New York Bight lease sale has potential to power nearly two million homes
Republicans like Congressman Lee Zeldin, who is seeking to take over as Governor of New York, are still wedded to fossil fuels and determined if they regain control, to reverse course on efforts to transition to a clean renewable energy economy, society, and environment and stem the tide of climate change. This was clear when Zeldin chided President Joe Biden at a pro-Ukraine rally in Long Island for canceling the Keystone Pipeline, which he somehow suggested would have countered impact of sanctions against Nordstrom 2.
But even as Biden leads a global alliance to counter Putin’s criminal aggression against Ukraine, and makes a historic nomination of the first Black woman to the Supreme Court, makes historic investments in infrastructure to clean up the environment, develop the economy, promote competition and address supply chain issues, his administration is forging ahead with historic climate actions. In the latest, the administration reports setting records for offshore energy development with $4.37 billion in winning bids for wind sale.
Of course, the correct answer to reducing dependency on fossil fuel is what the Biden-Harris Administration is doing: transitioning to clean, renewable energy that can be generated in localities, so less vulnerable to geopolitics and cyberattacks.
This is from the Department of the Interior:
Long Island climate activists raise a wind turbine outside Long Island Power Authoritys offices back in 2016 (c) Karen Rubin/news-photos-features.com
WASHINGTON — The Department of the Interior announced the results of the nation’s highest-grossing competitive offshore energy lease sale in history, including oil and gas lease sales, with the New York Bight offshore wind sale. These results are a major milestone towards achieving the Biden-Harris administration’s goal of reaching 30 gigawatts of offshore wind energy by 2030. Today’s lease sale offered six lease areas totaling over 488,000 acres in the New York Bight for potential wind energy development and drew competitive winning bids from six companies totaling approximately $4.37 billion.
A recent report indicates that the United States’ growing offshore wind energy industry presents a $109 billion revenue opportunity to businesses in the supply chain over the next decade.
“This week’s offshore wind sale makes one thing clear: the enthusiasm for the clean energy economy is undeniable and it’s here to stay,” said Secretary Deb Haaland. “The investments we are seeing today will play an important role in delivering on the Biden-Harris administration’s commitment to tackle the climate crisis and create thousands of good-paying, union jobs across the nation.”
The provisional winners of today’s lease sale are:
Provisional Winner
Lease Area
Acres
Winning Bid
OW Ocean Winds East, LLC
OCS-A 0537
71,522
$765,000,000
Attentive Energy LLC
OCS-A 0538
84,332
$795,000,000
Bight Wind Holdings, LLC
OCS-A 0539
125,964
$1,100,000,000
Atlantic Shores Offshore Wind Bight, LLC
OCS-A 0541
79,351
$780,000,000
Invenergy Wind Offshore LLC
OCS-A 0542
83,976
$645,000,000
Mid-Atlantic Offshore Wind LLC
OCS-A 0544
43,056
$285,000,000
A map of the lease areas auctioned today can be found on the BOEM website.
Before the leases are finalized, the Department of Justice and Federal Trade Commission will conduct an anti-competitiveness review of the auction, and the provisional winners will be required to pay the winning bids and provide financial assurance to Interior’s Bureau of Ocean Energy Management (BOEM).
The New York Bight offshore wind leases include innovative stipulations designed to promote the development of a robust domestic U.S. supply chain for offshore wind energy and enhance engagement with Tribes, the commercial fishing industry, other ocean users and underserved communities. The stipulations will also advance flexibility in transmission planning. Stipulations include incentives to source major components domestically – such as blades, turbines and foundations – and to enter into project labor agreements to ensure projects are union-built.
“We must have a robust and resilient domestic offshore wind supply chain to deliver good-paying, union jobs and the economic benefits to residents in the region,” said BOEM Director Amanda Lefton. “Because we understand the value of meaningful community engagement, we are requiring lessees to report their engagement activities to BOEM, specifically noting how they’re incorporating any feedback into their future plans.”
On Jan. 12, Secretary Haaland, New Jersey Governor Phil Murphy and New York Governor Kathy Hochul announced a shared vision for developing a robust offshore wind energy domestic supply chain that will deliver benefits to residents of New York and New Jersey and the surrounding region, including underserved communities. This collaboration will serve as a model for future engagement and establish the U.S. as a major player in the global offshore wind energy market.
To advance the Interior Department’s environmental justice and economic empowerment goals, lessees will be required to identify and make efforts to engage with Tribes, underserved communities, and other ocean users who could be affected by offshore wind energy development. The Department will hold companies accountable for improving their engagement, communication and transparency with these communities.
These additions are intended to promote offshore wind energy development in a way that coexists with other ocean uses and protects the ocean environment, while also securing our nation’s energy future for generations to come. BOEM initially asked for information and nominations of commercial interest on 1.7 million acres in the New York Bight. Based on BOEM’s review of scientific data and extensive input from the commercial fishing industry, Tribes, partnering agencies, key stakeholders, and the public, BOEM reduced the acreage offered for lease by 72% to avoid conflicts with ocean users and minimize environmental impacts. BOEM will continue to engage with the public, ocean users, and key stakeholders as the process unfolds.
The Administration has already made significant progress toward creating a pipeline of projects. It has approved and celebrated the groundbreaking of the nation’s first two commercial-scale offshore wind projects in federal waters: the 800-megawatt Vineyard Wind project and the 130-megawatt South Fork Wind project. BOEM expects to review at least 16 plans to construct and operate commercial offshore wind energy facilities by 2025, which would represent more than 22 GW of clean energy for the nation.
In addition, this past fall Secretary Haaland announced a new leasing path forward, which identified up to seven potential lease sales by 2025, including the New York Bight and offshore the Carolinas and California later this year, to be followed by lease sales for the Central Atlantic, Gulf of Maine, the Gulf of Mexico, and offshore Oregon.
