Environmental Policy News

California Offshore Wind Procurement Legislation Key to Unlocking New Investments

The Business Network for Offshore Wind, the leading national organization working to accelerate offshore wind energy deployment and build a robust domestic supply chain, applauds passage of a new procurement bill in California that puts the state on a path to realize its 25 GW offshore wind goal.

Passed late last night, AB 1373 creates a new centralized procurement system authorizing the California Public Utilities Commission (CPUC) and Department of Water Resources (DWR) to purchase renewable energy from offshore wind developers –a necessary action to secure the offshore wind market in California. The bill is now on its way to Governor Newsom, who is expected to sign it by October 14.

This legislation builds on the progress begun in California last year when the state set an ambitious planning goal to deploy 25 GW of offshore wind by 2045 with an interim goal of up to 5 GW by 2030. That announcement helped spark new interest and investments in the budding domestic supply chain, including critically planned redevelopments of ports in Humboldt and Long Beach. The Network also has supported supply chain development by holding two supplier-focused events, drawing hundreds of local companies to learn about market entry opportunities into floating offshore wind. Yesterday’s actions also create a pathway to market for five newly auctioned areas off the California coast, and the first on the West Coast.

The following statement can be attributed to Liz Burdock, founder and CEO of the Business Network for Offshore Wind:

“California is putting together the pieces necessary to bring a new industry to life. Floating offshore wind is the future of the offshore wind industry and the actions taken by California’s legislature positions the West Coast at the center of this exciting and rapidly expanding sector. This new procurement authority is essential to unlocking the billions in new investments needed for port redevelopments, vessels, supply chain expansions, and manufacturing facilities. Once signed into law, the bill will lead to thousands of new jobs and clean, reliable energy for millions of homes. Suppliers are ready, and the Network is excited to continue building the regional supply chain necessary to develop the West Coast floating industry. Thanks to the leadership shown in the legislature and Governor’s office, California will be a true offshore wind leader.”

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