If he claimed that God "creates" sin, that's heresy.
However, I believe that he claimed God made HIM. That's NOT a heresy. Using the Thomistic term, an "accidental" quality of the Bishop is that he is a queer.
Let's look at his statement again, shall we.
'I am a Roman Catholic priest in good standing, and celibate. I did not choose to be so, but in God’s infinite love and mercy I was created a gay man.'
He makes two claims:
1. He did not choose to be homosexual.
2. He was created a homosexual.
Scripture repeatedly affirms that homosexuality is a grave sin. Paul describes homosexuality as "[men] inflamed with passion for one another", not as a physical act. Therefore the issue of celibacy is moot. The priest in question claims that he never made a decision to embrace these passions, but that they were deliberately created in him by God in an act of divine mercy and love. He appears to be stopping just a whisker short of describing his gayness as a gift from God
Sounds like a heretic to me.