Existing law establishes the Voluntary Offshore Wind and Coastal Resources Protection Program, which is administered by the State Energy Resources Conservation and Development Commission for the purpose of supporting state activities that complement and are in furtherance of federal laws related to the development of offshore wind facilities. Existing law creates, and continuously appropriates moneys in, the Voluntary Offshore Wind and Coastal Resources Protection Fund in the State Treasury for purposes of the program and the Private Donations Account, which is created in the fund. Existing law authorizes the commission to accept federal and private sector moneys for purposes of the program and requires the private sector moneys to be deposited into the donations account and the federal moneys to be deposited into the fund. Existing law makes records of the donations received subject to public disclosure. Existing law requires the commission to post a report on its internet website, within 30 days of receiving a donation, with specified information regarding each donation received. Existing law authorizes the commission to allocate moneys in the fund or donations account for specified purposes, including workforce development grants.

This bill would additionally authorize the commission to allocate moneys in the fund or account for capacity funding activities and grants within local communities and tribal communities for purposes of the program. The bill would make only a local community, a local government, a California tribe, a nonprofit organization selected by California tribes to represent their interests, or a coalition of these entities eligible for these capacity funding activities and grants. By expanding the purposes for which continuously appropriated moneys may be allocated, the bill would make an appropriation.

This bill would make the public disclosure requirement described above applicable to donations received by an eligible entity from an offshore wind entity, as defined, and would require an offshore wind entity to report, every 90 days, specified information concerning these donations to the commission. The bill would delete the requirement for the commission to post a report on its internet website for donations received by the commission, as described above, and would instead require the commission to annually post a report on its internet website related to donations made by offshore wind entities to eligible entities, as specified. The bill would require the commission to annually prepare and submit a report, on or before March 1 of each year, to the Legislature on the implementation and effectiveness of the activities and grants funded pursuant to the bill.

Existing law establishes the Voluntary Offshore Wind and Coastal Resources Protection Program, which is administered by the State Energy Resources Conservation and Development Commission for the purpose of supporting state activities that complement and are in furtherance of federal laws related to the development of offshore wind facilities. Existing law creates, and continuously appropriates moneys in, the Voluntary Offshore Wind and Coastal Resources Protection Fund in the State Treasury for purposes of the program and the Private Donations Account, which is created in the fund. Existing law authorizes the commission to accept federal and private sector moneys for purposes of the program and requires the private sector moneys to be deposited into the donations account and the federal moneys to be deposited into the fund. Existing law makes records of the donations received subject to public disclosure. Existing law requires the commission to post a report on its internet website, within 30 days of receiving a donation, with specified information regarding each donation received. Existing law authorizes the commission to allocate moneys in the fund or donations account for specified purposes, including workforce development grants.

This bill would additionally authorize the commission to allocate moneys in the fund or account for capacity funding activities and grants within local communities and tribal communities for purposes of the program. The bill would make only a local community, a local government, a California tribe, a nonprofit organization selected by California tribes to represent their interests, or a coalition of these entities eligible for these capacity funding activities and grants. By expanding the purposes for which continuously appropriated moneys may be allocated, the bill would make an appropriation.

This bill would make the public disclosure requirement described above applicable to donations received by an eligible entity from an offshore wind entity, as defined, and would require an offshore wind entity to report, every 90 days, specified information concerning these donations to the commission. The bill would delete the requirement for the commission to post a report on its internet website for donations received by the commission, as described above, and would instead require the commission to annually post a report on its internet website related to donations made by offshore wind entities to eligible entities, as specified. The bill would require the commission to annually prepare and submit a report, on or before March 1 of each year, to the Legislature on the implementation and effectiveness of the activities and grants funded pursuant to the bill.

Existing law establishes the Voluntary Offshore Wind and Coastal Resources Protection Program, which is administered by the State Energy Resources Conservation and Development Commission for the purpose of supporting state activities that complement and are in furtherance of federal laws related to the development of offshore wind facilities. Existing law creates, and continuously appropriates moneys in, the Voluntary Offshore Wind and Coastal Resources Protection Fund in the State Treasury for purposes of the program and the Private Donations Account, which is created in the fund. Existing law authorizes the commission to accept federal and private sector moneys for purposes of the program and requires the private sector moneys to be deposited into the donations account and the federal moneys to be deposited into the fund. Existing law makes records of the donations received subject to public disclosure. Existing law requires the commission to post a report on its internet website, within 30 days of receiving a donation, with specified information regarding each donation received. Existing law authorizes the commission to allocate moneys in the fund or donations account for specified purposes, including workforce development grants.

This bill would additionally authorize the commission to allocate moneys in the fund or account for capacity building funding activities and grants within local communities and tribal communities for purposes of the program. The bill would make only a local community, a local government, a California tribe, a nonprofit organization selected by California tribes to represent their interests, nonprofit organization representing a community, or a coalition of these entities eligible for these capacity building funding activities and grants. By expanding the purposes for which continuously appropriated moneys may be allocated, the bill would make an appropriation.

This bill would make the public disclosure requirement described above applicable to donations received by an eligible entity from an offshore wind entity, as defined, and would require an offshore wind entity to report, every 90 days, specified information concerning these donations to the commission. The bill would delete the requirement for the commission to post a report on its internet website for donations received by the commission, as described above, and would instead require the commission to annually post a report on its internet website related to donations made by offshore wind entities to eligible entities, as specified. The bill would require the commission to annually prepare and submit a report, on or before March 1 of each year, to the Legislature on the implementation and effectiveness of the activities and grants funded pursuant to the bill.

Existing law establishes the Voluntary Offshore Wind and Coastal Resources Protection Program, which is administered by the State Energy Resources Conservation and Development Commission for the purpose of supporting state activities that complement and are in furtherance of federal laws related to the development of offshore wind facilities. Existing law creates, and continuously appropriates moneys in, the Voluntary Offshore Wind and Coastal Resources Protection Fund in the State Treasury for purposes of the program and the Private Donations Account, which is created in the fund. Existing law authorizes the commission to accept federal and private sector moneys for purposes of the program and requires the private sector moneys to be deposited into the donations account and the federal moneys to be deposited into the fund. Existing law makes records of the donations received subject to public disclosure. Existing law requires the commission to post a report on its internet website, within 30 days of receiving a donation, with specified information regarding each donation received. Existing law authorizes the commission to allocate moneys in the fund or donations account for specified purposes, including workforce development grants.

This bill would additionally authorize the commission to allocate moneys in the fund or account for capacity funding building activities and grants within local communities and tribal communities for purposes of the program. The bill would make only a local community, local government, California tribe, nonprofit organization selected by California tribes to represent their interests, nonprofit organization representing a community, or a coalition of these entities eligible for these capacity funding building activities and grants. By expanding the purposes for which continuously appropriated moneys may be allocated, the bill would make an appropriation.

This bill would make the public disclosure requirement described above applicable to donations received by an eligible entity from an offshore wind entity, as defined, and would require an offshore wind entity to report, every 90 days, specified information concerning these donations to the commission. The bill would delete the requirement for the commission to post a report on its internet website for donations received by the commission, as described above, and would instead require the commission to annually post a report on its internet website related to donations made by offshore wind entities to eligible entities, as specified. The bill would require the commission to annually prepare and submit a report, on or before March 1 of each year, to the Legislature on the implementation and effectiveness of the activities and grants funded pursuant to the bill.

Existing law establishes the Voluntary Offshore Wind and Coastal Resources Protection Program, which is administered by the State Energy Resources Conservation and Development Commission for the purpose of supporting state activities that complement and are in furtherance of federal laws related to the development of offshore wind facilities. Existing law creates, and continuously appropriates moneys in, the Voluntary Offshore Wind and Coastal Resources Protection Fund in the State Treasury for purposes of the program and the Private Donations Account, which is created in the fund. Existing law authorizes the commission to accept federal and private sector moneys for purposes of the program and requires the private sector moneys to be deposited into the donations account and the federal moneys to be deposited into the fund. Existing law makes records of the donations received subject to public disclosure. Existing law requires the commission to post a report on its internet website, within 30 days of receiving a donation, with specified information regarding each donation received. Existing law authorizes the commission to allocate moneys in the fund or donations account for specified purposes, including workforce development grants.

This bill would additionally authorize the commission to allocate moneys in the fund or account for capacity funding activities and grants within local communities and tribal communities for purposes of the program. The bill would make only a local community, local government, California tribe, nonprofit organization selected by California tribes to represent their interests, or a coalition of these entities eligible for these capacity funding activities and grants. By expanding the purposes for which continuously appropriated moneys may be allocated, the bill would make an appropriation.

This bill would make the public disclosure requirement described above applicable to donations received by an eligible entity from an offshore wind entity, as defined, and would require an offshore wind entity to disclose report, every 90 days, specified information concerning these donations to the commission, and would require the commission post a report on its internet website regarding each donation. commission. The bill would delete the requirement for the commission to post a report on its internet website for donations received by the commission, as described above, and would instead require the commission to annually post a report on its internet website related to donations made by offshore wind entities to eligible entities, as specified. The bill would require the commission to annually prepare and submit a report, on or before March 1 of each year, to the Legislature on the implementation and effectiveness of the activities and grants funded pursuant to the bill.

Existing law establishes the Voluntary Offshore Wind and Coastal Resources Protection Program, which is administered by the State Energy Resources Conservation and Development Commission for the purpose of supporting state activities that complement and are in furtherance of federal laws related to the development of offshore wind facilities. Existing law creates, and continuously appropriates moneys in, the Voluntary Offshore Wind and Coastal Resources Protection Fund in the State Treasury for purposes of the program and the Private Donations Account, which is created in the fund. Existing law authorizes the commission to accept federal and private sector moneys for purposes of the program and requires the private sector moneys to be deposited into the donations account and the federal moneys to be deposited into the fund. Existing law makes records of the donations received subject to public disclosure. Existing law requires the commission to post a report on its internet website, within 30 days of receiving a donation, about with specified information regarding each donation received. Existing law authorizes the commission to allocate moneys in the fund or donations account for specified purposes, including workforce development grants.

This bill would additionally authorize the commission to allocate moneys in the fund or donations account for capacity funding activities and grants within local communities and tribal communities to engage in the process of offshore wind energy development. communities for purposes of the program. The bill would make only a local community, local government, California tribe, nonprofit organization selected by California tribes to represent their interests, or a coalition of these entities eligible for these capacity funding activities and grants. By expanding the purposes for which continuously appropriated moneys may be allocated, the bill would make an appropriation.

This bill would make the public disclosure requirement described above applicable to donations received directly by an eligible entity and would make a conforming change to the requirement that from an offshore wind entity, as defined, would require an offshore wind entity to disclose specified information concerning these donations to the commission, and would require the commission post a report on its internet website regarding each donation. The bill would further require, for each donation contributed directly to an eligible entity, the offshore wind entity to disclose specified information to the commission, as provided. The bill would require the commission to annually prepare and submit a report, on or before March 1 of each year, to the Legislature on the implementation and effectiveness of the activities and grants funded pursuant to the bill.

Existing law establishes the State Historical Resources Commission and the California Register of Historical Resources. Existing law requires the Department of Parks and Recreation to consider all recommendations for registration made by the commission, and requires the department to register, as state historical landmarks or points of historical interest, those buildings, structures, sites, or places that the department deems to be important historical resources, as specified.

This bill would make nonsubstantive changes to these provisions.

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 1417

Author:(Stefani)

As Amended Ver:September 5, 2025

2/3 vote

SUMMARY

Authorizes the California Energy Commission (CEC) to allocate funds from the Voluntary Offshore Wind and Coastal Resources Protection Program (Program) for capacity funding activities and grants within local and tribal communities and includes reporting requirements for the CEC, offshore wind (OSW) entities, and eligible entities receiving donations from OSW entities.

Senate Amendments

Made substantive changes, that were all rescinded with subsequent amendments; therefore, the bill is the same as it was approved by the Assembly on June 4.

COMMENTS

There are five existing offshore wind leases in California: two in northern California off Humboldt County, and three in Central California near Morro Bay. Tribes are seeking a direct role in the decision-making process throughout the planning, permitting, operation, and decommissioning of offshore wind operations and associated infrastructure for offshore wind development. The CEC's OSW strategic plan identifies and proposes strategies for potential impacts to Native American and Indigenous peoples.

The Program is an existing grant program at the CEC that supports state activities that complement and are in furtherance of federal laws related to the development of OSW facilities. Current law requires the Program to provide grants to public and private entities, including state agencies, tribal entities, local governmental agencies, research institutions, and nonprofit entities. The CEC may accept federal and private sector money for the Program; the Voluntary Fund is funded with federal dollars, and the Private Donations Account within the Voluntary Fund may accept private donations. According to the CEC, no donations or other deposits have been made into the Voluntary Fund or the Private Donations Account and the balance of each is $0.

According to the Author

California is leading the charge on clean energy and offshore wind is key to our renewable future—but we must ensure the benefits reach the communities most impacted. AB 1417 creates a dedicated statewide fund at the California Energy Commission, empowering local communities, tribes, and nonprofits to actively shape offshore wind development. This bill drives environmental justice, economic opportunity, and a more equitable transition to clean power—ensuring those on the frontlines have a voice in the process. By investing in a responsible and inclusive transition, we maximize benefits while minimizing harm. This is about smart, sustainable growth that protects our coast, uplifts communities, and secures California's clean energy future.

Arguments in Support

A coalition of environmental groups writes that capacity building and technical support is especially needed for underserved communities and Tribal Nations to ensure their voices are captured in OSW development. AB 1417 creates a state-wide mechanism to encourage and track offshore wind capacity building investments. Specifically, the bill requires offshore wind developers to report contributions they make to local communities and Tribal Nations for this purpose to the CEC. The agency will then make this information publicly available. This will facilitate improved transparency around capacity building investments, and ideally encourage greater contributions.

Arguments in Opposition

American Clean Power writes that the OSW industry is facing significant federal uncertainty from the President Trump Administration. They explain, "While President Trump's recent Executive Action—which puts project permitting, leases, and even existing approvals at risk—is not expected to significantly compromise offshore wind projects in California long term, it is harming the offshore wind market nationwide by creating uncertainty and risk that is evolving on a weekly basis. AB 1417 exacerbates this uncertainty by adding requirements at a time when the offshore wind industry needs state partnership and support to help deliver its clean energy and job creation goals."

FISCAL COMMENTS

According to the Senate Appropriations Committee, the CEC estimates ongoing costs of about $241,000 annually (Energy Resources Programs Account or other fund) for one position to conduct workshops and listening sessions specific to the issues identified in this bill to maintain up-to-date guidelines and inform potential funding opportunities. The CEC notes it did not receive any positions for the underlying Program and the work to support the development and implementation of the Program is currently being absorbed by existing resources, which are funded only temporarily.

Cost pressure of an unknown but potentially significant amount to fund capacity funding activities and grants within local communities and tribal communities (various funds).

VOTES:

ASM NATURAL RESOURCES: 10-4-0

YES: Bryan, Connolly, Garcia, Haney, Kalra, Muratsuchi, Pellerin, Schultz, Wicks, Zbur

NO: Alanis, Ellis, Flora, Hoover

ASM UTILITIES AND ENERGY: 17-0-1

YES: Petrie-Norris, Patterson, Boerner, Calderon, Chen, Davies, Fong, Mark González, Harabedian, Hart, Irwin, Papan, Rogers, Schiavo, Solache, Wallis, Zbur

ABS, ABST OR NV: Ta

ASM APPROPRIATIONS: 13-0-2

YES: Wicks, Arambula, Calderon, Caloza, Elhawary, Fong, Mark González, Hart, Pacheco, Pellerin, Solache, Ta, Tangipa

ABS, ABST OR NV: Sanchez, Dixon

ASSEMBLY FLOOR: 77-1-1

YES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Arambula, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Carrillo, Castillo, Chen, Connolly, Davies, DeMaio, Dixon, Elhawary, Ellis, Fong, Gabriel, Gallagher, Garcia, Gipson, Jeff Gonzalez, Mark González, Hadwick, Haney, Harabedian, Hart, Hoover, Irwin, Jackson, Kalra, Krell, Lackey, Lee, Lowenthal, Macedo, McKinnor, Muratsuchi, Nguyen, Ortega, Pacheco, Papan, Patel, Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Celeste Rodriguez, Michelle Rodriguez, Rogers, Blanca Rubio, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Ta, Tangipa, Valencia, Wallis, Ward, Wicks, Wilson, Zbur, Rivas

NO: Flora

ABS, ABST OR NV: Sanchez

UPDATED

VERSION: September 5, 2025

CONSULTANT: Paige Brokaw / NAT. RES. / (916) 319-2092 FN: 0002070

 THIRD READING  

Bill No: AB 1417

Author: Stefani (D), et al.

Amended: 9/5/25 in Senate

Vote: 27

SENATE ENERGY, U. & C. COMMITTEE: 13-2, 7/1/25

AYES: Becker, Allen, Archuleta, Arreguín, Ashby, Caballero, Gonzalez, Hurtado, Limón, McNerney, Rubio, Stern, Wahab

NOES: Grove, Strickland

NO VOTE RECORDED: Ochoa Bogh, Dahle

SENATE NATURAL RES. & WATER COMMITTEE: 5-2, 7/16/25

AYES: Limón, Allen, Hurtado, Laird, Stern

NOES: Seyarto, Grove

SENATE APPROPRIATIONS COMMITTEE: 5-2, 8/29/25

AYES: Caballero, Cabaldon, Grayson, Richardson, Wahab

NOES: Seyarto, Dahle

ASSEMBLY FLOOR: 77-1, 6/4/25 - See last page for vote

SUBJECT: Energy: Voluntary Offshore Wind and Coastal Resources Protection Program: community capacity building activities and grants

SOURCE: Brightline Defense Project

DIGEST:

This bill authorizes the California Energy Commission (CEC) to allocate moneys in an existing continuously appropriated fund for capacity funding activities and grants to help local communities and tribes engage in planning for offshore wind (OSW) development projects.

Senate Floor Amendments of 9/5/25 delete the clarifying amendments that were crossed on 9/4/25 and return the language in the bill as it was prior to those amendments.

Senate Amendments of 9/4/25 clarify eligible entities and replace references to “capacity funding” with “capacity building”.

