Gov. Vetoes Bill to Help Offshore Wind

For Immediate Release

May 2, 2016

Contact Jeff Tittel 609-558-9100

The Governor vetoed S988 (Smith), a bill would require BPU to approve qualified wind energy project by Fisherman’s Energy and exempts project from cost benefit analysis. Governor Christie and his administration have failed to fully implement the Offshore Wind EnergyDevelopment Act (OWEDA). That Act would establish a funding mechanism for offshore wind, to jump start the manufacturing of windturbines in our state, and to develop windmills off our coast. Since it passed, OWEDA implementation projects like Fishermen’s Energy have been on hold. This is just another example of the Christie Administration’s blocking wind energy in New Jersey.

“Governor Christie is continuing to block offshore wind. The VETO of this bill is part of him holding offshore wind hostage to his national political ambition. He is promoting gas and other dirty fossil fuels while blocking clean energy efforts like offshore wind. The failure of the Christie administration to adopt rules for offshore wind or hold up projects like Fishermen’s Energy has cost New Jersey jobs and economic investments. Since Governor Christie came into office, we’ve been waiting ever since for the financial support from OWEDA. New Jersey should have broken ground years ago with the Fishermen’s Energy project,” said Jeff Tittel, Director of the New Jersey Sierra Club. “We have parcels auctioned off the coast and ready to be built on but Governor Christie continues to stand in the way of making it happen. New Jersey isn’t going to get offshore wind until we get another Governor.”

This bill was especially relevant given the recent Bureau of Ocean Energy Management (BOEM) auctions of parcels of federal waters of the coast of New Jersey for commercial wind development. Two parcels off the coast Atlantic City received their final bid. RES Americas Developments Inc. won the 160,480-acre south lease area for $880,715, and U.S. Wind Inc. got the 183,353-acre north lease area for $1,006,240. This development is good news for clean energy as New Jersey could feasibly use offshore wind to power 1.2 million homes.

“By vetoing this bill and refusing to put in place a funding mechanism, the Christie Administration is blocking these companies from being able to build their wind turbines on these parcels. The Federal Government is pushing wind energy forward by releasing bids but the state government is standing in the way,” said Jeff Tittel, Director of the New Jersey Sierra Club. “Even though these leases have been given, we can’t make offshore wind a reality unless we have a funding mechanism in place.

We’ve been waiting five years for a financing mechanism to make offshore wind in New Jersey a possibility. Five years ago Governor Christie signed the Offshore Wind Economic Development Act (OWEDA), but since then he has repeatedly blocked efforts to ensure we have windturbines off our coast. Delaying offshore wind projects costs our state jobs, renewable energy, and venture capital investments. Governor Christie and his administration has failed to fully implement the OWEDA, to establish a funding mechanism for offshore wind, to jump start the manufacturing of wind turbines in our state, and to develop windmills off our coast. As we continue to rebuild our coast in the wake of multiple storm events we need to invest in clean, renewable energy sources that do not contribute to climate change.

“Five years ago Governor Christie signed OWEDA but since then he has blocked attempts to make offshore wind a reality. For five years the BPU has failed to propose financing rules to allow investments of offshore wind to happen. The Governor is holding offshore wind hostage because of his national political ambitions. This is hurting our economy and preventing green jobs and clean energy from being a reality,” said Jeff Tittel. “Ports are waiting to be built, factories are sitting empty and jobs are waiting to be created. There are billions of dollars in private investment waiting to come into New Jersey, as well as state tax credits just sitting there, because the Christie Administration has stopped offshore wind.”

Wind energy is renewable, clean, and thousands creates jobs. Offshore wind will provide electricity and jobs to places where it’s needed most. The East Coast, with its large metropolitan areas and dense suburbs is hungry for jobs, investment and energy. Offshore wind can be the engine that drives economic growth in the region for decades to come. Offshore wind not only creates jobs in installing, operating, and maintaining wind turbines but the OWEDA also calls for investment in manufacturing wind turbines. This would create jobs rebuilding the Paulsboro Port, building factories, manufacturing the steel for the turbines, and assembling and transporting the windmills. Jobs would also be created building the substations and electric connections to serve the windmills. With the delays we are losing jobs in the financial sector and venture capitalism for funding and investing in wind. Offshore wind would be a great way to jumpstart our coastal economy.

“One of the lessons from Hurricane Sandy is that we need power sources along our coast and we need clean renewable energy to deal with sea level rise and climate change. We’ve done studies to find the best places for wind that have the least environmental impacts six years ago. Off shore wind is the most reliable and cost effective form of offshore power and New Jersey needs to pursue policies to facilitate the construction of wind turbines off our coast,” said Jeff Tittel. “We can grow our economy and create jobs while protecting our environment and now the Federal Government’s auctions will push us closer to that possibility.”

New Jersey now needs to work on funding mechanisms to make developing in these leases areas a possibility. When the Governor signed OWEDA in 2010, he committed to supporting offshore wind. The BPU had until March 2011 to develop regulations to establish the Offshore Renewable Energy Credit (OREC) program, but they are still in the process years later. Regulations have still not been released even in draft form. The BPU and consultants are still working on a funding mechanism for ORECs to ensure the money they generate is not diverted to the general fund for the state budget. Such precautions are necessary to keep steady funding available for wind projects as the Governor has diverted over $1 billion from the Clean Energy Fund to close budget gaps. There was money available for offshore wind in the Regional Greenhouse Gas Initiative (RGGI) which Christie pulled New Jersey out of.

“The Governor’s veto of this bill will mean we have to wait even longer for clean wind power in New Jersey. We have auctioned off parcels but no funding mechanism to implement the projects. The reason is that Governor Christie is blocking the federal government’s attempt to have wind off our coast. By not having financing rules in place, will prevent any company from bidding on those sites from getting financing,” said Jeff Tittel, Director of the New Jersey Sierra Club. “Offshore wind companies may end up building off our coast and they could send electivity to Long Island or Maryland. We could end up getting offshore wind but not getting the benefits. The Governor would rather support the fossil fools who donated to his campaign that clean energy and green jobs in New Jersey.”