California regulators adopt final strategic plan for offshore wind development

The California Energy Commission adopted July 10 the final strategic plan charting a path forward for deploying floating offshore wind at scale in federal waters, a requirement of Assembly Bill 525 passed in 2021.

The commission delayed a vote June 26, less than 24 hours after the plan was released, to allow more time to review the report before action was taken.

"Adopting this comprehensive strategic plan for offshore wind development marks yet another significant milestone in California's journey to a 100% clean energy future," CEC Chair David Hochschild said in a July 10 statement. "Offshore wind has the potential to accelerate the clean energy transition by providing a consistent, reliable source of clean electricity, supporting our ambitious climate goals, creating local manufacturing jobs and driving economic development."

California's electricity grid is served by nearly 35 GW of renewable resources today, but to meet its 100% clean electricity by 2045 goal, the state will need an additional 148 GW, which will likely require the development of land and ocean space across many regions of the state, according to the commission.

"Offshore wind stands out for its potential to generate vast amounts of electricity thanks to strong, consistent winds off California's coast," the commission said. "Additionally, offshore wind can generate electricity at times when solar power drops off, such as overnight and in winter, providing a complementary electricity generation profile to the state's renewable energy portfolio."

Following adoption of the strategic plan, the commission and partner agencies will:

• Continue discussions and consultations with tribal governments, underserved communities, fisheries, industry, ocean users, environmental and environmental justice groups, and federal, state, and local agencies
• Advance and explore the recommendations and strategies developed in the strategic plan

Job creation

A recent study projects the creation of more than 8,000 jobs during peak offshore wind development, many of which will be unionized, providing stable and well-paying employment opportunities, according to the commission.

"Offshore wind will create thousands of new jobs for Californians, from manufacturing to maintenance, and build out a robust supply chain to support this growing industry," Dee Dee Myers, senior advisor to Governor Gavin Newsom and director of the Governor's Office of Business and Economic Development, said in the statement. "Our commitment to offshore wind will bring sustainable growth, reduce our carbon footprint, and secure a cleaner, brighter future for all Californians."

In addition to creating jobs, offshore wind can save ratepayers billions and help avoid rolling blackouts, said Adam Stern, executive director of the trade group Offshore Wind California.

"The thoroughness with which the commission has approached this two and a half-year effort has been well worth the wait," Stern said. "The real challenge that begins now is to turn the plan into steel in the water, clean energy on the grid, and thousands of family-wage jobs, among other benefits, all while protecting marine life and Tribal resources."

Finalizing the strategic plan follows earlier action by California lawmakers last fall to enact the ground-breaking AB 1373, which enables the state to procure large-scale, long lead-time clean energy resources such as offshore wind, Stern added.

Strategic plan highlights

The plan contains recommendations specific to marine impacts, underserved communities, workforce development, impacts to California Native American tribes, US Department of Defense impacts, permitting, impacts to fisheries, port development and transmission infrastructure, according to the commission. The plan will also help attract investment, create high-quality job opportunities, provide workforce development and supply chain opportunities for local, tribal, and underserved communities, and drive economic development.

Offshore wind energy will improve the reliability and resilience of California's electricity system, offering an abundant and complementary energy source to other renewables like solar and hydropower, according to the plan. The commission is also committed to engaging and consulting with California Native American tribes, local communities, industry, ocean users, and environmental and environmental justice organizations to ensure the responsible and sustainable development of offshore wind energy.

The strategic plan was required to include, at a minimum, the following five chapters:

• Identification of potential suitable sea space for future lease process
• Economic and workforce development and identification of port space and infrastructure
• Transmission planning
• Permitting processes and the Permitting Roadmap
• Potential impacts on coastal resources, fisheries, Native American and Indigenous peoples, and national defense, and strategies for addressing those potential impacts

This is the fourth and final report mandated by AB 525. The first report evaluated the maximum feasible capacity of California offshore wind. The second report assessed the economic benefits. The third report created a permitting roadmap.

There are two additional reports mandated by the legislature looking at manufacturing job opportunities.

Offshore wind goals

The draft plan was released in January. The final report added feedback from the last six months.

The commission has a goal for up to 5 GW of offshore wind capacity by 2030 and 25 GW by 2045 in an effort to reach the state's 2045 clean energy goal.

AB 525 required the Commission to develop a strategic plan for offshore wind energy developments installed off the California coast in federal waters. AB 525 is a component of a larger mandate that California is leading under Senate Bill 100 to get to 2045 clean energy goals.

SB 100, adopted in 2018, accelerated the Renewables Portfolio Standard goal to 60% by 2030. The bill also required RPS-eligible sources and zero-carbon resources to supply 100% of California's electricity retail sales and electricity procured to serve state agencies by 2045.

The first federal offshore wind energy lease auction in the Pacific region took place in December 2022 and drew competitive bids from five companies that totaled $757.1 million for 583 square miles in the central area of Morro Bay and off Humboldt Bay's north coast. The Bureau of Ocean Energy Management executed the five leases in June 2023.