U.S. Sen. George Helmy, showing he is in full support of the offshore wind energy industry in New Jersey, is co-sponsoring two bills to support the sector in the state: the RISEE and the NOW acts.
The Reinvesting in Shoreline Economies and Ecosystems Act (known as the RISEE Act) establishes a revenue-sharing system that allows for a portion of federal dollars from offshore wind development to flow back to states to fund coastal protection and restoration efforts. The Nonrestrictive Offshore Wind Act (or NOW Act) eliminates a provision of the Inflation Reduction Act that links future offshore wind lease sales to future offshore oil and gas lease sales.
“As offshore wind continues to grow across our nation, moving us toward a greener economy, it’s important that we reinvest federal offshore wind revenues into our coastal communities, which are housing the industry,” Helmy (D-N.J.) said.
“In New Jersey’s Shore towns, we have seen the devastating impacts of climate change, including severe flooding and coastal erosion. The RISEE Act ensures that a portion of federal dollars from offshore wind projects are dedicated to improving resiliency and mitigating the risks posed by increasingly severe natural disasters.
“To expand on my work to move New Jersey and our country to a clean energy future, I am supporting the NOW Act to eliminate any ties between federal offshore wind leasing and offshore oil and gas leasing. As we work to reduce our carbon footprint and create a better environment for future generations, it makes little sense to link renewable energy development to continued fossil fuel extraction.”
Helmy, the longtime chief of staff to Gov. Phil Murphy, who selected him to replace Sen. Bob Menendez when he resigned this summer, said he is aligned with the governor’s vision — and confident the sector not only will be a benefit for clean energy and environment, but the economy, too.
“With Gov. Murphy’s leadership, New Jersey’s burgeoning offshore wind industry is poised to be a national leader, generating billions in economic development in our state and creating well-paying jobs for our residents,” he said.
Here’s how the acts will help the state, according to Helmy.
The RISEE Act
Current law requires all revenues generated from offshore wind leases and production beyond state waters to be deposited into the U.S. Treasury. The RISEE Act will require 37.5% of offshore wind revenue to flow back to coastal states where offshore wind farms are developed, based on a formula established by the Department of the Interior, he said.
The RISEE Act also would give New Jersey a significant share of the revenue generated from the $1.64 billion offshore wind lease sale in the New York Bight, in addition to other current and future lease sales.
Funds under this new system can be used for a variety of conservation-related purposes, including:
- For coastal restoration, hurricane protection or infrastructure
- To mitigate damage to fish, wildlife or other natural resources, including through fisheries science and research
- To implement a marine, coastal or conservation management plan
Helmy said 12.5% of offshore wind revenues would be dedicated to the National Oceans and Security Fund — and that the bill also will provide 50% of federal offshore wind revenues to the U.S. Treasury.
The NOW Act
The NOW Act eliminates a provision in the IRA that requires the U.S. Department of the Interior to issue a lease sale for offshore oil and gas within one year of an offshore wind lease and prevents the department from approving new offshore wind projects if fewer than 60 million acres have been offered in offshore oil and gas leases during the year prior.
Helmy said this flawed provision could lead to increased offshore oil and gas drilling, which not only endangers coastal communities and ecosystems in the event of an oil spill, but also increases carbon emissions that cause climate change.
