Government Policy & Regulation
This letter submits an Area for Consideration for BOEM's Area Identification Process. Within the Area for Consideration, BOEM is urged to expediciously identify at least four new Wind Energy Areas (WEA), each capable of supporting at lease 800 MW, and to conduct lease auctions for these WEAs.
New York State submitted maps to BOEM of the four Wind Energy Areas within the Area for Consideration. As part of its Offshore Wind Master Plan, New York State began with over 16,000 square miles of area called the Offshore Study Area. The Area of Consideration represents approximately ten percent of the original Offshore Study Area, refined through a rigorous process.
The U.S. Jones Act Compliant Offshore Wind Turbine Installation Vessel Study examines the functional requirements and costs of constructing purpose-built vessels that would comply with the U.S. Jones Act and meet the needs of the U.S. offshore wind industry. The Jones Act requires any vessel transporting cargo between U.S. ports, or between U.S. ports and offshore facilities, be built and flagged in the U.S. The study presents designs for two Jones Act compliant vessel options: a wind turbine installation vessel and a feeder barge. Estimating packages were sent to multiple U.S. shipyards and indicative prices of $222 million for the wind turbine installation vessel and $87 million for feeder barge were received. Using the cost data, a business model was created that showed 10-years of work, or a pipeline of approximately 3,500 to 4,000 megawatts of offshore wind capacity (roughly equivalent to the expected low regional offshore wind deployment trajectory), would provide the owner of a wind turbine installation vessel with a reasonable rate of return.
The Northeast Offshore Wind Regional Market Characterization report identifies the opportunities and challenges that will shape the offshore wind market. It estimates the scale of potential offshore wind deployment to serve Northeast markets through 2030, given the nature of the offshore wind resource, federal lease opportunities, state policies, regional energy needs, existing electricity generation and planned retirements, and transmission capacity. The report finds that a low regional deployment trajectory could lead to 4,000 megawatts of offshore wind generation by 2030 off the Atlantic coast of the Northeast. A high regional deployment trajectory could lead to nearly 8,000 megawatts, which could power almost four million homes. The report also provides background information on topics ranging from interconnection infrastructure and permitting timelines to electricity markets and relevant public policies.
Representative Stivers' amendment to Division D of H.R. 3219, the Department of Defense Appropriations Act, 2018 (Make American Secure Appropriations Act, 2018), would deny funding from this division to be used for the Cape Wind Energy Project.
- Require the Secretary of Treasury to consult with the Secretaries of Energy and Interior when establishing the credit;
- Provide a 30 percent tax credit on the investment in offshore wind for the first 3,000 MW generated;
- Give Treasury the authority to make the final decision on who is awarded the tax credit. Once a credit is awarded, companies would have five years to install the wind facility;
- Prohibit companies from receiving other production or investment tax credits in addition to the offshore wind investment tax credit created under the bill; and
- Define offshore facility as any facility located in the inland navigable waters of the United States, including the Great Lakes, or in the coastal waters of the United States, including the territorial seas of the United States, the exclusive economic zone of United States, and the outer Continental Shelf of the United States.