The Functional Government Initiative (FGI) has reported that the Biden administration's Bureau of Ocean Energy Management (BOEM) waived a $191 million financial assurance requirement for an offshore wind project facing challenges.
In 2021, BOEM, part of the Biden Interior Department, deferred the $191 million decommissioning assurance for the Vineyard Wind project until year 15 of its 20-year lease. This fee is typically required to ensure taxpayers are not liable if a project fails. Vineyard had requested a deferment in 2017, but the Trump administration denied it. According to FGI, BOEM later justified the waiver by stating the cost was "unnecessarily burdensome for lessees" who had not yet started generating revenue and pointed to the project's "proven wind turbine technology" and "guaranteed electricity sales prices" as indicators of long-term viability.
In 2024, one of Vineyard Wind’s turbine blades broke off, causing an environmental issue on Nantucket beaches and halting operations for six months. The project resumed generating power on January 19, 2025. The offshore wind sector has since faced financial challenges, including the cancellation of two wind farms off the coast of New Jersey in 2023 by a foreign company. In response to these and other concerns, former President Trump has called for a full review of all offshore wind permits approved under the Biden administration to investigate possible procedural issues, according to FGI.
"This was essentially a $191 million gamble with our money. It’s not often you can put a price on recklessness, but BOEM under its previous leadership was in such a rush to get the risky project underway that it left American taxpayers unprotected," said Roderick Law, spokesman for FGI.
The Functional Government Initiative is a nonpartisan organization focused on increasing public awareness of government officials, decisions, and priorities. Through investigative research, litigation, and education, FGI aims to promote transparency and accountability. The group advocates for policies that support economic growth, public health, workforce stability, and environmental safety while emphasizing the need for an informed public to drive effective governance.
