U.S. Interior Initiates Environmental Review for Wind Development Offshore California

The Bureau of Ocean Energy Management on Dec. 19 announced a proactive step in supporting the Biden-Harris administration’s renewable energy objectives by initiating a regional environmental review for potential development on five offshore wind lease areas off California’s central and north coasts.

A wind energy auction for the five leases held last December drew competitive high bids from 5 companies totaling $757.1 million, well exceeding the first lease sales that were held in the Atlantic. The lease sale represents the first for the Pacific region. The sale offered five lease areas covering 373,268 total acres off central and northern California. The leased areas have the potential to produce over 4.6 gigawatts of offshore wind energy, enough to power over 1.5 million homes. The Biden administration has set a goal of achieving 30 gigawatts of offshore wind energy by 2030 and 15 gigawatts of floating offshore wind by 2035.

The programmatic environmental impact statement is designed to evaluate environmental impacts, invite public input, and optimize the efficiency of offshore wind project reviews. Emphasizing responsible development, the administration seeks to balance clean energy objectives with environmental protection, with subsequent site-specific analyses scheduled for when individual project plans are submitted.

The 2022 Inflation Reduction Act has removed the ban on wind leasing along the Southeast coast and introduced new tax credits. Aligned with the administration’s “Investing in America” agenda, designed to stimulate domestic manufacturing, fortify supply chains, enhance U.S. competitiveness, and generate employment, it is anticipated to propel over $470 billion in private sector investments in manufacturing and clean energy. The U.S. Energy Department reports around 40 gigawatts of offshore wind projects in various stages of development across the nation.

However, despite achieving notable milestones, the U.S. offshore wind industry faces a range of challenges. These include opposition over environmental and economic concerns, rising costs, and delays. Controversies, such as whale deaths on the Atlantic Coast, have heightened scrutiny. The Government Accountability Office has initiated an investigation into New Jersey’s offshore wind development, focusing on potential impacts on the environment, fishing industry, military operations, and navigational safety.

The bureau is seeking input on the scope of the environmental review. The public comment period ends on Feb. 20, 2024. To engage the public, two virtual scoping meetings are scheduled on Feb. 6, 2024, and Feb. 8, 2024.