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"We the taxpayers are going to pay companies $900 million... to NOT build wind power at a time when electricity prices are spiking and we need more clean power?" said one expert.
President Donald Trump's administration this week shelled out even more US taxpayer money to get energy firms to cancel planned renewable energy projects.
As The New York Times reported, the US Department of the Interior on Monday announced plans to reimburse energy companies a combined $885 million in exchange for forfeiting their leases to build wind farms in federal waters off the coasts of New York, New Jersey, and California.
The companies involved in the projects have promised promised to invest in fossil fuel energy projects, "including liquefied natural gas facilities along the Gulf Coast," the Times reported.
The agreements with the energy companies are similar to a deal the administration struck earlier this year with French firm TotalEnergies, which agreed to forfeit its leases for projects off the coasts of New York and North Carolina in exchange for $928 million that would be plugged into fossil fuels.
Senate Minority Leader Chuck Schumer (D-NY) blasted the administration for killing the projects planned off the coast of his state, decrying "a reckless decision that hurts working families and the economy."
"Once again, Donald Trump is attacking New York offshore wind at the behest of his fossil fuel donors with no justification," Schumer said.
Costa Samaras, director of the Carnegie Mellon University Scott Institute for Energy Innovation, expressed disbelief that the administration was killing clean energy projects at a time when Americans are suffering from surging gas prices, which on Tuesday hit their highest level in four years.
"Hold on," he wrote in a social media post. "We the taxpayers are going to pay companies $900 million, which is more than six times what we spend on wind power research and development, to NOT build wind power at a time when electricity prices are spiking and we need more clean power?"
New polling suggests that Trump's blanket opposition to wind power projects is becoming politically costly.
As Gizmodo reported on Tuesday, a recent survey conducted by GOP public opinion research firm the Tarrance Group found that "nearly three-quarters (74%) of voters favor the construction of offshore wind projects off the coast of their own state, with majorities favoring in every state surveyed."
The poll found that even Republican voters have grown more supportive of wind power projects, with support for offshore wind rising by 30 percentage points over the last year.
In its analysis of the poll, the Tarrance Group said that more voters have come around to supporting offshore wind due in part to "ongoing concerns about energy prices," which have spiked since Trump launched an illegal war with Iran in February.
"The most corrupt presidency ever—and it's not even close," said one critic.
Critics slammed the Trump administration on Monday after it announced a deal to pay almost $1 billion to a French energy company to cancel its plans to construct wind farms across the eastern US.
As reported by The New York Times, French firm TotalEnergies has agreed to forfeit its leases in federal waters off the coasts of New York and North Carolina, and will instead invest the money it received from the Trump administration into oil and gas projects in the US, "including a facility in Texas that would export liquefied natural gas to global markets."
TotalEnergies paid nearly $928 million for the rights to access federal waters during former President Joe Biden's administration.
The Times described the agreement as "an extraordinary transfer of taxpayer dollars to a foreign company for the purposes of boosting the production of fossil fuels, a main driver of climate change, while throttling offshore wind power."
Patrick Pouyanné, the chief executive of TotalEnergies, said that the firm decided to abandon its US wind farm plans due to "practical" considerations, while emphasizing that the firm wasn't giving up on wind power all together.
"When the Trump administration came to power and began setting US energy policy, we said that we’ll have to reconsider, clearly, these offshore wind project developments," explained Pouyanné, adding that "we continue to invest in onshore solar, onshore wind, batteries."
Many critics expressed disbelief that the Trump administration would go to such extraordinary lengths to kill a clean energy project, especially after the president sent oil and gasoline prices soaring earlier this month when he launched an unprovoked and unconstitutional war with Iran.
"Let’s call this what it is: a taxpayer-funded bribe to kill homegrown clean energy and hand the money straight to oil and gas executives," wrote climate advocacy organization Evergreen Action in a social media post. "Trump is once again making Americans pay more for energy so his Big Oil donors can rake in even more profits."
Melanie D'Arrigo, executive director of the Campaign for New York Health, expressed a similar sentiment.
"$1 billion of our tax dollars to kill a clean energy program that creates jobs, just so Trump's Big Oil donors can make more profit," D'Arrigo wrote. "The most corrupt presidency ever—and it's not even close."
Matt Gertz, senior fellow at press watchdog Media Matters for America, argued that the agreement was a corrupt bargain aimed at hurting the president's political foes, including the Democratic leaders of New York and North Carolina.
"Climate/renewables arguments aside, this is the president's administration paying a foreign company to invest in states where Republicans are in charge rather than ones where Democrats are in charge," Gertz wrote, "using tax dollars to punish people who didn't vote for his party."
US Sen. Lisa Blunt Rochester (D-Del.) said that the deal to kill the planned wind farms was yet another example of the Trump administration making life in the US less affordable.
"This administration just spent $1 BILLION of your money to make sure wind farms don't get built," Blunt Rochester wrote. "You''ll have them to thank for higher electric bills each month."
“Burgum’s actions on offshore wind appear to be motivated by the personal financial interests of those in the administration, not our collective national interests."
