, though this time a political one. Energy lobbyists have been writing letters to lawmakers throughout the year, urging passage of bills to undo the order. The U.S National Association of Manufacturers, the Southeastern Wind Coalition and the U.S. Chamber of Commerce have each signed onto letters urging Congress to take action. 

Trump’s ideas behind the moratorium is even more mysterious when one considers the approach taken by his administration early in his presidency, issuing a statements that the U.S. coast is largely an untapped energy resource the country has a mandate to tap into if it is going to not only survive, but compete with China. 

Have you been impacted by this moratorium? I would love to hear what you’re hearing.