ANALYSIS:

Existing law:

1. Requires the State Energy Resources Conservation and Development Commission (also known as the California Energy Commission (CEC)), in coordination with specified state entities and other relevant federal, state, and local agencies, to develop a strategic plan for OSW energy developments installed off the California coast in federal waters, and requires the CEC to submit the strategic plan to the Natural Resources Agency and the Legislature on or before June 30, 2023. (Public Resources Code §25991 et seq.)
2. Establishes the Voluntary Offshore Wind and Coastal Resources Protection Program, which is administered by CEC for the purpose of supporting state activities that complement and are in furtherance of federal laws related to the development of OSW facilities. (Public Resources Code §25992.10)
3. Creates, and continuously appropriates moneys in, the Voluntary Offshore Wind and Coastal Resources Protection Fund for purposes of the program and the Private Donations Account, which is created in the fund. Authorizes the CEC to accept federal and private sector moneys for purposes of the program and requires the private sector moneys to be deposited into the account and the federal moneys to be deposited into the fund. Requires the CEC to post a report on its internet website, within 30 days of receiving a donation, about specified information regarding each donation received. Authorizes the CEC to allocate moneys in the fund or account for specified purposes, including workforce development grants. (Public Resources Code §§25992.20 - 25992.21)

This bill:

1. Authorizes the CEC to allocate moneys in the fund or account for capacity funding activities and grants for purposes of the program. Makes only a local community, local government, California tribe, nonprofit organization selected by California tribes to represent their interests or a coalition of these entities eligible for these capacity funding activities and grants.
2. Makes an appropriation by expanding the purposes for which continuously appropriated moneys may be allocated.
3. Makes the public disclosure by the CEC of donations received applicable to donations received by an eligible entity from an OSW entity and requires an OSW entity to report, every 90 days, specified information concerning these donations to the CEC.
4. Deletes the requirement for the CEC to post a report on its internet website for donations received by the CEC, and would instead require the CEC to annually post a report on its internet website related to donations made by OSW entities to eligible entities.
5. Requires the CEC to annually prepare and submit a report, on or before March 1 of each year, to the Legislature on the implementation and effectiveness of the activities and grants funded pursuant to this bill.

Background

OSW potential. OSW energy generation is projected to be an important component of the state’s efforts to decarbonize energy generation and to achieve carbon neutrality by 2045, particularly as OSW can be a more stable and complementary resource to help integrate variable renewable energy resources. As of 2019, almost six gigawatts (GW) of installed wind capacity was generating in the state, the fifth largest amount of wind capacity in the United States, with all of it generated from land-based systems. Although California has no commercial OSW generation, the National Renewable Energy Laboratory has identified 112 GW of OSW technical potential for California. However, approximately 96% of this potential is located in water deeper than 60 meters, where the mature, fixed-bottom turbine technology is not technically feasible. Due to the water depth in areas with high ambient winds, much of the OSW energy projects serving California are likely to be composed of very large floating wind turbines (as tall as the Eiffel Tower) anchored to the sea floor in federal waters offshore. These projects will include components in state waters, such as cables transporting the energy onshore, vessels navigating state waters to serve the projects, and docking and support facilities onshore. Depending on the type of floating structure, some assemblage of floating turbines may need to occur offshore, requiring naval cranes and vessels to stabilize such operations, and port infrastructure and specific port water depths.

OSW Report. AB 525 (Chiu, Chapter 231, Statutes of 2021) required the CEC, in coordination with federal, state, and local agencies, California Native American tribes, and a variety of stakeholders, to develop a strategic plan for OSW energy development in federal waters off the California coast. In August 2022, the CEC approved a planning goal of 2,000 to 5,000 megawatts (MW) of OSW energy capacity by 2030, and 25,000 MW by 2045. In June 2024, the CEC adopted a long-awaited Strategic Plan for Offshore Wind Development in three volumes which among its contents, discusses the impacts and strategies to address those impacts in California’s underserved communities. Building upon these efforts, AB 1373 (Garcia, Chapter 367, Statutes of 2023) designated the Department of Water Resources (DWR) as a centralized procurement entity to, in part, help reduce risk and facilitate offshore wind development in California. In 2024, the California Public Utilities Commission (CPUC) established an authorized capacity of 7.6 GW of OSW energy to be procured by DWR.  

California Native tribes. According to the AB 525 Report, the CEC and coordinating agencies had numerous tribal consultations and community engagement discussions on the potential impact of OSW energy development. There were a myriad of concerns for California Native Tribes, each with their own perspective, concerns, and priorities regarding OSW, including impacts to local fishing for subsistence and cultural impacts. On the North Coast, there have been significant concerns about the impacts on the population and migration patterns of the already endangered salmon. They have concerns about the impacts of OSW and associated infrastructure on tribal cultural resources. Additionally, there are concerns regarding the fiscal impact that comes with participating at ongoing meetings on planning processes such permitting processes. In Humboldt, there are three federally-recognized Tribes near the OSW lease site: the Yurok, the Wiyot, and the Mattole. Morro Bay and Diablo Canyon are ancestral lands of cultural, ceremonial, and spiritual importance to the Santa Ynez Band of Chumash Indians Tribe, and the Gabrieleño are near the Santa Barbara coastline.

Strategies for addressing impacts. Some of the suggestions in the AB 525 Report include conducting meaningful consultation with tribal representatives, supporting the establishment of strong, legally binding tribal community benefits agreements, continuing to study impacts on tribes including exploring public safety measures to reduce violent crime and sexual and gender-based violence against California tribes and other vulnerable populations, and collaborating with tribes on avoidance, mitigation, and co-management opportunities.

Underserved communities. Supporters of this bill note that historically underserved communities have experienced a disproportionate share of economic, health and environmental burdens, which include poverty, high unemployment, air, and water pollution. Supporters of this bill state that OSW development can provide a variety of benefits such as the creation of well-paying jobs and new tax revenues. Industrial activity can impact underserved communities living near ports through air, water, noise, and light pollution. Additional air pollution may also occur from increased vehicle emissions on land and vessel emissions offshore to transport materials and turbines. Advocates would like to see increased engagement with potentially impacted communities. The CEC AB 525 Report notes that strategies to address these impacts include conducting early and meaningful community outreach and engagement efforts throughout the OSW planning and development process.

SB 286 Fisheries Working Group. SB 286 (McGuire, Chapter 386, Statutes of 2023) established the California Offshore Wind Energy Fisheries Working Group (Working Group) which includes representatives from the relevant permitting and resource agencies, commercial and recreational fishing industries, OSW energy industry, California Native American Tribes with affected tribal fisheries, and other stakeholders, as determined by the California Coastal Commission (CCC). The Working Group is required to develop a statewide strategy by January 1, 2026, that proposes ways to minimize impacts of OSW on ocean fisheries, including the application of best practices in compensating impacted stakeholders. After the statewide strategy is developed, the CCC must review and adopt it on or before May 1, 2026. The Working Group is responsible for creating a framework for reasonable compensatory mitigation for unavoidable impacts associated with OSW energy projects and include a payment structure to reasonably compensate commercial, tribal, and recreational fisheries and impacted commercial fish processors. The California State Lands Commission (SLC) – or a local trustee of granted public trust lands standing in its place – must consider reasonable compensatory mitigation for unavoidable impacts to fishing and tribal interests when granting a lease for an OSW energy project. In addition, SLC is required to deposit revenues generated from the leases into a newly created Offshore Wind Energy Resiliency Fund. Upon appropriation by the Legislature, the fund will be made available for reasonable compensatory mitigation for unavoidable impacts.

AB 209 establishes voluntary fund and program. AB 209 (Committee on Budget, Chapter 251, Statutes of 2022) established the Voluntary Offshore Wind and Coastal Resources Protection Program at the CEC to support OSW development. The CEC provides grants to public and private entities, including state agencies, tribal entities, local governmental agencies, research institutions, and nonprofit entities. The CEC can also accept federal and private sector money for the Voluntary Program. AB 209 also established the Voluntary Fund which accepts donations from private and federal sources and requires specified reporting of these donations.

AB 2537 (Addis) of the 2024 legislative session, would have established the Offshore Wind Community Capacity Funding Grant Account for the purpose of building capacity within local communities and tribal communities to support engagement in the process of OSW energy development in California, and continuously appropriates the funding. The bill was vetoed by the Governor stating:

While I share the author's desire to ensure communities hosting OSW projects are resourced to constructively engage in their planning and development, this bill falls short of providing a viable funding stream to accomplish this very objective. I encourage the author and the OSW developers to collaborate further with communities to identify an approach that not only fosters capacity for engagement but considers community benefits from the development of these projects.

Comments

Second time is a charm. This bill is another attempt at securing voluntary contributions for capacity building for communities who may be impacted from OSW energy development, in order to include their participation in the development of these projects. According to the author:

California is leading the charge on clean energy and offshore wind is key to our renewable future—but we must ensure the benefits reach the communities most impacted. AB 1417 requires offshore wind developers to report to the CEC any funding they provide directly to local and tribal communities, specifically for the purposes of capacity building. In addition, this bill expands the scope of the existing Voluntary Offshore Wind and Coastal Resources Program by allowing capacity-building activities in local and tribal communities to be eligible uses of any voluntary donations. This bill drives environmental justice, economic opportunity, and a more equitable transition to clean power—ensuring those on the frontlines have a voice in the process. By investing in a responsible and inclusive transition, we maximize benefits while minimizing harm.

Continuous appropriation. This bill authorizes the CEC to allocate capacity building grants as part of the use of the fund which is embedded within the statutory language adopted in AB 209, which authorized a continuous appropriation. This bill is silent on the amount of the financial assistance for capacity building with the notion that this would likely be negotiated with the OSW leaseholders. The CEC currently has the discretion to award any funding deposited into the Account towards specified activities to support the development of OSW energy. This bill adds capacity funding activities and grants to the list of eligible uses. This bill also requires annual and 90 day reporting regarding any donations received or awarded that meet the requirements of this bill.

Related/Prior Legislation

AB 2537 (Addis) of 2024, would have established the Offshore Wind Community Capacity Funding Grant Account for the purpose of building capacity within local communities and tribal communities to support engagement in the process of OSW energy development in California, and continuously appropriates the funding. The bill was vetoed by the Governor.

AB 3006 (Zbur) of 2024, would have amended the definition of “infrastructure” for purposes of the Governor’s annual infrastructure plan to include port infrastructure for OSW energy development. The bill was held in the Senate Appropriations Committee.

SB 286 (McGuire, Chapter 386, Statutes of 2023) established, among its provisions, the Working Group to address OSW project impacts to certain fisheries and other interests, including providing for compensation to those affected, among other things.

AB 209 (Committee on Budget, Chapter 251, Statutes of 2022) established, among its many energy-related provisions, the Voluntary Offshore Wind and Coastal Resources Protection Program.

AB 525 (Chiu, Chapter 231, Statutes of 2022) required the CEC to establish, by June 1, 2022, planning goals, as specified, for the years 2030 and 2045 from electricity generated by OSW. The bill also required the CEC, in coordination with specified agencies, to develop a strategic plan, as specified, for OSW developments and to submit the plan to the Natural Resources Agency and the Legislature by June 30, 2023.

FISCAL EFFECT: Appropriation: Yes Fiscal Com.: Yes Local: No

According to the Senate Appropriations Committee:

• The CEC estimates ongoing costs of about $241,000 annually (Energy Resources Programs Account [ERPA] or other fund) for one position to conduct workshops and listening sessions specific to the issues identified in this bill to maintain up-to-date guidelines and inform potential funding opportunities. The CEC notes it did not receive any positions for the underlying Program and the work to support the development and implementation of the Program is currently being absorbed by existing resources, which are funded only temporarily.
• Cost pressure of an unknown but potentially significant amount to fund capacity funding activities and grants within local communities and tribal communities (various funds).

SUPPORT: (Verified 9/5/25)

Brightline Defense Project (Source)
350 Humboldt
Audubon California
Blue Lake Rancheria Tribe of California
California Environmental Voters
Central Coast Alliance United for a Sustainable Economy
Clean Power Campaign
Climate Action California
Climate First: Replacing Oil & Gas
Elected Officials to Protect America Code Blue
Environmental Defense Fund
Environmental Protection Information Center
Monterey Bay Aquarium
National Wildlife Federation
Natural Resources Defense Council
Northern Chumash Tribal Council
San Luis Obispo Climate Coalition
Sierra Club California
Union of Concerned Scientists
United Autoworkers, Region 6
USC Schwarzenegger Institute

OPPOSITION: (Verified 9/5/25)

None received

ARGUMENTS IN SUPPORT: Brightline Defense Project, the sponsor of this bill, states:

As OSW planning continues, it is critical to center the voices of local communities, especially overburdened EJ communities and Tribal Nations. …Unfortunately, these communities face major barriers to engagement. …Brightline has heard directly from community leaders in the North Coast and Central Coast that they lack the capacity and technical expertise to participate in the lengthy and complex OSW processes. Without upfront investment in these communities, the state will leave out these critical voices, and likely encounter higher costs and conflicts down the road. …AB 1417 addresses this problem by creating a state-wide mechanism to encourage and keep track of OSW capacity building investments. Specifically, the bill requires OSW developers to report on contributions they make to local communities and Tribal Nations for capacity building to the California Energy Commission (CEC). The agency will then make this information publicly available, facilitating improved transparency and better-informed state planning.

ASSEMBLY FLOOR: 77-1, 6/4/25

AYES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Arambula, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Carrillo, Castillo, Chen, Connolly, Davies, DeMaio, Dixon, Elhawary, Ellis, Fong, Gabriel, Gallagher, Garcia, Gipson, Jeff Gonzalez, Mark González, Hadwick, Haney, Harabedian, Hart, Hoover, Irwin, Jackson, Kalra, Krell, Lackey, Lee, Lowenthal, Macedo, McKinnor, Muratsuchi, Nguyen, Ortega, Pacheco, Papan, Patel, Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Celeste Rodriguez, Michelle Rodriguez, Rogers, Blanca Rubio, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Ta, Tangipa, Valencia, Wallis, Ward, Wicks, Wilson, Zbur, Rivas

NOES: Flora

NO VOTE RECORDED: Sanchez

Prepared by: Nidia Bautista / E., U. & C. / (916) 651-4107

9/8/25 21:44:03

**** END ****

 THIRD READING  

Bill No: AB 1417

Author: Stefani (D)

Amended: 5/6/25 in Assembly

Vote: 27

SENATE ENERGY, U. & C. COMMITTEE: 13-2, 7/1/25

AYES: Becker, Allen, Archuleta, Arreguín, Ashby, Caballero, Gonzalez, Hurtado, Limón, McNerney, Rubio, Stern, Wahab

NOES: Grove, Strickland

NO VOTE RECORDED: Ochoa Bogh, Dahle

SENATE NATURAL RES. & WATER COMMITTEE: 5-2, 7/16/25

AYES: Limón, Allen, Hurtado, Laird, Stern

NOES: Seyarto, Grove

SENATE APPROPRIATIONS COMMITTEE: 5-2, 8/29/25

AYES: Caballero, Cabaldon, Grayson, Richardson, Wahab

NOES: Seyarto, Dahle

ASSEMBLY FLOOR: 77-1, 6/4/25 - See last page for vote

SUBJECT: Energy: Voluntary Offshore Wind and Coastal Resources Protection Program: community capacity funding activities and grants

SOURCE: Brightline Defense Project

DIGEST:

This bill authorizes the California Energy Commission (CEC) to allocate moneys in an existing continuously appropriated fund for capacity funding activities and grants for local communities and tribes to engage in offshore wind (OSW) development.

ANALYSIS:

Existing law:

1. Requires the State Energy Resources Conservation and Development Commission (also known as the California Energy Commission (CEC)), in coordination with specified state entities and other relevant federal, state, and local agencies, to develop a strategic plan for OSW energy developments installed off the California coast in federal waters, and requires the CEC to submit the strategic plan to the Natural Resources Agency and the Legislature on or before June 30, 2023. (Public Resources Code § 25991 et seq.)
2. Establishes the Voluntary Offshore Wind and Coastal Resources Protection Program, which is administered by CEC for the purpose of supporting state activities that complement and are in furtherance of federal laws related to the development of OSW facilities. (Public Resources Code § 25992.10)
3. Creates, and continuously appropriates moneys in, the Voluntary Offshore Wind and Coastal Resources Protection Fund for purposes of the program and the Private Donations Account, which is created in the fund. Authorizes the CEC to accept federal and private sector moneys for purposes of the program and requires the private sector moneys to be deposited into the account and the federal moneys to be deposited into the fund. Requires the CEC to post a report on its internet website, within 30 days of receiving a donation, about specified information regarding each donation received. Authorizes the CEC to allocate moneys in the fund or account for specified purposes, including workforce development grants. (Public Resources Code §§ 25992.20 - 25992.21)

This bill:

1. Authorizes the CEC to allocate moneys in the fund or account for capacity funding activities and grants within local communities and tribal communities for purposes of the program. Makes only a local community, local government, California tribe, nonprofit organization selected by California tribes to represent their interests, or a coalition of these entities eligible for these capacity funding activities and grants.
2. Makes an appropriation by expanding the purposes for which continuously appropriated moneys may be allocated.
3. Makes the public disclosure requirement described above applicable to donations received by an eligible entity from an OSW entity, as defined, and would require an OSW entity to report, every 90 days, specified information concerning these donations to the CEC.
4. Deletes the requirement for the CEC to post a report on its internet website for donations received by the CEC, as described above, and would instead require the CEC to annually post a report on its internet website related to donations made by OSW entities to eligible entities, as specified. 
5. Requires the CEC to annually prepare and submit a report, on or before March 1 of each year, to the Legislature on the implementation and effectiveness of the activities and grants funded pursuant to this bill.

Background

OSW potential. OSW energy generation is projected to be an important component of the state’s efforts to decarbonize energy generation and to achieve carbon neutrality by 2045, particularly as OSW can be a more stable and complementary resource to help integrate variable renewable energy resources. As of 2019, almost six gigawatts (GW) of installed wind capacity was generating in the state, the fifth largest amount of wind capacity in the United States, with all of it generated from land-based systems. Although California has no commercial OSW generation, the National Renewable Energy Laboratory has identified 112 GW of OSW technical potential for California. However, approximately 96% of this potential is located in water deeper than 60 meters, where the mature, fixed-bottom turbine technology is not technically feasible. Due to the water depth in areas with high ambient winds, much of the OSW energy projects serving California are likely to be composed of very large floating wind turbines (as tall as the Eiffel Tower) anchored to the sea floor in federal waters offshore. These projects will include components in state waters, such as cables transporting the energy onshore, vessels navigating state waters to serve the projects, and docking and support facilities onshore. Depending on the type of floating structure, some assemblage of floating turbines may need to occur offshore, requiring naval cranes and vessels to stabilize such operations, and port infrastructure and specific port water depths.

OSW Report. AB 525 (Chiu, Chapter 231, Statutes of 2021) required the CEC, in coordination with federal, state, and local agencies, California Native American tribes, and a variety of stakeholders, to develop a strategic plan for OSW energy development in federal waters off the California coast. In August 2022, the CEC approved a planning goal of 2,000 to 5,000 MW of OSW energy capacity by 2030, and 25,000 MW by 2045. In June 2024, the CEC adopted a long-awaited Strategic Plan for Offshore Wind Development in three volumes which among its contents, discusses the impacts and strategies to address those impacts in California’s underserved communities. Building upon these efforts, AB 1373 (Garcia, Chapter 367, Statutes of 2023) designated the Department of Water Resources (DWR) as a centralized procurement entity to, in part, help reduce risk and facilitate offshore wind development in California. In 2024, the California Public Utilities Commission (CPUC) established an authorized capacity of 7.6 GW of OSW energy to be procured by DWR.  