A week after the US Department of the Interior said it was immediately halting five offshore wind projects in the interest of "national security," a watchdog group told congressional committees Monday that the move is "not legally defensible" and raises "significant" questions about conflicts of interest concerning a top DOI official's investments in fossil gas.
Timothy Whitehouse, executive director of Public Employees for Environmental Responsibility (PEER), wrote to the top members of the Senate Energy and Natural Resources Committee and the House Committee on Natural Resources regarding the pause on projects off the coasts of Virginia, New York, Rhode Island, Connecticut, and Massachusetts—projects that account for billions of dollars in investment, employ thousands of people, and generate sustainable energy for roughly 2.5 million homes and businesses.
The announcement made by Interior Secretary Doug Burgum last week pertained to "five vague, perfunctory, cookie-cutter orders" halting the projects, wrote Whitehouse, but PEER is concerned that the orders were issued to evade the Congressional Review Act (CRA), under which the action to halt the projects likely constitutes a "major rule."
Whitehouse explained:
Under the CRA, a rule that meets any one of three criteria (an annual effect on the economy of $100,000,000 or more; a major increase in costs or prices for consumers, individual industries, federal, state, or local government agencies, or geographic regions; or in pertinent part significant adverse effects on competition, employment, investment, productivity, or innovation) is a major rule. Interior’s pause likely meets all three.
As a major rule under the CRA, the pause cannot take effect until at least 60 days after BOEM provides Congress the requisite notification and report under the CRA, which, according to GAO’s database, has not yet occurred. Congress must use its oversight authority to unveil the truth and, as appropriate, and to enforce the rule of law.
He said in a statement that “Burgum’s move is designed to bypass all congressional and public input."
The CRA states that a rule is "the whole or a part of an agency statement of general or particular applicability and future effect designed to implement, interpret, or prescribe law or policy or describing the organization, procedure, or practice requirements of an agency.”
Press statements by the DOI and by Burgum last week were "statements of general applicability and imminent future effect, designed to implement policy," wrote Whitehouse, who also said the interior secretary embarked on "a coordinated rollout with Fox News entities."
On December 22, Fox anchor Maria Bartiromo asked Burgum at 8:00 am Eastern, “What next action did you want to tell us about this morning?” Five minutes later, FoxNews.com published its first story on Burgum's orders, citing a press release that had not yet been made public and including a quote from the secretary about the "emerging national security risk" posed by the offshore wind projects.
"If last week’s actions are allowed to stand, future presidents will have unchecked authority under the guise of national security to target federal leases related to entire disfavored energy industries for political purposes."
Burgum's announcement to Fox came at least one to two hours before Bureau of Ocean Energy Management (BOEM) acting Director Matthew Giacona provided the orders to the lessees running the five wind projects.
Further, wrote Whitehouse, "Burgum’s voluminous public comments in the hours and days since the pause further show the true purpose of Interior’s singular action."
"The national security pretext quickly gives way to broad and spurious talking points about the 'Green New Scam,' how 'wind doesn’t blow 24-7' (evincing Burgum’s seeming unfamiliarity with energy storage technologies), and unyielding promotion of liquified natural gas projects," wrote Whitehouse.
Aside from the alleged illegality of Burgum's order, PEER pointed to Giacona's potential conflicts of interest with BOEM operations and specifically with halting wind projects. Giacona is a "diligent filer" of financial disclosure forms required by the Ethics in Government Act, noted Whitehouse—but those forms point to potential benefits he may reap from shutting down offshore wind infrastructure.
Giacona reported his purchase of interests in the United States Natural Gas Fund (UNG) on September 16. The fund tracks daily price movements of "natural" gas delivered at the Henry Hub in Louisiana and is subject to regulation by the Commodity Futures Trading Commission.
"Accordingly, a government employee who has an interest in UNG also has a potential conflict of interest with the underlying holdings of UNG (currently primarily natural gas futures contracts at the Henry Hub)," wrote Whitehouse.
PEER does not know whether Giacona continues to hold a financial interest in UNG or whether the offshore wind pause will have a "direct and predictable effect on a financial interest in UNG," but Whitehouse noted that Burgum and DIO have entwined the pause with the promotion of liquefied natural gas.
"It is disconcerting that Mr. Giacona temporarily had even a de minimis financial interest in natural gas futures while also leading the agency that manages the development of natural gas resources on the outer continental shelf," wrote Whitehouse, adding that Giacona also sold interests in the United States Oil Fund on September 3, while overseeing BOEM.
Based on Giacona's investments, said Whitehouse, “Burgum’s actions on offshore wind appear to be motivated by the personal financial interests of those in the administration, not our collective national interests. This is another misguided step in transforming the federal government into a franchise of the fossil fuel industry.”
“On public lands across the United States, the Department of the Interior has tens of thousands of additional active leases related to oil, gas, wind, solar, and geothermal production and mining for energy-related minerals," he added. "If last week’s actions are allowed to stand, future presidents will have unchecked authority under the guise of national security to target federal leases related to entire disfavored energy industries for political purposes."