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Offshore Wind Revenue Sharing Can't Happen Without More Federal Leasing


The Senate Energy and Natural Resources Committee's Subcommittee on Public Lands, Forests and Mining today is holding a hearing on an important bill that is a key component for launching the U.S. offshore wind industry. AOWC supports S.B. 3485 and encourages Congress to add language that institutes a minimum of at least two mandatory offshore wind lease sales annually, and ensures that offshore wind development off the coast of Florida, South Carolina and Georgia is not limited by recent executive actions.

Offshore wind is poised to bring tens of billions of dollars of revenue to the U.S. right now -- and none of the revenue sharing proposed to the states to support the environment and conservation can happen if projects are delayed or leasing is withheld.

We urge everyone who wants to see a new American industry arise and revitalize our ports, maritime communities, manufacturing, maritime industries and provide decades of labor to American workers to support these keystone goals. U.S. offshore wind is a once-in-a-generation opportunity and we must seize it now.


The text of our letter sent to the members of the Senate Subcommittee follows:


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 U.S. supply chain for offshore wind. This industry offers a generational opportunity for American workers, manufacturers, technology providers, steel producers, shipbuilders and maritime service providers.

Today, the Senate Energy and Natural Resources Committee Subcommittee on Public Lands, Forests and Mining is holding a legislative hearing on a number of bills including S. 3485, the OFFSHORE Act, sponsored by Senator Whitehouse. This bill would provide revenue sharing to states from offshore wind development and support a broad array of economic and conservation measures. The American Offshore Wind Coalition strongly supports this legislation and urges the Committee to carefully consider its provisions and pass the legislation without delay.

While we strongly support S. 3485, we believe that the addition of some provisions ensuring continued leasing and permitting of offshore wind would enhance the bill and safeguard the industry from irresponsible executive decisions to limit offshore wind development. Last week, the Trump Administration took executive actions limiting offshore wind activities in federal waters off of South Carolina, Georgia and Florida. Intended or not, these actions could unnecessarily limit the potential benefits from offshore wind in these areas until 2032. We would urge the Committee and the bill’s sponsors to consider additional language in the bill to ensure annual leasing for offshore wind and adding mechanisms to limit unnecessary permitting delays for these projects. These provisions would benefit the industry by providing certainty and benefit states by ensuring there is revenue sharing to share.

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 U.S. 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.

This industry holds tremendous potential for communities and businesses throughout America. S. 3484 would ensure that even more of the benefits from the industry flow to the states and communities that support this development. We urge careful consideration and passage of this important piece of legislation and look forward to working with you and your office to advance offshore wind.

Thanks,

Chris Quinn

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