A digital rendering of the fully built-out Humboldt Bay Offshore Wind Heavy Lift Marine Terminal. | Image: Harbor District.

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Nearly two months after the Trump Administration announced its intent to revoke $679 million in federal grant funding for offshore wind projects across the nation, the Humboldt Bay Harbor, Recreation and Conservation District is looking to the state to help fill critical funding gaps for the Offshore Wind Heavy Lift Marine Terminal Project slated for the Samoa Peninsula.

Since 2023, the U.S. Department of  Transportation (DOT) has awarded more than $435 million in federal grant funds to the Harbor District, including $426.7 million from the INFRA Program and $8.6 million from the Port Infrastructure Development Program (PDIP). U.S. Transportation Secretary Sean P. Duffy abruptly withdrew those funds at the end of July on the basis that “fantasy wind projects” use “resources that could otherwise go towards revitalizing America’s maritime industry.”

At a special meeting tonight, the Harbor District Board of Directors will discuss the recent loss in federal funds and next steps for the heavy lift marine terminal project. The staff report attached to tonight’s agenda notes that “district staff are currently working with the State and other partners to plan our next steps and determine how to fill the funding gaps left by the Federal government’s actions.”

Reached for additional comment on tonight’s agenda, Harbor District Executive Director Chris Mikkelsen acknowledged that the district is “obviously in a transition,” but said he’s optimistic that the terminal project will move forward with financial support from the state. 

“We still have funds available in the original grant we received in [2022] from the California Energy Commission, so we will continue to utilize those funds,” Mikkelsen told the Outpost, referring to a $10.5 million CEC grant. “In addition to that, hopefully late this year or early next year, we will see a grant agreement for what’s called the ‘WFIT’ — the Waterfront Facilities Improvement Program that the CEC put out last year — in which we were awarded a little over $18 million to allow us to expand upon our studies and our technical work.”

“We’re full speed ahead,” Mikkelsen continued. “We’re absolutely focused, shoulder to the wheel, on building a modern heavy lift marine terminal here in Humboldt.  … [After] some of these next steps happen and we have more green lights in front of us, then there’ll be … more to share, but right now, that’s where we’re at.”

Image: Harbor District

As seen in the table above, which does not include any matching funds from the state, the district has spent about half of the federal PIDP funds, with approximately $4.15 million remaining. Does that mean the district has to reimburse the federal government for the PIDP funds spent to date?

“No. These are reimbursement grants — we are only reimbursed for the activities that we complete,” Mikkelsen said, noting that the district is covered for the cost up to July 29, 2025, when it received notice that the funds would be withdrawn. “There won’t be any need for repayments there because those funds have not come.”

The staff report notes that the INFRA grant funds have not been spent for two reasons: 1) The majority of INFRA funds are reserved for construction, and 2) INFRA funds cannot be expended until permits are complete.

“While this is a significant blow to the project, this is a longer-term problem as the project is not expected to be ready for construction for a few years,” the report states. “This gives us time to secure alternate sources of funding for construction.”

The district will also seek funding through California’s Climate Bond, also known as Proposition 4, which includes $475 million in funding for offshore wind development. Mikkelsen said the district hopes to get about half of that funding, but it’s yet to be determined.

“We’re going to advocate for and lobby for a very large portion of that money to come to Humboldt,” he said. “We’re uniquely qualified to receive it … [as] only two ports uniquely qualify for about $400 million of it — that’s us and [the Port of] Long Beach. Keep in mind, we work hand in glove with Long Beach on developing these terminals here on the U.S. West Coast.”

The Harbor District Board of Directors isn’t expected to take any formal action on tonight’s status update, but members of the public are welcome to attend in person and via Zoom. The board’s agenda and virtual attendance instructions can be found here.

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