Interior Department Finalizes Rule to Streamline and Modernize Offshore Renewable Energy Development
Energy
The final rule increases certainty and reduces the costs associated with the deployment of offshore wind projects by modernizing regulations, streamlining overly complex processes and removing unnecessary ones, clarifying ambiguous regulatory provisions, and enhancing compliance requirements. BOEM and BSEE have complementary obligations in implementing the d program.
Over the next 20 years, the final rule is expected to result in cost savings of roughly $1.9 billion to the offshore wind industry, savings that can be passed onto consumers and used to invest in additional job-creating clean energy projects.
During the Biden-Harris administration, the Department has approved the nation's first eight commercial-scale offshore wind projects, with a combined potential of over 10 gigawatts of clean, renewable energy able to power nearly 4 million homes. The Department has also taken steps to grow a sustainable offshore wind industry by encouraging the use of project labor agreements, strengthening workforce training, bolstering a domestic supply chain, and enhancing engagement with Tribes, fisheries, underserved communities and ocean users.
This final rule also includes a process to regularly update a five-year offshore wind leasing schedule. During her remarks today, Secretary Haaland announced a new five-year offshore wind leasing schedule, which includes up to 12 potential offshore wind energy lease sales through 2028. BOEM Director Elizabeth Klein and BSEE Director Kevin Sligh also attended the Forum, outlining their commitment to a clean energy future.
Among its provisions, the final rule:
- Eliminates unnecessary requirements for the deployment of meteorological buoys
- Increases survey flexibility
- Improves the facility design, fabrication, and installation certification and verification process
- Establishes a public renewable energy leasing schedule
- Reforms BOEM’s renewable energy auction regulations
- Tailors financial assurance requirements and instruments
- Clarifies safety management system regulations
- Clarifies and strengthens oversight of critical safety systems and equipment
Since 2021, BOEM has held four offshore wind lease auctions – including a record-breaking sale offshore New York and New Jersey and the first-ever sales offshore the Pacific and Gulf coasts. BOEM has also advanced the process to explore additional opportunities for offshore wind energy development in the U.S., including in the Gulf of Maine and offshore Oregon and the U.S. Central Atlantic coast. BOEM manages 34 active commercial offshore wind leases.
BSEE works to promote safety and protect the environment through vigorous regulatory oversight and enforcement and is working to develop technical and safety standards collaboratively with industry and other organizations to ensure a safe and environmentally sound U.S. offshore wind energy industry. In fiscal year 2024, BSEE oversaw the installation and successful start to the operation of the nation’s first two commercial-scale, offshore wind projects. Vineyard Wind 1, located off the coast of Massachusetts, and South Fork Wind, located off the coast of New York, together will comprise 74 turbines combined and provide an estimated output of 930 megawatts, enough clean, renewable energy to power approximately 470,000 homes for at least the next 25 years.
The notice of the final rule can be viewed in the Federal Register in the coming days.