In 2023, Governor Newsom signed AB 1373 into law. The goal of the bill was to support the development of offshore wind (and other clean electricity resources including geothermal and multi-day long duration energy storage like batteries) by solving a market issue.

The Schatz Energy Research Center at Cal Poly Humboldt analyzed the cost of offshore wind transmission and found that it could result in substantial savings to ratepayers.

The proposed new 500/115-kilovolt (kV) transformer and approximately 6-mile line connecting offshore wind energy to the local Humboldt Bay grid means that electricity generated by offshore wind would directly benefit residents around Wigi/Humboldt Bay and those directly connected to the local Humboldt Bay electric grid.

Offshore wind, and particularly floating offshore wind, is a relatively new technology with higher costs than some other more established energy sources — as much as $133 per megawatt hour (MWh), according to a recent federal analysis, compared to $78 per MWh for fixed-bottom offshore wind, and $34 per MWh for land-based wind.

Increased economic activity in the greater Humboldt area could feasibly increase property values as the region has more economic activity.