California legislature agrees plan to acquire offshore wind energy at scale

The California Senate and Assembly have voted to pass AB 1373 (Garcia), a bill that authorises the California Public Utilities Commission to work with the Department of Water Resources to purchase offshore wind energy at scale through a mechanism called ‘central procurement.’  

The bill passed 29-10 in the Senate and 54-14 in the Assembly, meeting the two-thirds majority vote it needed as an urgency matter to pass both houses. AB 1373 now heads to Governor Gavin Newsom’s desk for his signature, which is expected to be a formality.

Advocates of offshore wind said the bill will ‘jumpstart’ a clean energy economy in California. By establishing the state as a centralised buyer for clean power, California addresses a key concern of offshore wind advocates and secures a market for the power their turbines will generate. Creating an offshore wind market in California is estimated to bring 8,000 direct jobs annually, 9,000 jobs to upgrade port infrastructure, and thousands of other jobs that will support construction of projects.

The bill will also help move California closer to its climate goals. President Biden’s goal for the US is a deployment of 30 GW of offshore wind by 2030. California is poised to provide nearly 20% - 5 GW of that total. By 2045 the state is hoping to deploy five times that amount.

The bill should also help make renewable energy more affordable. Instituting central procurement at the state level secures the necessary market for clean energy and codifies ratepayer protections, ensuring Californians get the best possible deal.

American Clean Power Pacific offshore wind director Molly Croll said AB 1373 “positions California to be a global leader in floating offshore wind.”

She said a central procurement mechanism “provides the market clarity needed for offshore wind to take off.”

Offshore Wind California executive director Adam Stern said passage of the legislation “shows California is serious about going big on offshore wind” and “provides a vital tool to help the Golden State invest at scale, build at scale, and procure at scale.”