California legislators propose USD-1bn offshore wind infrastructure bond

Three members of the California State Assembly have proposed an act to authorise the issuance of USD 1 billion (EUR 929m) worth of general obligation bonds for seaport infrastructure improvements to facilitate offshore wind development.

California’s goal is to achieve 25 GW of floating offshore wind by 2045. Last month it was announced that the California Energy Commission (CEC) and other state agencies have prepared a draft strategic plan for offshore wind development in federal waters off the California coast.

The proposed Assembly Bill, AB 2208, was introduced by Assembly Members Zbur, Lowenthal, and Wood on February 7, 2024. The text notes that California’s State Energy Resources Conservation and Development Commission is required to develop and submit to the Natural Resources Agency and the Legislature a strategic plan for offshore wind energy developments in federal waters on or before June 30, 2023, including a plan to improve waterfront facilities for a range of floating offshore wind development activities. The proposed bond issuance is related to this aspect of the plan.

In December 2022, the US Department of the Interior announced the selection of five developers as provisional winners of the California offshore wind lease auction, which lured competitive high bids totalling USD 757.1 million. The lease sale covers three areas off central California and two sites off northern California, of about 373,268 acres (151,056 ha) in total. The areas have the potential to accommodate more than 4.6 GW of offshore turbine capacity.

(USD 1.0 = EUR 0.929)

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