California Offshore Wind Auction Makes Strides Towards Clean Energy Goals, More Investments Needed for North Coast Communities

Press release from the Humboldt Area Foundation:

This Wednesday, California North Floating, LLC and RWE Offshore Wind Holdings, LLC won two offshore wind energy area leases, auctioned 21 miles off Humboldt Bay, totaling 132,369 acres, over $331 million in bids, and the potential for 140-170 megawatts (MW) of power with existing transmission infrastructure. Once fully built out, the Humboldt and Morro Bay offshore wind projects could power more than 1.5 million homes. While this makes significant progress towards state and national clean energy goals, more investments and protections for Tribes, the environment, fisheries and local communities are needed to prepare the North Coast for this new industry.

 

The auction was the Bureau of Ocean Energy Management’s (BOEM) first for the West Coast, and the first in the U.S. for floating offshore wind, including two leases off Humboldt Bay and three off Morro Bay. This auction is pivotal for meeting the Biden-Harris Administration’s goals of 30 gigawatts (GW) of offshore wind by 2030, and the Newsom Administration’s goals of 25 GW by 2045.These lease areas total over 373,000 acres of ocean waters and at least 4.5 GW of capacity for offshore wind.

 

Sufficient port infrastructure is key to the viability of this new industry on the West Coast, with the port in Humboldt Bay playing a key role. Offshore wind assembly includes turbines measuring approximately 500 feet in height, which are anticipated to grow to more than 800 feet by 2035. In October, the Humboldt Bay Harbor District announced a new partnership with Crowley Wind Services to develop the Humboldt Bay Offshore Wind and Heavy Lift Marine Terminal, which could support the offshore wind industry all along the West Coast. This impending development presents tremendous changes for this rural region, bringing economic opportunities and requiring additional investments in local infrastructure.

 

Securing community benefits for the region that will host this industry remains a top concern for North Coast leaders and residents. Bryna Lipper, CEO of the Humboldt Area Foundation, explained: “Residents are excited for the new jobs and climate benefits this project may offer, however, the region currently lacks the housing, transportation, and other services to support this budding industry. Additionally, many residents have a strong connection to the natural world, and want assurances that marine mammals, fish, and birds, as well as cultural resources will be protected. Investments in local infrastructure, following the leadership of Tribes, mitigation efforts for fisheries and environmental protections are critical for the North Coast region, which struggles with a legacy of underinvestment and harms from previous boom and bust industries, like timber and gold.”

 

“Unfortunately, the local component of the bid credits and lease stipulations in the final sale notice and auction falls short of the investments needed for equitable wind energy development, meaning that local communities and Tribal Nations won’t have the resources needed to address the impacts of this new industry, or actually benefit from it,” cautioned Lipper. She noted that “the auction today totalled only 5 percent bid credits for a community benefits agreement with fisheries users, 5 percent for a general community benefits agreement, and 20 percent for workforce and domestic supply chain investments.” This is below the 50 percent local leaders and the state of California have advocated for in letters to BOEM. It is likely that community benefits agreements with offshore developers will not be negotiated until after leases are issued, which is expected to take place sometime after March 2023.

 

Over the last year the Redwood Region Climate and Community Resilience Hub (CORE Hub) convened the North Coast Community Benefits Network (‘the Network’), a group of Northern California Tribal Nations, local governments, community leaders and institutions, community-based organizations, environmental groups, and academics to advocate for local investments through BOEM’s leasing process. Unlike the timber, oil, gas, and geothermal industries, offshore wind lease revenues are not split with local governments, but rather go directly to the U.S. Treasury. The Network, along with the state of California, asked BOEM for “50% bid credit package” for local workforce investments, equity and resident-focused community benefits, Tribal investments, and environmental protections, as well as a 50-50 split of auction cash revenues and ongoing annual operating fees and rents, divided between the federal government and impacted states / tribes / regions. Legislation efforts such as the RISEE Act which would codify revenue shares for localized investments are moving with bipartisan sponsorship and local support.

BOEM’s lease terms and this week’s auction were just two of many opportunities for local residents and leaders to shape the buildout of offshore wind. There are several steps from lease award to wind farm development, which can take up to or more than five years, and includes advancing a site assessment plan and then a construction and operations plan through the permitting process. Katerina Oskarsson, Executive in Residence with the CORE Hub added: “The Network will continue to closely watch these projects. During the leasing and permitting process, the CORE Hub will continue its engagement with BOEM to ensure the meaningful adoption and implementation of any terms and conditions that are laid out in the final sale notice. At the same time, we will continue supporting and growing the capacity of the North Coast Community Benefits Network to collectively advocate as a region.”

 

About the Redwood CORE Hub

The Redwood Region Climate And Community Resilience Hub (CORE Hub) is a community organization dedicated to solving the climate emergency through actions that result in more resilient communities and ecosystems.

 

The CORE Hub was established by regional leaders in climate resilience, mitigation, and adaptation and is based at the Humboldt Area Foundation and Wild Rivers Community Foundation, serving the California counties of Humboldt, Del Norte, and Trinity, as well as Curry County in Oregon. The CORE Hub’s service area includes 27 Tribal Nations and Indigenous Territories. The CORE Hub’s goal is to help the region become the first proven carbon-sequestering rural and Tribal region in the United States. The CORE Hub acts toward this goal through planning and policy guidance; facilitating healthy civic dialogue; taking action for equity; promoting accurate, accessible public information; providing research, analysis, and technical assistance; project acceleration; promoting traditional knowledge and multi-generational values; and conducting rigorous tracking to document progress and ensure accountability.

 

To learn more about the CORE Hub’s work and community partnerships, visit https://redwoodcorehub.org/about/.