More information about today’s auction can be found on BOEM’s website.
New York State Governor Kathy Hochul, alongside United States Secretary of the Interior Deb Haaland and other elected officials, on February 11 celebrated the start of construction of South Fork Wind, New York’s first offshore wind project, jointly developed by Ørsted and Eversource off the coast of Long Island. Building on the Bureau of Ocean Energy Management’s (BOEM) January issuance of the Final Sale Notice for the New York Bight, the recent key offshore wind contract milestone, and the State of the State announcement of a nation-leading $500 million investment in offshore wind ports, manufacturing, and supply chain infrastructure to accompany New York’s next offshore wind solicitation, New York continues to advance the Climate Leadership and Community Protection Act goal to develop 9,000 megawatts of offshore wind by 2035.
“The harsh impacts and costly realities of climate change are all too familiar on Long Island, but today as we break ground on New York’s first offshore wind project we are delivering on the promise of a cleaner, greener path forward that will benefit generations to come,” Governor Hochul said. “South Fork Wind will eliminate up to six million tons of carbon emissions over the next twenty-five years benefiting not only the Empire State, but our nation as a whole. This project will also create hundreds of good-paying jobs, helping spur economic growth across the region as we continue to recover from COVID-19. This is a historic day for New York, and I look forward to continue working with Secretary Haaland as we lead our nation toward a greener, brighter future for all.”
“America’s clean energy transition is not a dream for a distant future – it is happening right here and now,” US Department of Interior Secretary Deb Haaland said. “Offshore wind will power our communities, advance our environmental justice goals, and stimulate our economy by creating thousands of good-paying union jobs across the nation. This is one of many actions we are taking in pursuit of the President’s goal to improve both the lives of American families and the health of our planet.”
The Governor, who made today’s announcement in Wainscott, celebrated South Fork Wind kickstarting New York’s offshore wind generation when it becomes operational in late 2023. South Fork Wind will be one of the first commercial-scale offshore wind projects to commence operation in North America. Selected under a 2015 Long Island Power Authority (LIPA) request for proposals to address growing power needs on the east end of Long Island, the project will be located about 35 miles east of Montauk Point and its 12 Siemens-Gamesa 11 MW turbines will generate approximately 130 megawatts of power – enough to power over 70,000 homes. Its transmission system will deliver clean energy directly to the electric grid in the Town of East Hampton. Over a 25-year period, South Fork Wind is expected to eliminate up to six million tons of carbon emissions, or the equivalent of taking 60,000 cars off the road annually.
NYSERDA President & CEO Doreen M. Harris said, “With construction beginning on the South Fork Wind project, we are solidifying New York State’s clean energy vision and blazing a trail as we lead the nation in offshore wind development. As our state’s first offshore wind project, South Fork is helping to usher in the grid of the future as New York continues to build the most robust offshore wind project and supply chain in the nation, strengthen workforce development and partnerships with labor to provide a pipeline of talent for these critical projects, and establish the green economy that will power New York for years to come.”
Long Island Power Authority CEO Thomas Falcone said,”In 2017, the forward-thinking approach of the LIPA Board of Trustees led to the approval of the South Fork Wind project at a time when there were no other power purchase agreements for offshore wind in the country,” Long Island Power Authority CEO Thomas Falcone said. “As the first offshore wind farm in New York, South Fork Wind is the beginning of a new industry for our region that will be vital to New York meeting its goal of a zero-carbon electric grid by 2040.”
Indeed, the campaign to get offshore wind power for Long Island and New York State has been years in the making – activists had to battle back against efforts by fossil fuel industry to create NLG terminals in the very area the best in the nation for an offshore wind farm. But just as everything was in place, in 2017, Trump reversed course on promoting clean, renewable energy in favor of fossil fuel and even reignited the prospect of off-shore drilling. The Biden Administration moved swiftly to restart offshore windpower – in California and in New York, seeing the benefits of climate-action initiatives as not only protecting the environment and the economy but promoting jobs.
Department of Environmental Conservation (DEC) Commissioner Basil Seggos said,”New York is setting the example for the nation on tapping into the potential of offshore wind to help meet our energy needs while the state transitions to a cleaner, greener energy future. South Fork Wind is an exciting and transformative project that will help achieve our state’s ambitious goals to reduce greenhouse gas emissions and ramp up renewable energy sources while safeguarding our natural resources and driving new economic opportunities here on Long Island and across the state.”
“South Fork Wind’s groundbreaking is a historic milestone for New York’s offshore wind industry and for all New Yorkers in our efforts to address climate change,” Acting Secretary of State Robert J. Rodriguez said. “The Department of State continues to work with our stakeholders and government partners to minimize potential project impacts and avoid disruptions to our coastal economy as we transition to a cleaner, greener future. Through our combined efforts, New Yorkers will continue to enjoy Long Island’s pristine beaches and the rich ocean resources off our State as we reduce the State’s carbon footprint.”
“This significant milestone solidifies New York’s global leadership in the clean economy,” New York State Department of Labor Commissioner Roberta Reardon said. “The groundwork we lay today is creating new, exciting employment opportunities for New Yorkers while also protecting our environment for future generations. As Co-chair for the Just Transition Working Group, I thank Governor Hochul for leading the charge and for her unending commitment to ensuring the inclusion of disadvantaged communities in this movement.”
Public Service Commission Chair Rory M. Christian said, “The South Fork project will play a key role in developing much needed clean-energy for New York State and it will help New York achieve its nation-leading renewable energy goals while creating jobs and opportunities for individuals and industries. South Fork is a win for Long Island, and a win for all New Yorkers.”
Office of General Services (OGS) Commissioner Jeanette M. Moy said, “The start of the first off-shore wind project in New York State demonstrates Governor Hochul’s strong commitment to meeting the challenges of sustainability and ensuring New York’s future is green. OGS is proud to have a role in the South Fork Wind project and in advancing the State’s forward-looking climate and green-energy initiatives.”
