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The New Jersey Board of Public Utilities (NJBPU) has officially vacated its approvals for the Ocean Wind One and Ocean Wind Two offshore wind projects, marking a major shift in the state’s approach to offshore wind energy development. This decision follows a motion by Ocean Wind LLC, owned by Danish energy firm Ørsted, which asked the Board to vacate its previous orders after Ørsted announced in October 2023 that it was ceasing development of both projects.
The NJBPU’s decision is the culmination of legal action taken by Cape May County, which had challenged the projects in both the New Jersey Appellate Division and Federal District Court. While the state has allowed Ørsted to retain $175 million in escrow, vacating these orders effectively halts the Ocean Wind projects, pending further legal and procedural developments.
Legal Actions by NJBPU
On July 1, 2024, Ocean Wind LLC and Ocean Wind II, LLC each filed motions with the NJBPU, referencing Ørsted’s October 2023 decision and the Settlement Agreement between Ørsted and the state. These motions formally requested the Board rescind the approvals granted for Ocean Wind One and Two. This agreement officially ceased the projects and asked the NJBPU to reverse its previous orders, including a key June 2021 decision that approved the Ocean Wind 2 project.
In response to these motions, the New Jersey Division of Rate Counsel raised concerns about the settlement, particularly regarding the appropriate procedural mechanisms for the Board to consider vacating the orders. However, despite its objections, the Rate Counsel did not oppose the relief sought by Ocean Wind and consented to waive any procedural requirements. The Rate Counsel also recommended that Ocean Wind inform the courts that its pending legal matters regarding the projects were now moot. The County of Cape May echoed these concerns in correspondence with the NJBPU.
Comments from Cape May Stakeholders
“Today is a very important day in our ongoing opposition to these environmentally destructive offshore wind projects,” said Cape May County Commission Director Len Desiderio. “The vacation of these orders by the BPU means that it will be much more difficult for Ørsted or any other Big Wind company to utilize these lease areas just a few miles off Cape May County beaches.”
The county’s opposition is grounded in concerns over potential environmental harm. It points to the catastrophic failure of a wind turbine blade in Nantucket earlier this year as a cautionary example. In that incident, a 115,000-pound turbine blade broke and scattered debris across miles of Atlantic beaches, disrupting tourism and necessitating ongoing cleanup efforts.
Desiderio further highlighted that the risks posed by these offshore wind projects extend beyond environmental concerns to local economies. “These industrial electricity-generating facilities represent an unacceptable threat to our environment and, consequently, to our local economy,” he stated.
Michael Donohue, former New Jersey Superior Court Judge and Cape May County’s Special Counsel for Offshore Wind emphasized the broad coalition opposing these projects, including the fishing and tourism industries and environmental groups. “We can know for sure that the County of Cape May and its partners certainly contributed to Ørsted’s decision to abandon the Ocean Wind projects,” Donohue noted.
Donohue also stressed that while the NJBPU’s orders have been vacated, Cape May County’s legal actions remain active in state and federal courts. The county will likely amend its federal filings as the NJBPU’s decision may have nullified Ørsted’s federal permits.
How Will This Decision Impact Future Plans to Bring Offshore Wind to the Garden State?
Looking ahead, Cape May County continues to support opposition efforts against other offshore wind projects, such as Atlantic Shores, which is proposed just eight miles off Brigantine’s coast. “With a similar blade disintegration in the Atlantic Shores project, Cape May County’s beaches would be strewn with thousands of pieces of jagged fiberglass and foam,” Donohue warned. “This would be devastating to our local families and businesses that depend on our beaches for their livelihood.”
As legal challenges persist, offshore wind development in New Jersey remains uncertain. For now, vacating the NJBPU’s orders represents a significant victory for opponents of the projects, but the broader battle over offshore wind energy is far from over.