Offshore Wind Energy: Federal Leasing, Permitting, Deployment, and Revenues

Congressional research reportDec 7, 2021

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Offshore Wind Energy: Federal Leasing,

Permitting, Deployment, and Revenues

Updated December 7, 2021

Congressional Research Service

https://crsreports.congress.gov

R46970

SUMMARY

Offshore Wind Energy: Federal Leasing,

Permitting, Deployment, and Revenues

Offshore wind continues to be of interest as a potentially significant renewable energy resource

for the United States. Offshore wind power relies on turbines constructed in bodies of water,

which use wind to generate electricity. According to some estimates, offshore regions of the

contiguous United States and Hawaii have the net technical potential to generate more than 7,000

terawatt hours per year of wind-based electricity—nearly twice the amount of electricity used

annually in the United States in recent years—although these estimates do not take into account

considerations of economic feasibility. The Biden Administration has announced a governmentwide effort to deploy 30 gigawatts of offshore wind energy by 2030, which would be equivalent

to more than 2% of the U.S. utility-scale electricity generating capacity and approximately 25%

of total U.S. wind electricity generating capacity.

R46970

December 7, 2021

Laura B. Comay

Specialist in Natural

Resources Policy

Corrie E. Clark

Analyst in Energy Policy

Several U.S. offshore wind projects have been developed, or are under development, in state-owned or federally owned

waters. In state waters, the five-turbine Block Island Wind Farm off Rhode Island began commercial operations in 2016. To

date, no projects in federal waters have progressed to the point of electricity generation, except a two-turbine pilot project off

the Virginia coast. In May 2021, the Department of the Interior (DOI) approved the construction and operations plan (COP)

for a larger project, Vineyard Wind, on a federal lease off the coast of Massachusetts; in November 2021, DOI approved the

COP for a second project, South Fork Wind, off the coasts of Rhode Island and Massachusetts. DOI’s Bureau of Ocean

Energy Management (BOEM), which oversees leasing and permitting of federal offshore wind projects on the U.S. outer

continental shelf, has awarded multiple additional leases for wind energy development, all in the Atlantic region. BOEM also

has undertaken pre-leasing evaluations in the Pacific region and has solicited interest in potential offshore wind development

in the Gulf of Mexico region.

Congress has debated whether—and, if so, how and to what extent—to promote the development of U.S. offshore wind

energy. Some stakeholders have advocated for expediting federal offshore wind leasing to enable states to meet renewable

power commitments, facilitate a transition away from fossil fuel energy, and promote employment in the offshore wind

sector. Others have expressed concerns that wind leasing may be proceeding too quickly, especially given potential conflicts

with other ocean uses, such as fishing, as well as potential impacts of offshore wind development on birds and marine

mammals, concerns about the visibility of some turbines from shore, and issues related to the variability of wind as an energy

source. Congress also may consider multiple issues pertaining to the deployment of offshore wind energy projects, including

considerations related to domestic capacity for offshore wind infrastructure installation in the coming years, physical

connections to deliver offshore wind power to the onshore power grid, and domestic electricity markets to sell into

competitively. Additional issues concern the optimal disposition of federal revenues from offshore wind development,

including the extent to which future revenues should be shared with coastal states.

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Offshore Wind Energy: Federal Leasing, Permitting, Deployment, and Revenues

Contents

Overview of Offshore Wind Technology ........................................................................................ 2

Federal Offshore Wind Leasing Process ......................................................................................... 5

BOEM Leasing Activities ......................................................................................................... 8

Frequency and Regularity of Lease Sales ............................................................................... 10

Leasing Activities and Issues by Region ........................................................................................ 11

Atlantic Region Activities and Issues....................................................................................... 11

Pacific Region Activities and Issues ....................................................................................... 14

Gulf of Mexico Region Activities and Issues.......................................................................... 16

Alaska Region Activities and Issues ....................................................................................... 17

Permitting Activities and Issues .................................................................................................... 18

Fishing Industry Concerns ...................................................................................................... 18

Other Permitting Issues ........................................................................................................... 19

Deployment Issues ........................................................................................................................ 21

Jones Act and Port Infrastructure Considerations ................................................................... 21

