Governor Murphy Signs Executive Order to Promote Offshore Wind Energy

Atlantic City – Governor Phil Murphy today signed an Executive Order directing the New Jersey Board of Public Utilities to fully implement the Offshore Wind Economic Development Act (OWEDA) and begin the process of moving the state toward a goal of 3,500 megawatts of offshore wind energy generation by the year 2030.

“Little progress has been made on offshore wind development in New Jersey despite a pledge from the previous administration to facilitate our growth of offshore wind,” Governor Murphy said. “We cannot allow for stagnation in this growing sector of our energy economy and we cannot lose sight of the tremendous opportunity for offshore wind at the Jersey Shore. With this Executive Order, we begin the process of making New Jersey a leader in offshore wind, a critical step toward achieving our clean energy goals.”

In 2010, Governor Christie signed OWEDA, a piece of legislation allowing state agencies to craft an Offshore Wind Renewable Energy Credit (OREC) program. But despite OWEDA being signed eight years ago, gaps remain in the regulations for implementing the OREC program and offshore wind developers have not obtained the necessary approvals from the New Jersey BPU to move forward.

Governor Murphy’s Executive Order directs the BPU to begin the rulemaking process to fill the gaps in the current regulations governing the OREC program. The Order also directs BPU President Joseph Fiordaliso and New Jersey Department of Environmental Protection Commissioner Catherine McCabe to work together to establish an Offshore Wind Strategic Plan for New Jersey. The Plan will focus on critical components of offshore wind development, including job growth, workforce development, data collection, and appropriate determination of facilities, as well as ensuring that natural resources are protected.

Under the Order, BPU will implement the OREC program by approving financial plans submitted by offshore wind developers. After the creation of a process to approve such plans, the BPU will issue a solicitation calling for proposed offshore wind projects for the generation of 1,100 megawatts of electric power — the nation’s largest such solicitation to date. Finally, the Executive Order instructs the BPU to engage with neighboring states on the potential benefits of regional collaboration on offshore wind.

“Our goal is to grow offshore wind in a way that creates jobs and reduces our dependence on fossil fuels,” Governor Murphy said. “New Jersey is committed to growing our clean energy sector, and offshore wind is at the crux of increasing that part of our economy.”

Text of Executive Order 8 is below.

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State of New Jersey

Executive Order #8

Governor Philip D. Murphy

WHEREAS, New Jersey enjoys an abundance of invaluable natural resources, including a magnificent coastline and some of the best offshore wind resources in the world; and

WHEREAS, in order to combat the threat of global climate change and mitigate the accompanying risks to New Jersey and its residents, New Jersey must be a leader in the development of sustainable, renewable energy sources; and

WHEREAS, because of our location and resources, New Jersey is uniquely well-suited for the development of renewable offshore wind energy; and

WHEREAS, in the early 2000s, New Jersey emerged as a leader in developing offshore wind and attracting associated assembly and manufacturing facilities, but since that time has seen stagnant growth in the offshore wind sector; and

WHEREAS, despite the enactment in 2010 of the Offshore Wind Economic Development Act (“OWEDA”), little progress has been made towards OWEDA’s goals or towards offshore wind development generally; and

WHEREAS, offshore wind is an abundant, renewable and sustainable form of energy that will allow New Jersey to shift away from outdated energy sources, which have polluted our natural environment for decades; and

WHEREAS, offshore wind generation also will provide reliability and relief for the regional electric grid, which is the largest, most congested and most costly in the nation; and

WHEREAS, by setting an aggressive offshore wind energy production goal, New Jersey has the potential to power over 1.5 million homes with clean, renewable offshore wind energy; and

WHEREAS, an aggressive offshore wind energy production goal will also result in the various portions of the offshore wind development supply chain being located in New Jersey, including manufacturing, assembly and construction of the component parts of offshore wind turbines, which will contribute to a stronger New Jersey economy;

NOW, THEREFORE, I PHILIP D. MURPHY, Governor of the State of New Jersey, by virtue of the authority vested in me by the Constitution and the Statutes of this State, do hereby ORDER and DIRECT:

1.         The Board of Public Utilities (“BPU”), the Department of Environmental Protection (“DEP”), and any other New Jersey state agencies with responsibilities arising under OWEDA shall take all necessary actions to implement OWEDA in order to promote and realize the development of wind energy off the coast of New Jersey to meet a goal of 3,500 megawatts of offshore wind energy generation by the year 2030.

2.         In order to achieve this goal, the President of the BPU shall, with the assistance of the Commissioner of the DEP, develop an Offshore Wind Strategic Plan. In creating the Offshore Wind Strategic Plan, the President and the Commissioner shall engage key stakeholders and solicit input from the public. The Offshore Wind Strategic Plan shall focus on critical components of offshore wind development, including achieving scale to reduce costs, job growth, supply-chain businesses, workforce development, data collection, and appropriate siting of facilities, and shall ensure that natural resources are protected throughout the development and operational stages of offshore wind energy production.

3.         The BPU shall implement OWEDA’s Offshore Renewable Energy Certificate (“OREC”) program through the approval of OREC Pricing Plans as outlined in OWEDA.

4.         The Department of the Treasury shall work with the BPU and the DEP to ensure that necessary resources and expertise, including an offshore wind economic consultant, are available to advise and assist in the implementation of OWEDA and this Order.

5.         Following the establishment of an OREC Pricing Plan application process consistent with this Order, the BPU shall issue a solicitation calling for proposed offshore wind projects for the generation of 1,100 megawatts of electric power, the nation’s largest such solicitation to date.

6.         Within sixty (60) days of the date of this Order, BPU shall initiate the administrative rulemaking process to establish the OREC Funding Mechanism, through which rules and regulations shall describe the flow of payments for ORECs from suppliers to offshore wind developers. The OREC Funding Mechanism regulations shall also define the administrative steps to ensure, verify and account for OREC payments to offshore wind developers.

7.         The President of the BPU shall initiate discussions with sister states in the Northeast and Mid-Atlantic region to explore the potential benefits of a regional collaboration on offshore wind and other opportunities to combat climate change.

8.         Should any part of this Order be declared to be invalid or unenforceable, or should the enforcement of or compliance with any part of this Order be suspended, restrained or barred by the final judgment of a court of competent jurisdiction, the remainder of this Order shall remain in full force and effect.

9.         This Order shall take effect immediately.

GIVEN, under my hand and seal this 31st day of January, Two Thousand and Eighteen and of the Independence of the United States the Two Hundred and

Forty-Second.

/s/ Philip D. Murphy

Governor

Attest:

/s/ Matthew J. Platkin

Chief Counsel to the Governor