We've been busy over the last two weeks trying to bring attention to a critical regulatory factor needed to unlock the fullest economic potential of American offshore wind: mandatory federal offshore wind lease sales.
AOWC firmly believes that a minimum of at least two federal offshore wind lease sales annually will give the certainty needed to unleash the hundreds of billions of dollars in investment and tens of thousands of jobs this new-to-America industry can provide.
To that end, AOWC submitted a petition to the White House asking for a minimum of at least two mandatory leases sales a year. We encourage all supporters of U.S. offshore wind and the new jobs and investment it will create to sign the petition and urge the White House to add even more strength to America's energy self-sufficiency.
And this week, we contacted all 535 Congressional offices, seeking Congress' support in moving offshore wind ahead. The text of our note -- full of the eye-popping economic figures American offshore wind's expansion entails -- follows:
Hope you are doing well. My name is Chris Quinn, and I serve as the Executive Director of the American Offshore Wind Coalition (AOWC). The AOWC advocates for policies at the federal, state and local levels that will benefit all aspects of the US supply chain for offshore wind. This industry offers a generational opportunity for American workers, manufacturers, technology providers, steel producers, shipbuilders and maritime service providers.
A recent study forecasted the total investment in the U.S. offshore wind industry will be $17 billion by 2025, $108 billion by 2030 and $166 billion by 2035. From 2022 to 2035, capital investment of $42 billion will go to turbine manufacturers and the supply chain, $107 billion will go to the construction industry, and $8 billion will go to the transportation industry and ports. Annual capital investment for O&M activities will increase to $2.4 billion in 2035.
The study stated:
“If the assumed BOEM auctions happen this year, in 2021 and 2022, total full time equivalent (FTE) job creation from the resulting offshore wind activities, including development, construction and operation could support approximately 80,000 jobs per year from 2025 to 2035. Turbine manufacturing and supply chain will support 31,000 jobs per year. The construction industry will support 16,000 jobs per year. The transportation and port industries will create 4,000 jobs per year. In addition, general service industries, like restaurant, hotel and daycare, will create 19,000 induced jobs. Operations and maintenance (O&M) jobs and O&M-induced jobs will grow from 2,000 per year in 2025 to 6,000 per year in 2030 and 20,500 per year in 2035.”
This is a tremendous opportunity for US workers and manufacturers, but it is worth noting that these benefits are contingent on “If the assumed BOEM auctions happen this year, in 2021 and 2022…” Following the long delay caused by the Vineyard Wind SEIS and cumulative impact study, there is considerable concern that regulatory reviews and future lease sales and auctions could be even further delayed.
The presidential election this year further highlights this concern. If President Trump wins and he listens to the commercial fishermen asking for the ridiculous transit lanes and a 5 year moratorium, this opportunity could be lost. Something forcing activity to move forward will be needed. If Biden wins, there will be a natural multi-month pause on activity as they staff up. There is also the potential that more delays could occur as a new Administration would be expected to revisit the environmental streamlining and NEPA reforms put in place by the Trump Administration. Mandatory lease sales may help force a new team to adopt the more useful aspects of these reforms to accelerate deployment of renewable generation. Without requirements, these projects could needlessly stall even longer.
As a result of this situation and the thousands of jobs and hundreds of billions of dollars at stake, I recently launched a petition supporting mandatory leasing for offshore wind. I would ask for you and your office to support this petition and also consider legislation requiring mandatory leasing for offshore wind. This will be essential for moving this incredible industry forward and securing the benefits to US labor, manufacturers and shipbuilders.
I hope you will consider supporting this effort to ensure leasing for offshore wind takes place in a rapid, regular and constructive manner. If you have any questions or we can provide any additional information, please let me know. Thanks again for your consideration and assistance. I look forward to working with you and your office as we seek to maximize the benefits of this new industry to the US workers and American consumers.
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