OCEAN CITY, Md. - WBOC has obtained court filings by offshore energy company US Wind seeking a preliminary injunction to prevent the Trump Administration from reversing an offshore wind project off Delmarva’s coast before a federal judge has had a chance to weigh in.
US Wind now argues that a reversal of the project could result in the company going bankrupt.
The latest filing comes amid an ongoing lawsuit initially filed against the Biden Administration’s Bureau of Ocean Energy Management by Ocean City leaders, neighbors, businesses, and other local plaintiffs. The suit challenged BOEM’s approval of the offshore project’s Construction and Operations Plan in December of 2024, effectively greenlighting the project despite some public outcry against it.
US Wind would later officially join the suit as an intervenor defendant after President Donald Trump’s inauguration and amid clear signals that the federal government would no longer defend the company’s project. In fact, the Trump Administration quickly made it apparent it was working to halt offshore wind projects all along the Atlantic coast.
Because of the federal government’s plan to abandon the previous administration’s support of offshore wind, the Trump Administration argued the lawsuit against them over US Wind’s approval was moot.
Earlier this month, US District Court Judge Judge Stephanie Gallagher denied the Trump Administration’s motion to stay the lawsuit until the current government shutdown had been lifted.
On Oct. 15, US Wind filed a motion for preliminary injunctive relief, asking the court to deny any action by the Trump Administration to halt the project before the lawsuit could be resolved.
“Why the big rush to revoke the already-issued Project approvals before the Court can consider its merits?” the motion reads. “Two reasons. First, the Government knows the approvals will easily withstand judicial review, and—as explained in detail below—its Revocation Decision will not.”
“Second, by evading judicial review through vacatur, remand or even a stay of this litigation, the Government can dictate the fate of the Project in whichever way it pleases.”
Ultimately, US Wind argues that if the Trump Administration is not stopped from withdrawing the previously-awarded approval, the company could face major financial harm and even bankruptcy.
“The loss of US Wind’s COP approval through the Government’s execution of its Revocation Decision creates an existential threat to its entire business—and would cause irreparable financial and reputational harm even if somehow it did not permanently kill the Project,” the company’s filing reads.
Should the approval be reversed, US Wind says its investors could declare the company in default or refuse to provide additional financing, possibly leading to US Wind filing for bankruptcy.
Included in the Oct. 15 filing is a transcript from Sept. 15 of a status hearing between all parties and Judge Gallagher.
During the conversation, US Wind’s lawyers argued the Trump Administration intends to withdraw the project’s approval “by whatever means necessary” and that intent necessitated an injunction from the judge to prevent it from happening.
“You know, the bigger picture here, Your Honor, is that this is truly a life or death situation for this project,” an attorney for US Wind said.
US Wind’s legal representatives also said that construction for the project has already started, according to documents acquired by WBOC.
“The construction pursuant to the COP began last year,” David Newmann, representing US Wind said. “Construction is under way. We will continue with ongoing on-the-land construction next year, and there is a detailed schedule, sequence of events that leads to undersea construction after that.”
WBOC reached out to US Wind on Thursday to confirm where exactly the construction had begun as well as for a statement on the importance of the proposed injunction.
"We continue to be confident in the validity of our federal permits and will continue to vigorously defend them in court,” US Wind’s response reads in full.
As of Thursday afternoon, Judge Gallagher has yet to sign or reject the proposed injunction.
WBOC will continue to provide the latest updates on the ongoing litigation over US Wind’s proposed project off the shores of Delmarva.