The Interior Department's Bureau of Ocean and Energy Management has initiated a formal review of the previously approved construction and operations plan for Equinor's Empire Wind 2 offshore wind project. The review was announced through a federal court filing related to ongoing legal challenges from local residents and business groups opposing the development.

This regulatory action aligns with President Trump's executive order mandating a comprehensive assessment of all offshore wind projects in federal waters. The administration is evaluating whether existing project approvals comply with federal legislation requiring energy developments to balance environmental protection, national security considerations, and maritime usage rights.

Market implications for offshore wind developers appear significant, as the administration has already suspended new leasing and permitting activities while moving to revoke existing project authorizations. Equinor executives had previously indicated in July that the company was unlikely to proceed with Empire Wind 2 due to anticipated regulatory changes, despite the project's approved status.

The Empire Wind 1 project, which is nearing completion, has not been subject to the same review process, though it experienced temporary construction delays earlier this year. This selective approach suggests the administration may distinguish between projects at different development stages.

For energy traders and analysts, the policy shift represents a fundamental realignment of US renewable energy priorities, potentially affecting long-term power purchase agreements and renewable energy certificate markets in the Northeast corridor.