Executive Order No. 8 (2018) -

Executive Order No. 8 (2018)

An Order Mandating the BPU, the DEP, and Any Other New Jersey State Agency with Responsibilities Arising under the Offshore Wind Economic Development Act to Take all Necessary Actions to Implement the Act

Issued: January 31, 2018.

Effective: January 31, 2018.

WHEREAS, New Jersey enjoys an abundance of invaluable natural resources, including a magnificent coastline and some of the best offshore wind resources in the world; and

WHEREAS, in order to combat the threat of global climate change and mitigate the accompanying risks to New Jersey and its residents, New Jersey must be a leader in the development of sustainable, renewable energy sources; and

WHEREAS, because of our location and resources, New Jersey is uniquely well-suited for the development of renewable offshore wind energy; and

WHEREAS, in the early 2000s, New Jersey emerged as a leader in developing offshore wind and attracting associated assembly and manufacturing facilities, but since that time has seen stagnant growth in the offshore wind sector; and

WHEREAS, despite the enactment in 2010 of the Offshore Wind Economic Development Act ("OWEDA"), little progress has been made towards OWEDA's goals or towards offshore wind development generally; and

WHEREAS, offshore wind is an abundant, renewable and sustainable form of energy that will allow New Jersey to shift away from outdated energy sources, which have polluted our natural environment for decades; and

WHEREAS, offshore wind generation also will provide reliability and relief for the regional electric grid, which is the largest, most congested and most costly in the nation; and

WHEREAS, by setting an aggressive offshore wind energy production goal, New Jersey has the potential to power over 1.5 million homes with clean, renewable offshore wind energy; and

WHEREAS, an aggressive offshore wind energy production goal will also result in the various portions of the offshore wind development supply chain being located in New Jersey, including manufacturing, assembly and construction of the component parts of offshore wind turbines, which will contribute to a stronger New Jersey economy;

NOW, THEREFORE, I PHILIP D. MURPHY, Governor of the State of New Jersey, by virtue of the authority vested in me by the Constitution and the Statutes of this State, do hereby ORDER and DIRECT:

1. The Board of Public Utilities ("BPU"), the Department of Environmental Protection ("DEP"), and any other New Jersey state agencies with responsibilities arising under OWEDA shall take all necessary actions to implement OWEDA in order to promote and realize the development of wind energy off the coast of New Jersey to meet a goal of 3,500 megawatts of offshore wind energy generation by the year 2030.

2. In order to achieve this goal, the President of the BPU shall, with the assistance of the Commissioner of the DEP, develop an Offshore Wind Strategic Plan. In creating the Offshore Wind Strategic Plan, the President and the Commissioner shall engage key stakeholders and solicit input from the public. The Offshore Wind Strategic Plan shall focus on critical components of offshore wind development, including achieving scale to reduce costs, job growth, supply-chain businesses, workforce development, data collection, and appropriate siting of facilities, and shall ensure that natural resources are protected throughout the development and operational stages of offshore wind energy production.

3. The BPU shall implement OWEDA's Offshore Renewable Energy Certificate ("OREC") program through the approval of OREC Pricing Plans as outlined in OWEDA.

4. The Department of the Treasury shall work with the BPU and the DEP to ensure that necessary resources and expertise, including an offshore wind economic consultant, are available to advise and assist in the implementation of OWEDA and this Order.

5. Following the establishment of an OREC Pricing Plan application process consistent with this Order, the BPU shall issue a solicitation calling for proposed offshore wind projects for the generation of 1,100 megawatts of electric power, the nation's largest such solicitation to date.

6. Within sixty (60) days of the date of this Order, BPU shall initiate the administrative rulemaking process to establish the OREC Funding Mechanism, through which rules and regulations shall describe the flow of payments for ORECs from suppliers to offshore wind developers. The OREC Funding Mechanism regulations shall also define the administrative steps to ensure, verify and account for OREC payments to offshore wind developers.

7. The President of the BPU shall initiate discussions with sister states in the Northeast and Mid-Atlantic region to explore the potential benefits of a regional collaboration on offshore wind and other opportunities to combat climate change.

8. Should any part of this Order be declared to be invalid or unenforceable, or should the enforcement of or compliance with any part of this Order be suspended, restrained or barred by the final judgment of a court of competent jurisdiction, the remainder of this Order shall remain in full force and effect.

9. This Order shall take effect immediately.

(Published February 16, 2010 in the New Jersey Register at 42 N.J.R. 580(c). Published January 31, 2018 in the New Jersey Register at 50 N.J.R. 887(a).)

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