Judge Rules Against US Wind — What Happens Next May Surprise You

While the Maryland-Delaware offshore wind project proposed by US Wind was not among the five projects that were recently halted, energy and legal experts say the federal action sends an important signal.

Offshore Wind: A Court Win, But the Fight Is Far From Over

This week, WBOC published an article announcing that a federal judge denied US Wind’s request for a preliminary injunction. Ocean City quickly declared the ruling a “complete victory,” and in this narrow sense, they are right. But while this decision is an important step, it is not the end of the battle over US Wind’s offshore project. The permit to build offshore wind turbines off the coast of Fenwick Island and Ocean City is still valid, the cables may come ashore beginning January 31 under SB 159, and many legal uncertainties remain. To understand what truly happened, we need to look closely at the ruling, the lawsuit, and what the federal government is doing behind the scenes.

US Wind Still Holds a Valid Federal Permit

Despite the dramatic headlines, nothing in the ruling revoked or suspended US Wind’s Construction and Operations Plan (COP). That federal permit remains fully in effect. Legally, once SB 159 takes effect at the end of January, US Wind will be authorized to bring its cables ashore in Delaware. However, both Sussex County Council and the Town of Fenwick Island have voted to file lawsuits challenging SB 159, arguing that the law unlawfully overrides local zoning authority. If either lawsuit succeeds, cable construction could then be halted even after January 31. But as of now, the recent injunction ruling did not stop the project.

Why Ocean City and CRI Are in Court

Ocean City, the Caesar Rodney Institute, and other plaintiffs are not suing US Wind directly. They are suing the federal government—specifically BOEM—arguing that the previous administration approved the project unlawfully. Their goal is for the court to “vacate” the federal permit. To vacate a permit means the court wipes it off the books entirely, as if it never existed. If that happens, the offshore wind project cannot proceed until a new approval is issued, which could take years, effectively ending the project.

What US Wind Wanted From the Judge

US Wind asked the judge for a preliminary injunction—basically an emergency court order—to stop the federal government from taking any action that could weaken or reverse their approved permit while the Ocean City/CRI lawsuit is still going on. In other words, they wanted the court to “freeze” the approval in place so that BOEM could not rethink, revisit, or undo the permit during the case. The judge denied this request, saying the government has not taken any action yet and that fear of what might happen is not enough to justify emergency relief.

Why Ocean City Calls This a Win

The denial of US Wind’s injunction leaves BOEM free to continue its internal reevaluation of the permit. Under the Trump administration, BOEM is already reviewing the original approval (which was made under the Biden administration), examining the environmental record, and determining whether the permit was issued correctly. This reevaluation gives the federal government a pathway to rescind, suspend, or revise the permit if they ultimately conclude it was flawed. Ocean City sees the judge’s ruling as a victory because it preserves BOEM’s ability to revisit the approval.

What BOEM Is Actually Doing

BOEM’s reevaluation is significant. The agency is reviewing the entire approval process, from environmental impacts to compliance with federal law. This prepares BOEM for two possible outcomes: they can allow the court to vacate the permit through the ongoing lawsuit, or they can withdraw or suspend the permit themselves after a formal review. Either path remains open because the judge refused to freeze federal action (as requested by US Wind in their injunction filing).

What This Means for the Project’s Future

This ruling does not stop US Wind's offshore wind project. It simply leaves the legal landscape unsettled. US Wind still has a valid federal permit and, once SB 159 takes effect, may move forward unless another court blocks construction.  Both Sussex County Council and the Town of Fenwick Island have already voted to challenge SB 159 in court, arguing that the SB 159 unlawfully overrides local zoning authority. If either of these lawsuits succeeds, cable construction could be halted even after January 31.

At the same time, the lawsuit brought by Ocean City and CRI is very much alive, and BOEM is actively reexamining the approval. The project sits on uncertain ground—legally permitted today, but not guaranteed tomorrow.

The Bottom Line

The WBOC headline describes a win, and it is one. But it is only one battle in a much larger war. The offshore wind project is not dead, the permit has not been revoked, and major decisions still lie ahead. As Delaware moves toward January 31 and the federal lawsuit progresses, the future of US Wind’s project will depend on both the courts and the federal government’s next actions. We will continue to monitor developments closely and keep our community informed.