California Native Tribes – Impacts & Strategies. According to the AB 525 Report, the CEC and coordinating agencies had numerous tribal consultations and community engagement discussions on the potential impact of OSW energy development. There were a myriad of concerns for California Native Tribes, each with their own perspective, concerns, and priorities regarding OSW, including impacts to local fishing for subsistence and cultural impacts. On the North Coast, there have been significant concerns about the impacts on the population and migration patterns of the already endangered salmon. They have concerns about the impacts of OSW and associated infrastructure on tribal cultural resources. Additionally, there are concerns regarding the fiscal impact that comes with participating at ongoing meetings on planning processes such permitting processes. In Humboldt, there are three federally-recognized Tribes near the OSW lease site: the Yurok, the Wiyot, and the Mattole. Morro Bay and Diablo Canyon are ancestral lands of cultural, ceremonial, and spiritual importance to the Santa Ynez Band of Chumash Indians Tribe, and the Gabrieleño are near the Santa Barbara coastline.

Strategies for Addressing Impacts. Some of the suggestions in the AB 525 Report include conducting meaningful consultation with tribal representatives, supporting the establishment of strong, legally binding tribal community benefits agreements, continuing to study impacts on tribes including exploring public safety measures to reduce violent crime and sexual and gender-based violence against California tribes and other vulnerable populations, and collaborating with tribes on avoidance, mitigation, and co-management opportunities.

Underserved Communities – Impacts & Strategies. Supporters of this bill note that historically underserved communities have experienced a disproportionate share of economic, health and environmental burdens, which include poverty, high unemployment, air, and water pollution. Supporters of this bill state that OSW development can provide a variety of benefits such as the creation of well-paying jobs and new tax revenues. Industrial activity can impact underserved communities living near ports through air, water, noise, and light pollution. Additional air pollution may also occur from increased vehicle emissions on land and vessel emissions offshore to transport materials and turbines. Advocates would like to see increased engagement with potentially impacted communities. The CEC AB 525 Report notes that strategies to address these impacts include conducting early and meaningful community outreach and engagement efforts throughout the OSW planning and development process.

SB 286 Fisheries Working Group. SB 286 (McGuire, Chapter 386, Statutes of 2023) established the California Offshore Wind Energy Fisheries Working Group (Working Group) which includes representatives from the relevant permitting and resource agencies, commercial and recreational fishing industries, OSW energy industry, California Native American Tribes with affected tribal fisheries, and other stakeholders, as determined by the California Coastal Commission (CCC). The Working Group is required to develop a statewide strategy by January 1, 2026, that proposes ways to minimize impacts of OSW on ocean fisheries, including the application of best practices in compensating impacted stakeholders. After the statewide strategy is developed, the CCC must review and adopt it on or before May 1, 2026. The Working Group is responsible for creating a framework for reasonable compensatory mitigation for unavoidable impacts associated with OSW energy projects and include a payment structure to reasonably compensate commercial, tribal, and recreational fisheries and impacted commercial fish processors. The California State Lands Commission (SLC) – or a local trustee of granted public trust lands standing in its place – must consider reasonable compensatory mitigation for unavoidable impacts to fishing and tribal interests when granting a lease for an OSW energy project. In addition, SLC is required to deposit revenues generated from the leases into a newly created Offshore Wind Energy Resiliency Fund. Upon appropriation by the Legislature, the fund will be made available for reasonable compensatory mitigation for unavoidable impacts.

AB 209 establishes voluntary fund and program. AB 209 (Committee on Budget, Chapter 251, Statutes of 2022) established the Voluntary Offshore Wind and Coastal Resources Protection Program at the CEC to support OSW development. The CEC provides grants to public and private entities, including state agencies, tribal entities, local governmental agencies, research institutions, and nonprofit entities. The CEC can also accept federal and private sector money for the Voluntary Program. AB 209 also established the Voluntary Fund which accepts donations from private and federal sources and requires specified reporting of these donations.

AB 2537 (Addis) of the 2024 legislative session, would have established the Offshore Wind Community Capacity Funding Grant Account for the purpose of building capacity within local communities and tribal communities to support engagement in the process of OSW energy development in California, and continuously appropriates the funding. The bill was vetoed by the Governor stating:

While I share the author's desire to ensure communities hosting OSW projects are resourced to constructively engage in their planning and development, this bill falls short of providing a viable funding stream to accomplish this very objective. I encourage the author and the OSW developers to collaborate further with communities to identify an approach that not only fosters capacity for engagement but considers community benefits from the development of these projects.

Comments

Second time is a charm. This bill is another attempt at securing voluntary contributions for capacity funding for communities who may be impacted from OSW energy development, in order to include their participation in the development of these projects. According to the author:

California is leading the charge on clean energy and offshore wind is key to our renewable future—but we must ensure the benefits reach the communities most impacted. AB 1417 requires offshore wind developers to report to the CEC any funding they provide directly to local and tribal communities, specifically for the purposes of capacity building. In addition, this bill expands the scope of the existing Voluntary Offshore Wind and Coastal Resources Program by allowing capacity-building activities in local and tribal communities to be eligible uses of any voluntary donations. This bill drives environmental justice, economic opportunity, and a more equitable transition to clean power—ensuring those on the frontlines have a voice in the process. By investing in a responsible and inclusive transition, we maximize benefits while minimizing harm.

Continuous appropriation. This bill authorizes the CEC to allocate capacity building grants as part of the use of the fund which is embedded within the statutory language adopted in AB 209, which authorized a continuous appropriation. This bill is silent on the amount of the financial assistance for capacity building with the notion that this would likely be negotiated with the OSW leaseholders. The CEC currently has the discretion to award any funding deposited into the Account towards specified activities to support the development of OSW energy. This bill adds capacity building activities and grants to the list of eligible uses. This bill also requires annual and 90 day reporting regarding any donations received or awarded that meet the requirements of this bill.

Related/Prior Legislation

AB 2537 (Addis) of 2024, would have established the Offshore Wind Community Capacity Funding Grant Account for the purpose of building capacity within local communities and tribal communities to support engagement in the process of OSW energy development in California, and continuously appropriates the funding. The bill was vetoed by the Governor.

AB 3006 (Zbur) of 2024, would have amended the definition of “infrastructure” for purposes of the Governor’s annual infrastructure plan to include port infrastructure for OSW energy development. The bill was held in the Senate Appropriations Committee.

SB 286 (McGuire, Chapter 386, Statutes of 2023) established, among its provisions, the Working Group to address OSW project impacts to certain fisheries and other interests, including providing for compensation to those affected, among other things.

AB 209 (Committee on Budget, Chapter 251, Statutes of 2022) established, among its many energy-related provisions, the Voluntary Offshore Wind and Coastal Resources Protection Program.

AB 525 (Chiu, Chapter 231, Statutes of 2022) required the CEC to establish, by June 1, 2022, planning goals, as specified, for the years 2030 and 2045 from electricity generated by OSW. The bill also required the CEC, in coordination with specified agencies, to develop a strategic plan, as specified, for OSW developments and to submit the plan to the Natural Resources Agency and the Legislature by June 30, 2023.

FISCAL EFFECT: Appropriation: Yes Fiscal Com.: Yes Local: No

According to the Senate Appropriations Committee:

• The CEC estimates ongoing costs of about $241,000 annually (Energy Resources Programs Account [ERPA] or other fund) for one position to conduct workshops and listening sessions specific to the issues identified in this bill to maintain up-to-date guidelines and inform potential funding opportunities. The CEC notes it did not receive any positions for the underlying Program and the work to support the development and implementation of the Program is currently being absorbed by existing resources, which are funded only temporarily.
• Cost pressure of an unknown but potentially significant amount to fund capacity funding activities and grants within local communities and tribal communities (various funds).

SUPPORT: (Verified 8/29/25)

Brightline Defense Project (Source)
350 Humboldt
Audubon California
Blue Lake Rancheria Tribe of California
California Environmental Voters
Central Coast Alliance United for a Sustainable Economy
Clean Power Campaign
Climate Action California
Climate First: Replacing Oil & Gas
Elected Officials to Protect America Code Blue
Environmental Defense Fund
Environmental Protection Information Center
Monterey Bay Aquarium
National Wildlife Federation
Natural Resources Defense Council
Northern Chumash Tribal Council
San Luis Obispo Climate Coalition
Sierra Club California
Union of Concerned Scientists
United Autoworkers, Region 6
USC Schwarzenegger Institute

OPPOSITION: (Verified 8/29/25)

None received

ARGUMENTS IN SUPPORT:

Brightline Defense Project, the sponsor of this bill, states:

As OSW planning continues, it is critical to center the voices of local communities, especially overburdened EJ communities and Tribal Nations. …Unfortunately, these communities face major barriers to engagement. …Brightline has heard directly from community leaders in the North Coast and Central Coast that they lack the capacity and technical expertise to participate in the lengthy and complex OSW processes. Without upfront investment in these communities, the state will leave out these critical voices, and likely encounter higher costs and conflicts down the road. …AB 1417 addresses this problem by creating a state-wide mechanism to encourage and keep track of OSW capacity building investments. Specifically, the bill requires OSW developers to report on contributions they make to local communities and Tribal Nations for capacity building to the California Energy Commission (CEC). The agency will then make this information publicly available, facilitating improved transparency and better-informed state planning.

ASSEMBLY FLOOR: 77-1, 6/4/25

AYES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Arambula, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Carrillo, Castillo, Chen, Connolly, Davies, DeMaio, Dixon, Elhawary, Ellis, Fong, Gabriel, Gallagher, Garcia, Gipson, Jeff Gonzalez, Mark González, Hadwick, Haney, Harabedian, Hart, Hoover, Irwin, Jackson, Kalra, Krell, Lackey, Lee, Lowenthal, Macedo, McKinnor, Muratsuchi, Nguyen, Ortega, Pacheco, Papan, Patel, Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Celeste Rodriguez, Michelle Rodriguez, Rogers, Blanca Rubio, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Ta, Tangipa, Valencia, Wallis, Ward, Wicks, Wilson, Zbur, Rivas

NOES: Flora

NO VOTE RECORDED: Sanchez

Prepared by: Nidia Bautista / E., U. & C. / (916) 651-4107

8/30/25 18:34:24

**** END ****

SENATE COMMITTEE ON

Senator Anna Caballero, Chair

2025 - 2026 Regular Session

AB 1417 (Stefani) - Energy: Voluntary Offshore Wind and Coastal Resources Protection Program: community capacity funding activities and grants

Bill Summary:

This bill would authorize the California Energy Commission (CEC) to allocate moneys in an existing continuously appropriated fund for capacity funding activities and grants for local communities and tribes to engage in offshore wind development, as provided

Fiscal Impact:

• The CEC estimates ongoing costs of about $241,000 annually (Energy Resources Programs Account [ERPA] or other fund) for one position to conduct workshops and listening sessions specific to the issues identified in this bill to maintain up-to-date guidelines and inform potential funding opportunities. The CEC notes it did not receive any positions for the underlying Program and the work to support the development and implementation of the Program is currently being absorbed by existing resources, which are funded only temporarily.
• Cost pressure of an unknown but potentially significant amount to fund capacity funding activities and grants within local communities and tribal communities (various funds).

Background:

Over the past few decades, California has established ambitious clean energy goals, including a requirement for 100% renewable and zero-carbon energy resources by the end of 2045. An important component of California’s strategy to meet these goals is the development of offshore wind (OSW) energy resources.

In 2021, AB 525 (Chiu) set the foundation for the state’s efforts to develop OSW by requiring the CEC to establish 2030 and 2045 planning goals for electricity generated by OSW energy resources. AB 525 also required the CEC to develop a five-part strategic plan for offshore wind development and to submit the plan to the Natural Resources Agency and the Legislature (OSW Strategic Plan or Strategic Plan).

In 2022, the state set dual goals of 5 gigawatts (GW) of OSW energy by 2030 and 25 GW by 2045. At the same time, SB 1020 (Laird) accelerated the requirement for state agencies by requiring them to meet the 100% clean energy target by 2035, and created benchmarks to help the state meet the broader 100% requirement. In 2024, the California Public Utilities Commission (CPUC) established an authorized capacity of 7.6 GW of OSW energy to be procured by the Department of Water Resources (DWR).

The previous federal administration set a goal of deploying 30 GW of OSW electricity generation by 2030. In contrast, on January 20, 2025, the Trump Administration announced a temporary withdrawal of all areas on the Outer Continental Shelf for OSW leasing, and a review of existing federal wind permitting and leasing. In addition, the Trump Administration’s recently-passed “One Big Beautiful Bill” which sharply reduces access to a 30% tax credit for solar and wind power projects that had been set to run until 2032, and which was an important financing mechanism for OSW projects.

OSW development off the California Coast. In late 2022, the federal Bureau of Ocean Energy Management (BOEM) awarded five leases off the shores of Morro Bay and Humboldt. The California Coastal Commission conditionally concurred with this federal action. More BOEM lease areas will be required to achieve the state’s 2045 goals, although whether there will be additional federal lease auctions is unclear.

Due to the water depth in areas with high ambient winds, much of the OSW energy projects serving California are likely to be composed of very large floating wind turbines (as tall as the Eiffel Tower) anchored to the sea floor in federal waters offshore. These projects will include components in state waters, such as cables transporting the energy onshore, vessels navigating state waters to serve the projects, and docking and support facilities onshore. Depending on the type of floating structure, some assemblage of floating turbines may need to occur offshore, requiring naval cranes and vessels to stabilize such operations, and port infrastructure and specific port water depths.

CEC’s OSW Strategic Plan. In June 2024, the final OSW Strategic Plan required by AB 525 for public comment was released by the CEC. The Strategic Plan describes the potential economic benefits of OSW, including direct benefits, indirect benefits, induced benefits, and potential increased tax revenue. A recent study estimates that more than 8,000 jobs will be generated by OSW during peak development. OSW has the potential to benefit the communities located near its development.

However, the Strategic Plan and related reports also note potential negative impacts on frontline communities. Historically, communities that have hosted large infrastructure projects have borne the brunt of their impacts, including various different types of pollution, noise, and traffic impacts.

As part of the process of preparing their plan and reports, the CEC consulted with California tribes to solicit their thoughts and concerns about offshore wind development. Different tribes have unique concerns about development in their communities. Tribes have raised concerns regarding access to commercial and recreational fishing grounds, access to areas used for subsistence fishing and hunting, impacts to species that use or pass through federal lease areas, impacts to culturally important areas, and tribal access to the coastline and tribal resources. Some tribes also expressed concerns about their ability to participate in the regular meetings involved in the OSW development process, which involves significant costs.

Under current law, OSW leaseholders are required to develop community benefits agreements (CBAs) with local communities to fulfill their lease bidding credits, which may include training and educational programs and requirements for local hiring that would benefit port communities and California tribes. Considering the potential for both valuable benefits and harmful negative impacts, it’s crucial that communities have the opportunity to participate in this process. However, not all communities have the financial means to do so. One way to facilitate their engagement is through community capacity building.

The Strategic Plan recommends identifying and evaluating ways to increase capacity for stakeholders to engage in the permitting, development, and mitigation of OSW development. The Strategic Plan recommends that the state should prioritize community capacity building opportunities in working toward achieving its OSW planning goals. Communities and tribes located close to OSW impacts, in particular, have a vested interest in decision-making opportunities during the offshore wind development process.

The CEC’s Voluntary Offshore Wind and Coastal Resources Protection Program. In order to facilitate state efforts, AB 209, the 2022 energy budget trailer bill, established the Voluntary Offshore Wind and Coastal Resources Protection Program (Voluntary Program) to support activities related to OSW development, as provided. The CEC administers the Voluntary Program and awards funding to public and private entities, including state agencies, tribal entities, local government agencies, research institutions, and nonprofit entities through a variety of mechanisms, including grants.

Funding may be awarded to state agencies to engage in postlease assessments including project compliance and monitoring; for research; for contracts with technical experts to help to develop guidelines and best practices with the overall goal to avoid and minimize impacts to coastal resources; and to support infrastructure readiness, as provided.

AB 209 also established a new fund, the Voluntary Offshore Wind and Coastal Resources Protection Fund (Voluntary Fund), to accept donations from private and federal sources.

Proposed Law:

This bill would authorize the CEC to allocate moneys in an existing continuously appropriated fund for capacity funding activities and grants for local communities and tribes to engage in OSW development, as provided.

Specifically, this bill would:

1. Add capacity funding activities and grants within local communities and tribal communities to the list of eligible activities that the CEC may allocate moneys to as part of the Voluntary Program.
2. Require an OSW entity to report to the CEC every 90 days the following information:
   1. The aggregate amount of donations made.
   2. The number of groups or tribes that received donations.
   3. The counties where those groups or tribes are based.
   4. The types of eligible entities that received a donation, including, but not limited to, whether the eligible entity is a tribe, community group, local government, or third party.
3. Revise CEC reporting requirements for donations made by an OSW entity and reported to the CEC described above as follows:
   1. Annual reporting posted online, replacing within 30 days of each donation receipt.
   2. All donations in the preceding year, as provided, replacing each individual donation and the name and address of each donor.
   3. All donations received by eligible entities from OSW entities in each county in the preceding year.
   4. The number of eligible entities receiving a donation in the preceding year.
4. Require the CEC to annually prepare and submit a report to the Legislature on the implementation and effectiveness of capacity funding activities and grants on or before March 1 of each year, as provided.
5. Expand the purposes for which continuously appropriated moneys may be allocated, thus making an appropriation.
6. Define various relevant terms, including an “eligible entity” to receive funds and “offshore wind entity,” as specified.

Related Legislation:

AB 2537 (Addis, 2024) would have established the Offshore Wind Community Capacity Funding Grant Account for the purpose of building capacity within local communities and tribal communities to support engagement in the process of OSW energy development in California. The bill was vetoed by Governor Newsom whose veto message stated:

“While I share the author's desire to ensure communities hosting OSW projects are resourced to constructively engage in their planning and development, this bill falls short of providing a viable funding stream to accomplish this very objective. I encourage the author and the OSW developers to collaborate further with communities to identify an approach that not only fosters capacity for engagement but considers community benefits from the development of these projects.”

-- END --

SENATE COMMITTEE ON NATURAL RESOURCES AND WATER

Senator Monique Limón, Chair

2025 - 2026 Regular

Bill No: AB Hearing Date: July 16, 2025

Subject: Energy: Voluntary Offshore Wind and Coastal Resources Protection Program: community capacity funding activities and grants

SUMMARY

This bill would authorize the State Energy Resources and Development Commission (California Energy Commission, CEC) to allocate moneys in an existing continuously appropriated fund for capacity funding activities and grants for local communities and tribes to engage in offshore wind development, as provided.

BACKGROUND AND EXISTING LAW

California’s Clean Energy Goals

Over the past few decades, California has established ambitious clean energy goals, including a requirement for 100% renewable and zero-carbon energy resources by the end of 2045. An important component of California’s strategy to meet these goals is the development of offshore wind (OSW) energy resources.

In 2021, AB 525 (Chiu) set the foundation for the state’s efforts to develop OSW by requiring the CEC to establish 2030 and 2045 planning goals for electricity generated by OSW energy resources. AB 525 also required the CEC to develop a five-part strategic plan for offshore wind development and to submit the plan to the Natural Resources Agency and the Legislature (OSW Strategic Plan or Strategic Plan).

In 2022, the state set dual goals of 5 gigawatts (GW) of OSW energy by 2030 and 25 GW by 2045. At the same time, SB 1020 (Laird) accelerated the requirement for state agencies by requiring them to meet the 100% clean energy target by 2035, and created benchmarks to help the state meet the broader 100% requirement. In 2024, the California Public Utilities Commission (CPUC) established an authorized capacity of 7.6 GW of OSW energy to be procured by the Department of Water Resources (DWR).