“Offshore wind is crucial to fueling a green economy and promoting sustainable economic opportunities,” Empire State Development Acting Commissioner and President & CEO-designate Hope Knight said. “The start of construction at New York State’s first offshore wind project at South Fork Wind signifies at important step towards achieving clean energy goals and creating green jobs, which advances Empire State Development’s mission to prepare our economy for the future. With today’s announcement, New York State will continue to be leaders in the fight against climate change while strengthening our standing in offshore wind manufacturing.”
This milestone follows BOEM’s approval last month of the project’s Construction and Operations Plan (COP). The COP outlines the project’s one nautical mile turbine spacing, the requirements on the construction methodology for all work occurring in federal ocean waters, and mitigation measures to protect marine habitats and species. BOEM’s final approval of the COP follows the agency’s November 2021 issuance of the Record of Decision, which concluded the thorough BOEM-led environmental review of the project.
Senator Todd Kaminsky said,”Today’s announcement helps solidify New York as a leader in the green economy. The CLCPA set the most aggressive goals in the country and offshore wind on Long Island is central to meeting them. This project is a catalyst and shows that you can think big and get it done on Long Island.”
Assemblymember Steve Englebright said,”The South Fork Wind Project is a key first step to our state’s commitment to reducing greenhouse gases and meeting the challenge of climate change. I applaud Governor Hochul’s vision and determination to advance and enhance New York’s renewable wind energy portfolio.”
Assemblymember Fred Thiele said,”I’m proud to say that Long Island is an emerging trailblazer in renewable energy and will soon lead the state and the nation in offshore wind energy production. South Fork Wind Farm opens an exciting new chapter for us here on the East End, and I look forward to soon having a greener grid powered by this historic investment. I thank Governor Hochul for her continuous leadership and support.”
“Long Island has been a leader in all things clean energy, and as we begin construction on New York’s first wind farm, we are changing how we power our homes and businesses here in Suffolk,” Suffolk County Executive Steve Bellone said. ”This historic project, which puts Suffolk County at the heart of the offshore wind industry and will power roughly 70,000 homes, is a major victory for our economy, for labor, and for our environment as we remain committed to addressing the impacts of climate change on our region.”
East Hampton Town Supervisor Peter Van Scoyoc said,”In 2014 East Hampton was the first municipality in New York to adopt a 100% renewable energy goal. Today, with the beginning of the construction of New York’s first offshore wind farm we are very close to reaching that goal. We applaud Governor Hochul’s nation leading investment in offshore wind energy which puts New York at the forefront of our country’s efforts to combat climate change.”
New York League of Conservation Voters President Julie Tighe said, “Today, we are moving from concept to reality with the groundbreaking of South Fork Wind Farm, New York’s first offshore wind project. Congratulations to Ørstedand Eversource! This day is the culmination of years of perseverance to launch this project and new industry that will change the way we power our economy. We have a long way to go to meet our climate goals, but major investments like this combined with the leadership and commitment of Governor Hochul, Secretary Haaland, and BOEM Director Lefton are setting us on the course for a clean energy revolution.”
“With the start of construction on New York’s first offshore wind farm, we continue to deliver on our vision of a new U.S. energy industry that will generate clean power, jobs, and economic opportunity,” Ørsted Offshore North America CEO David Hardy said. “I am grateful for the many champions who have supported South Fork Wind to get us to this critical moment, and for the Biden Administration and New York’s leadership and commitment to the offshore wind industry.”
Eversource Energy President & CEO Joe Nolan said, “Today we make history as we celebrate the start of construction on New York’s first offshore wind farm. As homegrown experts in regional energy transmission, we have led the way on countless infrastructure projects, but today, we commemorate something entirely new and different. For the very first time, we will be leveraging our expertise to harness the vast, untapped potential of offshore wind.”
Nassau Suffolk Building and Construction Trades Council President Marty Aracich said, “The start of the construction phase for Offshore Wind marks a new era in reaching New York State’s goal of significantly reducing emissions. The skilled trades have a role by placing shovels in the ground as they implement the last leg of this relay race and position NYS to reign supreme along the Eastern Seaboard in combating climate change. Governor Hochul’s shared vision and commitment with NYSERDA enhances the alliance of Orsted/Eversource and North America’s Building Trades Unions. New York State remains focused on providing opportunities that will create a local workforce leading to a brighter, cleaner future for generations to come. Many thanks to Governor Hochul, Secretary of Interior Deb Harland, Amanda Lefton, Doreen Harris, and our partners in Labor for providing leadership as well as a moral compass guiding the earth on a path to heal itself.”
Long Island Federation of Labor, AFL-CIO President John R. Durso said,”This is a victory for Long Island and all New Yorkers. This is not only a crucial step forward in the fight against climate change, but it means jobs and new clean energy resources on Long Island where it is needed most. After many years of hard work in planning and development by Ørsted and Eversource, with support from labor and community allies, we are realizing the success we have all been waiting for.”
South Fork Wind will be built under industry-leading project labor agreements and specific partnerships with local union organizations, ensuring local union labor’s participation in all phases of construction on the project. Onshore construction activities for the project’s underground duct bank system and interconnection facility are the first to begin and will source construction labor from local union hiring halls. Ørsted and Eversource reached these provisions and protections working closely with a range of external organizations and experts, a commitment the companies carry to all stakeholder relationships to support coexistence.
Long Island-based contractor Haugland Energy Group LLC (an affiliate of Haugland Group LLC) was selected to install the duct bank system for the project’s underground onshore transmission line and lead the construction of the onshore interconnection facility located in East Hampton. This agreement will create more than 100 union jobs for Long Island skilled trades workers, including heavy equipment operators, electricians, lineworkers, and local delivery drivers who will support transportation of materials to the project site. Fabrication of the project’s offshore substation is already underway.
