Reps. Norcross, Pascrell, Scott, Luria, McEachin Introduce Offshore Wind Manufacturing Act
Today, Congressman Donald Norcross (D-NJ-01), the only union electrician in Congress and co-founder of the Labor Caucus, announced the introduction of the Offshore Wind American Manufacturing Act, transformational legislation that will use the U.S. tax code to grow offshore wind energy through new investment and production tax credits. These credits will strengthen jobs in domestic manufacturing and facilitate the expansion of offshore wind to make the United States an international leader in clean energy. The bill’s original sponsor is fellow New Jersey Congressman Bill Pascrell, Jr. (D-NJ-09), a member of the tax-writing House Ways and Means Committee. The legislation is also sponsored by Robert C. “Bobby” Scott (D-VA-03), Elaine Luria (D-VA-02), and A. Donald McEachin (D-VA-04).
“Incentivizing the expansion of offshore wind projects is vital for the long-term growth of the green economy and the good-paying jobs it will bring,” said Congressman Norcross. “New Jersey is already becoming a hub for offshore wind, an industry that allows us to fight climate change while creating family-sustaining jobs and revitalizing local economies. Our legislation will make innovation and investment in offshore wind more accessible and allow the United States to become a leading source of technology and manufacturing expertise for the sector, in addition to securing our energy supply with a reliable domestic energy source.
“Greater investment and innovation in offshore wind power is inherently forward-looking and perhaps the best avenue for reducing our reliance on fossil fuels while simultaneously modernizing US infrastructure for the next century to combat climate change,” said Congressman Pascrell. “On top of that, expansion of American wind power and the creation of a domestic supply chain for offshore wind facilities promises a boon of reliable, union-friendly jobs along our shores. Offshore wind energy is a win today and a win for tomorrow. Few regions of our nation and the world face graver consequences from climate change than the Tristate Area. Our legislation will create New Jersey jobs and protect the environment.”
“The tragic situation in Europe, countless scientific reports, and climate-fueled disasters all underscore the need to rapidly transition away from globally-traded fossil fuels and to domestic sources of clean energy, like offshore wind,” said Congressman Scott, Chairman of the Committee on Education and Labor and a member of the Congressional Offshore Wind Caucus. “Virginia is a leader in developing offshore wind capabilities and this legislation significantly advances the effort to achieve 80 percent carbon-pollution-free electricity by 2030 and 100 percent clean by 2035. This bill also reflects the critical role American workers ought to play in ushering in that clean energy future. I thank Representatives Pascrell, Norcross, McEachin, and Luria for their partnership in this effort and I look forward to working with them to secure its passage.”
“The offshore wind industry is an incredible economic opportunity for Coastal Virginia and our nation. As the chair of the Offshore Wind Caucus, I am proud to spearhead this bill that will incentivize manufacturing of offshore wind components and help establish a sustainable American offshore wind market,” said Congresswoman Luria, Chair of the Congressional Offshore Wind Caucus. “In addition to creating long-term job opportunities for Americans, expanding offshore wind energy will help us avoid some of the most severe impacts of climate change. I look forward to working with my colleagues to ensure that Virginia and the United States will lead in clean energy jobs for decades to come.”
“As the impacts of climate change continue to become more severe, we must take swift steps to transition to a clean energy future, and that’s exactly what this legislation will do,” said Congressman McEachin. “The Offshore Wind Manufacturing Act will create good-paying jobs and create the capacity necessary to generate clean power while positioning the United States to be a global leader. Expanding offshore wind energy capabilities will have tremendous benefits for Virginia and states up and down our nation’s coastlines. I am proud to join my colleagues in introducing this forward-looking legislation to create new economic opportunities and help support more sustainable energy practices.”
“It has never been more important for Congress to act on our energy needs than now. We must make investments that lower energy costs for consumers, spur inherently deflationary clean energy projects, improve energy security, create good-paying jobs, and fight climate change while manufacturing the technologies that accomplish these goals here at home. Fortunately, Congressmen Bill Pascrell and Bobby Scott along with their colleagues, Representatives Norcross, McEachin, and Luria, have helped put us on just such a path with the introduction of an Offshore Wind Manufacturing Incentive bill. The Sierra Club thanks them for their leadership in the House and we look forward to working with them to advocate for passage in the Senate and for the president’s signature,” said Sierra Club Deputy Legislative Director for Clean Energy Matthew Bearzotti.
“NABTU and its affiliates have a vested interest in the growing offshore wind industry. This rapidly expanding clean energy source represents jobs of the future, union jobs that create pathways to the middle class, and jobs that help the President accomplish his goal of creating 30 gigawatts of offshore wind by 2030. This legislation supports our high road contractor partners and developers as they invest in the projects which NABTU’s nearly 3 million members will build to power this nation,” said North America’s Building Trades Unions (NABTU) President Sean McGarvey.
“We appreciate the leadership of Reps. Pascrell, Scott, Norcross, Luria, and McEachin around clean energy and economic development. The Offshore Wind American Manufacturing Act will help expedite the build-out of a globally competitive U.S. offshore wind manufacturing sector, drawing from American steel and vessel expertise, ingenuity, and production,” said David Hardy, CEO of Ørsted Offshore North America. “Offshore wind energy, including Ørsted’s six U.S. offshore wind farms in development today, is already creating economic opportunity not just in the Northeast but across 44 states. This legislation will advance this job creation while combating climate change and protecting our coastal communities.”
The Wind American Manufacturing Act will create a 30 percent investment tax credit for qualified facilities that manufacture offshore wind components, like the monopile manufacturing facility at the Port of Paulsboro Marine Terminal in Gloucester County. This will help 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 will generally range from 2-to-5 cents per watt multiplied by the total rated capacity of the turbine. The production tax credit varies by component including blades, towers, generators, gearboxes, and foundations.
The Offshore Wind American Manufacturing Act would prioritize American workers by enhancing the credits where prevailing wages are paid for laborers involved in the construction and expansion of manufacturing facilities or where there is a unionized workforce in the manufacture of offshore wind products. The full 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.
Companion legislation (S. 2766) has been offered in the upper chamber by U.S. Sens. Ed Markey and Elizabeth Warren (both D-MA), Bob Menendez and Cory Booker (both D-NJ), Chris Van Hollen (D-MD), and Jon Ossoff (D-GA).
A copy of the House legislation is available here.