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Does U.S. offshore wind finally have wind at its back? DOI announces plan for largest auction to date

By Paul Dvorak | July 8, 2014

This article comes from Foley Hoad LLP

•The winning bidder or bidders will have one year in which to submit a site assessment for the work necessary to determine if a project on the leasehold is actually feasible.

This scene could be repeated soon on the East coast. The winning bidder or bidders will have one year in which to submit a site assessment for the work necessary to determine if a project on the leasehold is actually feasible.

DOI Secretary Jewell recently joined with Governor Patrick to announce plans to auction more than 1,000 square miles on the Outer Continental Shelf offshore Massachusetts for wind energy development. The auction, which will be implemented as four separate leases, pretty much will follow the form of earlier lease auctions:

  • Bidders will be prequalified to participate in the auction
  • The auction will include multiple factors, including non-monetary factors
  • The winning bidder or bidders will have one year in which to submit a site assessment for the work necessary to determine if a project on the leasehold is actually feasible
  • Winning bidders pay a per-acre fee prior to commercial operation; they will essentially pay a royalty after commercial operation begins
  • BOEM has issued a revised Environmental Assessment to support the lease sales, but each specific wind energy project will require separate NEPA compliance

I don’t know about you – and perhaps it is just the onset of nice June weather — but I have a feeling that the offshore wind industry really is about to take off in the US. Call me a cockeyed optimist.

For the embedded video of Kelli O’Hara singing Cockeyed Optimist (Yes, a musical interlude to legal discussions)  go here:

http://www.mondaq.com/unitedstates/x/323776/Climate+Change/Does+Offshore+Wind+Finally+Have+The+Wind+At+Its+Back+DOI+Announces+Plan+For+Largest+Auction+To+Date+See+more+at+httpwwwlawandenvironmentcom201406doesoffshorewindfinallyhavethewindatitsbackdoiannouncesplanforlargestauctiont&email_access=on

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