The previous federal administration set a goal of deploying 30 GW of OSW electricity generation by 2030. In contrast, on January 20, 2025, the Trump Administration announced a temporary withdrawal of all areas on the Outer Continental Shelf for OSW leasing, and a review of existing federal wind permitting and leasing. In addition, the Trump Administration’s recently-passed “One Big Beautiful Bill” which sharply reduces access to a 30% tax credit for solar and wind power projects that had been set to run until 2032, and which was an important financing mechanism for OSW projects.

OSW development off the California Coast

In late 2022, the federal Bureau of Ocean Energy Management (BOEM) awarded five leases off the shores of Morro Bay and Humboldt. The California Coastal Commission conditionally concurred with this federal action. More BOEM lease areas will be required to achieve the state’s 2045 goals, although whether there will be additional federal lease auctions is unclear.

Due to the water depth in areas with high ambient winds, much of the OSW energy projects serving California are likely to be composed of very large floating wind turbines (as tall as the Eiffel Tower) anchored to the sea floor in federal waters offshore. These projects will include components in state waters, such as cables transporting the energy onshore, vessels navigating state waters to serve the projects, and docking and support facilities onshore. Depending on the type of floating structure, some assemblage of floating turbines may need to occur offshore, requiring naval cranes and vessels to stabilize such operations, and port infrastructure and specific port water depths.

CEC’s OSW Strategic Plan

In June 2024, the final OSW Strategic Plan required by AB 525 for public comment was released by the CEC. The Strategic Plan describes the potential economic benefits of OSW, including direct benefits, indirect benefits, induced benefits, and potential increased tax revenue. A recent study estimates that more than 8,000 jobs will be generated by OSW during peak development. OSW has the potential to benefit the communities located near its development.

However, the Strategic Plan and related reports also note potential negative impacts on frontline communities. Historically, communities that have hosted large infrastructure projects have borne the brunt of their impacts, including various different types of pollution, noise, and traffic impacts.

As part of the process of preparing their plan and reports, the CEC consulted with California tribes to solicit their thoughts and concerns about offshore wind development. Different tribes have unique concerns about development in their communities. Tribes have raised concerns regarding access to commercial and recreational fishing grounds, access to areas used for subsistence fishing and hunting, impacts to species that use or pass through federal lease areas, impacts to culturally important areas, and tribal access to the coastline and tribal resources. Some tribes also expressed concerns about their ability to participate in the regular meetings involved in the OSW development process, which involves significant costs.

Under current law, OSW leaseholders are required to develop community benefits agreements (CBAs) with local communities to fulfill their lease bidding credits, which may include training and educational programs and requirements for local hiring that would benefit port communities and California tribes. Considering the potential for both valuable benefits and harmful negative impacts, it’s crucial that communities have the opportunity to participate in this process. However, not all communities have the financial means to do so. One way to facilitate their engagement is through community capacity building.

The Strategic Plan recommends identifying and evaluating ways to increase capacity for stakeholders to engage in the permitting, development, and mitigation of OSW development. The Strategic Plan recommends that the state should prioritize community capacity building opportunities in working toward achieving its OSW planning goals. Communities and tribes located close to OSW impacts, in particular, have a vested interest in decision-making opportunities during the offshore wind development process.

The CEC’s Voluntary Offshore Wind and Coastal Resources Protection Program

In order to facilitate state efforts, AB 209, the 2022 energy budget trailer bill, established the Voluntary Offshore Wind and Coastal Resources Protection Program (Voluntary Program) to support activities related to OSW development, as provided. The CEC administers the Voluntary Program and awards funding to public and private entities, including state agencies, tribal entities, local government agencies, research institutions, and nonprofit entities through a variety of mechanisms, including grants.

Funding may be awarded to state agencies to engage in postlease assessments including project compliance and monitoring; for research; for contracts with technical experts to help to develop guidelines and best practices with the overall goal to avoid and minimize impacts to coastal resources; and to support infrastructure readiness, as provided.

AB 209 also established a new fund, the Voluntary Offshore Wind and Coastal Resources Protection Fund (Voluntary Fund), to accept donations from private and federal sources.

Previous capacity building legislation

AB 2537 (Addis, 2024) would have established the Offshore Wind Community Capacity Funding Grant Account for the purpose of building capacity within local communities and tribal communities to support engagement in the process of OSW energy development in California. The bill was vetoed by Governor Newsom whose veto message stated:

While I share the author's desire to ensure communities hosting OSW projects are resourced to constructively engage in their planning and development, this bill falls short of providing a viable funding stream to accomplish this very objective. I encourage the author and the OSW developers to collaborate further with communities to identify an approach that not only fosters capacity for engagement but considers community benefits from the development of these projects.

Existing law:

1. Establishes the policy goal of the state that eligible renewable energy resources and zero-carbon resources supply 100% of all retail sales of electricity to California end-use customers and 100% of electricity procured to serve all state agencies by December 31, 2045. (Public Utilities Code §454.53)
2. Requires the CEC, in coordination with relevant federal, state, and local agencies, to develop a strategic plan for OSW energy developments installed off the California coast in federal waters, and requires the CEC to submit the strategic plan to the Natural Resources Agency and the Legislature on or before June 30, 2023. (Public Resources Code (PRC) §25991)
3. Establishes the California Offshore Wind Energy Fisheries Working Group. Requires the working group to be composed of numerous members including representatives of federal and state agencies, the OSW energy industry, and California Native American tribes with affected tribal fisheries, among others. Provides for compensation for participation by certain members of the working group. (PRC §30616)
4. Establishes the Voluntary Program and Voluntary Offshore Wind and Coastal Resources Protection Fund (Voluntary Fund), administered by the CEC, to support state activities that complement and are in furtherance of federal laws related to the development of OSW facilities. Continuously appropriates moneys in, the Voluntary Fund for purposes of the Voluntary Program. Requires the CEC to award and allocate moneys under the Voluntary Program for various purposes. Authorizes the CEC to accept federal and private sector moneys for purposes of the Voluntary Program, and to allocate moneys in the Voluntary Fund for certain purposes, including workforce development grants. Requires the CEC to post a report on its internet website, within 30 days of receiving a donation, about specified information regarding each donation received. (PRC §§25992.10, 25992.20, 25992.21)

1. Requires, if the CPUC requests DWR to procure eligible energy resources, and DWR elects to exercise its central procurement function to conduct one or more competitive solicitations or enter into contracts for eligible energy resources, as provided, the CPUC, in consultation with DWR, to develop and adopt procedures and requirements that govern competitive procurement by, obligations on, and recovery of costs incurred by DWR relating to bids for the development of eligible energy resources. (Water Code §80820)

PROPOSED LAW

This bill would authorize the CEC to allocate moneys in an existing continuously appropriated fund for capacity funding activities and grants for local communities and tribes to engage in OSW development, as provided.

Specifically, this bill would:

1. Add capacity funding activities and grants within local communities and tribal communities to the list of eligible activities that the CEC may allocate moneys to as part of the Voluntary Program.
2. Require an OSW entity to report to the CEC every 90 days the following information:
   1. The aggregate amount of donations made.
   2. The number of groups or tribes that received donations.
   3. The counties where those groups or tribes are based.
   4. The types of eligible entities that received a donation, including, but not limited to, whether the eligible entity is a tribe, community group, local government, or third party.
3. Revise CEC reporting requirements for donations made by an OSW entity and reported to the CEC described above as follows:
   1. Annual reporting posted online, replacing within 30 days of each donation receipt.
   2. All donations in the preceding year, as provided, replacing each individual donation and the name and address of each donor.
   3. All donations received by eligible entities from OSW entities in each county in the preceding year.
   4. The number of eligible entities receiving a donation in the preceding year.
4. Require the CEC to annually prepare and submit a report to the Legislature on the implementation and effectiveness of capacity funding activities and grants on or before March 1 of each year, as provided.
5. Expand the purposes for which continuously appropriated moneys may be allocated, thus making an appropriation.
6. Define various relevant terms, including an “eligible entity” to receive funds and “offshore wind entity,” as specified.

ARGUMENTS IN SUPPORT

According to the author, “"California is leading the charge on clean energy and offshore wind is key to our renewable future—but we must ensure the benefits reach the communities most impacted. AB 1417 requires offshore wind developers to report to the CEC any funding they provide directly to local and tribal communities, specifically for the purposes of capacity building. In addition, this bill expands the scope of the existing Voluntary Offshore Wind and Coastal Resources Program by allowing capacity-building activities in local and tribal communities to be eligible uses of any voluntary donations. This bill drives environmental justice, economic opportunity, and a more equitable transition to clean power—ensuring those on the frontlines have a voice in the process. By investing in a responsible and inclusive transition, we maximize benefits while minimizing harm.”

ARGUMENTS IN OPPOSITION

None received

COMMENTS

This bill is double-referred. This bill was referred to both the Senate Energy, Utilities, and Communications Committee (Senate Energy Committee) and this Committee. This Committee is the Committee of second referral. Elements of the bill within the jurisdiction of the Senate Energy Committee are included here for context and completeness only.

Second time the charm? This bill is another attempt at securing voluntary contributions for capacity funding for communities that may be impacted from OSW energy development, in order to include their participation in the development of these projects.

The potential impacts to coastal resources are significant. As offshore wind energy systems are built out, there is the potential for significant and profound impacts to coastal resources, including local ports and fishing areas. In view of this, there is merit in specifically providing for local community and tribal capacity to participate in the planning efforts. Capacity building could include activities related to consultation, participation in project planning and development, programs connecting members of tribal nations and underrepresented communities to careers in science, technology, engineering, and math, and the implementation of local and tribal benefit agreements. Establishing a standardized process with funding to build capacity with local communities and tribal communities impacted by OSW could complement existing efforts directly targeted at job skills training and port development.

Continuous appropriation. This bill would provide moneys for the capacity building program from a continuously appropriated account. One of the usual legislative methods to provide oversight over programs is through the budget and appropriations process.

California Native American tribes impacted by offshore wind. Many California Native American tribes and peoples have connections to the Pacific Ocean, the coast, and marine habitats and species. Each California Native American tribe has its own perspective, concerns, and priorities regarding OSW. Many tribal members depend on local fishing and harvesting of sea life for cultural, subsistence, and commercial needs, and have concerns about the potential impact on their ability to feed their families and loss of income from commercial fishing. On the North Coast, tribes expressed significant concern about the impacts on the population and migration patterns of the already endangered salmon.

In Humboldt, there are three federally-recognized tribes near the OSW lease site: the Yurok, the Wiyot, and the Mattole. For the southern leases, Morro Bay and Diablo Canyon are ancestral lands of cultural, ceremonial, and spiritual importance to the Santa Ynez Band of Chumash Indians Tribe, and the Gabrieleño are nearby on the Santa Barbara coastline.

Tribes are seeking a direct role in the decision-making process throughout the planning, permitting, operation, and decommissioning of OSW operations and associated infrastructure for OSW development.

Recent related legislation

AB 2537 (Addis, 2024) would have established the Offshore Wind Community Capacity Funding Grant Account for the purpose of building capacity within local communities and tribal communities to support engagement in the process of OSW energy development in California, and continuously appropriates the funding. (This bill was vetoed by Governor Newsom.)

AB 2212 (Lowenthal, 2024) would have enacted the Offshore Wind Workforce Safety Training Facility Development Act and would have required the CEC to oversee the allocation and use of funds allocated for the development of training facilities and to develop standardized training curricula tailored to the specific needs of the OSW industry. (This bill was held on the suspense file in the Assembly Appropriations Committee.)

AB 3006 (Zbur, 2024) would have amended the definition of “infrastructure” for purposes of the Governor’s annual infrastructure plan to include port infrastructure for OSW energy development. (This bill was held on the suspense file in the Senate Appropriations Committee.)

SB 286 (McGuire, Chapter, 386, Statutes of 2023) established the California Offshore Wind Energy Fisheries Working Group to address OSW project impacts to certain fisheries and other interests, including providing for compensation to those affected, among other things.

AB 209 (Committee on Budget, Chapter 251, Statutes of 2022), the energy budget trailer bill, among its many energy-related provisions, established the Voluntary Offshore Wind and Coastal Resources Protection Program.

SB 1020 (Laird, Chapter 361, Statutes of 2022) established interim targets to reach SB 100 clean energy goals and requires state agencies to purchase 100 percent zero carbon electricity by 2035 to serve their load, including obligations on State Water Project. This bill also required the development of electric and gas utility service affordability metrics.

AB 525 (Chiu, Chapter 231, Statutes of 2021) required the CEC to develop a strategic plan for achieving 3,000 MW of OSW development off the California Coast by 2030, and at least 10,000 MW by 2040.

SB 100 (De León, Chapter 312, Statutes of 2018) established the 100 Percent Clean Energy Act of 2018, which increased the Renewable Portfolio Standard (RPS) requirement from 50 percent by 2030 to 60 percent, and created the policy of planning to meet all of the state’s retail electricity supply with a mix of RPS-eligible and zero-carbon resources by December 31, 2045, for a total of 100 percent clean energy.

SUGGESTED AMENDMENTS: none

SUPPORT

Brightline Defense (sponsor)

350 Humboldt

Audubon California

Blue Lake Rancheria

California Environmental Voters

Central Coast Alliance United for a Sustainable Economy

Clean Power Campaign

Climate Action California

Climate First: Replacing Oil & Gas (CFROG)

Elected Officials to Protect America

Environment California

Environmental Defense Fund

Environmental Protection Information Center

Fund Her

Monterey Bay Aquarium

National Wildlife Federation

Natural Resources Defense Council

Northern Chumash Tribal Council

San Luis Obispo (SLO) Climate Coalition

Sierra Club California

Union of Concerned Scientists

United Autoworkers (UAW) Region 6

USC Schwarzenegger Institute

OPPOSITION

None received

-- END --

SENATE COMMITTEE ON ENERGY, UTILITIES AND COMMUNICATIONS

Senator Josh Becker, Chair

2025 - 2026 Regular

Bill No: Hearing Date: 7/1/2025

SUBJECT:

DIGEST: This bill authorizes the California Energy Commission (CEC) to allocate moneys in an existing continuously appropriated fund for capacity funding activities and grants for local communities and tribes to engage in offshore wind (OSW) development.

ANALYSIS:

Existing law:

1. Requires the State Energy Resources Conservation and Development Commission (also known as the California Energy Commission (CEC)), in coordination with specified state entities and other relevant federal, state, and local agencies, to develop a strategic plan for OSW energy developments installed off the California coast in federal waters, and requires the CEC to submit the strategic plan to the Natural Resources Agency and the Legislature on or before June 30, 2023. (Public Resources Code §25991 et seq.)
2. Establishes the Voluntary Offshore Wind and Coastal Resources Protection Program, which is administered by CEC for the purpose of supporting state activities that complement and are in furtherance of federal laws related to the development of OSW facilities. (Public Resources Code §25992.10)
3. Creates, and continuously appropriates moneys in, the Voluntary Offshore Wind and Coastal Resources Protection Fund for purposes of the program and the Private Donations Account, which is created in the fund. Authorizes the CEC to accept federal and private sector moneys for purposes of the program and requires the private sector moneys to be deposited into the account and the federal moneys to be deposited into the fund. Requires the CEC to post a report on its internet website, within 30 days of receiving a donation, about specified information regarding each donation received. Authorizes the CEC to allocate moneys in the fund or account for specified purposes, including workforce development grants. (Public Resources Code §§25992.20 - 25992.21)

This bill:

1. Authorizes the CEC to allocate moneys in the fund or account for capacity funding activities and grants within local communities and tribal communities for purposes of the program. Makes only a local community, local government, California tribe, nonprofit organization selected by California tribes to represent their interests, or a coalition of these entities eligible for these capacity funding activities and grants.
2. Makes and appropriation by expanding the purposes for which continuously appropriated moneys may be allocated.
3. Makes the public disclosure requirement described above applicable to donations received by an eligible entity from an OSW entity, as defined, and would require an OSW entity to report, every 90 days, specified information concerning these donations to the CEC.
4. Deletes the requirement for the CEC to post a report on its internet website for donations received by the CEC, as described above, and would instead require the CEC to annually post a report on its internet website related to donations made by OSW entities to eligible entities, as specified. 
5. Requires the CEC to annually prepare and submit a report, on or before March 1 of each year, to the Legislature on the implementation and effectiveness of the activities and grants funded pursuant to this bill.

Background

SB 100’s Joint Agency Report. SB 100 (De León, Chapter 312, Statutes of 2018) established the state policy that renewable and zero-carbon resources should supply 100% of retail sales and electricity procured in the state by 2045. This policy was recently updated under SB 1020 (Laird, Chapter 361, Statutes of 2022) which accelerated the requirement on state agencies to 100% by 2035, and established interim targets to meet the 100% goal. SB 100 includes a requirement for a Joint Agency Report as a first step to evaluate the challenges and opportunities in implementing SB 100. OSW was included as part of the core scenario in the 2021 SB 100 Joint Agency report. The OSW system availability was limited to 10 gigawatts (GW) over four resource zones: Morro Bay, Diablo Canyon, Humboldt Bay, and Cape Mendocino. The model was given an input assumption of 2030 as the first available year for bringing OSW online, given the current California Independent System Operator (CAISO) interconnection queue and resource development needs of OSW, with costs for the different zones estimated between $69 and $82 per megawatt hour (MWh) for 2030. Given these input assumptions, nearly all 10 GW of OSW was selected when made available in the model, but this selection only occurred after 2035, regardless of the scenario, and the full 10 GW was selected only in 2045. OSW energy generation is projected to be an important component of the state’s efforts to decarbonize energy generation and to achieve carbon neutrality by 2045, particularly as OSW can be a more stable and complementary resource to help integrate variable renewable energy resources. However, the report notes these are preliminary findings and further work will be needed to delve more deeply into critical topics including land use. The next joint agency report will be released in 2025, and one every four years later.

OSW potential. As of 2019, almost six GW of installed wind capacity was generating in the state, the fifth largest amount of wind capacity in the United States, with all of it generated from land-based systems. Although California has no commercial OSW generation, the National Renewable Energy Laboratory has identified 112 GW of OSW technical potential for California. However, approximately 96% of this potential is located in water deeper than 60 meters, where the mature, fixed-bottom turbine technology is not technically feasible. Due to the water depth in areas with high ambient winds, much of the OSW energy projects serving California are likely to be composed of very large floating wind turbines (as tall as the Eiffel Tower) anchored to the sea floor in federal waters offshore. These projects will include components in state waters, such as cables transporting the energy onshore, vessels navigating state waters to serve the projects, and docking and support facilities onshore. Depending on the type of floating structure, some assemblage of floating turbines may need to occur offshore, requiring naval cranes and vessels to stabilize such operations, and port infrastructure and specific port water depths.

