Offshore Wind Project Application Deadline is June 14
By: Henry T. Chou, Esq.
On May 16, 2011, New Jersey Board of Public Utilities (BPU) opened a 29-day window for companies to file applications to build offshore wind projects along the New Jersey coast. The application process represents New Jersey's latest effort to spur the development of the nation's first offshore wind project.
In August 2010, Governor Christie signed the Offshore Wind Economic Development Act, which established financial incentives and tax credits to businesses that construct manufacturing, assembly and water access facilities to support offshore wind projects in New Jersey.
Additionally, the Act established an Offshore Wind Renewable Energy Certificate (OREC) program, where energy companies generating power from carbon-based energy sources will purchase certificates from producers of offshore wind energy to offset carbon emissions and avoid fines associated with carbon emissions.
Under the Act, any new offshore wind project along the New Jersey coast must generate at least 1,100 megawatts of wind generation capacity. Applicants must demonstrate that they have financial integrity and sufficient access to capital to complete their projects. Additionally, applicants must submit analyses of the projected economic and environmental impacts of their projects and the effects of their projects on New Jersey's electricity ratepayers.
There are currently no offshore wind projects in U.S. territorial waters, but numerous companies, including several in New Jersey, have expressed interest in building the nation's first offshore wind farm.
The BPU will accept applications until June 14, 2011.