What you need to know
- Lawmakers in New Jersey are considering allowing Danish offshore wind developer Orsted to retain tax credits that it would otherwise have to return to rate payers.
- A state Senate committee on Tuesday introduced a bill that would allow the state of Orsted to retain its federal tax exemption to combat what it purports to be the lingering economic fallout from the coronavirus pandemic and high inflation.
- State rate payer advocates say the bill could increase costs for consumers, but Olsted denies that is the case. A final vote on the bill could take place on Friday.
Lawmakers in New Jersey are considering allowing Danish offshore wind developer Orsted to retain tax credits that it would otherwise have to return to rate payers.
A state Senate committee on Tuesday approved a bill that would allow the state of Orsted to retain its federal tax exemption to combat what it purports to be the lingering economic fallout from the coronavirus pandemic and high inflation. Amendments to the bill require Orsted to provide a $200 million guarantee to the state and prepare a report on the financial viability, potential environmental impact, and likelihood of completing the project on time. ing.
According to a bill proposed by Democratic Senator Bob Smith of Middlesex County, the federal government’s 2022 Inflation Control Act “will encourage greater investment in the U.S. clean energy economy as macroeconomic challenges continue. It’s purpose.”
But state toll payer advocates cautioned against passing the bill in its entirety.
“While we support offshore wind, we have great concerns about this bill, its impact on toll payers, especially the costs and lack of protection for toll payers, and the lack of accountability for the beneficiaries of this bill. I do,” said Robin Roberts, a spokesman for the new party. The Jersey Division’s rate counsel sent a letter to MPs.
“There is no question that this bill will increase the amount of money developers make on this project and the higher price payers will pay,” said Brian Lippmann, head of the division. there is That is the inevitable result of this bill. “
Orsted, which has state approval for two offshore wind projects off New Jersey’s south coast, denied the bill would increase costs for its customers.
“There is no additional cost to toll payers,” the company said. If the bill becomes law, Orsted will increase his investment in New Jersey. These federal incentives offer New Jersey an opportunity to further secure economic investment and hundreds of jobs in the state at no additional cost to tollpayers. “
Orsted estimates the value of the credits at 20 cents per month, or $2.40 per bill payer per year, but does not estimate the total profit the company expects.
“This is a tough moment,” said Tim Sullivan, CEO of the New Jersey Economic Development Authority. “Does New Jersey want to lead jobs and economic development, or does it want to be left behind? Other states want this as much or more than we do. I have everything within reach.”
Republican Senator Michael Testa said he had heard from his party and several community groups that he wanted to see if the spate of at least 50 whale deaths on the East Coast had an impact. It repeatedly called for a moratorium on wind power development. December.
“Why are you in a hurry?” he asked. “I have thousands of voters and they are not climate change denier. They are not anti-science. They are not weirdos. Something is wrong here.”
“Orsted has already signed the contract and the money is owed to the toll payer, so why give this money to Orsted?” said Mike Dean, opponent of offshore wind farms. also added.
Three federal scientific agencies and one state agency say there is no evidence that the whale deaths are related to site preparation work for offshore wind projects.
At the request of US Representative Christopher Smith, the Congressional Comptroller agreed to study the impact of offshore wind in the Northeast.
Earlier this month, a think tank founded by former state Senate Speaker Steve Sweeney warned that rising costs to build the foundations of offshore wind turbines could delay offshore wind projects.
Only Orsted will benefit from this bill. The third approved project, Atlantic Shores, a joint venture between EDF Renewables North America and Shell New Energies US, is not eligible under state legislation.
The bill would require Orsted to submit an affidavit of commitment to proceed with construction and a schedule for the company to complete all investments in wind energy facilities.
Orsted spokeswoman Madeline Urbish said the company expects to receive federal approval in the coming months and begin construction on its first project in the fall.
https://www.nbcphiladelphia.com/news/business/nj-tax-break-offshore-wind-orsted/3593686/ New Jersey legislators eye tax cuts for offshore wind developer Orsted – NBC10 Philadelphia