New York State has five offshore wind projects in active development, the largest portfolio in the nation. This current portfolio totals more than 4,300 megawatts and will power more than 2.4 million New York homes, and it is expected to bring a combined economic impact of $12.1 billion to the state. The projects are also expected to create more than 6,800 jobs in project development, component manufacturing, installation, and operations and maintenance. Achieving the State’s 9,000 megawatt by 2035 goal will generate enough offshore wind energy to power approximately 30 percent of New York State’s electricity needs, equivalent to nearly 6 million New York State homes, and spur approximately 10,000 jobs.
New York State’s Nation-Leading Climate Plan
New York State’s nation-leading climate agenda is the most aggressive climate and clean energy initiative in the nation, calling for an orderly and just transition to clean energy that creates jobs and continues fostering a green economy as New York State recovers from the COVID-19 pandemic. Enshrined into law through the Climate Leadership and Community Protection Act, New York is on a path to achieve its mandated goal of a zero-emission electricity sector by 2040, including 70 percent renewable energy generation by 2030, and to reach economy wide carbon neutrality.
It builds on New York’s unprecedented investments to ramp-up clean energy including over $33 billion in 102 large-scale renewable and transmission projects across the state, $6.8 billion to reduce buildings emissions, $1.8 billion to scale up solar, more than $1 billion for clean transportation initiatives, and over $1.6 billion in NY Green Bank commitments. Combined, these investments are supporting nearly 158,000 jobs in New York’s clean energy sector in 2020, a 2,100 percent growth in the distributed solar sector since 2011 and a commitment to develop 9,000 megawatts of offshore wind by 2035.
Under the Climate Act, New York will build on this progress and reduce greenhouse gas emissions by 85 percent from 1990 levels by 2050, while ensuring that at least 35 percent with a goal of 40 percent of the benefits of clean energy investments are directed to disadvantaged communities, and advance progress towards the state’s 2025 energy efficiency target of reducing on-site energy consumption by 185 trillion BTUs of end-use energy savings.
New York State Governor Kathy Hochul today at the Port of Albany, alongside U.S. Secretary of Energy Jennifer M. Granholm, Congressman Paul Tonko and other elected officials, announced the finalization of contracts between the New York State Energy Research and Development Authority (NYSERDA) and Empire Wind Offshore LLC and Beacon Wind LLC, each a 50-50 partnership between Equinor and bp, for the Empire Wind 2 and Beacon Wind offshore wind projects, representing a key milestone in the advancement of offshore wind development in New York State.
“We know what it takes to build and sustain for the future, it’s in our DNA as New Yorkers,” Governor Hochul said. “By advancing these significant offshore wind projects, we can maintain our cadence for developing projects that will spur much-needed green job creation and investment. No state has felt the impacts of climate change more than New York State, and now more than ever, we can continue to lead the way with our ambitious, nation-leading vision to transition to a renewable energy and a cleaner, greener future.”
Today’s announcement formally closes the State’s second offshore wind competitive solicitation and also includes the first awards for the State’s Offshore Wind Training Institute. Coupled with this week’s issuance of the Bureau of Ocean Energy Management’s (BOEM) Final Sale Notice for the New York Bight and the State of the State announcement of a nation-leading $500 million investment in offshore wind ports, manufacturing, and supply chain to be integrated within NYSERDA’s 2022 solicitation, these events represent a significant step forward in advancing the Climate Leadership and Community Protection Act goal to develop 9,000 megawatts of offshore wind by 2035.
“Hats off to Governor Hochul for taking a huge step towards lowering energy bills for New York households, creating thousands of good-paying jobs, and advancing President Biden’s goal of a robust offshore wind industry in America,” U.S. Secretary of Energy Jennifer M. Granholm said. “We can and will overcome the challenge of climate change, and we’ll do it one clean energy worker at a time.”
Senator Gillibrand said,”As we celebrate New York’s innovation in clean energy this week in Albany, I’m thrilled to announce this key partnership between the New York State Energy Research and Development Authority and Empire Wind Offshore LLC and Beacon Wind LLC. This marks another milestone in our state’s leadership and innovation in clean energy and offshore wind development. I look forward to continuing our great work to bring clean energy jobs and technology to New York.”
“We know New York’s potential for offshore wind development is tremendous,” Congressman Paul Tonko said. “Today’s exciting news will play a pivotal role in expanding this industry, creating good-paying jobs, training the energy workforce of the future, and helping address our most pressing climate challenges. Thanks to all involved in this forward-thinking announcement that invests in our region and pushes New York further down the path to becoming a powerhouse of wind manufacturing.”
NYSERDA President and CEO Doreen M. Harris said, “New York State has been steadfast in its commitment to establish itself as the leading offshore wind market in the nation and a global wind energy manufacturing powerhouse. These contracts with Equinor further solidify our progress and will create new economic opportunities while building a new electric grid powered by clean, renewable energy that paves our way to a healthier and more sustainable future.”
The 1,260-megawatt Empire Wind 2 and 1,230-megawatt Beacon Wind projects were provisionally awarded in January 2021 as a result of NYSERDA’s second offshore wind competitive solicitation. Expected to enter into commercial operation in 2027 and 2028, respectively, the projects will strengthen New York’s economy and further drive investments in ports to directly support offshore wind projects while establishing New York as the hub of the offshore wind supply chain. NYSERDA payments to the projects will commence once they obtain all required permits and approvals, complete construction, and begin delivering power to New York.
