By Reuters
NEW JERSEY — New Jersey residents have sued developer Orsted and the state over a tax break the company received to build a major offshore wind farm in the Atlantic, claiming the estimated $1 billion subsidy violates the state constitution.
New Jersey groups Defend Brigantine Beach and Protect our Coast NJ filed their lawsuit on July 27 in state court in Trenton. The groups claimed the law authorizing the tax break, signed earlier this month by Governor Phil Murphy, violates a provision of the state constitution that generally prohibits legislation that specifically favors a single, private entity.
The groups asked the court to invalidate the law, which they said created the tax break “for the singular purpose of protecting Orsted from commercial risk it voluntarily assumed” when it submitted bids to develop the project, known as Ocean Wind.
Orsted said on July 28 that it does not comment on pending litigation. The New Jersey attorney general’s office did not immediately respond to a request for comment.
The US government issued federal approvals earlier this month for construction of Ocean Wind, which would consist of 98 turbines in waters near Atlantic City.
The project, the third major offshore wind project approved by the federal government in US waters, would generate 1,100 MW of power, which is enough to power about 380,000 homes, according to the US Interior Department, whose agency, the Bureau of Ocean Energy Management, approved the construction plan.
The state’s subsidy allows Orsted to keep federal tax credits it would have normally been required to pass along to utility ratepayers, according to the lawsuit. The subsidy was proposed to help Orsted with inflation, labor and supply chain concerns, the lawsuit said.
Governor Murphy, whose administration has set a goal of installing 11,000 MW of offshore wind by 2040, said earlier this month that the measure would help the offshore wind industry take root in the state and provide good paying jobs.
07.31.2023
