The Biden administration has been criticized for granting special treatment to two wind projects, according to documents obtained by the Functional Government Initiative (FGI). The Bureau of Ocean Energy Management (BOEM), part of the Interior Department, allowed Danish wind developer Ørsted a 15-year deferral on financial assurance for decommissioning its Revolution Wind project off Rhode Island's coast. This decision means taxpayers could be liable for $325 million if the project fails. Ørsted has faced financial challenges, including a recent $9 million rights issue and previous losses from abandoned projects in New Jersey.
The BOEM also granted a similar waiver to Vineyard Wind off Massachusetts, citing that initial fees were burdensome as projects had not yet generated income. However, this reasoning was questioned after a turbine collapse in June 2024 caused environmental damage and halted electricity production for months.
The Bureau of Safety and Environmental Enforcement (BSEE) opposed these deferrals, warning they increased taxpayer risk. An internal memo highlighted concerns about delaying financial assurances and potential government losses if funds are needed before project completion.
Roderick Law from FGI said: "With each revelation, two things become clearer: wind electricity wasn’t ready for primetime, and the Biden administration didn’t care. It was determined to force these projects through no matter the cost, the risks to taxpayers, or the dubious value to the people who pay for electricity and pay federal taxes."