The final project contracts are available on NYSERDA’s website and include commitments to the following key benefits:
Unprecedented public and private funding commitments of $644 million in port infrastructure, including:
$357 million in the nation’s first offshore wind tower manufacturing facility to be built at the Port of Albany
More than $287 million in an offshore wind staging and assembly facility at the South Brooklyn Marine Terminal (SBMT), owned by the City of New York and managed by New York City Economic Development Corporation (NYCEDC)
More than $8.9 billion in anticipated in-state spending and the creation of more than 5,200 jobs backed by prevailing wage and project labor agreement commitments.
The average bill impact for customers will be approximately 0.8 percent, or about $0.95 per month. Total project costs, including a cost-effective average all-in development cost of $80.40 per megawatt hour, are approximately seven percent lower than those of NYSERDA’s 2018 awards, signaling offshore wind is a competitively priced renewable energy resource with tremendous benefits.
Equinor Wind US President Siri Espedal Kindem said, “Today’s announcement sets Equinor and bp on the path to provide over 3.3 GWs of offshore wind power for New York. It also offers a large-scale, tangible demonstration of the incredible economic activity and carbon reduction potential being driven by New York’s green energy transition. We are proud to help lead the growth of this exciting industry in New York.”
“These are world class assets and we are moving quickly and safely to get them producing the energy people need in the way that they want it – all the while creating positive ripple effects for the surrounding communities and industry,” bp Senior Vice President for Zero Carbon Energy Felipe Arbelaez said. “Today’s milestone is a critical step forward and we will continue to work hard to deliver the Empire Wind and Beacon Wind projects, providing clean energy and stable returns for decades to come.”
Director of the New York Offshore Wind Alliance Fred Zalcman said, “Today’s suite of announcements moves the state inexorably closer to realization of its’ nation-leading goal of 9,000 MW by 2035 and secures New York as the undisputed economic epicenter for the emerging offshore wind industry. We congratulate NYSERDA and the Equinor-bp joint venture on achieving this major commercial milestone, as well as the recipients of the first training grants to support the first generation of skilled workers to be deployed on these New York’s groundbreaking projects.”
“This is another important step toward reducing emissions, securing New York’s place in the offshore wind industry, and creating good union jobs and careers in communities across the state,” Executive Director of Climate Jobs NY Jeff Vockrodt said. “We look forward to working with the Hochul administration to ensure that these projects move forward expeditiously, that the jobs created are good family-sustaining union jobs, and that New Yorkers see the economic benefits of these investments. We are also encouraged to see that NYSERDA plans to issue the next solicitation for offshore wind power soon, which together with Governor Hochul’s recent announcement of $500 million in new supply chain investments will help build out ports and other essential offshore wind infrastructure.”
This week, Governor Hochul joined United States Secretary of the Interior Deb Haaland, and New Jersey Governor Phil Murphy to announce BOEM’s Final Sale Notice of six new leases, comprised of 488,000 total acres for offshore wind development in the New York Bight, and the release of the document “A Shared Vision on the Development of an Offshore Wind Supply Chain,” which describes a coordinated offshore wind supply chain effort between New York, New Jersey and BOEM. These additional lease areas are needed for New York and New Jersey to achieve their respective offshore wind goals and support the federal government’s offshore wind goal of 30,000 megawatts by 2030.
Keeping pace to be the U.S. leader in the offshore wind industry, New York will launch its third statewide solicitation round in early 2022. As announced in Governor Hochul’s 2022 State of the State address, NYSERDA’s next solicitation is expected to result in at least 2 gigawatts of new projects — enough to power 1.5 million homes, bringing the state’s combined total to more than 4.5 million homes powered by offshore wind. NYSERDA will couple this procurement with a $500 million offshore wind infrastructure investment to catalyze private investments to build the critical infrastructure needed to assure New York’s prominence as the hub for this burgeoning industry. The solicitation will include improvements to the approach for offshore transmission based on recommendations from the New York State Power Grid Study, increased emphasis on in-state manufacturing, inclusive economic development and climate equity, an emphasis on close relations with New York’s labor force including construction backed by prevailing wage and project labor agreements, and additional scoring credit for projects that propose to repurpose existing downstate fossil-based electric generation infrastructure and utilize energy storage to enhance future system reliability.
New York State Department of Labor Commissioner Roberta Reardon said, “Offshore wind is breathing fresh air into New York’s economy. With the support of a well-trained workforce, this emerging sector will bring economic prosperity for years to come. I thank Governor Hochul for continuing to strategically invest in our economy, our environment, and New York’s workforce.”
“Offshore wind ports will fuel both a green economy and economic opportunities,” Empire State Development Acting Commissioner and President & CEO-designate Hope Knight said. “Empire Wind 2 and Beacon Wind will make New York State greener and create green jobs, which advances Empire State Development’s mission to prepare our economy for the future. With today’s announcement, New York will continue to be leaders in the fight against climate change and production of green energy and green jobs – bringing us closer to the State’s ambitious climate goals.”
President and CEO of the Center for Economic Growth Mark Eagan said,”We are witnessing the birth of a sector that is not only new to New York State, but the entire country. It’s real and it’s concentrating here – in the Capital Region. New York State is a pioneer in the offshore wind industry, and we are deeply thankful for the vision and commitment of Governor Hochul and NYSERDA. We congratulate Equinor, bp, and the Port of Albany on this contract, which will help transform our economy and provide good-paying jobs. CEG started globally marketing the region’s offshore wind potential three years ago, and that has helped yield this nation-leading investment with more on the way. CEG will continue to work with its partners to leverage state and federal dollars to further build out the Capital Region as the location-of-choice for offshore wind component manufacturing.”
Adrienne Esposito, Executive Director, Citizens Campaign for the Environment said, “This announcement is one step forward for wind power, and a giant leap for a cleaner energy future. It is thrilling to see significant progress that guides our transition from fossil fuels to renewable energy. The public strongly supports this transition and New York is delivering! As we build a green economy and advanced offshore wind, we are fulfilling the commitment to make New York a leader in the battle to fight climate change. Thank you to Governor Hochul and NYSERDA for continuing to forge a pathway of progress.”
