The ripple effects of a pivot away from clean energy reach Humboldt County

Efforts to develop offshore wind infrastructure off the coast of California have run into a confluence of Trump administration priorities: reducing federal spending, eliminating clean energy projects, and undoing anything related to the Biden administration. In a widely expected move, the Trump administration announced that they were pausing all offshore wind leasing and reviewing existing leases for potential termination. 

Since that announcement, companies planning to build wind turbines off the coast of Humboldt County announced significant layoffs, a sign that those projects may no longer be moving forward. While the Trump administration's announcement did not immediately revoke the permits for the planned offshore wind sites off of Morro Bay and Humboldt County, development of these sites and the onshore infrastructure needed to build the wind turbines and carry the electricity to its destination markets requires a huge investment that offshore wind supporters believe would almost certainly require federal funding. Given the current administration's posture towards wind and other clean energy sources (not to mention towards the entire state of California), that funding will not be coming anytime soon. Thus, it is not surprising that the companies who already paid the U.S. government $757.1 million to lease tracts of the ocean for wind energy appear to be rolling back those plans and cutting jobs that would have been focused on those projects.

In addition to the direct impacts on those losing their jobs with these wind energy developers, the Trump administration's decision to pull support for offshore wind will affect those in Humboldt County who were hoping for the economic benefits that were promised to accompany these projects. As part of the lease bidding process, bidding companies were required to "commit to mak[ing] a qualifying monetary contribution to programs or initiatives that benefit the greater Humboldt County community." The agreement with the federal government provided for about 7.5% of the bid amounts to go to local stakeholders, a not-insignificant amount considering that the total bids amounted to over $750 million for parcels off Morro Bay and Humboldt County. It is unclear how much of that money the County and other local stakeholders have received.

Beyond the direct payments, however, local communities stood to gain from accompanying investments in electric infrastructure and in making significant upgrades to the Humboldt Bay Harbor District, as well as accompanying increases in economic activity in the local area. Now, whether any of those benefits will materialize is an open question.

Even before the Trump administration moved to scuttle clean energy development, many locals in Humboldt County were skeptical about the promised benefits from wind projects. Calmatters' Julie Cart, in her excellent reporting on offshore wind development in California, noted that local communities would bear social costs and face strains on infrastructure, including higher housing costs and utility upgrades. 

As previously discussed on this blog, Humboldt County has experienced a series of boom-and-bust cycles from different industries, including timber, fishing, and cannabis, that have brought prosperity to the region only to collapse and give way to economic despair. Humboldt County's Director of Economic Development, Scott Adair, shared that locals "are cautious about the flimflam, if you will, the over-promisers."

Adair also noted that, even if locals are skeptical, the fate of the project is out of their hands.

“This is a federal project that is happening to us,” Adair said. “We have a limited ability to be involved and to help steer or shape the outcomes of the project.”

County supervisors expressed some cautious optimism that underscores how the region stood to gain and how it has suffered from prior economic hardships: 

The supervisors said they are excited about the possibilities, but they also worry about the pitfalls and are bracing for disappointment. “I go into this with my eyes wide open,” said Supervisor Rex Bohn. “I pray this happens. I hope like hell this happens.

From outside of Humboldt County, offshore wind is considered critical to achieving California's zero-carbon targets for electricity. 

“There is an undeniable urgency,” said David Hochschild, chair of the California Energy Commission. “California has had unprecedented climate challenges. There is a fierce urgency to respond. We have to stop being academic on this. We have to build.”

But this urgency is not enough to justify the project's presence in Humboldt for many locals who have felt burned by prior experiences with extractive industry. Phillip Williams, a member of the Yurok Tribal Council, was extremely skeptical about relying on this project for economic benefits to the local communities:

“Everybody's lining up. It's almost like there's a predator. ‘Okay, these guys are weak. We can come in here and take advantage of this community that’s this desperate for dollars, because they've already depleted all their natural resources. What else can we extract from these communities, and these communities are so desperate, that they're willing to jump off the bridge blind, in hopes that there's gold at the bottom,’” he said.

Like other communities along the North Coast, Williams said the Yuroks need sustainable jobs, but not at any cost. More than a third of tribal members live below the poverty line, 60% of them children.

 Now that it appears likely that the project will be delayed, if not abandoned, skeptics in the local community may be breathing a sigh of relief. Their reactions to the proposed project certainly show the importance of local input and the potential pain that can be caused by major infrastructure development in rural and economically depressed areas. But the climate crisis continues unabated, and the Trump administration has not announced any proposals for economic development in Humboldt County to lessen the impact of the potential loss of offshore wind.