Yarr! Landlubbers be suin' the turbine scallywags an' New Jersey for snatchin' their tax booty!
2023-07-28
Arrr! Them landlubber wind development naysayers be a-suing the goodly state o' New Jersey and that scurvy dog Orsted for the plunderous tax booty they be snatchin' from the former. Aye, a tale fit fer the high seas, indeed!
Opponents of offshore wind projects in New Jersey are suing the state and Danish wind energy developer Orsted over a tax break that they believe is illegal and unfairly benefits only one entity. The lawsuit was filed by two residents' groups and three electricity customers who are against the wind projects and want to overturn the law. The law allows Orsted to keep around $1 billion in tax relief for one of its planned windmill projects off the state's southern coast.The state Legislature passed a bill that allowed Orsted to keep federal tax credits, which it was obligated to pass on to ratepayers. Orsted had promised to return these credits to customers when it applied for permission to build the project called Ocean Wind I. Lawmakers argued that this aid was necessary to help Orsted deal with inflation and the effects of the COVID-19 pandemic.
The lawsuit claims that the state is not permitted to pass laws that benefit only one party and that this violates the New Jersey Constitution. The governor's office and Orsted declined to comment on the lawsuit.
Interestingly, another company, Atlantic Shores, which also has approval for an offshore wind project in New Jersey, immediately requested a tax break after Orsted's was approved. Atlantic Shores warned that its project would be "at risk" without additional financial assistance from the government. Governor Murphy has stated that he is open to considering Atlantic Shores' request.
Overall, the lawsuit against New Jersey and Orsted seeks to challenge the legality of the tax break and the favoritism towards one company. It remains to be seen how the court will rule on this matter.