These advancements build on New York’s continued responsible and cost-effective approach to developing offshore wind, including NYSERDA’s recently published Guiding Principles for Offshore Wind Stakeholder Engagement, and Request for Information seeking feedback from the public and interested stakeholders to identify topics to consider in the analysis of offshore and onshore cable corridors. NYSERDA will also initiate a new Offshore Wind Master Plan 2.0: Deep Water to unlock the next frontier of offshore wind development this year.
New York State has five offshore wind projects in active development, the largest portfolio in the nation. This initial portfolio totals more than 4,300 megawatts and will power more than 2.4 million New York homes and is expected to bring a combined economic impact of $12.1 billion to the state. The projects are also expected to create more than 6,800 jobs in project development, component manufacturing, installation, and operations and maintenance. Achieving the State’s 9,000 megawatt by 2035 goal will generate enough offshore wind energy to power approximately 30 percent of New York State’s electricity needs, equivalent to nearly 6 million New York State homes, and spur approximately 10,000 jobs.
Offshore Wind Training Institute
Also announced today were the first round of competitive awards under the State’s $20 million Offshore Wind Training Institute, the largest public investment in offshore wind workforce development by any state in the U.S. Through a partnership between the State University of New York’s Farmingdale State College and Stony Brook University on Long Island, the training institute aims to advance offshore wind training programs and the educational infrastructure needed to establish a skilled workforce that can support the emerging national offshore wind industry. The Institute will certify and train 2,500 New York workers beginning this year to support both offshore and onshore renewable energy projects.
The first two winning proposals will receive a combined $569,618 to support early training and skills development for disadvantaged communities and priority populations – including veterans, individuals with disabilities, low-income individuals, homeless individuals, and single parents – in both the Capital Region and New York City. Awardees include:
Hudson Valley Community College in Troy, NY (HVCC)
LaGuardia Community College in Queens, NY (LAGCC)
To help build a strong pipeline for the Capital Region’s offshore wind initiative, HVCC recently began offering a two-year associate degree in welding and fabrication and will focus student recruitment efforts on priority populations in urban and rural disadvantaged communities, providing full or partial scholarships to participants. Foundational welding skills training will be provided by the Capital Region Educational Opportunity Center, a division of HVCC with additional non-credit training and certifications be provided at the college’s main campus. The college will also partner with regional manufacturers building turbine components to provide a skilled workforce pipeline of welders and fabricators, aiming to train 75 individuals, including 65 from priority populations and disadvantaged communities.
LAGCC is partnering with Siemens Gamesa to build an inclusive offshore wind workforce that ensures a robust local talent pipeline for the construction, repair, and maintenance of offshore wind facilities in the New York City metro area. The college will convene employers to detail the skill gaps for both new entrants to the workforce and incumbent workers in the construction trades to help inform and develop a best-in-class custom curriculum. A total of fifty low-income individuals from the Brooklyn-Queens waterfront will be trained to work as offshore wind technicians.
Penny Hill, Dean of Economic Development and Workforce Initiatives for HVCC, said, “Hudson Valley Community College is committed to helping supply the workforce for New York State’s clean energy future. In addition to those trained in welding and fabrication, the college is ready to provide other educational opportunities to support the offshore wind industry. We look forward to partnering with manufacturers to provide job training and build stronger, more resilient communities.”
“Building an inclusive offshore wind workforce will allow us to ensure that low-income communities of color and other communities that have been left behind in the past have a chance to lead the green economy of the future,” Hannah Weinstock, Senior Director of Workforce Development for LAGCC, said.
NYS’s Nation-Leading Climate Plan
New York State’s nation-leading climate agenda is the most aggressive climate and clean energy initiative in the nation, calling for an orderly and just transition to clean energy that creates jobs and continues fostering a green economy as New York State recovers from the COVID-19 pandemic. Enshrined into law through the Climate Leadership and Community Protection Act, New York is on a path to achieve its mandated goal of a zero-emission electricity sector by 2040, including 70 percent renewable energy generation by 2030, and to reach economy wide carbon neutrality. It builds on New York’s unprecedented investments to ramp-up clean energy including over $33 billion in 102 large-scale renewable and transmission projects across the state, $6.8 billion to reduce buildings emissions, $1.8 billion to scale up solar, more than $1 billion for clean transportation initiatives, and over $1.6 billion in NY Green Bank commitments. Combined, these investments are supporting nearly 158,000 jobs in New York’s clean energy sector in 2020, a 2,100 percent growth in the distributed solar sector since 2011 and a commitment to develop 9,000 megawatts of offshore wind by 2035. Under the Climate Act, New York will build on this progress and reduce greenhouse gas emissions by 85 percent from 1990 levels by 2050, while ensuring that at least 35 percent with a goal of 40 percent of the benefits of clean energy investments are directed to disadvantaged communities, and advance progress towards the state’s 2025 energy efficiency target of reducing on-site energy consumption by 185 trillion BTUs of end-use energy savings.
Governor Andrew Cuomo sees the opportunity to create a new industry centered largely on Long Island to take advantage of the offshore windpower in an area of the Atlantic Ocean, considered “the Saudi Arabia of windpower.” In this, the state is acting much like other nations which jumpstart new industries by funding critical studies, research centers, workforce development. This is all to ease the way, lessen the risk and increase likelihood of success for the private companies which are expected to vie for leases from the federal Bureau of Ocean Energy Management (BOEM).
Cuomo has set a standard of the state generating 50% of its energy needs through renewable by 2030, and offshore wind, in addition to solar, hilltop windpower, hydroelectric and other sources (“all of the above”) are considered essential to meeting that goal, which Cuomo has proudly declared the most ambitious in the nation.