Electricity Transmission Considerations ................................................................................. 22

Electricity Markets ............................................................................................................ 23

Connections to the Electrical Grid .................................................................................... 24

Offshore Wind Revenues ............................................................................................................... 26

Figures

Figure 1. Offshore Wind Turbine Components ............................................................................... 4

Figure 2. Offshore Wind Structural Support ................................................................................... 5

Figure 3. Bureau of Ocean Energy Management (BOEM) Wind Energy Commercial

Leasing Process ............................................................................................................................ 7

Figure 4. Map of BOEM’s Renewable Energy Leases.................................................................... 9

Figure 5. U.S. Offshore Wind Speed Estimates ............................................................................ 12

Tables

Table 1. Active Outer Continental Shelf (OCS) Offshore Wind Leases .......................................... 7

Table 2. Federal Offshore Wind Revenues, FY2010-FY2020....................................................... 26

Contacts

Author Information........................................................................................................................ 28

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Offshore Wind Energy: Federal Leasing, Permitting, Deployment, and Revenues

ffshore wind is a growing contributor to the energy mix for some nations and has been of

interest as a potentially significant renewable energy resource for the United States.1 The

U.S. Department of Energy’s National Renewable Energy Laboratory (NREL) estimated

that offshore regions of the contiguous United States and Hawaii have the net technical potential

to generate more than 7,000 terawatt hours per year of wind-based electricity—nearly twice the

electricity used annually in the United States in recent years.2 (This estimate takes into account

potential technological, environmental, and land-use conflicts but not considerations of economic

feasibility.) In March 2021, the Biden Administration announced a government-wide effort to

deploy 30 gigawatts (GW) of offshore wind energy by 2030.3 For comparison, in 2020, the total

U.S. utility-scale electricity nameplate generating capacity was approximately 1,212 GW, with

nearly 119 GW of that capacity produced from wind energy resources (virtually all onshore).4

O

The 117th Congress has conducted oversight and introduced legislation concerning offshore wind

energy.5 Congress has debated whether—and, if so, how and to what extent—to promote the

development of U.S. offshore wind. Congress plays a direct role in decisions about wind

1 For general information on global offshore wind development, see International Energy Administration, Offshore

Wind Outlook 2019, November 2019, at https://www.iea.org/reports/offshore-wind-outlook-2019; Offshore Wind:

Tracking Report, June 2020, at https://www.iea.org/reports/tracking-offshore-wind-2020; and Renewables 2020:

Analysis and Forecast to 2025, November 2020, at https://www.iea.org/reports/renewables-2020/wind#abstract.

2 U.S. Department of Energy (DOE), National Renewable Energy Laboratory (NREL), 2016 Offshore Wind Energy

Resource Assessment for the United States, Technical Report NREL/TP-5000-66599, September 2016, p. 39, at

https://www.nrel.gov/docs/fy16osti/66599.pdf (hereinafter cited as NREL, 2016 Assessment). NREL estimated that the

Alaska offshore region could technically contribute a further 12,000 terawatt hours per year; NREL, Offshore Wind

Energy Resource Assessment for Alaska, Technical Report NREL/TP-5000-70553, December 2017, p. v, at

https://www.nrel.gov/docs/fy18osti/70553.pdf (hereinafter cited as NREL, 2017 Alaska Assessment). U.S. wind energy

resource estimates are highly dependent upon certain assumptions, such as turbine height and capacity power density

(electricity generation per land or ocean surface area).

3 White House, “Biden Administration Jumpstarts Offshore Wind Energy Projects to Create Jobs,” fact sheet, March

29, 2021, at https://www.whitehouse.gov/briefing-room/statements-releases/2021/03/29/fact-sheet-bidenadministration-jumpstarts-offshore-wind-energy-projects-to-create-jobs/. The initiative includes steps to expedite

offshore wind leasing and permitting, invest in port infrastructure, provide access to loan guarantees, and provide

research and development funding, among other actions. In January 2021, President Biden had set a goal of “doubling

offshore wind by 2030” (Executive Order 14008, “Tackling the Climate Crisis at Home and Abroad,” Section 207,

January 27, 2021, 86 Federal Register 7619). The Administration also proposed floating offshore wind demonstration

projects as part of the American Jobs Plan (White House, “The American Jobs Plan,” fact sheet, March 31, 2021, at

https://www.whitehouse.gov/briefing-room/statements-releases/2021/03/31/fact-sheet-the-american-jobs-plan).

