US permitting reform talks 'dead in the water' amid offshore wind uncertainty: senators

Democratic leaders in the US Senate said the Trump administration's moves to cancel five offshore wind projects along the East Coast have effectively ended permitting reform negotiations heading into the new year.

The lease cancellations, affecting roughly 6.9 GW of planned generating capacity, were announced Dec. 22 by the US Interior Department. Interior Secretary Doug Burgum said the leases are being revoked due to "emerging national security risks," such as the potential for turbine towers to create radar "clutter" that generates "false targets."

Burgum's announcement came just days after the House of Representatives advanced legislation to speed federal environmental reviews and protect already-permitted projects from politically motivated reversals.

The House-passed legislation, dubbed the SPEED Act, won support from 11 House Democrats, shifting focus to Senate negotiations on a broader bipartisan permitting reform package. At least seven Democratic votes are needed to overcome the chamber's 60-vote filibuster threshold.

Senator Sheldon Whitehouse, Democrat-Rhode Island, ranking member on the Environment and Public Works Committee, and Senator Martin Heinrich, Democrat-New Mexico, ranking member on the Energy and Natural Resources Committee, issued a joint statement Dec. 22 saying permitting reform talks are now "dead in the water."

"There was a deal to be had that would have taken politics out of permitting, made the process faster and more efficient, and streamlined grid infrastructure improvements nationwide," the Democrats said.

However, the lawmakers argued that efforts to cancel approved projects -- including Dominion Energy's 2.6-GW Coastal Virginia Offshore Wind project, which is more than two-thirds complete -- show the Trump administration "is not interested in permitting reform."

"The illegal attacks on fully permitted renewable energy projects must be reversed if there is to be any chance that permitting talks resume," they said. "There is no path to permitting reform if this administration refuses to follow the law."

Energy policy research firm ClearView Energy Partners said in a Dec. 22 research note that "a permitting optimist might suggest that pausing these five projects could serve as collateral for Republicans negotiating a Senate bargain."

"A gloomier observer might see cancellations premised on 'inherent' risk to national security might as an indication the administration does not view codification of a narrower approach to permitting as a priority and may not be interested in facilitating a deal," ClearView said.

The research firm said President Donald Trump has repeatedly pressured Senate Republicans to terminate the chamber's filibuster rules to help lock in his legislative agenda ahead of the 2026 midterm elections.

"A collapse of congressional permitting reform might frustrate industry stakeholders, but it could also have the effect of empowering the president to leverage presidential prerogatives towards a solution," ClearView said.

Senate Energy and Natural Resources Committee Chairman Mike Lee, Republican-Utah, on Dec. 22 appeared to voice support for Trump's position on ending the Senate filibuster.

"If Senate Democrats cut off permitting-reform talks, this will make ending the zombie filibuster of immediate, paramount importance," Lee wrote on social media.