The US Department of the Interior’s Bureau of Ocean Energy Management (BOEM) has issued the proposed auction details and lease terms for the up to 4500MW of offshore wind energy development off the state of California.
The California Proposed Sale Notice (PSN) provides information about five potential areas that could be available for leasing in the Morro Bay and Humboldt wind energy areas (WEAs).
It also includes proposed lease provisions and conditions, auction details – such as the criteria for evaluating competing bids and award procedures – and lease execution.
The proposed lease areas in the Humboldt and Morro Bay WEAs consist of approximately 151,056 hectares.
BOEM will publish PSN in the Federal Register on 31 May, opening a 60-day public comment period to seek feedback on several lease stipulations.
Some of these potential stipulations include a 2.5% bidding credit to bidders that execute or commit to executing a community benefit agreement with a community or ocean users whose use of a lease area, or whose use of resources harvested from a lease area, is directly impacted by the lessee’s potential offshore wind energy development.
There is also a 20% bidding credit to bidders who commit to invest in programmes that will advance US offshore wind energy workforce training, supply chain development, or both.
Another requirement would be that lessees make every reasonable effort to enter into a project labour agreement covering the construction of any project proposed for the lease area.
There will also be requirements for lessees to engage with Tribes, underserved communities, ocean users, and agencies.
Prospective bidders, not previously qualified for a California lease sale, are required to submit mandatory qualification materials to BOEM.
Qualification materials must be postmarked no later than 1 August.
BOEM Director Amanda Lefton said: “Today’s action represents tangible progress towards achieving the Administration’s vision for a clean energy future offshore California, while creating a domestic supply chain and good-paying union jobs.
“BOEM is committed to robust stakeholder engagement and ensuring any offshore wind leasing is done in a manner that avoids or minimises potential impacts to the ocean and ocean users.
“The Proposed Sale Notice provides another opportunity for local communities, Tribes, ocean users, developers and others to weigh in on potential wind energy activities offshore California.”