4 U.S. Energy Information Administration (EIA), Electric Power Annual, “Table 4.3 Existing Capacity by Energy

Source,” October 29, 2021, at https://www.eia.gov/electricity/annual/html/epa_04_03.html. Nameplate generating

capacity refers to the maximum rated output of electricity generated under specific conditions.

5 Recent hearings exploring offshore wind in the 117th Congress include U.S. Congress, House Committee on Natural

Resources, Subcommittee on Energy and Mineral Resources, Building Back Better: Reducing Pollution and Creating

Jobs Through Offshore Wind, hearing, 117th Cong., 1st sess., April 20, 2021, at https://naturalresources.house.gov/

hearings/building-back-better-reducing-pollution-and-creating-jobs-through-offshore-wind; U.S. Congress, Senate

Committee on Energy and Natural Resources, Full Committee Hearing on Offshore Energy Development in Federal

Waters and Leasing Under the Outer Continental Shelf Lands Act, hearing, 117th Cong., 1st sess., May 13, 2021, at

https://www.energy.senate.gov/hearings/2021/5/full-committee-hearing-to-examine-offshore-energy-development;

U.S. Congress, House Committee on Foreign Affairs, Subcommittee on Europe, Energy, the Environment and Cyber,

Renewable Energy Transition: A Case Study of How International Collaboration on Offshore Wind Technology

Benefits American Workers, hearing, 117th Cong., 1st sess., July 29, 2021, at https://foreignaffairs.house.gov/2021/7/

renewable-energy-transition-a-case-study-of-how-international-collaboration-on-offshore-wind-technology-benefitsamerican-workers; and U.S. Congress, House Committee on Energy and Commerce, Subcommittee on Energy,

Offshore Wind, Onshore Benefits: Growing the Domestic Wind Energy Industry, hearing, 117th Cong., 1st sess., October

21, 2021, at https://energycommerce.house.gov/committee-activity/hearings/hearing-on-offshore-wind-onshorebenefits-growing-the-domestic-wind.

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Offshore Wind Energy: Federal Leasing, Permitting, Deployment, and Revenues

development offshore by virtue of the federal government’s jurisdiction over most of the ocean

territory surrounding the United States. The U.S. outer continental shelf (OCS), extending from

the outer boundaries of state waters (in most cases, 3 nautical miles from shore) to at least 200

nautical miles from shore, is federally managed, primarily under the Submerged Lands Act and

the Outer Continental Shelf Lands Act (OCSLA).6

A 2005 amendment to the OCSLA authorized the Secretary of the Interior to offer leases,

easements, and rights-of-way on the OCS for offshore renewable energy activities.7 Since then,

the Department of the Interior’s (DOI’s) Bureau of Ocean Energy Management (BOEM) has

awarded multiple leases for wind energy development in U.S. waters.8 To date, no renewable

energy projects in federal waters have progressed to the point of electricity generation, except a

two-turbine pilot project off the Virginia coast.9 In state waters, the five-turbine Block Island

Wind Farm off Rhode Island began commercial operations in 2016.

This report begins with a brief overview of offshore wind technology. It then discusses

background and selected considerations related to leasing, project permitting, deployment, and

federal revenues from offshore wind. In addition to the issues discussed in this report, Congress

has considered other issues relevant to the development of U.S. offshore wind, such as federal

research activities, job programs, and tax incentives to promote offshore wind development, as

well as broader questions related to the balance of conventional and renewable energy resources

and to the physical and cyber security of the electric power system in the United States. These

issues are outside the scope of this report.

Overview of Offshore Wind Technology

Offshore wind power relies on wind farms (collections of wind turbines) constructed in bodies of

water that use wind to generate electricity in much the same manner as onshore wind farms.

Generally, offshore wind turbines are larger than onshore wind turbines. Other distinguishing

features of offshore wind turbines include the supporting structure or foundation for the wind

turbine and the support vessels required for offshore wind development.

