TRENTON, NJ – It’s no secret. Wind energy companies are starting to get cold feet and are hoping the federal government bails them out. Now, governors from six northeastern states, including New Jersey are pleading with the Biden Administration to make sure the troubled projects aren’t bogged down in D.C. red tape, a hurdle that could sink some of the projects.
A letter to the President by Murphy and other governors seeks to quietly ask for more federal tax credits, revenue-sharing opportunities, and easier permit accessibility and approval.
He was joined by governors from New York, Connecticut, Maryland, Massachusetts, and Rhode Island.
The letter comes as stock prices in 0rsted, the Danish company building a wind farm off the coast of the Jersey Shore, continue to plummet. 0rsted stock has dropped from $63 in 2021 to a near-record low of $18.83 on Friday.
“Realization of the offshore wind opportunity depends crucially on several variables, including the pace and uniformity of the federal permitting process, the degree of regional coordination among states, the 2 amount of available space in federal lease areas, the potential impacts on marine resources, and the availability of supporting infrastructure to deliver high-voltage power from project areas to the mainland,” the governors said. “As such, we aim to collaborate across our states by consulting with each other on permitting challenges, natural resource consideration, identifying opportunities to coordinate schedules, and aligning construction timelines to meet states’ respective clean energy targets. Doing so, we hope to utilize our joint resources to maximize the economic potential of the offshore wind industry for our country.”
“The expansion of the offshore wind industry creates an unprecedented opportunity for the United States to capture significant economic development activity and build equity in coastal communities while improving air quality and increasing the options for energy diversity,” the letter stated. “The importance of federal-state partnership in realizing this opportunity cannot be overstated, and we commend your Administration for the significant steps it has taken in recent weeks to address the critical areas of port infrastructure, permitting, research and development, fisheries support, and natural resource restoration and mitigation. We write both to thank you and provide recommendations to build on the significant momentum your Administration has created.”
