Governor Kathy Hochul in conjunction with United States Secretary of the Interior Deb Haaland, New Jersey Governor Phil Murphy and AFL-CIO President Liz Shuler announced that the Bureau of Ocean Energy Management (BOEM) will be holding a wind auction on February 23 for an area consisting of 488,000 acres located in the New York Bight, along with a plan for a coordinated offshore wind supply chain effort between New York, New Jersey and BOEM, titled "A Shared Vision on the Development of an Offshore Wind Supply Chain." This announcement builds on the nation-leading offshore wind priorities outlined in Governor Hochul's 2022 State of the State and represents a significant step forward in advancing the Climate Leadership and Community Protection Act goal to develop 9,000 megawatts of offshore wind by 2035.
"Here in New York, we are already living with the effects of climate change through extreme weather that pose a direct threat to our way of life," Governor Hochul said. "We must chart an ambitious path toward a cleaner energy economy now more than ever, and today's milestone further highlights New York's commitment to reaching its offshore wind goals. This effort will require collaboration at all levels, and I applaud the Biden Administration for their action and thank Secretary Haaland and BOEM, as well as New Jersey Governor Murphy, for their partnership as we build on New York's offshore wind energy development."
The Feb. 23 auction will allow offshore wind developers to bid on six lease areas - the most areas ever offered in a single auction - as described in BOEM's Final Sale Notice. Leases offered in this sale could result in 5.6 to 7 gigawatts of offshore wind energy, enough to power nearly 2 million homes. As offshore wind technology continues to advance, these areas may have the potential to produce even more clean energy.
On today's call, the leaders outlined a shared vision for developing a robust offshore wind 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 market.
The New York Bight offshore wind auction will include several innovative lease stipulations designed to promote the development of a robust domestic U.S. supply chain for offshore wind and enhance engagement with Tribes, the commercial fishing industry, other ocean users, and underserved communities. The stipulations will also advance flexibility in transmission planning and make use of project labor agreements throughout the construction of offshore wind projects. 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.
The Biden-Harris administration's goal to install 30 GW of offshore wind by 2030 is complemented by state offshore wind policies and actions throughout the Northeast and Mid-Atlantic. Collectively, New York and New Jersey have set the nation's largest regional offshore wind target of installing over 16 GW of offshore wind by 2035.
Secretary of the Interior Deb Haaland said, "The Biden-Harris administration has made tackling the climate crisis a centerpiece of our agenda, and offshore wind opportunities like the New York Bight present a once-in-a-generation opportunity to fight climate change and create good-paying, union jobs in the United States. We are at an inflection point for domestic offshore wind energy development. We must seize this moment - and we must do it together."
Governor Phil Murphy said, "Offshore wind holds tremendous promise for our future in terms of climate change, economic growth, strengthening our work force, and job creation. New Jersey is already committed to creating nearly one-quarter of the nation's offshore wind-generation market and these transformative projects are proof that climate action can drive investments in infrastructure and manufacturing, while creating good-paying, union jobs. By acting on this shared vision, we can promote our joint offshore wind goals, and deliver benefits to residents of both states, particularly those in overburdened communities. Together, with this critical cooperation with the Biden-Harris Administration and our state partners, we will turn this vision of becoming a leader in the global offshore wind market into a reality."
A recent report indicates that the United States' growing offshore wind industry presents a $109 billion opportunity in revenue to businesses in the supply chain over the next decade.
These additions are intended to promote offshore wind development in a way that coexists with other ocean uses and protects the ocean environment, while also facilitating our nation's energy future for generations to come.
In addition, Governor Hochul announced plans to invest in offshore wind infrastructure, procure enough wind energy to power at least 1.5 million homes, initiate planning for an offshore wind transmission network, and launch the offshore wind Master Plan 2.0 Deep Water in her 2022 State of the State address. This will ensure that the state has the strongest offshore wind energy market along the Eastern Seaboard. The Governor's plan for offshore wind will support more than 6,800 jobs, a combined economic impact of $12.1 billion statewide, and more than 4.3 gigawatts of energy, enough to power nearly 3 million homes in New York.