Washington’s Department of Commerce has rescinded a $1.37 million conditional grant for a tidal energy project in Puget Sound following objections from multiple tribal nations.

The project, led by Dehlsen Associates’s subsidiary Aquantis, proposed testing a marine turbine for three months in the Similk and Skagit Bay area near the Swinomish Indian Tribal Community. The turbine route would have crossed or impacted treaty-protected waterways used by at least 10 Salish Sea-area tribes, including the Makah and Lummi Nation.

According to Washington State’s Department of Commerce, concerns were raised over potential risks to salmon and broader ecological impacts. The Northwest Indian Fisheries Commission noted that the region’s interconnected waterways serve as vital migration routes for fish returning from the ocean, meaning the project could affect nearly all tribal nations in the state.

Although the project aimed to support clean energy development and reduce fossil fuel dependence, tribal leaders argued it would infringe on treaty-protected fishing rights and cultural resources, Washington State’s Department of Commerce noted.

Swinomish Tribal Community Chairman Steve Edwards said: “Swinomish supports clean energy projects, but not at the expense of our Treaty fishing access, Salish Sea ecosystem health, or our cultural lifeways.”

Edwards reached out to Commerce leadership, citing parallels to a previous proposal that was also abandoned over environmental concerns.

Following the internal review, Energy Division Assistant Director Jennifer Grove and Tribal Relations Director Michelle Gladstone-Wade recommended the withdrawal of funding due to risks to treaty rights, cultural sites, and marine ecosystems. Commerce Director Joe Nguyễn approved the decision.

“Commerce is committed to doing the right thing, even when it means changing course,” Nguyễn said.

The decision comes amid broader calls for Commerce to take direct responsibility for tribal consultation as required by Executive Order 21-02, rather than deferring to contractors. Funds from the scrapped project are said to be redirected through the Clean Energy Fund grant program.