Gulf of Maine Draft WEA and Secondary Areas (Source: BOEM)
The Bureau of Ocean Energy Management (BOEM) published a notice inviting public comment on a Draft Wind Energy Area (WEA) in the Gulf of Maine, representing a critical next step in BOEM’s commercial leasing process. BOEM requests comment on the Draft WEA and several related elements, including bidding credits to facilitate floating offshore wind development, a phased leasing program, and the potential for BOEM to consider secondary areas closer to the Maine coast for inclusion in the Final WEA. Comments are due by November 20.
The Draft WEA has a combined capacity of more than 40 GW, which exceeds the current combined offshore wind goals for the Gulf of Maine states. The Draft WEA is approximately 3.5 million acres in the Gulf of Maine, ranging from 20-120 miles offshore.
Bidding Credits to Facilitate Floating Offshore Wind Development
BOEM uses a multiple-factor auction format for lease sales, where the agency considers a combination of a monetary bid and bidding credits to determine the outcome of the auction. In recent lease sales, BOEM has used bidding credits to facilitate the development of the domestic offshore wind supply chain and workforce training and to provide compensation to mitigate potential impacts. The total value of bidding credits is capped to 25% of the winning bid.
In this notice, BOEM requests comment on the types or percentages of bidding credits that would be most beneficial for the development of floating offshore wind in the Gulf of Maine.
Phased Leasing Program
BOEM has indicated that they intend to hold the first lease sale in the Gulf of Maine in 2024. In this notice, BOEM expressed interest in advancing a phased commercial leasing program in the Gulf of Maine where multiple lease sales would occur over time. Specific to a phased leasing program, BOEM requests comment on the benefits and drawbacks of such a program, and estimated leasing timelines needed by Massachusetts and Maine to achieve the energy goals of each state.
Secondary Areas
BOEM also seeks comments on three Secondary Areas, which are not part of the Draft WEA but may still be considered by BOEM for inclusion in the Final WEA for future leasing. The Secondary Areas are located closer to the Maine coast – and therefore closer to potential points of interconnection in Maine – but are also located within important habitat areas or a recommended Gulf of Maine Fairway. BOEM included the Secondary Areas to be transparent about areas that “the model indicated were highly suitable [for development], as well as to give the State of Maine and its stakeholders additional options for consideration and comment given the State’s offshore wind renewable energy goals.” BOEM requests comment as to whether the Secondary Areas or any portion of those areas should receive consideration, and if so, under what conditions.
Next Steps of Commercial Leasing Process
BOEM will use the information received from comments to identify Final WEAs. Before deciding whether to offer leases for the Final WEAs, BOEM will prepare an environmental assessment under the National Environmental Policy Act and conduct appropriate consultations with Federal agencies and Tribal, state, and local governments. BOEM will also publish a Proposed Sale Notice (PSN) and a Final Sale Notice (FSN) describing the proposed and final lease terms and conditions and the format for a competitive auction.
We’ll continue to monitor the commercial leasing process in the Gulf of Maine.