OSW Report. AB 525 (Chiu, Chapter 231, Statutes of 2021) required the CEC, in coordination with federal, state, and local agencies, California Native American tribes, and a variety of stakeholders, to develop a strategic plan for OSW energy development in federal waters off the California coast. In August 2022, the CEC approved a planning goal of 2,000 to 5,000 MW of OSW energy capacity by 2030, and 25,000 MW by 2045. In January 2024, the CEC released a long-awaited Draft Strategic Plan for Offshore Wind Development in three volumes which among its contents, discusses the impacts and strategies to address those impacts in California’s underserved communities. Building upon these efforts, AB 1373 (Garcia, Chapter 367, Statutes of 2023) designated the Department of Water Resources (DWR) as a centralized procurement entity to, in part, help reduce risk and facilitate offshore wind development in California. In 2024, the California Public Utilities Commission (CPUC) established an authorized capacity of 7.6 GW of OSW energy to be procured by DWR.  

California Native Tribes – Impacts & Strategies. According to the AB 525 Report, the CEC and coordinating agencies had numerous tribal consultations and community engagement discussions on the potential impact of OSW energy development. There were a myriad of concerns for California Native Tribes, each with their own perspective, concerns, and priorities regarding OSW, including impacts to local fishing for subsistence and cultural impacts. On the North Coast, there have been significant concerns about the impacts on the population and migration patterns of the already endangered salmon. They have concerns about the impacts of OSW and associated infrastructure on tribal cultural resources. Additionally, there are concerns regarding the fiscal impact that comes with participating at ongoing meetings on planning processes such permitting processes. In Humboldt, there are three federally-recognized Tribes near the OSW lease site: the Yurok, the Wiyot, and the Mattole. Morro Bay and Diablo Canyon are ancestral lands of cultural, ceremonial, and spiritual importance to the Santa Ynez Band of Chumash Indians Tribe, and the Gabrieleño are near the Santa Barbara coastline.

Strategies for Addressing Impacts. Some of the suggestions in the AB 525 Report include conducting meaningful consultation with tribal representatives, supporting the establishment of strong, legally binding tribal community benefits agreements, continuing to study impacts on tribes including exploring public safety measures to reduce violent crime and sexual and gender-based violence against California tribes and other vulnerable populations, and collaborating with tribes on avoidance, mitigation, and co-management opportunities.

Underserved Communities – Impacts & Strategies. Supporters of this bill note that historically underserved communities have experienced a disproportionate share of economic, health and environmental burdens, which include poverty, high unemployment, air, and water pollution. Supporters of this bill state that OSW development can provide a variety of benefits such as the creation of well-paying jobs and new tax revenues. Industrial activity can impact underserved communities living near ports through air, water, noise, and light pollution. Additional air pollution may also occur from increased vehicle emissions on land and vessel emissions offshore to transport materials and turbines. Advocates would like to see increased engagement with potentially impacted communities. The CEC AB 525 Report notes that strategies to address these impacts include conducting early and meaningful community outreach and engagement efforts throughout the OSW planning and development process.

SB 286 Fisheries Working Group. SB 286 (McGuire, Chapter 386, Statutes of 2023) established the California Offshore Wind Energy Fisheries Working Group (Working Group) which includes representatives from the relevant permitting and resource agencies, commercial and recreational fishing industries, OSW energy industry, California Native American Tribes with affected tribal fisheries, and other stakeholders, as determined by the California Coastal Commission (CCC). The Working Group is required to develop a statewide strategy by January 1, 2026, that proposes ways to minimize impacts of OSW on ocean fisheries, including the application of best practices in compensating impacted stakeholders. After the statewide strategy is developed, the CCC must review and adopt it on or before May 1, 2026. The Working Group is responsible for creating a framework for reasonable compensatory mitigation for unavoidable impacts associated with OSW energy projects and include a payment structure to reasonably compensate commercial, tribal, and recreational fisheries and impacted commercial fish processors. The California State Lands Commission (SLC) – or a local trustee of granted public trust lands standing in its place – must consider reasonable compensatory mitigation for unavoidable impacts to fishing and tribal interests when granting a lease for an OSW energy project. In addition, SLC is required to deposit revenues generated from the leases into a newly created Offshore Wind Energy Resiliency Fund. Upon appropriation by the Legislature, the fund will be made available for reasonable compensatory mitigation for unavoidable impacts.

AB 209 establishes voluntary fund and program. AB 209 (Committee on Budget, Chapter 251, Statutes of 2022) established the Voluntary Offshore Wind and Coastal Resources Protection Program at the CEC to support OSW development. The CEC provides grants to public and private entities, including state agencies, tribal entities, local governmental agencies, research institutions, and nonprofit entities. The CEC can also accept federal and private sector money for the Voluntary Program. AB 209 also established the Voluntary Fund which accepts donations from private and federal sources and requires specified reporting of these donations.

AB 2537 (Addis) of the 2024 legislative session, would have established the Offshore Wind Community Capacity Funding Grant Account for the purpose of building capacity within local communities and tribal communities to support engagement in the process of OSW energy development in California, and continuously appropriates the funding. The bill was vetoed by the Governor stating:

While I share the author's desire to ensure communities hosting OSW projects are resourced to constructively engage in their planning and development, this bill falls short of providing a viable funding stream to accomplish this very objective. I encourage the author and the OSW developers to collaborate further with communities to identify an approach that not only fosters capacity for engagement but considers community benefits from the development of these projects.

Comments

Second time is a charm. This bill is another attempt at securing voluntary contributions for capacity funding for communities who may be impacted from OSW energy development, in order to include their participation in the development of these projects. According to the author:

California is leading the charge on clean energy and offshore wind is key to our renewable future—but we must ensure the benefits reach the communities most impacted. AB 1417 requires offshore wind developers to report to the CEC any funding they provide directly to local and tribal communities, specifically for the purposes of capacity building. In addition, this bill expands the scope of the existing Voluntary Offshore Wind and Coastal Resources Program by allowing capacity-building activities in local and tribal communities to be eligible uses of any voluntary donations. This bill drives environmental justice, economic opportunity, and a more equitable transition to clean power—ensuring those on the frontlines have a voice in the process. By investing in a responsible and inclusive transition, we maximize benefits while minimizing harm.

Continuous appropriation. This bill use of the fund which is embedded within the statutory language adopted in AB 209 which created a continuous appropriation. This bill is silent on the amount of the financial assistance for capacity building with the notion that this would likely be negotiated with the OSW leaseholders. The CEC currently has the discretion to award any funding deposited into the Account towards specified activities to support the development of OSW energy. This bill adds capacity building activities and grants to the list of eligible uses. This bill also requires annual and 90 day reporting regarding any donations received or awarded that meet the requirements of this bill.

Dual Referral. Should this bill be approved by this committee, it will be re-referred to the Senate Natural Resources and Water Committee.

Prior/Related Legislation

AB 2537 (Addis) of 2024, would have established the Offshore Wind Community Capacity Funding Grant Account for the purpose of building capacity within local communities and tribal communities to support engagement in the process of OSW energy development in California, and continuously appropriates the funding. The bill was vetoed by the Governor.

AB 3006 (Zbur) of 2024, would have amended the definition of “infrastructure” for purposes of the Governor’s annual infrastructure plan to include port infrastructure for OSW energy development. The bill was held in the Senate Appropriations Committee.

SB 286 (McGuire, Chapter 386, Statutes of 2023) established, among its provisions, the Working Group to address OSW project impacts to certain fisheries and other interests, including providing for compensation to those affected, among other things.

AB 209 (Committee on Budget, Chapter 251, Statutes of 2022) established, among its many energy-related provisions, the Voluntary Offshore Wind and Coastal Resources Protection Program.

AB 525 (Chiu, Chapter 231, Statutes of 2022) required the CEC to establish, by June 1, 2022, planning goals, as specified, for the years 2030 and 2045 from electricity generated by OSW. The bill also required the CEC, in coordination with specified agencies, to develop a strategic plan, as specified, for OSW developments and to submit the plan to the Natural Resources Agency and the Legislature by June 30, 2023.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

SUPPORT:

Brightline Defense Project (Sponsor)
350 Humboldt
Audubon California
Blue Lake Rancheria Tribe of California
California Environmental Voters
Central Coast Alliance United for a Sustainable Economy
Clean Power Campaign
Climate Action California
Climate First: Replacing Oil & Gas
Elected Officials to Protect America Code Blue
Environmental Defense Fund
Environmental Protection Information Center
Monterey Bay Aquarium
National Wildlife Federation
Natural Resources Defense Council
Northern Chumash Tribal Council
San Luis Obispo Climate Coalition
Sierra Club California
Union of Concerned Scientists
United Autoworkers, Region 6
USC Schwarzenegger Institute

OPPOSITION:

None received

ARGUMENTS IN SUPPORT: Brightline Defense Project, the sponsor of this bill, states:

As OSW planning continues, it is critical to center the voices of local communities, especially overburdened EJ communities and Tribal Nations. These communities will be key to the successful and equitable development of OSW, and help to secure meaningful local benefits – such as jobs, community infrastructure, and other neighborhood priorities. Unfortunately, these communities face major barriers to engagement. Brightline has heard directly from community leaders in the North Coast and Central Coast that they lack the capacity and technical expertise to participate in the lengthy and complex OSW processes. Without upfront investment in these communities, the state will leave out these critical voices, and likely encounter higher costs and conflicts down the road.

They and the supporters of this bill further state:

AB 1417 addresses this problem by creating a state-wide mechanism to encourage and keep track of OSW capacity building investments. Specifically, the bill requires OSW developers to report on contributions they make to local communities and Tribal Nations for capacity building to the California Energy Commission (CEC). The agency will then make this information publicly available, facilitating improved transparency and better-informed state planning. AB 1417 also makes OSW capacity building an eligible allocation for funding from the CEC’s Voluntary Offshore Wind and Coastal Resources Protection Program. As a result, any new voluntary donations into the program will now have the opportunity to support local capacity building on OSW.

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 1417

Author:(Stefani)

As Amended Ver:May 6, 2025

2/3 vote

SUMMARY

Authorizes the California Energy Commission (CEC) to allocate funds from the Voluntary Offshore Wind and Coastal Resources Protection Program (Program) for capacity funding activities and grants within local and tribal communities and includes reporting requirements for the CEC, offshore wind (OSW) entities, and eligible entities receiving donations from OSW entities.

Major Provisions

1. Authorizes the CEC to allocate moneys from the Program for capacity funding activities and grants within local communities and tribal communities. Provides that funds under this provision are available only to eligible entities, as defined.
2. Requires records of donations received by eligible entities from OSW entities be subject to public disclosure, as specified.
3. Requires an OSW entity, every 90 days, to report to the CEC all of the following: a) the aggregate amount of donations made, b) the number of groups or tribes that received donations, c) the counties where those groups or tribes are based, and d) the types of eligible entities that received donations.
4. Deletes an existing requirement for the CEC to post a report on its website for donations received by the CEC, as specified, and instead requires the CEC to annually post a report on its website related to donations made by offshore wind entities to eligible entities, as specified.
5. Requires the CEC to annually submit a report to the Legislature, by March 1 of each year, on the implementation and effectiveness of the capacity funding activities and grants within local and tribal communities, as specified.

COMMENTS

There are five existing offshore wind leases in California: two in northern California off Humboldt County, and three in Central California near Morro Bay. Tribes are seeking a direct role in the decision-making process throughout the planning, permitting, operation, and decommissioning of offshore wind operations and associated infrastructure for offshore wind development. The CEC's OSW strategic plan identifies and proposes strategies for potential impacts to Native American and Indigenous peoples.

The Program is an existing grant program at the CEC that supports state activities that complement and are in furtherance of federal laws related to the development of OSW facilities. Current law requires the Program to provide grants to public and private entities, including state agencies, tribal entities, local governmental agencies, research institutions, and nonprofit entities. The CEC may accept federal and private sector money for the Program; the Voluntary Fund is funded with federal dollars, and the Private Donations Account within the Voluntary Fund may accept private donations. According to the CEC, no donations or other deposits have been made into the Voluntary Fund or the Private Donations Account and the balance of each is $0.

According to the Author

California is leading the charge on clean energy and offshore wind is key to our renewable future—but we must ensure the benefits reach the communities most impacted. AB 1417 creates a dedicated statewide fund at the California Energy Commission, empowering local communities, tribes, and nonprofits to actively shape offshore wind development. This bill drives environmental justice, economic opportunity, and a more equitable transition to clean power—ensuring those on the frontlines have a voice in the process. By investing in a responsible and inclusive transition, we maximize benefits while minimizing harm. This is about smart, sustainable growth that protects our coast, uplifts communities, and secures California's clean energy future.

Arguments in Support

A coalition of environmental groups writes that capacity building and technical support is especially needed for underserved communities and Tribal Nations to ensure their voices are captured in OSW development. AB 1417 creates a state-wide mechanism to encourage and track offshore wind capacity building investments. Specifically, the bill requires offshore wind developers to report contributions they make to local communities and Tribal Nations for this purpose to the CEC. The agency will then make this information publicly available. This will facilitate improved transparency around capacity building investments, and ideally encourage greater contributions.

Arguments in Opposition

American Clean Power writes that the OSW industry is facing significant federal uncertainty from the President Trump Administration. They explain, "While President Trump's recent Executive Action—which puts project permitting, leases, and even existing approvals at risk—is not expected to significantly compromise offshore wind projects in California long term, it is harming the offshore wind market nationwide by creating uncertainty and risk that is evolving on a weekly basis. AB 1417 exacerbates this uncertainty by adding requirements at a time when the offshore wind industry needs state partnership and support to help deliver its clean energy and job creation goals."

FISCAL COMMENTS

According to the Assembly Appropriations Committee, the CEC estimates ongoing annual costs of approximately $241,000 to hire one position to conduct additional stakeholder engagement associated with capacity building. The CEC anticipates it may need to conduct workshops and listening sessions specific to the issues identified in this bill to maintain up-to-date guidelines and inform potential funding opportunities. The CEC notes it did not receive any positions for the underlying Program and the work to support the development and implementation of the Program is currently being absorbed by existing resources, which are funded only temporarily. Costs will likely be borne by the Energy Resources Programs Account, which is in a structural deficit.

Cost pressure of an unknown but potentially significant amount to fund capacity funding activities and grants within local communities and tribal communities (various funds).

VOTES

ASM NATURAL RESOURCES: 10-4-0

YES: Bryan, Connolly, Garcia, Haney, Kalra, Muratsuchi, Pellerin, Schultz, Wicks, Zbur

NO: Alanis, Ellis, Flora, Hoover

ASM UTILITIES AND ENERGY: 17-0-1

YES: Petrie-Norris, Patterson, Boerner, Calderon, Chen, Davies, Fong, Mark González, Harabedian, Hart, Irwin, Papan, Rogers, Schiavo, Solache, Wallis, Zbur

ABS, ABST OR NV: Ta

ASM APPROPRIATIONS: 13-0-2

YES: Wicks, Arambula, Calderon, Caloza, Elhawary, Fong, Mark González, Hart, Pacheco, Pellerin, Solache, Ta, Tangipa

ABS, ABST OR NV: Sanchez, Dixon

UPDATED

VERSION: May 6, 2025

CONSULTANT: Paige Brokaw / NAT. RES. /(916) 319-2092 FN: 0000743

Date of Hearing: May 14, 2025

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Buffy Wicks, Chair

ABPCA Bill Id:AB 1417

Author:(Stefani) – As Amended Ver:May 6, 2025

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill authorizes the California Energy Commission (CEC) to allocate funds from the Voluntary Offshore Wind and Coastal Resources Protection Program (Program) for capacity funding activities and grants within local and tribal communities. The bill also includes reporting requirements for the CEC, offshore wind (OSW) entities, and eligible entities receiving donations from OSW entities.

Specifically, this bill, among other things:

1. Authorizes the CEC to allocate moneys from the Program for capacity funding activities and grants within local communities and tribal communities. Provides that funds under this provision are available only to eligible entities, as defined.
2. Requires records of donations received by eligible entities from OSW entities be subject to public disclosure, as specified.
3. Requires an OSW entity, every 90 days, to report to the CEC all of the following: (a) the aggregate amount of donations made, (b) the number of groups or tribes that received donations, (c) the counties where those groups or tribes are based, and (d) the types of eligible entities that received donations.
   
4. Deletes an existing requirement for the CEC to post a report on its website for donations received by the CEC, as specified, and instead requires the CEC to annually post a report on its website related to donations made by offshore wind entities to eligible entities, as specified.
   
5. Requires the CEC to annually submit a report to the Legislature, by March 1 of each year, on the implementation and effectiveness of the capacity funding activities and grants within local and tribal communities, as specified.

FISCAL EFFECT:

1) The CEC estimates ongoing annual costs of approximately $241,000 to hire one position to conduct additional stakeholder engagement associated with capacity building. The CEC anticipates it may need to conduct workshops and listening sessions specific to the issues identified in this bill to maintain up-to-date guidelines and inform potential funding opportunities. The CEC notes it did not receive any positions for the underlying Program and the work to support the development and implementation of the Program is currently being absorbed by existing resources, which are funded only temporarily. Costs will likely be borne by the Energy Resources Programs Account (ERPA), which is in a structural deficit.

2) Cost pressure of an unknown but potentially significant amount to fund capacity funding activities and grants within local communities and tribal communities (various funds).

COMMENTS:

The Program is an existing grant program at the CEC that supports state activities that complement and are in furtherance of federal laws related to the development of OSW facilities. Current law requires the Program to provide grants to public and private entities, including state agencies, tribal entities, local governmental agencies, research institutions, and nonprofit entities. The CEC may accept federal and private sector money for the Program; the Voluntary Fund is funded with federal dollars, and the Private Donations Account within the Voluntary Fund may accept private donations. According to the CEC, no donations or other deposits have been made into the Voluntary Fund or the Private Donations Account and the balance of each is $0.

According to a coalition of organizations writing in support of this bill, in addition to advancing the state’s clean energy commitments, “there is an opportunity for OSW to bring local benefits to communities and Tribal Nations. This can include jobs and workforce development opportunities, greater grid reliability, and other key investments.” The coalition notes that early and active engagement is critical to the success of OSW, “including by building the public trust needed to avoid high costs and conflicts down the road.” The groups contend that many community groups and Tribal Nations lack the financial resources and capacity to engage in OSW, and that “while OSW developers have expressed their intent to give funding to local groups for this purpose, it has been unclear whether this is happening and to what degree.” Supporters argue this bill improves disclosure and transparency around contributions made by OSW entities and makes capacity-building an eligible allocation for funding from the Program.

Analysis Prepared by: Nikita Koraddi / APPR. / (916) 319-2081

Date of Hearing: April 30, 2025

ASSEMBLY COMMITTEE ON UTILITIES AND ENERGY

Cottie Petrie-Norris, Chair

ABPCA Bill Id:AB 1417 (

Author:Stefani) – As Amended Ver:March 24, 2025

SUBJECT: Energy: Voluntary Offshore Wind and Coastal Resources Protection Program: community capacity funding activities and grants

SUMMARY: Authorizes the California Energy Commission (CEC) to allocate funds from the Voluntary Offshore Wind and Coastal Resources Protection Program for capacity-building activities and grants to strengthen local community and tribal engagement in offshore wind development. Additionally, requires public disclosure of donations from offshore wind developers to eligible entities for transparency and accountability purposes.

