California’s Offshore Wind Procurement Law

AB 1373 (2023) would allow the California Public Utilities Commission to authorize the California Department of Water Resources, which operates dams and aqueducts across the state, to sign contracts committing to purchase gigawatts’ worth of generation from yet-to-be-built offshore wind farms and then pass the costs on to all Californians. By purchasing power from early-stage projects that might be too big or too risky for other potential buyers, the state can encourage the development of free-floating turbines, which are difficult to build and necessary in California’s deep coastal waters.

The bill passed in September 2023. At the time of this writing, it is awaiting the governor’s signature.