In the “clean energy” frenzy, protecting taxpayers wasn’t top-of-mind for the Interior Department.
(Washington, DC) – It costs a lot to build an offshore wind energy plant – a lot. But the Functional Government Initiative (FGI) has found out how much it would cost to make one disappear.
In 2021, the Biden Interior Department’s Bureau of Ocean Energy Management (BOEM) waived the customary financial assurance for decommissioning on the lease of the Vineyard Wind project off the Massachusetts coast. Decommissioning fees are typically required for every energy lease Interior grants so that if a project fails and the lessee goes bankrupt, taxpayers aren’t stuck with cleanup costs. Vineyard first asked for a deferment in 2017 and was denied by the Trump administration, but the Biden BOEM informed Vineyard the fee was deferred for 15 years into its 20-year lease.
Documents recently obtained by FGI show how much taxpayers are on the hook for if Vineyard Wind can’t afford to decommission: $191 million. BOEM’s reasoning at the time was that the fees were “unnecessarily burdensome for lessees because, at that point, they have not begun receiving project income.” Besides, Vineyard used “proven wind turbine technology,” and “guaranteed electricity sales prices that, coupled with the consistent supply of wind energy, ensure a predictable income over the life of the Project.”
Of course, no project receives income before its up and running. As for the “proven technology,” a turbine blade broke off during the summer of 2024, causing an environmental hazard on Nantucket’s beaches. Vineyard didn’t start generating power again until January 19, 2025, a full six months after the incident.
Meanwhile, offshore wind hasn’t proven financially viable. A foreign company abandoned plans for two plants off the coast of New Jersey in 2023, and President Trump has ordered a comprehensive review of all offshore wind permits granted under Biden for irregularities.
Roderick Law, spokesman for FGI, issued the following statement:
“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.”
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