Specifically, this bill:

1. Authorizes the CEC to allocate moneys from the Voluntary Offshore Wind and Coastal Resources Protection Program for capacity funding activities and grants within local communities and tribal communities.
2. Limits eligibility for capacity funding and grants to a local community, local government, California tribe, nonprofit organization designated by California tribes to represent their interests, or a coalition of these entities eligible for the capacity funding activities and grants.
3. Requires donations provided by an offshore wind entity to be subject to the reporting requirements described by this bill.
4. Requires for each donation to an eligible entity by an offshore wind entity, the offshore wind entity shall disclose specified information to the CEC within 30 days.
5. Requires the CEC to report on its internet website specified information within 30 days of receiving that information.

EXISTING LAW:

1. Requires the State Energy Resources Conservation and Development Commission (also known as the California Energy Commission (CEC)), in coordination with specified state entities and other relevant federal, state, and local agencies, to develop a strategic plan for offshore wind (OWE) energy developments installed off the California coast in federal waters, and requires the CEC to submit the strategic plan to the Natural Resources Agency and the Legislature on or before June 30, 2023. (Public Resources Code § 25991 et seq.)
2. Establishes the policy that all of the state's retail electricity be supplied with a mix of RPS-eligible and zero-carbon resources by December 31, 2045, for a total of 100 percent clean energy. Requires the California Public Utilities Commission (CPUC), in consultation with the CEC, CARB, and all California balancing authorities, to issue a joint report to the Legislature by January 1, 2021, reviewing and evaluating the 100 percent clean energy policy, and every four years thereafter. (Public Utilities Code § 454.53)
3. Establishes the Voluntary Offshore Wind and Coastal Resources Protection Program (Voluntary Program) and Voluntary Offshore Wind and Coastal Resources Protection Fund (Voluntary Fund), administered by the CEC to support state activities that complement and are in furtherance of federal laws related to the development of offshore wind facilities. Requires the CEC to award and allocate moneys under the Voluntary Program for various purposes. Authorizes the CEC to accept federal and private funding for the purposes of the Voluntary Program. (Public Resources Code § 25992.10 and § 25992.2)
4. Allocates, upon appropriation by the Legislature, $475 million for activities related to the development of offshore wind, including port infrastructure improvements and upgrades. (Public Resources Code § 94540)
5. Establishes the policy that all of the state's retail electricity be supplied with a mix of Renewables Portfolio Standard (RPS)-eligible and zero-carbon resources by December 31, 2045, for a total of 100%clean energy. Requires the California Public Utilities Commission (CPUC), in consultation with the California Energy Commission (CEC), California Air Resources Board (CARB), and all California balancing authorities, to issue a joint report to the Legislature by January 1, 2021, reviewing and evaluating the 100%clean energy policy, and every four years thereafter. (Public Utilities Code § 454.53)

FISCAL EFFECT: Unknown. This bill is keyed fiscal and will be referred to the Committee on Appropriations for its review.

CUSTOMER COST IMPACTS: Unknown; Likely negligible.

BACKGROUND:

California’s Transition to 100% Clean Electricity – SB 100 (De León, Chapter 312, Statutes of 2018) established the state policy that renewable and zero-carbon resources should supply 100% of retail sales and electricity procured in the state by 2045 (the 100% Clean Energy Policy).^[1] This policy was updated under SB 1020 (Laird, Chapter 361, Statutes of 2022), and among other requirements, established interim targets to meet the sector-wide 100% goal. California has made progress in decarbonizing its energy sector, with recent data showing that zero-carbon and renewable resources supplied roughly 61% of the state’s electricity in 2022.^[2] Solar energy has been the dominant source of California’s renewable energy resources, accounting for nearly 20%,^[3] of the state’s electricity supply. This growth is largely attributed by the cheaper prices of solar photovoltaics in recent years and California’s abundant solar capacity. However, as solar generation increases in California, the mismatch between when it is generated and when it is needed poses challenges for grid stability and operation. According to the CEC, Offshore Wind (OSW) has the potential to produce electricity during periods when solar production declines. As such, OSW could complement solar and onshore wind resources thus improving grid reliability.

In March 2021, the CEC, California Public Utilities Commission (CPUC), and California Air Resources Board (CARB) released the first SB 100 report, and offshore wind energy was modelled to 10 gigawatts (GW) over four resource zones: Morro Bay, Diablo Canyon, Humboldt Bay, and Cape Mendocino. The model was given an input assumption of 2030 as the first available year for bringing offshore wind energy online given the current California Independent System Operator (CAISO) interconnection queue and resource development needs of OSW.^[4]

Offshore Wind California – Worldwide, OSW is developing into a dynamic and growing industry sector in renewable energy. By the end of 2023, the total global OSW capacity totaled to 75.2 GW.^[5] The U.S. lags behind with a total online capacity of only 42 MW today^[6], less than 1% of the global total. There is currently 56 GW of capacity under development – primarily on the East Coast – with approximately 14 GW of that expected to be online by 2035.^[7] Off the coast of California where winds can exceed 7 meters per second, the National Renewable Energy Laboratory (NREL) has identified 200 GW of OSW potential.^[8][9] This potential, however, is complicated by the fact that approximately 96% of it is located in water deeper than 60 meters, where the mature, fixed-bottom turbine technology that is used in most OSW projects globally and domestically is not technically feasible.^[10] Instead, these OSW projects will need to rely on floating technology, wherein the towers are anchored to the seafloor via long mooring buoys and cables then connected to the grid through floating substations and subsea electric cables.

AB 525 Strategic Plan – Recognizing the opportunity, in 2021, the Legislature passed AB 525 (Chiu, Chapter 231, Statutes of 2021), which requires the CEC in coordination with federal, state, and local agencies, California Native American tribes, and a variety of stakeholders, to develop a strategic plan for OSW development in federal waters off the California coast. For California Native Tribes:^[11]

• Each of them has its own perspective, concerns, and priorities regarding offshore wind development. Many tribal members depend on local fishing and harvesting of sea life for cultural, subsistence, and commercial needs, and have concerns about the potential impact on their ability to feed their families and loss of income from commercial fishing.
• They have concerns about the impacts of offshore wind and associated infrastructure on tribal cultural resources.
• There have been concerns regarding the fiscal impact that comes with participating at ongoing meetings on planning processes such permitting processes.

California OSW Leases – In December 2022, The Bureau of Ocean Energy Management (BOEM)^[12] held the first federal OSW lease auction in the Pacific, awarding five lease areas off California’s coast. These areas, located approximately 20 miles offshore, include three near Morro Bay on the Central Coast—leased by Equinor Wind, Golden State Wind, and Invenergy—and two off Humboldt County in Northern California, leased by Vineyard Offshore and RWE. All five projects will feature large-scale floating offshore wind farms, a first of their kind. Together, they have a combined nameplate capacity of 4.6 GW, marking a significant step in California’s offshore wind development.

California OSW Ports– The successful development of OSW will require upgrades to ports and waterfront facilities to support multiple operations, including construction and staging of floating platform foundations, manufacturing and storage of components, and final assembly. The CEC and BOEM have determined that no single port can meet all of the port infrastructure needs for the OSW industry in California.^[13] Instead, the state must strategically develop a port network that can efficiently, cost-effectively, and reliably support staging and integration (S&I), manufacturing/fabrication (M/F), and operation and maintenance (O&M) activities along the California Coast.^[14] Therefore, different factors affect the candidacy of each port for each activity.

The CEC estimates that the total upgrades needed across all of the identified ports will cost approximately $(11 to 12 billion) to meet the 2045 goal for 25 GW of OSW in California.^[15] However, a coordinated port development strategy—along with programs that support early-stage port upgrades—is needed to support offshore wind deployment.

COMMENTS:

1. Author’s Statement. According to the author, “California is leading the charge on clean energy and offshore wind is key to our renewable future—but we must ensure the benefits reach the communities most impacted. AB 1417 creates a dedicated statewide fund at the California Energy Commission, empowering local communities, tribes, and nonprofits to actively shape offshore wind development. This bill drives environmental justice, economic opportunity, and a more equitable transition to clean power—ensuring those on the frontlines have a voice in the process. By investing in a responsible and inclusive transition, we maximize benefits while minimizing harm. This is about smart, sustainable growth that protects our coast, uplifts communities, and secures California’s clean energy future."
2. Port-adjacent Communities–Industrial activity and development at ports can result in significant environmental burdens for communities living near ports, including air, water, noise, and light pollution. Nearly 2 million pounds of toxic air contaminants pollute the skies in or near the Ports of Los Angeles and Long Beach, which contributes to high childhood asthma rates in those communities.^[16] Although port and truck electrification have promise to achieve local emissions reductions, many emissions from port activities also come from the marine vessel traffic moving goods in and out, which may be increased as a result of OSW activity.
3. Tribal Nations– California Native American tribes and peoples have stewarded the lands,

waters, ocean, and coast since time immemorial. As such, tribal expertise, traditional

ecological knowledge, and tribal customs and practices will be critical components of the best available science for informing the environmental impact assessment of OSW. In

consultations with the CEC and other state and federal agencies, California Native American tribes have highlighted the past historical wrongs still impacting tribal communities today. Specifically, tribes have noted that in the past, the lucrative incentives to quickly build out industries to support resource extraction led to state-supported forced removal of tribes from their ancestral territories and appropriation of those lands for private benefit.

1. Local Communities in the Lease Call Areas – OSW faces more pushback in the Central Coast region, where local residents are worried about how the industry will affect surrounding marine life, hinder tourism, industrialize the port, and raise the cost of living. Additionally, fishermen in both call areas have voiced concerns about the possible disruptions to marine ecosystems and increased vessel traffic that OSW projects pose, which risk displacing the commercial fishing sector. If the industry cannot quell these concerns and ensure a thorough environmental assessment process, OSW developers are likely to face legal pushback and delays, as evidenced by the city’s initiative on the November 2024 ballot to block a proposed battery storage facility.
2. Definitions. This bill defines key terms to include:
3. “California tribes” as California Native American tribes identified on the contact list maintained by the Native American Heritage Commission or a federally recognized tribe.
4. Offshore wind entity” as any entity engaged in offshore wind energy development that meets all of the following criteria:
5. Has a planned generation capacity of 50 megawatts or more;
6. Engages in development activities expected to impact the coastal environment, marine environment, or human environment, as those terms defined by Section 1331 of Title 43 of the United States Code, of the California coast or submerged lands
7. Will be required to obtain a lease, permit, or other authorization from the State Lands Commission, the California Coastal Commission, the Department of Fish and Wildlife, the State Water Resources Control Board, a California regional water quality control board, the State Air Resources Board, the Public Utilities Commission, the Independent System Operator, or another state agency or local government, in connection with its development activities.
8. “Eligible entity” as a local community, local government, California tribe, or nonprofit organization selected by California tribes to represent their interests, if the entity is geographically, culturally, or economically impacted by the offshore wind industry. A coalition of more than one of these eligible entities is also an eligible entity if each coalition member is also an eligible entity. 
9. Existing Program. AB 209 (Committee on Budget, Chapter 251, Statutes of 2022) established the Voluntary Offshore Wind and Coastal Resources Protection Program at the CEC to support offshore wind development. The CEC provides grants to public and private entities, including state agencies, tribal entities, local governmental agencies, research institutions, and nonprofit entities. The CEC can also accept federal and private sector money for the Voluntary Program. AB 209 also established the Voluntary Fund which accepts donations from private and federal sources. No donations or other deposits have yet been made into the Voluntary Fund. As noted in the background, concerns have been raised relating to the impact of OSW development on tribal nations and local communities. As such, this legislation authorizes the use of funding within the Voluntary Program to support efforts for capacity-building activities and grants to strengthen early local community and tribal engagement in offshore wind development initiatives.
10. Reporting Requirements. For transparency and accountability purposes, this measure requires that for each donation to an eligible entity by an offshore wind entity, the offshore wind entity shall disclose the following information to the CEC within 30 days of making the contribution:

(1) The name and address of the donor

(2) The name and address of the eligible entity that received the donation.

(3) The amount of the donation

(4) The date the donation was made

(5) A brief description of the goods or services donated or purchased, if any.

(6) A description of the specific purpose or event for which the donation was made, if any.

However, such prescriptive data could place local communities, tribal groups, and nonprofit organizations under heightened scrutiny simply for accepting donations from the private industry. In sensitive environments—especially when private industry is involved—these groups could be accused of compromising their independence, or prioritizing outside interests over their own. This could create divisions and erode trust within these communities, and ultimately strain relationships with private sector partners. As such, the committee recommends deleting the prescriptive disclosure provisions but rather require the following to be reported:

(1) The aggregate amount of donations made

(2) The number of groups or Tribes who received donations

(3) The counties where those groups or Tribes are based

(4) The recipient type, be it a Tribe, community group, local government, or third party

Instead of identifying the specific names and addresses of donors and recipients, the disclosure would require reporting the counties or regions where donations are directed. This approach provides the public with a general understanding of which areas — and by extension, which communities or tribes — are benefiting from the donations, while protecting the privacy of individual recipients. Reporting the aggregate amount of donations offers a high-level view of the financial support being directed toward local communities and tribes. This ensures that the public can assess whether offshore wind developers are making meaningful contributions in a transparent and accountable manner, consistent with the author's intent.

1. Change in Reporting Timelines. As introduced, the bill required offshore wind (OSW) entities to disclose the required information to the California Energy Commission (CEC) within 30 days. However, to ensure more complete and accurate disclosure, the committee recommends extending the reporting deadline to 90 days.
2. Additional Clean-Up. This bill contains various provisions related to financial assistance which are no longer applicable to this measure.
3. January 2025 Temporary Memorandum. In January 2025, President Trump signed a temporary memorandum indefinitely suspending new or renewed OSW leases on the Outer Continental Shelf (OCS) and mandating a comprehensive assessment and review of federal wind leases and permitting practices. The order also directed all federal agencies to pause all “new or renewed approvals, rights of way, permits, leases, or loans for onshore or offshore wind projects. This policy shift marks a reversal from the previous Administration's efforts to expand the OSW industry. While the order does not immediately revoke existing leases, it subjects them to a review process that could lead to terminations therefore creating uncertainty around the future growth of the industry. As such, this underscores the need for the OSW industry, tribal and local communities to work closely together to ensure tribal and community engagement remains a priority in order to build a successful industry. A successful OSW depends on meaningful tribal and community engagement, just as local communities and tribal groups depend on the responsible development of OSW to realize long-term economic, cultural and environmental benefits.

Prior Legislation

AB 2537 (Addis, 2024) was almost identical to this bill. It would have established an Offshore Wind Community Capacity Building Fund Grant Program at the CEC to award grants for the purpose of building capacity within local communities and tribal communities to engage in the process of offshore wind energy development. This bill was vetoed by the governor.

AB 3006 (Zbur, 2024) would have amended the definition of “infrastructure” for purposes of the Governor’s annual infrastructure plan to include port infrastructure for offshore wind energy development. Died – Senate Committee on Appropriations.

AB 2537 (Addis, 2024) would establish the Offshore Wind Community Capacity Funding Grant Account to build capacity within local communities and tribal communities to support engagement of the process of OSW energy development in California and continuously appropriate funding from the existing Voluntary Offshore Wind and Coastal Resources Protection Fund at the CEC. Status: Vetoed by the Governor.

AB 3 (Zbur) requires the CEC to prepare a report that identifies potential alternatives, analyzes, and makes recommendations regarding procurement mechanisms and procurement strategies for offshore wind energy projects to be financed, entitled, constructed, and operated within the timeframes necessary for meeting the state’s carbon neutrality goals. Status: Chapter 314, Statutes of 2023.

AB 80 (Addis, 2023), would have required the Ocean Protection Council, upon an appropriation by the Legislature, to establish and oversee a West Coast Offshore Wind Science Entity to ensure that comprehensive baseline assessments and ongoing monitoring data related to the California ocean ecosystem are available to inform state and federal decision-making. Status: Held in the Senate Committee on Appropriations.

SB 704 (Min, Chapter 292, Statutes of 2023) authorizes the California Coastal Commission to seek scientific advice on offshore wind, among other things.

AB 209 (Committee on Budget, Chapter 251, Statutes of 2022) requires the CEC to establish and administer a program to support OSW infrastructure improvements to advance the capabilities of California’s ports, harbors, and other waterfront facilities to support the buildout of OSW facilities. Also established the Voluntary Offshore Wind and Coastal Resources Program at the CEC to support state activities that complement or support federal laws related to the development of OSW facilities, among other provisions.

SB 1020 (Laird) establishes interim targets for the statewide 100% clean energy policy. Additionally requires state agencies to accelerate their 100% clean energy policy goal by 10 years. Status: Chapter 361, Statutes of 2022.

AB 525 (Chiu) requires the CEC to establish 2030 and 2045 planning goals, as specified, for electricity generated by offshore wind. Additionally requires the CEC, in coordination with specified agencies, to develop a five-part strategic plan for offshore wind development and to submit the plan to the Natural Resources Agency the Legislature by June 30, 2023. Status: Chapter 231, Statutes of 2021

SB 100 (De León) establishes the 100% Clean Energy Act of 2017 which increases the Renewables Portfolio Standards (RPS) requirement from 50% by 2030 to 60% and creates the policy of planning to meet all of the state's retail electricity supply with a mix of RPS-eligible and zero-carbon resources by December 31, 2045, for a total of 100% clean energy. Status: Chapter 312, Statutes of 2018.

REGISTERED SUPPORT / OPPOSITION:

Support

350 Humboldt
Brightline Defense Project
California Environmental Voters
California Environmental Voters (formerly Clcv)
Central Coast Alliance United for a Sustainable Economy
Clean Power Campaign
Climate First: Replacing Oil & Gas (CFROG)
Elected Officials to Protect America
Environment California
Environmental Defense Fund
Epic (environmental Protection Information Center)
Monterey Bay Aquarium
National Wildlife Federation
Nrdc
Sierra Club California
Slo Climate Coalition
UAW Region 6
Usc Schwarzenegger Institute

Opposition

American Clean Power- California
Bay Area Council
California Chamber of Commerce
Greater Eureka Chamber of Commerce, the
Independent Energy Producers Association
Large Scale Solar Association
Los Angeles Business Council
The California Wind Energy Association (CALWEA)
Tri County Chamber Alliance

Analysis Prepared by: Lina V. Malova / U. & E. / (916) 319-2083

1. Public Utilities Code §454.53 ↑

2. 61% = 39.4% from renewables (solar, wind, geothermal, biomass, small hydro) + 10.8% from large hydro + 10.7% from nuclear. CEC; “Clean Energy Serving California”; https://www.energy.ca.gov/programs-and-topics/topics/renewableenergy/clean-energy-serving-california ↑

3. 61% = 39.4% from renewables (solar, wind, geothermal, biomass, small hydro) + 10.8% from large hydro + 10.7% from nuclear. CEC; “Clean Energy Serving California”; https://www.energy.ca.gov/programs-and-topics/topics/renewableenergy/clean-energy-serving-California ↑

4. Pg. 41; Inputs & Assumptions: CEC SB 100 Joint Agency Report; June 2020. ↑

5. Global Wind Energy Council; Global Offshore Wind Report 2024; June 2024. ↑

6. Tham, N.; “The latest headwinds and tailwinds for U.S. offshore wind”; March 2024; https://bipartisanpolicy.org/blog/thelatest- headwinds-and-tailwinds-for-u-s-offshore-wind/ ↑

7. American Clean Power; “New report: Offshore wind momentum grows with sector to invest $65 billion and create 56,000 U.S. jobs by 2030”; July 2024; https://cleanpower.org/news/offshore-wind-to-invest-65-billion-and-create-56000jobs-by- 2030/ ↑

8. “Technical potential” is defined as the amount of offshore wind capacity that could be developed while taking into account exclusion factors related to water depth, mean wind speed, industry uses, and environmental conflicts (Musial et al. 2016a).

