California fast-tracks offshore wind supports

“In 2024, we've seen some major policy developments that are making offshore wind much more likely to realize it's promise and deliver clean energy for California,” says Adam Stern, Executive Director, Offshore Wind California (OWC), a trade group of offshore wind developers and technology companies.

Stern says that if approved by California voters in November, the Proposition 4 bond issue which is directed at improving climate change responses, “includes $475 million for port upgrades for offshore wind.”

In an interview with AJOT, Stern cited a number of California initiatives which he believes will speed up development of floating offshore wind farms and meet California’s ambitious goal of generating 25 gigawatts (GW) of electricity by 2045. He says 25 GW of offshore wind power generated off the state’s North and Central coasts will create thousands of family-wage jobs and supply renewable energy to up to 25 million homes. It will also “save utility ratepayers billions.”

But this will require a major investment in California ports.

Just as an example, the Port of Long Beach projects that it will begin construction on its 400 acre ‘Pier Wind’ offshore wind port in 2027 which is projected to cost $4.7 billion, according to Suzanne Plezia, Chief Harbor Engineer, Port of Long Beach.

Stern cited the following California initiatives:

• The California Energy Commission’s offshore wind Strategic Plan. It provides a road map for reaching 2.5 GW by 2030 and 25 GW by 2045: “We applaud the California Energy Commission (CEC) for its approval … of the state’s final strategic plan to deploy California offshore wind at scale, as directed by the AB 525 law signed by Governor Newsom in 2021. We recognize that this strategic plan is probably the most comprehensive floating offshore wind plan in the world. Its final approval marks a watershed moment in California’s course and commitment to go big on offshore wind, and achieve its nation-leading goal to deploy 25 gigawatts (GW) by 2045. The thoroughness with which the Commission has approached this two and a half-year effort has been well worth the wait. The real challenge that begins now is to turn the plan into steel in the water, clean energy on the grid, and thousands of family-wage jobs ...”

• The California Independent System Operators (CISO) approved a plan for $4.6 billion in offshore wind related transmission upgrades primarily for the North Coast. That happened in May. CISO oversees the operations of California’s bulk electric power system, transmission lines and electricity market generated by it member utilities.

• Procurement plans by the CPUC (California Public Utilities Commission) to buy up to 7.6 GW of offshore wind power through the CPUC's new central procurement mechanism with the first solicitation to occur in 2027 with offshore wind power delivered in 2035: “The California Public Utilities Commission’s (CPUC) proposed decision to set an initial need determination of 7.6 gigawatts (GW) for purchasing offshore wind energy by 2035 sends an important market signal that will help jumpstart the industry in California.”

• Permitting. In the 2024-2025 budget, California Governor Newsom and the California Legislature agreed to support increased staffing for a variety of state agencies, including the California Energy Commission, the State Lands Commission, the Coastal Commission, and the Ocean Protection Council to manage the permitting and monitoring of offshore wind projects. This is important for California to have the people onboard to be able to evaluate the project proposals as they monitor impacts on the environment.

• Allocating sufficient sea-space to support 36 to 60 GW of offshore wind farms off the coast of Mendocino, Del Norte counties and Morro Bay. This will complement the next round of offshore wind leases planned by the U.S. Bureau of Ocean Energy Management (BOEM) for 2028. The State gives BOEM a lot of space to evaluate and refine and most likely they would come up with a smaller area that reduces potential conflicts with fishing, shipping lanes and Department of Defense priorities. The first round of leases, awarded in 2022 to five leaseholders, is expected to generate 7-10 GWs of offshore wind power. The leasing of additional wind farm space that can generate 36-60 GW is more than meets the California goal of 25 GWs by 2045. The U.S. Department of Energy’s National Renewable Energy Laboratory did a study of the technical capacity off California's coast, and they concluded that coastal wind resources could generate 200 GW of wind power, Stern noted.

• The Humboldt Bay Harbor, Recreation & Conservation District has received a major federal matching grant for $427 million from the U.S. Department of Transportation for developing its offshore wind port facilities. A similar offshore wind port is planned at the Port of Long Beach. The Port of Long Beach has begun the environmental scoping process for its proposed staging and integration terminal for offshore wind, which is called ‘Pier Wind.’

Stern says California ports will receive $475 million for port investments if the Proposition 4 ballot measure passes in November. The $10 billion bond measure covers several climate change initiatives as well as the $475 million allocation for ports.

Stern says the California port investments will be focused on three areas:

(1) Construction of publicly owned port facilities for manufacturing, assembly, staging, and integration of entitlements and components for offshore wind generation.

(2) Expansion and improvement of public port infrastructure to accommodate vessels involved in the installation, maintenance, and operation of offshore wind generation.

(3) Upgrades to port facilities.

Stern concluded by saying: “If approved by California voters, the Proposition 4 climate bond, which includes $475 million for port upgrades for offshore wind, would be an important down payment to catalyze state, federal, and private funding, create new jobs, and invest in the multi-port strategy to bring offshore wind online.”