The New York State Department of Environmental Conservation just released proposed regulations to require all power plants in New York to meet new emissions limits for carbon dioxide (CO2), a potent greenhouse gas that contributes to climate change. The regulations, a first in the nation approach to regulating carbon emissions, will achieve the Governor’s goal to end the use of coal in New York State power plants by 2020.
Environmental groups including Sierra Club have long advocated offshore wind, especially as Long Island faces a crucial transition juncture of expanding or upgrading fossil-fuel based power plants to meet its energy needs, versus investing and transitioning to renewable energy.
The state is targeting acquiring 2,400 megawatts of energy from offshore wind – the equivalent of what is generated by the Indian Point Nuclear Power Plant – enough to power 1.2 million households. The associated industries that would develop to manufacture the wind turbines and platforms, construct ports and stage the equipment, install the turbines, operate and maintain the systems are expected to employ some 5,000 people in relatively high-paying jobs, and generate $6 billion for the region. What is more, over time, windpower will bring down the cost of electricity on Long Island, where high costs of energy are considered impediments to economic growth.
At the same time, the state has invested in new research programs at State Universities, including Stony Brook to address key issues such as storage batteries (for when the wind does not blow), and transmission.
The master plan, being unveiled in public hearings, has been developed over a period of years by New York State Energy Research and Development Authority (NYSERDA).
The strategy is to be the furthest along in order to be first in line to contract for the electricity, which could be sold to New Jersey and other regions, to reduce cost and risk to private entities which will bid for the rights to construct and operate the wind turbines. The state is not actually seeking to be the winning bidder for the leases, but to be the customer for the power for those that do. And the state is also aware that other customers – New Jersey, as one example (though the former governor Chris Christie showed little interest, the new governor Phil Murphy is) – will also be bidding. But there is great confidence because of proximity and the sheer market size, that New York City and Long Island residents will be the beneficiary. And there is so much energy potential from this area, there is “enough for all.” Indeed, NYSERDA is eyeing 3,200 MW of production from the sites it has targeted, of which it would contract for 2,400.
NYSERDA has conducted studies in 20 areas –literally every environmental, biologic, economic and engineering aspect – in order to define every aspect of locating the best places to position turbines and cables, where to stage construction, where to manufacture the turbines and components, even where to invest in workforce development. All along the way, the agency has engaged stakeholders – from municipalities and environmentalists to labor unions to consumer advocates, to commercial fishing interests.
The state has allocated $15 million to spend on workforce development and infrastructure advancement (for example, building port facilities), and is allocating up to $5 million for multi-year research studies that will assist project developers with the data will be made available by NYSERDA in real time to public. For example, data on wind speeds particularly impact economics of projects and will improve the certainty of bids to state.
“We are seeking to invest $20 million or more, kicking off in 2018, for research and development – component design, systems design, operational controls, monitoring systems, manufacturing processes,” said Doreen Harris, Director, Large Scale Renewables, NYSERDA.
To attract private investment in port infrastructure and manufacturing, the state is hoping to spotlight promising infrastructure investments (60 sites have been identified), helping jumpstart project development and “secure its status as the undisputed home for the emerging offshore wind industry in the US.”
Think of it: Long Island used to be the center for America’s aerospace industry. Now it can be a leader in a global offshore windpower industry. What is more, off shore windpower can also bring down Long Island’s historically high utility rates which are considered an impediment to business development and economic growth.
“We’ve established technical working groups to determine best use of funds – to insure new Yorkers well prepared to serve offshore wind industry and connected to the global Industry.” Indeed, offshore wind is brand new for the US, but has been in force in Europe for 25 years.
The United States projects will have the benefit of leap-frogging over earlier technology, with more efficient, productive, and less environmentally risky structures.
The state is estimating that the near-term incremental program cost would be less than 30 cents a month for a typical homeowner – the cost of windpower is front-loaded in the initial construction, as opposed to fossil-fuel generated energy which continues to get more expensive over time because it is a finite resource that is increasingly more difficult and costly to obtain and needs to be transported from further distances to users. Electricity generated from wind is already competitive with fossil-fuel generated power, but over time, as usage thresholds and technology improvements are reached, the costs will go down. And this does not even factor in the environmental and public health benefits of transitioning from carbon-based fuel.
The only kicker is that while New York State is being pro-active, it is BOEM that ultimately controls the leases and is undertaking similar studies, so people are concerned this can be unnecessarily time-consuming and duplicative. And while BOEM under the Obama Administration was full-speed ahead and keen to develop offshore windpower, concern was raised after Interior Secretary Ryan Zinke declared the entire continental shelf open for drilling, and this prime windpower area used instead for drilling rigs or equally horrible Liquified Natural Gas (LNG) terminals such as the Port Ambrose that had been beaten back by Governor Cuomo.
But BOEM’s Energy Program Specialist Luke Feinberg, who attended NYSERDA’s May 8 public hearing in Melville expressed enthusiasm for offshore wind in this area (not to mention the area does not seem to have much potential for oil). BOEM presented a timetable that projects out two to five years before actual construction can begin; BOEM intends to hold its next lease auction no later than 2019.
BOEM is taking comments on the proposed “New York Bight” Call Area by May 29. Submit comments and view documents at boem.gov/New-York/
The New York Public Service Commission is now considering a number of options for the state to advance solicitations once the leases are awarded; send comments or view materials at http://documents.dps.ny.gov.
To get more information on the New York State Offshore Wind Master Plan visit nyserda.ny.gov/offshorewind.
On January 25, activists who have been fighting for decades for clean, renewable energy in order to end our society’s dangerous addiction to fossil fuels, are hoping they will finally be able to pop the champagne corks when the Long Island Power Authority Board approves a power purchase agreement for off-shore wind power for the East End.