   It does not include areas where the wind speeds are lower than 7 meters per second or deeper than 1,300 meters. ↑

9. NREL; 2020 Offshore Wind Resource Assessment for the California Pacific Outer Continental Shelf; October 2020. ↑

10. Pg. 7, CEC; Research and Development Opportunities for Offshore Wind Energy in California; August 2020. ↑

11. Pg 11-13, CEC; “California Energy Commission Draft Commission Report.” January 2024 ↑

12. The Bureau of Ocean Energy Management (BOEM) is a U.S. federal agency under the Department of the Interior responsible for managing the development of energy and mineral resources on the Outer Continental Shelf (OCS). BOEM oversees offshore wind, oil, gas, and marine mineral leasing while ensuring environmental protection and sustainable resource use. ↑

13. Chap. 1, BOEM; California Floating Offshore Wind Regional Ports Assessment; January 2023. ↑

14. Fig. 6-5, CEC; Commission Adopted Final Report AB 525 Strategic Plan Volume II; July 2024. ↑

15. Pg. 25, CEC; Commission Adopted Final Report AB 525 Strategic Plan Volume I; July 2024 ↑

16. CalMatters; “In the shadows of industry: LA County’s port communities”; February 2022; https://calmatters.org/environment/2022/02/environmental-justice-photo-essay-la-county-port-communities/ ↑

Date of Hearing:

ASSEMBLY COMMITTEE ON UTILITIES AND ENERGY

Cottie Petrie-Norris, Chair

ABPCA Bill Id:AB 1417 (

Author:Stefani) – As Amended Ver:March 24, 2025

SUBJECT: Energy: Voluntary Offshore Wind and Coastal Resources Protection Program: community capacity funding activities and grants

SUMMARY: Authorizes the California Energy Commission (CEC) to allocate funds from the Voluntary Offshore Wind and Coastal Resources Protection Program for capacity-building activities and grants to strengthen local community and tribal engagement in offshore wind development. Additionally, requires public disclosure of donations from offshore wind developers to eligible entities for transparency and accountability purposes.

Specifically, this bill:

1. Authorizes the CEC to allocate moneys from the Voluntary Offshore Wind and Coastal Resources Protection Program for capacity funding activities and grants within local communities and tribal communities.
2. Limits eligibility for capacity funding and grants to a local community, local government, California tribe, nonprofit organization designated by California tribes to represent their interests, or a coalition of these entities eligible for the capacity funding activities and grants.
3. Requires donations provided by an offshore wind entity to be subject to the reporting requirements described by this bill.
4. Requires for each donation to an eligible entity by an offshore wind entity, the offshore wind entity shall disclose specified information to the CEC within 30 days.
5. Requires the CEC to report on its internet website specified information within 30 days of receiving that information.

EXISTING LAW:

1. Requires the State Energy Resources Conservation and Development Commission (also known as the California Energy Commission (CEC)), in coordination with specified state entities and other relevant federal, state, and local agencies, to develop a strategic plan for offshore wind (OWE) energy developments installed off the California coast in federal waters, and requires the CEC to submit the strategic plan to the Natural Resources Agency and the Legislature on or before June 30, 2023. (Public Resources Code § 25991 et seq.)
2. Establishes the policy that all of the state's retail electricity be supplied with a mix of RPS-eligible and zero-carbon resources by December 31, 2045, for a total of 100 percent clean energy. Requires the California Public Utilities Commission (CPUC), in consultation with the CEC, CARB, and all California balancing authorities, to issue a joint report to the Legislature by January 1, 2021, reviewing and evaluating the 100 percent clean energy policy, and every four years thereafter. (Public Utilities Code § 454.53)
3. Establishes the Voluntary Offshore Wind and Coastal Resources Protection Program (Voluntary Program) and Voluntary Offshore Wind and Coastal Resources Protection Fund (Voluntary Fund), administered by the CEC to support state activities that complement and are in furtherance of federal laws related to the development of offshore wind facilities. Requires the CEC to award and allocate moneys under the Voluntary Program for various purposes. Authorizes the CEC to accept federal and private funding for the purposes of the Voluntary Program. (Public Resources Code § 25992.10 and § 25992.2)
4. Allocates, upon appropriation by the Legislature, $475 million for activities related to the development of offshore wind, including port infrastructure improvements and upgrades. (Public Resources Code § 94540)
5. Establishes the policy that all of the state's retail electricity be supplied with a mix of Renewables Portfolio Standard (RPS)-eligible and zero-carbon resources by December 31, 2045, for a total of 100%clean energy. Requires the California Public Utilities Commission (CPUC), in consultation with the California Energy Commission (CEC), California Air Resources Board (CARB), and all California balancing authorities, to issue a joint report to the Legislature by January 1, 2021, reviewing and evaluating the 100%clean energy policy, and every four years thereafter. (Public Utilities Code § 454.53)

FISCAL EFFECT: Unknown. This bill is keyed fiscal and will be referred to the Committee on Appropriations for its review.

CUSTOMER COST IMPACTS: Unknown; Likely negligible.

BACKGROUND:

California’s Transition to 100% Clean Electricity – SB 100 (De León, Chapter 312, Statutes of 2018) established the state policy that renewable and zero-carbon resources should supply 100% of retail sales and electricity procured in the state by 2045 (the 100% Clean Energy Policy).^[1] This policy was updated under SB 1020 (Laird, Chapter 361, Statutes of 2022), and among other requirements, established interim targets to meet the sector-wide 100% goal. California has made progress in decarbonizing its energy sector, with recent data showing that zero-carbon and renewable resources supplied roughly 61% of the state’s electricity in 2022.^[2] Solar energy has been the dominant source of California’s renewable energy resources, accounting for nearly 20%,^[3] of the state’s electricity supply. This growth is largely attributed by the cheaper prices of solar photovoltaics in recent years and California’s abundant solar capacity. However, as solar generation increases in California, the mismatch between when it is generated and when it is needed poses challenges for grid stability and operation. According to the CEC, Offshore Wind (OSW) has the potential to produce electricity during periods when solar production declines. As such, OSW could complement solar and onshore wind resources thus improving grid reliability.

In March 2021, the CEC, California Public Utilities Commission (CPUC), and California Air Resources Board (CARB) released the first SB 100 report, and offshore wind energy was modelled to 10 gigawatts (GW) over four resource zones: Morro Bay, Diablo Canyon, Humboldt Bay, and Cape Mendocino. The model was given an input assumption of 2030 as the first available year for bringing offshore wind energy online given the current California Independent System Operator (CAISO) interconnection queue and resource development needs of OSW.^[4]

Offshore Wind California – Worldwide, OSW is developing into a dynamic and growing industry sector in renewable energy. By the end of 2023, the total global OSW capacity totaled to 75.2 GW.^[5] The U.S. lags behind with a total online capacity of only 42 MW today^[6], less than 1% of the global total. There is currently 56 GW of capacity under development – primarily on the East Coast – with approximately 14 GW of that expected to be online by 2035.^[7] Off the coast of California where winds can exceed 7 meters per second, the National Renewable Energy Laboratory (NREL) has identified 200 GW of OSW potential.^[8][9] This potential, however, is complicated by the fact that approximately 96% of it is located in water deeper than 60 meters, where the mature, fixed-bottom turbine technology that is used in most OSW projects globally and domestically is not technically feasible.^[10] Instead, these OSW projects will need to rely on floating technology, wherein the towers are anchored to the seafloor via long mooring buoys and cables then connected to the grid through floating substations and subsea electric cables.

AB 525 Strategic Plan – Recognizing the opportunity, in 2021, the Legislature passed AB 525 (Chiu, Chapter 231, Statutes of 2021), which requires the CEC in coordination with federal, state, and local agencies, California Native American tribes, and a variety of stakeholders, to develop a strategic plan for OSW development in federal waters off the California coast. For California Native Tribes:^[11]

• Each of them has its own perspective, concerns, and priorities regarding offshore wind development. Many tribal members depend on local fishing and harvesting of sea life for cultural, subsistence, and commercial needs, and have concerns about the potential impact on their ability to feed their families and loss of income from commercial fishing.
• They have concerns about the impacts of offshore wind and associated infrastructure on tribal cultural resources.
• There have been concerns regarding the fiscal impact that comes with participating at ongoing meetings on planning processes such permitting processes.

California OSW Leases – In December 2022, The Bureau of Ocean Energy Management (BOEM)^[12] held the first federal OSW lease auction in the Pacific, awarding five lease areas off California’s coast. These areas, located approximately 20 miles offshore, include three near Morro Bay on the Central Coast—leased by Equinor Wind, Golden State Wind, and Invenergy—and two off Humboldt County in Northern California, leased by Vineyard Offshore and RWE. All five projects will feature large-scale floating offshore wind farms, a first of their kind. Together, they have a combined nameplate capacity of 4.6 GW, marking a significant step in California’s offshore wind development.

California OSW Ports– The successful development of OSW will require upgrades to ports and waterfront facilities to support multiple operations, including construction and staging of floating platform foundations, manufacturing and storage of components, and final assembly. The CEC and BOEM have determined that no single port can meet all of the port infrastructure needs for the OSW industry in California.^[13] Instead, the state must strategically develop a port network that can efficiently, cost-effectively, and reliably support staging and integration (S&I), manufacturing/fabrication (M/F), and operation and maintenance (O&M) activities along the California Coast.^[14] Therefore, different factors affect the candidacy of each port for each activity.

The CEC estimates that the total upgrades needed across all of the identified ports will cost approximately $(11 to 12 billion) to meet the 2045 goal for 25 GW of OSW in California.^[15] However, a coordinated port development strategy—along with programs that support early-stage port upgrades—is needed to support offshore wind deployment.

COMMENTS:

1. Author’s Statement. According to the author, “California is leading the charge on clean energy and offshore wind is key to our renewable future—but we must ensure the benefits reach the communities most impacted. AB 1417 creates a dedicated statewide fund at the California Energy Commission, empowering local communities, tribes, and nonprofits to actively shape offshore wind development. This bill drives environmental justice, economic opportunity, and a more equitable transition to clean power—ensuring those on the frontlines have a voice in the process. By investing in a responsible and inclusive transition, we maximize benefits while minimizing harm. This is about smart, sustainable growth that protects our coast, uplifts communities, and secures California’s clean energy future."
2. Port-adjacent Communities–Industrial activity and development at ports can result in significant environmental burdens for communities living near ports, including air, water, noise, and light pollution. Nearly 2 million pounds of toxic air contaminants pollute the skies in or near the Ports of Los Angeles and Long Beach, which contributes to high childhood asthma rates in those communities.^[16] Although port and truck electrification have promise to achieve local emissions reductions, many emissions from port activities also come from the marine vessel traffic moving goods in and out, which may be increased as a result of OSW activity.
3. Tribal Nations– California Native American tribes and peoples have stewarded the lands,

waters, ocean, and coast since time immemorial. As such, tribal expertise, traditional

ecological knowledge, and tribal customs and practices will be critical components of the best available science for informing the environmental impact assessment of OSW. In

consultations with the CEC and other state and federal agencies, California Native American tribes have highlighted the past historical wrongs still impacting tribal communities today. Specifically, tribes have noted that in the past, the lucrative incentives to quickly build out industries to support resource extraction led to state-supported forced removal of tribes from their ancestral territories and appropriation of those lands for private benefit.

1. Local Communities in the Lease Call Areas – OSW faces more pushback in the Central Coast region, where local residents are worried about how the industry will affect surrounding marine life, hinder tourism, industrialize the port, and raise the cost of living. Additionally, fishermen in both call areas have voiced concerns about the possible disruptions to marine ecosystems and increased vessel traffic that OSW projects pose, which risk displacing the commercial fishing sector. If the industry cannot quell these concerns and ensure a thorough environmental assessment process, OSW developers are likely to face legal pushback and delays, as evidenced by the city’s initiative on the November 2024 ballot to block a proposed battery storage facility.
2. Definitions. This bill defines key terms to include:
3. “California tribes” as California Native American tribes identified on the contact list maintained by the Native American Heritage Commission or a federally recognized tribe.
4. Offshore wind entity” as any entity engaged in offshore wind energy development that meets all of the following criteria:
5. Has a planned generation capacity of 50 megawatts or more;
6. Engages in development activities expected to impact the coastal environment, marine environment, or human environment, as those terms defined by Section 1331 of Title 43 of the United States Code, of the California coast or submerged lands
7. Will be required to obtain a lease, permit, or other authorization from the State Lands Commission, the California Coastal Commission, the Department of Fish and Wildlife, the State Water Resources Control Board, a California regional water quality control board, the State Air Resources Board, the Public Utilities Commission, the Independent System Operator, or another state agency or local government, in connection with its development activities.
8. “Eligible entity” as a local community, local government, California tribe, or nonprofit organization selected by California tribes to represent their interests, if the entity is geographically, culturally, or economically impacted by the offshore wind industry. A coalition of more than one of these eligible entities is also an eligible entity if each coalition member is also an eligible entity. 
9. Existing Program. AB 209 (Committee on Budget, Chapter 251, Statutes of 2022) established the Voluntary Offshore Wind and Coastal Resources Protection Program at the CEC to support offshore wind development. The CEC provides grants to public and private entities, including state agencies, tribal entities, local governmental agencies, research institutions, and nonprofit entities. The CEC can also accept federal and private sector money for the Voluntary Program. AB 209 also established the Voluntary Fund which accepts donations from private and federal sources. No donations or other deposits have yet been made into the Voluntary Fund. As noted in the background, concerns have been raised relating to the impact of OSW development on tribal nations and local communities. As such, this legislation authorizes the use of funding within the Voluntary Program to support efforts for capacity-building activities and grants to strengthen early local community and tribal engagement in offshore wind development initiatives.
10. Reporting Requirements. For transparency and accountability purposes, this measure requires that for each donation to an eligible entity by an offshore wind entity, the offshore wind entity shall disclose the following information to the CEC within 30 days of making the contribution:

(1) The name and address of the donor

(2) The name and address of the eligible entity that received the donation.

(3) The amount of the donation

(4) The date the donation was made

(5) A brief description of the goods or services donated or purchased, if any.

(6) A description of the specific purpose or event for which the donation was made, if any.

However, such prescriptive data could place local communities, tribal groups, and nonprofit organizations under heightened scrutiny simply for accepting donations from the private industry. In sensitive environments—especially when private industry is involved—these groups could be accused of compromising their independence, or prioritizing outside interests over their own. This could create divisions and erode trust within these communities, and ultimately strain relationships with private sector partners. As such, the committee recommends deleting the prescriptive disclosure provisions but rather require the following to be reported:

(1) The aggregate amount of donations made

(2) The number of groups or Tribes who received donations

(3) The counties where those groups or Tribes are based

(4) The recipient type, be it a Tribe, community group, local government, or third party

Instead of identifying the specific names and addresses of donors and recipients, the disclosure would require reporting the counties or regions where donations are directed. This approach provides the public with a general understanding of which areas — and by extension, which communities or tribes — are benefiting from the donations, while protecting the privacy of individual recipients. Reporting the aggregate amount of donations offers a high-level view of the financial support being directed toward local communities and tribes. This ensures that the public can assess whether offshore wind developers are making meaningful contributions in a transparent and accountable manner, consistent with the author's intent.

1. Change in Reporting Timelines. As introduced, the bill required offshore wind (OSW) entities to disclose the required information to the California Energy Commission (CEC) within 30 days. However, to ensure more complete and accurate disclosure, the committee recommends extending the reporting deadline to 90 days.
2. Additional Clean-Up. This bill contains various provisions related to financial assistance which are no longer applicable to this measure.
3. January 2025 Temporary Memorandum. In January 2025, President Trump signed a temporary memorandum indefinitely suspending new or renewed OSW leases on the Outer Continental Shelf (OCS) and mandating a comprehensive assessment and review of federal wind leases and permitting practices. The order also directed all federal agencies to pause all “new or renewed approvals, rights of way, permits, leases, or loans for onshore or offshore wind projects. This policy shift marks a reversal from the previous Administration's efforts to expand the OSW industry. While the order does not immediately revoke existing leases, it subjects them to a review process that could lead to terminations therefore creating uncertainty around the future growth of the industry. As such, this underscores the need for the OSW industry, tribal and local communities to work closely together to ensure tribal and community engagement remains a priority in order to build a successful industry. A successful OSW depends on meaningful tribal and community engagement, just as local communities and tribal groups depend on the responsible development of OSW to realize long-term economic, cultural and environmental benefits.

Prior Legislation

AB 2537 (Addis, 2024) was almost identical to this bill. It would have established an Offshore Wind Community Capacity Building Fund Grant Program at the CEC to award grants for the purpose of building capacity within local communities and tribal communities to engage in the process of offshore wind energy development. This bill was vetoed by the governor.

AB 3006 (Zbur, 2024) would have amended the definition of “infrastructure” for purposes of the Governor’s annual infrastructure plan to include port infrastructure for offshore wind energy development. Died – Senate Committee on Appropriations.

AB 2537 (Addis, 2024) would establish the Offshore Wind Community Capacity Funding Grant Account to build capacity within local communities and tribal communities to support engagement of the process of OSW energy development in California and continuously appropriate funding from the existing Voluntary Offshore Wind and Coastal Resources Protection Fund at the CEC. Status: Vetoed by the Governor.

AB 3 (Zbur) requires the CEC to prepare a report that identifies potential alternatives, analyzes, and makes recommendations regarding procurement mechanisms and procurement strategies for offshore wind energy projects to be financed, entitled, constructed, and operated within the timeframes necessary for meeting the state’s carbon neutrality goals. Status: Chapter 314, Statutes of 2023.

AB 80 (Addis, 2023), would have required the Ocean Protection Council, upon an appropriation by the Legislature, to establish and oversee a West Coast Offshore Wind Science Entity to ensure that comprehensive baseline assessments and ongoing monitoring data related to the California ocean ecosystem are available to inform state and federal decision-making. Status: Held in the Senate Committee on Appropriations.

SB 704 (Min, Chapter 292, Statutes of 2023) authorizes the California Coastal Commission to seek scientific advice on offshore wind, among other things.

AB 209 (Committee on Budget, Chapter 251, Statutes of 2022) requires the CEC to establish and administer a program to support OSW infrastructure improvements to advance the capabilities of California’s ports, harbors, and other waterfront facilities to support the buildout of OSW facilities. Also established the Voluntary Offshore Wind and Coastal Resources Program at the CEC to support state activities that complement or support federal laws related to the development of OSW facilities, among other provisions.

SB 1020 (Laird) establishes interim targets for the statewide 100% clean energy policy. Additionally requires state agencies to accelerate their 100% clean energy policy goal by 10 years. Status: Chapter 361, Statutes of 2022.

