Humboldt Bay port project loses federal grants; district to pursue state funds and continue design work

Humboldt Bay Harbor, Recreation and Conservation District staff told the board that the federal government withdrew multiple renewable-energy grants that supported the Port of Humboldt Bay heavy-lift marine terminal project and related community benefits.

“At on August 29, we received 2 letters from the Federal Department of Transportation, letting us know that the federal government has withdrawn or terminated 12 different grants from around the nation, all associated with renewable energy,” a staff member reported to the board. The staff presentation cited $679,000,000 in grants withdrawn nationwide and identified the district’s Infra grant (the staff presentation described roughly $426,000,000 attributable to Infra costs in the national totals) and the district’s PDIP grant (about $8,000,000) as affected locally.

Staff said the Infra award contained a mix of hard construction costs and soft costs — design, permitting and studies — and that the district had not spent the broad Infra construction funds because NEPA reviews had not completed. A staff summary of the PDIP grant said about $4,400,000 had been spent to date on soft costs, leaving roughly $4,200,000 unspent from that award; the staff report added that costs incurred before the date on the federal letter appear reimbursable and that the district recently received a payment covering prior expenses.

District staff outlined near-term financing options they are pursuing: activating a California Energy Commission offshore-wind grant awarded in 2021, an $18,250,000 waterfront facility improvement grant the staff expect to access, and potential allocations under the state Prop 4 climate bond (the presentation noted only two ports qualify under the bond language and that the Port of Humboldt Bay is one of them). Staff recommended the board continue design and permitting work to 30% where feasible, reengage technical consultants and advisory committees, and refine a funding strategy with state partners.

The presentation also reiterated project features the district continues to pursue: a 180-acre heavy-lift marine terminal designed for offshore-wind staging and floating-foundation assembly, multiple construction phases, on-site renewable-energy generation, EV charging, eelgrass and habitat mitigation measures, and a community-benefit program the staff said totals tens of millions of dollars.

Public commenters largely voiced support for the project’s jobs and apprenticeship potential. John McIntaget, business manager of IBEW Local 551, praised the project labor agreement and urged the board to move forward, saying it promises local apprenticeship opportunities. Student and tribal member Tay Franklin urged additional research on potential wildlife impacts, including concerns about birds and marine mammals, and encouraged the district to study those effects further.

Several commissioners said they want to preserve community benefits and restoration funding while keeping design work moving; one commissioner suggested reprioritizing or delaying some community-benefit elements if necessary, while another said stopping at an incomplete design would waste public dollars and advocated finishing the current design milestones. Staff said they would continue permitting and design work “unless or until the board directs us otherwise.”

Next steps the district identified include working with state partners to reconfigure funding, procuring a consulting team and field studies required for CEQA/NEPA, and scheduling technical briefings for board meetings as permitting and funding work progresses.