Coast Guard bill threatens US offshore wind power expansion, industry says

Offshore wind energy advocates fear a bill passed recently by the U.S. House of Representatives will "cripple" American offshore wind development if enacted.

The bill includes a provision to encourage foreign-flagged ships, including wind turbine installation vessels, or WTIVs, to be crewed by U.S. workers while operating on the Outer Continental Shelf. With most workers on the specialized ships coming from outside the U.S., clean energy industry backers say the proposal would disrupt the expansion of offshore wind power and threaten the country's clean energy goals.

"We are extremely concerned about the maritime crewing provision as it will cripple the development of the American offshore wind industry," American Clean Power Association CEO Heather Zichal said in a statement. "If passed into law, this provision would prevent the U.S. from achieving the [Biden] administration's target of deploying 30,000 MW of offshore wind by 2030."

By 2030, nearly 21 GW of offshore wind is expected to be operating in the U.S., with an additional 9.8 GW slated to come online that year, according to an analysis in January by S&P Global Market Intelligence.

The House on March 29 passed the Coast Guard Authorization Act of 2022 by a broad bipartisan margin of 378-46.

The bill would only allow foreign-flagged vessels to operate on the Outer Continental Shelf if they are manned by either a U.S. crew or the crew of the nation of which the vessel is flagged, potentially forcing some vessel owners to switch out crews with U.S. workers. No such requirement currently exists, meaning mariners of wind turbine installation vessels can come from anywhere, including China, Russia or countries in Europe.

The bill would also limit the number of visas that could be issued to the crew of each foreign vessel and require the U.S. Coast Guard to inspect those vessels annually to ensure compliance with this law.

U.S. Rep. Garret Graves, R-La., added the provisions as an amendment during the bill's markup in the House Transportation and Infrastructure Committee. Graves and other proponents have said the provision will help prioritize domestic workers.

"I support the rapid buildout of offshore wind in order to reduce our dependence on fossil fuels," House Transportation and Infrastructure Committee Chairman Peter DeFazio, D-Ore., said in an emailed statement. "However, the development of offshore wind cannot come at the expense of American maritime workers. To truly achieve energy independence, we cannot rely on foreign mariners in U.S. waters, many of which are from China and Russia."

But wind energy proponents worry the policy change could discourage foreign vessel owners from installing wind turbines in U.S. waters. They also argue that more training is needed to ensure a sufficient supply of U.S. mariners capable of operating WTIVs.

The proposal also received blowback from some House members with offshore wind projects in their home districts. Rep. Jake Auchincloss, D-Mass., whose state is home to the 800-MW Vineyard Offshore Wind Project, voted against the passage of the Coast Guard Authorization Act.

"Tonight I voted with my district. While I strongly support funding the Coast Guard, a hidden provision in this bill would grind offshore wind production to a halt, costing thousands of local jobs and impeding our ability to meet President [Joe] Biden's clean energy goals," Auchincloss said in a March 29 tweet.

The bill now heads to the U.S. Senate for consideration. A spokesperson for Auchincloss said the lawmaker secured a commitment from DeFazio to find a compromise on the provision as the bill goes through the conference process with the Senate.

That compromise will be aimed at ensuring that increased reliance on U.S. workers "does not jeopardize access to wind turbine installation vessels for current and future development of offshore wind projects," Auchincloss said during floor debate on the bill.

Under the Jones Act, goods shipped between U.S. ports must be moved on vessels that are built, owned and operated by U.S. citizens or permanent residents. But U.S. Customs and Border Protection has long interpreted the Jones Act to allow foreign-flagged vessels to perform certain construction activities on the Outer Continental Shelf, including heavy lifts and laying cable. Such vessels are rare on a global basis but crucial to offshore wind energy development.

A June 2021 study by Tufts University found that only three WTIVs exist in the world that can do the heavy lifts needed to build a 14-MW turbine, all of them foreign-flagged. If the House provision becomes law, the U.S. could lose up to 1,460 MW of new offshore wind power deployment every year and face an additional 4.9 million tons of carbon dioxide emissions annually for each WTIV that is unable to comply with the new regulations and pursues more cost-competitive work outside the U.S., according to an American Clean Power Association analysis.

But DeFazio noted that at least one American company is already building a fully compliant Jones Act WTIV in the U.S. and crewing it with American mariners, "demonstrating their commitment to alternative energy and American jobs."

"This should be encouraged," DeFazio said. "At a minimum, other offshore developers must employ American mariners."

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