AB 525 (Chiu) requires the CEC to establish 2030 and 2045 planning goals, as specified, for electricity generated by offshore wind. Additionally requires the CEC, in coordination with specified agencies, to develop a five-part strategic plan for offshore wind development and to submit the plan to the Natural Resources Agency the Legislature by June 30, 2023. Status: Chapter 231, Statutes of 2021

SB 100 (De León) establishes the 100% Clean Energy Act of 2017 which increases the Renewables Portfolio Standards (RPS) requirement from 50% by 2030 to 60% and creates the policy of planning to meet all of the state's retail electricity supply with a mix of RPS-eligible and zero-carbon resources by December 31, 2045, for a total of 100% clean energy. Status: Chapter 312, Statutes of 2018.

REGISTERED SUPPORT / OPPOSITION:

Support

350 Humboldt
Brightline Defense Project
California Environmental Voters
California Environmental Voters (formerly Clcv)
Central Coast Alliance United for a Sustainable Economy
Clean Power Campaign
Climate First: Replacing Oil & Gas (CFROG)
Elected Officials to Protect America
Environment California
Environmental Defense Fund
Epic (environmental Protection Information Center)
Monterey Bay Aquarium
National Wildlife Federation
Nrdc
Sierra Club California
Slo Climate Coalition
UAW Region 6
Usc Schwarzenegger Institute

Opposition

American Clean Power- California
Bay Area Council
California Chamber of Commerce
Greater Eureka Chamber of Commerce, the
Independent Energy Producers Association
Large Scale Solar Association
Los Angeles Business Council
The California Wind Energy Association (CALWEA)
Tri County Chamber Alliance

Analysis Prepared by: Lina V. Malova / U. & E. / (916) 319-2083

1. Public Utilities Code §454.53 ↑

2. 61% = 39.4% from renewables (solar, wind, geothermal, biomass, small hydro) + 10.8% from large hydro + 10.7% from nuclear. CEC; “Clean Energy Serving California”; https://www.energy.ca.gov/programs-and-topics/topics/renewableenergy/clean-energy-serving-california ↑

3. 61% = 39.4% from renewables (solar, wind, geothermal, biomass, small hydro) + 10.8% from large hydro + 10.7% from nuclear. CEC; “Clean Energy Serving California”; https://www.energy.ca.gov/programs-and-topics/topics/renewableenergy/clean-energy-serving-California ↑

4. Pg. 41; Inputs & Assumptions: CEC SB 100 Joint Agency Report; June 2020. ↑

5. Global Wind Energy Council; Global Offshore Wind Report 2024; June 2024. ↑

6. Tham, N.; “The latest headwinds and tailwinds for U.S. offshore wind”; March 2024; https://bipartisanpolicy.org/blog/thelatest- headwinds-and-tailwinds-for-u-s-offshore-wind/ ↑

7. American Clean Power; “New report: Offshore wind momentum grows with sector to invest $65 billion and create 56,000 U.S. jobs by 2030”; July 2024; https://cleanpower.org/news/offshore-wind-to-invest-65-billion-and-create-56000jobs-by- 2030/ ↑

8. “Technical potential” is defined as the amount of offshore wind capacity that could be developed while taking into account exclusion factors related to water depth, mean wind speed, industry uses, and environmental conflicts (Musial et al. 2016a).

   It does not include areas where the wind speeds are lower than 7 meters per second or deeper than 1,300 meters. ↑

9. NREL; 2020 Offshore Wind Resource Assessment for the California Pacific Outer Continental Shelf; October 2020. ↑

10. Pg. 7, CEC; Research and Development Opportunities for Offshore Wind Energy in California; August 2020. ↑

11. Pg 11-13, CEC; “California Energy Commission Draft Commission Report.” January 2024 ↑

12. The Bureau of Ocean Energy Management (BOEM) is a U.S. federal agency under the Department of the Interior responsible for managing the development of energy and mineral resources on the Outer Continental Shelf (OCS). BOEM oversees offshore wind, oil, gas, and marine mineral leasing while ensuring environmental protection and sustainable resource use. ↑

13. Chap. 1, BOEM; California Floating Offshore Wind Regional Ports Assessment; January 2023. ↑

14. Fig. 6-5, CEC; Commission Adopted Final Report AB 525 Strategic Plan Volume II; July 2024. ↑

15. Pg. 25, CEC; Commission Adopted Final Report AB 525 Strategic Plan Volume I; July 2024 ↑

16. CalMatters; “In the shadows of industry: LA County’s port communities”; February 2022; https://calmatters.org/environment/2022/02/environmental-justice-photo-essay-la-county-port-communities/ ↑

Date of Hearing: April 21, 2025

ASSEMBLY COMMITTEE ON NATURAL RESOURCES

Isaac G. Bryan, Chair

ABPCA Bill Id:AB 1417 (

Author:Stefani) – As Amended Ver:March 24, 2025

SUBJECT: Energy: Voluntary Offshore Wind and Coastal Resources Protection Program: community capacity funding activities and grants

SUMMARY: Creates the Offshore Wind Community Capacity Funding Grant Account to fund capacity funding grants, and requires an offshore wind entity to provide financial assistance to fund those activities and grants for the 4-year period after the offshore wind entity executes an offshore wind lease, as provided.

EXISTING LAW:

1. Establishes the policy goal of the state that eligible renewable energy resources and zero-carbon resources supply 100% of all retail sales of electricity to California end-use customers and 100% of electricity procured to serve all state agencies by December 31, 2045. (Public Utilities Code 454.53)
2. Requires the California Energy Commission (CEC), in coordination with relevant federal, state, and local agencies, to develop a strategic plan for offshore wind energy developments installed off the California coast in federal waters, and requires the CEC to submit the strategic plan to the Natural Resources Agency and the Legislature on or before June 30, 2023. (Public Resources Code (PRC) 25991)
3. Establishes the Voluntary Offshore Wind and Coastal Resources Protection Program (Program) to be administered by the CEC for the purpose of supporting state activities that complement and are in furtherance of federal laws related to the development of offshore wind facilities, including federal laws. Specifies for what the CEC may allocate moneys from the Program. (PRC 25992.10)
4. Establishes the Voluntary Offshore Wind and Coastal Resources Protection Fund (Fund) in the State Treasury. Establishes the Private Donations Account in the Fund. (PRC 25992.20)
5. Authorizes the CEC to accept federal and private sector moneys, including for purposes of financial commitments made to fulfill a lessee’s bidding credits in a bureau lease sale auction. The private sector moneys shall be deposited into the Private Donations Account. The federal moneys shall be deposited into the Fund. (PRC 25992.21)
6. Requires, on before March 15, 2024, and each January thereafter concurrent with the submission of the Governor’s Budget, the CEC to submit a report to the Legislature and the relevant policy and fiscal committees of the Legislature on the moneys received and allocated to the aforementioned accounts. (PRC 25992.22)

THIS BILL:

1. Defines the following terms:
   1. “California tribes” means California Native American tribes identified on the contact list maintained by the Native American Heritage Commission or a federally recognized tribe.
   2. “Donations account” means the Private Donations Account.
   3. “Grant account” means the Offshore Wind Community Capacity Funding Grant Account.
   4. “Offshore wind entity” means any entity engaged in offshore wind energy development that meets all of the following criteria:
      1. Has a planned generation capacity of 50 megawatts or more;
      2. Involves development activities expected to impact the coastal environment, marine environment, or human environment of the California coast or submerged lands within its jurisdiction; and,
      3. Will require the entity to obtain a lease, permit, or other authorization from the State Lands Commission, the Coastal Commission, the Department of Fish and Wildlife, the State Water Resources Control Board, a California regional water quality control board, the State Air Resources Board (ARB), the Public Utilities Commission (CPUC), the Independent System Operator, or another state agency or local government, in connection with its development activities.
2. Authorizes the CEC to allocate moneys from the Program for capacity funding activities and grants within local communities and tribal communities.
3. Establishes the Grant Account in the Fund. Continuously appropriates funds without regard to fiscal year to the CEC to fund capacity funding activities and award capacity funding grants. Authorizes the CEC to use up to 5% of the total amount deposited into the Grant Account, if needed, to administer the Grant Account.
4. Requires moneys appropriated to the Grant Account to be awarded in an equitable manner, as determined by the CEC that takes into account the needs and capacities of the communities, tribes, and organizations that apply for the funding for capacity funding activities and the capacity funding grants. Requires the CEC, in consultation with local communities, tribes, and other relevant stakeholders, to develop, through a public process that includes holding public workshops, guidelines for the use of those moneys. The guidelines may include categories of eligible activities, application requirements, and criteria for evaluating applicants. The guidelines shall be subject to review and revision every three years.
5. Requires offshore wind entities to provide financial assistance to fund capacity funding activities and grants. Authorizes the financial assistance to be provided directly to an eligible entity, or deposited into the Grant Account for allocation.
6. Requires the requirement on an offshore wind entity to provide this financial assistance to apply to the leaseholder for the four-year period after the offshore wind entity executes an offshore wind lease and may be satisfied through one or more payments.
7. Requires financial assistance provided by offshore wind entities to be used for any of the following purposes:
   1. Activities related to consultation for purposes of, and participation in, project planning and development;
   2. Activities related to the development of local and tribal benefit agreements; or,
   3. Capacity funding grants.
8. Provides that entities eligible for the capacity funding activities and grants include a local community, California tribe, or nonprofit organization selected by California tribes to represent their interest. A coalition of multiple of these eligible entities may also apply as a single entity if each coalition member is also an eligible entity.
9. Prohibits financial assistance provided by an offshore wind entity from being used to satisfy financial commitments made to fulfill bidding credits it received in a bureau lease sale auction.
10. Requires financial assistance provided by an offshore wind entity to be subject to the reporting requirements of this bill.
11. Requires, for each donation contributed directly to an eligible entity, the offshore wind entity to disclose the following information to the CEC within 30 days of making the contribution:
    1. The name and address of the donor;
    2. The name and address of the eligible entity that received the donation;
    3. The amount of the donation;
    4. The date the donation was made;
    5. A brief description of the goods or services donated or purchased, if any; and,
    6. A description of the specific purpose or event for which the donation was made, if any.
12. Requires the CEC to additionally report on its internet website the name and address of the eligible entity that received the donation, if the donation was received directly by an eligible entity.
13. Requires the CEC to annually prepare and submit, on or before March 1 of each year, a report to the Legislature on the implementation and effectiveness of the capacity funding activities and grants, including the amount of activity and grant moneys and direct financial assistance provided by offshore wind entities, using information provided by offshore wind entities, local communities, and tribes. The report shall include, but not be limited to, the total amount of capacity funding activity and grant moneys and direct financial assistance awarded for purposes of those activities and grants, a description of the activities and grants funded, and an assessment of the impact of the funding.

FISCAL EFFECT: Unknown

COMMENTS:

1. Author’s statement:

California is leading the charge on clean energy and offshore wind is key to our renewable future—but we must ensure the benefits reach the communities most impacted. AB 1417 creates a dedicated statewide fund at the California Energy Commission, empowering local communities, tribes, and nonprofits to actively shape offshore wind development. This bill drives environmental justice, economic opportunity, and a more equitable transition to clean power—ensuring those on the frontlines have a voice in the process. By investing in a responsible and inclusive transition, we maximize benefits while minimizing harm. This is about smart, sustainable growth that protects our coast, uplifts communities, and secures California’s clean energy future.

1. Offshore wind. The 100 Percent Clean Energy Act of 2018 [SB 100 (De León), Chapter 321, Statutes of 2018] increased California’s renewable portfolio standard (RPS) goal to 60% by 2030 and requires RPS-eligible resources and zero-carbon resources to supply 100% of California’s electricity retail sales and electricity procured to serve state agencies by 2045. 

Based on a joint analysis by the CEC, CPUC, and ARB, an estimated six gigawatts of renewable energy and storage resources need to come online annually to meet the state’s 2045 carbon neutrality goal. Offshore wind is part of the state’s plan to meet those goals.

AB 525 (Chiu), Chapter 231, Statutes of 2021, requires the CEC to evaluate and quantify the maximum feasible offshore wind capacity to achieve reliability, ratepayer, employment, and decarbonization benefits and to establish offshore wind planning goals for 2030 and 2045. The range in the planning goals for 2030 reflects an understanding that achieving a 2030 online date for any proposed offshore wind project will take a significant mobilization of resources as well as timely infrastructure investments, while the planning goal for 2045 reflects anticipated technological developments and related cost reductions.

The July 2024 strategic plan pursuant to AB 525 lays out the path forward for achieving offshore wind goals. The three call areas for offshore wind in federal waters off the coast of California are the Humboldt area on the North Coast and the Morro Bay and Diablo Canyon areas off the Central Coast. In addition, AB 3 (Zbur), Chapter 314, Statutes of 2023, requires the CEC to develop a 2nd-phase plan and strategy for seaport readiness that builds upon the recommendations and alternatives in the strategic plan for offshore wind developments and submit a report to the Legislature by December 31, 2026.

1. Community benefits fund. The federal Bureau of Ocean Energy Management (BOEM), as part of the official offshore wind leases off California’s coast, requires leasees to invest funds into a community benefit agreement, which will provide support to those who are directly or indirectly impacted by the floating offshore wind energy development. The community benefit agreement can assist fishing and related industries (including tribal fisheries) by supporting their resilience and ability to adapt to gear changes or any potential gear loss or damage; provide money for infrastructure to alleviate impacts from the projects; provide increased support to facilitate engagement as the projects are developed; and for mitigating potential impacts to cultural viewsheds or potential impacts on marine and land species. Additional contributions for workforce training and/or domestic supply chain development can be made in support of existing programs, or for the establishment of new programs or incentives associated with the planning, design, construction, operation, maintenance or decommissioning of U.S. floating offshore wind energy projects, or the manufacturing or assembling of their components in the United States.
2. California Tribes impacted by offshore wind. Many California Native American tribes and peoples have connections to the Pacific Ocean, the coast, and marine habitats, and species. Each California Native American tribe has its own perspective, concerns, and priorities regarding offshore wind. Many tribal members depend on local fishing and harvesting of sea life for cultural, subsistence, and commercial needs, and have concerns about the potential impact on their ability to feed their families and loss of income from commercial fishing. On the North Coast, tribes have expressed significant concern about the impacts on the population and migration patterns of the already endangered salmon.

There are five existing offshore wind leases in California: two in northern California off Humboldt County, and three in Central California near Morro Bay. In Humboldt, there are three federally-recognized Tribes near the offshore wind lease site: the Yurok, the Wiyot, and the Mattole. Morro Bay and Diablo Canyon are ancestral lands of cultural, ceremonial, and spiritual importance to the Santa Ynez Band of Chumash Indians Tribe, and the Gabrieleño are nearby on the Santa Barbara coastline.

Tribes are seeking a direct role in the decision-making process throughout the planning, permitting, operation, and decommissioning of offshore wind operations and associated infrastructure for offshore wind development. The CEC’s AB 525 strategic plan identifies and proposes strategies for potential impacts to Native American and Indigenous peoples.

Strategies for addressing impacts to California Native American tribes could include conducting meaningful consultation with tribal representatives, supporting the establishment of strong, legally binding tribal community benefits agreements, continuing to study impacts on tribes including exploring public safety measures to reduce violent crime and sexual and gender-based violence against California tribes and other vulnerable populations, and collaborating with tribes on avoidance, mitigation, and co-management opportunities.

1. Voluntary Offshore Wind and Coastal Resources Protection Program. The Program is an existing grant program at the CEC that supports state activities that complement and are in furtherance of federal laws related to the development of offshore wind facilities. The CEC provides grants to public and private entities, including state agencies, tribal entities, local governmental agencies, research institutions, and nonprofit entities. The CEC can accept federal and private sector money for the Voluntary Program; the Voluntary Fund is funded with federal dollars, and the Private Donations Account within the Voluntary Fund can accept private donations. As of Aril 10, no donations or other deposits have been made into the Voluntary Fund or the Account and the balances of each are zero.
2. Second attempt. Last year, the Legislature considered AB 2537 (Addis) which was almost identical to this bill. It would have established an Offshore Wind Community Capacity Building Fund Grant Program at the CEC to award grants for the purpose of building capacity within local communities and tribal communities to engage in the process of offshore wind energy development. The bill was vetoed by the governor, who stated:

While I share the author's desire to ensure communities hosting [offshore wind] projects are resourced to constructively engage in their planning and development, this bill falls short of providing a viable funding stream to accomplish this very objective. I encourage the author and the OSW developers to collaborate further with communities to identify an approach that not only fosters capacity for engagement but considers community benefits from the development of these projects.

AB 1417 is picking up where AB 2537 left off by attempting to address the Governor’s concern about a lack of a funding source.

1. Funding the capacity building grants under this bill. The bill requires a leaseholder, for the four-year period after the offshore wind entity executes an offshore wind lease, to provide financial assistance to fund capacity funding activities and grants. The bill allows financial assistance to be provided either directly to an eligible entity, or deposited into the Grant Account. The bill does not specify the amount of the financial assistance required to be provided by the Offshore Wind Energy leaseholder; whether there be a minimum amount each leaseholder is required to contribute; or, if a leaseholder provides financial assistance directly to an eligible entity, whether that amount would count toward any total amount each entity is expected to contribute. Without that specification, the requirement can be applied unequally across the leaseholders, or worse, they could each contribute $1 and claim compliance with the bill.

The current Trump Administration makes funding for offshore wind investments uncomfortably uncertain. In January, President Trump announced a withdrawal of wind energy leasing in all areas within the Offshore Continental Shelf. While that is not expected to impact the areas already leased by BOEM off the coast of California, the clear lack of federal support for offshore wind, the tariffs and global economic ripple effects, the likely increase in infrastructure costs, and the general ongoing whiplash from the federal government is resulting in industry-wide uncertainty. American Clean Power-California, which represents offshore wind companies, expresses concern that AB 1417 exacerbates this uncertainty by adding requirements to fund capacity building activities at an already increasingly difficult time for the industry.

1. Committee amendments. To address the aforementioned concerns, the committee may wish to consider amending the bill to strike the creation of the Offshore Wind Community Capacity Funding Grant Account and strike the mandatory requirement for offshore wind entities to provide financial assistance.
2. Double referral. This bill is also referred to the Assembly Utilities and Energy Committee.
3. Related legislation. AB 2537 (Addis, 2024) was almost identical to this bill. It would have established an Offshore Wind Community Capacity Building Fund Grant Program at the CEC to award grants for the purpose of building capacity within local communities and tribal communities to engage in the process of offshore wind energy development. This bill was vetoed by the governor.

REGISTERED SUPPORT / OPPOSITION:

Support

350 Humboldt
Brightline Defense Project
Central Coast Alliance United for a Sustainable Economy
Clean Power Campaign
Elected Officials to Protect America
Environmental Defense Fund
EPIC (Environmental Protection Information Center)
Monterey Bay Aquarium
National Wildlife Federation
NRDC
Sierra Club California
Slo Climate Coalition
UAW Region 6
USC Schwarzenegger Institute

Opposition

American Clean Power- California
Bay Area Council
California Chamber of Commerce
Greater Eureka Chamber of Commerce, the
Independent Energy Producers Association
Large Scale Solar Association
Los Angeles Business Council
The California Wind Energy Association (CALWEA)

Analysis Prepared by: Paige Brokaw / NAT. RES. /