Source: United States Senator for New Jersey Bob Menendez
JERSEY CITY, N.J. – U.S. Senators Bob Menendez and Cory Booker (both D-N.J.) joined Sen. Edward J. Markey and Elizabeth Warren (both D-Mass.) in announcing introduction of the Offshore Wind American Manufacturing Act, a transformational piece of legislation that will drive domestic manufacturing and offshore wind deployment. The legislation builds off the success from the 48C Advanced Manufacturing Tax Credit and would further cultivate a robust offshore wind supply chain in the United States, ensuring that the offshore wind revolution will be made in America.
To date, the offshore wind supply chain is concentrated in Europe, China, and South Korea. With the growing number of offshore wind leases offered in the United States, the Offshore Wind American Manufacturing Act boosts domestic manufacturing through an investment tax credit and a production tax credit for qualified offshore wind components and dedicated offshore wind vessels.
“The world is literally on fire and the effects of global climate change will only get worse if we don’t make the serious and necessary investments in clean, renewable energy,” said Sen. Menendez, a senior member of the Senate Finance Committee. “Federal investment in offshore wind manufacturing is good for the environment, good for the economy, and good for the American people. It will create good-paying jobs, expand the nation’s manufacturing base, and keep the U.S. on the cutting edge of new, green technologies, ensuring our nation’s economic competitiveness in the face of emerging environmental challenges.”
“As New Jersey has shown, investing in offshore wind projects has multiple benefits for our nation – from creating thousands of new jobs, to helping us in the fight against climate change,” said Sen. Booker. “I’m proud to support this vital legislation that will support the domestic offshore wind industry and propel the United States toward becoming a global leader in offshore wind deployment.”
“Offshore wind is a booming market, but without effective manufacturing policy, American workers will be left behind,” said Sen. Markey. “The Offshore Wind American Manufacturing Act helps ensure that each offshore wind turbine deployed in the United States over the next ten years is made in America and made by Americans receiving family sustaining wages. Our clean energy future is blowing in the offshore wind—it’s time to put those winds to work for American industry.”
“The offshore wind industry is critical to our efforts to combat climate change, generate clean power, and boost our economy,” said Sen. Warren. “The Offshore Wind American Manufacturing Act will help create more good jobs by building a made in America supply chain for all of the components that are needed for these large transformational projects.”
This legislation would create a 30 percent investment tax credit for qualified facilities that manufacture offshore wind components and subcomponents that would reduce the high capital costs required to build, upgrade, or retool a facility. The investment tax credit would be complemented by a new production tax credit that ranges from two-to-five cents per watt multiplied by the total rated capacity of the turbine. The production tax credit varies by components including blades, towers, nacelles, generators, gearboxes, foundations, and related vessels.
The Offshore Wind American Manufacturing Act would prioritize American workers and require prevailing wages for laborers involved in the construction and expansion of qualified manufacturing facilities or in the manufacture of qualified offshore wind products. The full investment tax credit would be available until December 31, 2028 and phase out annually afterward. The production tax credit would be available until December 31, 2030. Most importantly, the Offshore Wind American Manufacturing Act would help create thousands of manufacturing jobs and ensure that the United States meets President Biden’s offshore wind goal of 30 GW by 2030.
“The American Clean Power Association applauds the introduction of the Offshore Wind Manufacturing Act. This legislation will expedite the creation of an entirely new manufacturing sector, and lead to thousands of good-paying jobs in the United States while meeting state and federal goals to deploy 30 GW of new offshore wind capacity by 2030,” said Heather Zichal, CEO of the American Clean Power Association.
“Without the domestic manufacturing to support offshore wind, the U.S. will be importing the materials and components we need to build out America’s offshore wind industry,” said BlueGreen Alliance Executive Director Jason Walsh. “We need policies, like those in the Offshore Wind Manufacturing Act of 2021, to ensure we’re building back better and manufacturing America’s energy future here in the United States.”
“As the industry leader, we recognize the importance of expediting the establishment of a sustainable U.S.-based offshore wind supply chain that will not only enable clean energy production but will also boost the transition to domestic manufacturing and create good-paying jobs across the country,” said David Hardy, CEO of Ørsted Offshore North America. “The Offshore Wind American Manufacturing Act will play an integral role in achieving these shared objectives.”
“The Offshore Wind American Manufacturing Act presents the opportunity for the United States to make its mark as a competitive player in global race for offshore wind supply chain investments,” said Steve Dayney, Head of Offshore North America at Siemens Gamesa Renewable Energy Inc. “As we continue to work alongside our partners to deliver on the promise of high-quality jobs for our local communities, this bill offers crucial support to bridge the divide across state-level markets and bring cost-effective climate solutions to American shores.”
###