ALBANY, N.Y. (NEWS10) — The Port of Albany is turning down $29.5 million in federal funding for an offshore wind manufacturing project. The Port is withdrawing an application for funding from the U.S. Maritime Administration.

Officials say they made the decision because the permit process has been delayed for four months due to a mandatory environmental review over tree clearing. They say this review is separate from the one already completed for the U.S. Army Corps of Engineers.

By denying the federal grant, lead of the project reverts back to the Army Corps, allowing the Port and its partners, Equinor as well as Marmen and Welcon, to resume progress towards groundbreaking for the facility.

The project, totaling around $350 million, will be one of the first large-scale offshore wind tower manufacturing facilities in the U.S. and is expected to create about 500 construction jobs and 550 manufacturing and support jobs. Port authorities say the guaranteed maximum price is still being worked out with the project’s construction manager to try and offset losing the $29.5 million grant.

It’s unclear when construction will begin.