Indeed, just a week after the Block Island Wind Farm began producing power, New York labor unions, civic and environmental organizations and elected officials hosted a rally outside of Long Island Power Authority (LIPA) praising LIPA for expressing support of offshore wind power and its anticipated vote on Jan. 25 to move forward on the nation’s largest offshore wind project. Over 100 gathered in front of LIPA, in the largest show of Long Island’s support for offshore wind to date.
Located off the east end of Long Island, Deepwater Wind’s 90-megawatt, 15-turbine project will produce enough energy to power about 50,000 Long Island homes by 2022. This pivotal decision, opening a new era for Long Island’s energy economy, would eliminate the need for LIPA to build a new fossil fuel-fired plant to meet the region’s energy needs. Keep in mind that Long Island officials keep saying the impediment to businesses coming here are the high energy costs.
Now the activists are calling on LIPA to move forward on the Island-Wide renewable energy Request for Proposal in early 2017 which could include another 210 MW of offshore wind off of Long Island’s south fork. (Europe already generates 12,100 megawatts of off-shore wind energy).
Meanwhile, in the waning days of the Obama Administration (and not a moment too soon), the US Bureau of Ocean Energy Management (BOEM), awarded Statoil Wind US LLC, a private company from Norway that specializes in oil and gas, the lease to develop an off-shore wind farm on 80,000 acres some 12 miles off of Long Island’s south shore. Statoil’s $42.5 million bid beat out NYSERDA, the New York State energy research development agency, which had wanted to win so it could be the lead agency and expedite development of off-shore windpower for New York.
The project could provide 800 megawatts of offshore wind power in an area 17 miles south of the Rockaway Peninsula.
Now that it will be the domain of a private company, New York customers- like LIPA and Con Ed – will likely have to compete with New Jersey and others. LIPA needs to lock in supply, with a Power Purchase Agreement and details on where the company can run its cables on to shore, and do so before the Trumpsters try to overturn the lease altogether. Recall this is the same area where a private company wanted to site the Port Ambrose Liquified Natural Gas facility, which would have shut down the possibility of any wind farm.
The incoming Trump Administration’s determination to reverse course on a transition to clean, renewable energy, and return us to dependency on fossil fuels – no matter the impact on climate, the environment and ecology, no matter how it basically indentures residents and businesses to ever higher prices for energy, no matter how it endangers national security – means it will be up to the states to continue progress.
Governor Andrew Cuomo has set a goal of producing 50% of New York’s electricity from renewable sources by 2030 and 80% by 2050, with an ultimate goal of 100%. Developing offshore wind power – and a wholly new industry for Long Island – is essential for achieving those targets, along with solar, geothermal and hydro power sources (East Hampton has passed legislation that it would get 100 percent of its electricity from clean, renewable sources.)
Governor Cuomo made major news during his State of the State message at SUNY Farmingdale on Long Island, announced that New York is committed to building 2,400 megawatts (MW) of offshore wind power by 2030 – enough to power 1.25 million homes. The Governor also pledged his support for New York’s first, and the nation’s largest, offshore wind project off the east end of Long Island.
“We have to start to do some big things, we have to do big things in renewable energy to get that cost to power down on Long Island,” he stated. “And we have wind power, we’ve had wind power for years. Offshore wind farms work. They can be done right, they can be done correctly, they don’t have to be an eyesore.
“I’m calling on LIPA to approve a 90 megawatt wind farm. It’s enough to support 50,000 homes. They will not be visible from the beach. They will be 30 miles southeast of Montauk. Not even Superman standing on Montauk Point could see these wind farms. But the upside is tremendous. It will be the largest offshore wind project in our nation’s history, not just in existence. It’s jobs. It’s clean energy and it’s inexpensive energy which then drives the economy. And we are not going to stop there. We have a mandate of 50 percent renewable power by the year 2030. We want to get 2.4 gigawatts of offshore wind power by 2030 and we are not going to stop until we reach 100 percent renewable because that’s what a sustainable New York is really all about.”
Offshore wind power is especially important in light of Cuomo’s pronouncement in his State of the State address that the Indian Point nuclear plant, which theoretically generates 2000 megawatts of energy, will be shut down by 2021.
The Atlantic waters off Long Island has some of the best conditions for off-shore windpower production in North America, if not the world. Dubbed the “Saudi Arabia of offshore wind” we could be the epicenter for a new American energy industry, already $20 billion globally. Scientists and engineers at SUNY Stony Brook are developing new battery storage systems and monitoring controls. Wind turbines need to be manufactured, installed, monitored and maintained, producing thousands of everlasting jobs along with the wind power.
And unlike fossil fuels, where the prices are unpredictable except they almost always go up (oil and gas, after all, are finite resources, costly to develop, process and deliver), wind power is a predictable, stable price that is on a trajectory to come down, not up.
“It’s been a marathon of work and effort to bring wind power to Long Island, but we are at the last mile and moving closer to the finish line,” Adrienne Esposito, Executive Director of Citizens Campaign for the Environment said at the Dec. 20 rally. “Long Islanders are ready for offshore wind. We have assessed the science, the economics and the societal benefits and we concluded that wind works as an important mainstream energy source. We can longer be fossil fools and deny the consequences of climate change.”
“With Donald Trump about to occupy the White House, it’s essential that states like New York take the lead in transitioning from dirty fossil fuels to renewable energy,” Eric Weltman, Senior Organizer, Food & Water Watch stated. “Climate change could be catastrophic to New York, but with the fossil fuel industry poised to set federal energy policy, we need Governor Cuomo to lead a clean energy revolution. Having banned fracking, a next crucial step is for New York to move forward with the nation’s largest offshore wind farm.”
Come out to the LIPA board meeting on January 25 to show your support.
If they build it, we will come.
To learn more about Reforming the Energy Vision, including the Governor’s $5 billion investment in clean energy technology and innovation, visit www.ny.gov/REV4NY and follow @Rev4NY.
