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Harbor District Vows to Advance Wind Terminal Project Despite Loss of $434 Million in Federal Funding

The Humboldt Bay Harbor District is moving forward with its offshore wind terminal project after the federal government unexpectedly withdrew over $434 million in grants. District staff have outlined a plan to use state funding to cover a resulting $4.2 million shortfall for preliminary work, with strong support from labor and community partners.

EUREKA, Calif. – The Humboldt Bay Harbor, Recreation and Conservation District’s plan to build a large-scale offshore wind terminal faced a major setback last month, but commissioners and staff affirmed their commitment to pushing the project forward during a special meeting on Thursday.

On August 29, the U.S. Department of Transportation withdrew two federal grants totaling over $434 million that were previously awarded for the Humboldt Offshore Wind Heavy Lift Marine Terminal Project. District staff reported that the reason cited was that the project's green energy components, such as solar panels and electric vehicle charging stations, were “inconsistent with Federal priorities.”

The loss of the funds creates an immediate $4.2 million gap for “soft costs” like design, engineering, and permitting. The larger of the two grants, a $426 million INFRA grant intended for construction, had not yet been spent. Of an $8.67 million grant for soft costs, staff confirmed that $4.4 million already spent will be reimbursed by the federal government, but the remaining $4.2 million is now lost.

Despite the significant financial blow, District staff told the board they had anticipated this possibility and have a plan to continue. The strategy involves reconfiguring an existing grant from the California Energy Commission and leveraging other state-level funds, including a grant for waterfront infrastructure and a potential climate bond, to cover the shortfall. The project’s timeline is now delayed, with work expected to resume in January 2026.

The board directed staff to proceed with securing the alternative funding while keeping all planned community benefits and environmental components intact.

During public comment, the project received a groundswell of support. A representative for the International Brotherhood of Electrical Workers (IBEW) Local 551 highlighted the project's Project Labor Agreement, which guarantees at least 50% local hires and 100% local apprentices, calling it a path to multi-generational careers. A young IBEW apprentice and tribal member echoed this sentiment, thanking the board for creating long-term local job opportunities.

A spokesperson for the Peninsula Community Collaborative commended the board for its commitment to community benefits and announced a public meeting to discuss the project on October 13 from 5:30 PM to 7:00 PM at the Humboldt Coastal Nature Center. A representative from RWE, one of the offshore wind leaseholders, also reiterated the company's strong support for the District’s efforts.

In other business, the board unanimously approved a contract for up to $198,254 with Robert Colburn Electric, Inc. to upgrade the power infrastructure for the U.S. Coast Guard Cutter Barracuda at Woodley Island Marina. The project is fully reimbursable by the Coast Guard.

Staff also reported positive developments in harbor safety, noting that after years of advocacy, navigational buoys and harbor lights are being restored. Additionally, progress is being made on a plan to use dredged material to protect an exposed outfall line near the bay entrance, a project being coordinated with the U.S. Army Corps of Engineers.

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