California sale opens new opportunities for U.S. floating offshore wind
Date: Tuesday, October 18, 2022
WASHINGTON — In a new development in the pursuit of a clean energy future, the Department of the Interior today announced that the Bureau of Ocean Energy Management (BOEM) will hold an offshore wind energy lease sale on Dec. 6, 2022, for areas on the Outer Continental Shelf (OCS) off central and northern California.
This will be the first-ever offshore wind lease sale on America’s west coast and the first-ever U.S. sale to support potential commercial-scale floating offshore wind energy development. This sale will be critical to achieving the Biden-Harris administration’s deployment goals of 30 gigawatts (GW) of offshore wind energy by 2030 and 15 GW of floating offshore wind energy by 2035.
“The demand and momentum to build a clean energy future is undeniable. I am proud of the teams at the Interior Department that are moving forward at the pace and scale required to help achieve the President’s goals to make offshore wind energy, including floating offshore wind energy, a reality for the United States,” said Secretary Deb Haaland. “Today, we are taking another step toward unlocking the immense offshore wind energy potential off our nation’s west coast to help combat the effects of climate change while lowering costs for American families and creating good-paying union jobs.”
In May 2021, Secretary Haaland and California Governor Gavin Newsom joined Biden-Harris administration leaders to announce an agreement to advance areas for wind energy development offshore the northern and central coasts of California. The California sale reflects the leasing path announced last year by Secretary Haaland and last month’s announcement of a new deployment goal of 15 GW of floating offshore wind energy by 2035.
BOEM will offer five California OCS lease areas that total approximately 373,268 acres with the potential to produce over 4.5 GW of offshore wind energy, power more than 1.5 million homes, and support thousands of new jobs.
“Today’s announcement represents years of close coordination and engagement with the state of California, Tribes, ocean users, local communities and all interested parties to move us closer towards achieving the administration’s vision to fight climate change and realizing California’s clean energy future, while creating a domestic supply chain and good-paying union jobs,” said BOEM Director Amanda Lefton, who will deliver remarks this morning at the Offshore WINDPOWER 2022 Conference. “BOEM remains committed to ensuring transparency and active engagement with stakeholders throughout the post-leasing process.”
To date, BOEM has held 10 competitive lease sales and issued 27 active commercial wind leases in the Atlantic Ocean from Massachusetts to North Carolina.
The California Final Sale Notice (FSN), which will publish in the Federal Register later this week, provides detailed information about the final lease areas, lease provisions and conditions, and auction details. It also identifies qualified companies who can participate in the lease auction.
The FSN includes three lease areas off central California and two lease areas off northern California. It also includes several lease stipulations designed to promote the development of a robust domestic U.S. supply chain, advance flexibility in transmission planning, and create good paying union jobs. Among the stipulations announced today, BOEM will offer bidding credits for bidders who enter into community benefit agreements or invest in workforce training or supply chain development; require winning bidders to make efforts to enter into project labor agreements; and require engagement with Tribes, underserved communities, ocean users, and agencies.
On May 26, 2022, the Department announced the Proposed Sale Notice for offshore wind energy development located offshore central and northern California. During the 60-day comment period, BOEM received valuable feedback on several lease stipulations that reaffirmed BOEM’s commitment to create good-paying union jobs and to engage with Tribal governments, underserved communities, ocean users and other stakeholders.
More information about the FSN and lease stipulations, a map of the area, the list of qualified bidders for the auction, and auction procedures is available on BOEM's California website.