A new proposal aims to streamline the process for permitting and developing offshore renewable energy projects and reduce costs to developers.
By Janice Schneider, Nikki Buffa, Nathaniel Glynn, and Brian McCall
On January 30, 2023, the Bureau of Ocean Energy Management (BOEM) published a new proposed rule to update the agency’s regulations governing renewable energy development on the Outer Continental Shelf (OCS).[1] The proposed rule is the first major overhaul of BOEM’s offshore renewable energy regulations since they were promulgated, and seeks to benefit from the agency’s and industry’s experience since 2009. Since then, BOEM has conducted 11 offshore wind energy lease sales and currently is managing 27 active commercial leases.
The proposed regulations would “modernize regulations, streamline overly complex and burdensome processes, clarify ambiguous provisions and enhance compliance provisions in order to decrease costs and uncertainty associated with the deployment of offshore wind facilities,” and would save developers an estimated $1 billion over a 20-year period.[2] Regulatory changes to decrease costs and increase certainty for developers are particularly critical when offshore wind energy developers are facing ever-increasing installation and materials costs. Some developers are even seeking to renegotiate power purchase agreements for their contracts that account for increased development costs. Comments on the proposed rule are due by March 31, 2023.