New legislation creates offshore wind procurement process

Joining the rest of the Mid-Atlantic states, the Delaware General Assembly passed a bill June 30 that creates an offshore wind procurement process.

Senate Bill 265 was introduced in early April by Sen. Stephanie Hansen, D-Middletown.

“Today’s passage of the Energy Solutions Act marks a major step forward in our ongoing work to reduce Delaware’s over-reliance on harmful fossil fuels,” said Hansen, Senate Environment, Energy & Transportation Committee chair.

Rep. Debra Heffernan, D-Bellefonte, said the state will not see a turbine in the next year, but this is still a huge feat.

“We have now begun the process to ensure that Delaware is ready to make the switch to clean energy when the best opportunity presents itself,” said Heffernan, House Natural Resources & Energy Committee chair.

Delaware is more than a decade behind its Mid-Atlantic neighbors to the north and south. New Jersey passed similar legislation in 2010, while Maryland did so in 2013. As a result of this inaction, there are currently two companies – US Wind and Ørsted – with offshore wind projects going through the federal regulatory process in ocean waters that will be visible from Delaware’s beaches, but the economic benefits and Offshore Wind Renewable Energy Certificates associated with those projects are going to Maryland.

However, the passage of SB 265 was done in time for the state to participate in the upcoming auction for the next slate of offshore wind lease areas.

In late June, the Bureau of Ocean Energy Management announced there will be an auction Wednesday, Aug. 14, for two new areas off the Mid-Atlantic coast. One of those areas is offshore of Delaware and Maryland. It’s 101,443 acres and is approximately 26 nautical miles from Delaware Bay. The other area is offshore of Virginia, and is 176,505 acres and approximately 35 nautical miles from the mouth of the Chesapeake Bay. In BOEM’s announcement of the upcoming auction, it said 17 companies qualified to participate in the August sale.

David T. Stevenson, Caesar Rodney Institute’s Center for Energy & Environment director, said this legislation should not have been passed or be signed by Gov. John Carney. The governor signing the offshore wind procurement bill is irresponsible, he said.

Stevenson said the governor’s own Offshore Wind Working Group recommended holding off on offshore wind until prices come down, but the latest New Jersey procurement prices have doubled since then. Additionally, he said, the legislation ignores previously approved cost caps. 

As of press deadline July 18, Carney has not signed the legislation into law.