The wind flowing over a body of water turns an offshore wind turbine’s blades; the blades attach

to a rotor, which spins a generator to create electricity. The generated electricity then can be

delivered to an onshore electrical grid through undersea cables to grid interconnection

equipment.10 Key factors that affect the amount of electricity generated from a wind turbine

6 Submerged Lands Act, 43 U.S.C. §§1301 et seq.; and Outer Continental Shelf Lands Act (OCSLA), 43 U.S.C.

§§1331-1356. For Texas and a portion of Florida, state waters extend to 9 nautical miles from shore. For more

information, see CRS Report R40175, Wind Energy: Offshore Permitting, by Adam Vann; and CRS Report RL33404,

Offshore Oil and Gas Development: Legal Framework, by Adam Vann.

7 P.L. 109-58, Section 388 (43 U.S.C. §1337(p)), authorized the Secretary of the Interior to issue leases, easements, and

rights-of-way for energy development “from sources other than oil and gas.”

8 As of the date of this report, the Bureau of Ocean Energy Management (BOEM) had issued 19 offshore wind leases

for projects that remain active (Table 1). In addition to these, BOEM awarded several other leases that expired or were

relinquished (for more information, see BOEM, “Lease and Grant Information,” at https://www.boem.gov/renewableenergy/lease-and-grant-information). Some offshore wind projects span multiple leases, and some leases contain

multiple projects.

9 BOEM, “Coastal Virginia Offshore Wind Project,” at https://www.boem.gov/renewable-energy/state-activities/

coastal-virginia-offshore-wind-project-cvow.

10 The size and number of undersea electrical cables and the type of additional equipment needed to ensure

compatibility with the electrical grid depend on numerous factors, including whether the electrical cables deliver direct

current (DC) electricity, where the electric charge flows in one direction, or alternating current (AC) electricity, where

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include wind speed, air density, and the swept area of the turbine (the area through which the

rotor blades spin). Generally, the faster the wind speed, the denser the air, and the larger the swept

area, the more electricity can be generated from the wind turbine.

Variability of Offshore Wind Energy

In 2020, the global operating capacity of offshore wind energy totaled nearly 33 gigawatts (GW), with

approximately 76% of the offshore wind capacity located in Europe. The United Kingdom—with more than

10 GW of offshore wind capacity—generated 24% of its total electricity from wind resources in 2020. Wind

energy is a variable energy source, in that it can produce electricity only when the wind is blowing. In the late

summer and early fall of 2021, weather conditions resulted in lower-than-expected wind energy generation in the

North Sea, increasing demand for electricity from fossil fuel-fired generators in the United Kingdom. According to

the International Energy Agency (IEA), European natural gas demand has increased due to wind availability, cold

weather in the first quarter of 2021, and an overall increase in demand compared with pandemic-related declines

in 2020. These increases in demand have combined with decreases in supply to increase natural gas prices and

electricity prices overall.

In the United States, current levels of generation from variable renewable energy sources have not created

widespread reliability issues. Sufficient backup capacity usually is available, and system operators and participants

are developing new practices to address the variability of wind and solar sources. Options to address potential

reliability issues include transmission system expansion, smart grid upgrades, increased generation from fossil

sources, and energy storage additions. For more information on variable renewable energy, see CRS In Focus

IF11257, Variable Renewable Energy: An Introduction, by Ashley J. Lawson.

Sources: Department of Energy, Offshore Wind Market Report: 2021 Edition, DOE/GO-102021-5614, August 2021,

p. 37; UK Department for Business, Energy & Industrial Strategy, Digest of UK Energy Statistics (DUKES), “Chapter 5:

Electricity,” updated July 29, 2021, p. 6; Carlos Fernández Alvarez and Gergely Molnar, “What Is Behind Soaring

Energy Prices and What Happens Next?,” IEA, October 12, 2021, at https://www.iea.org/commentaries/what-isbehind-soaring-energy-prices-and-what-happens-next; IEA, “Statement on Recent Developments in Natural Gas

and Electricity Markets,” September 21, 2021, at https://www.iea.org/news/statement-on-recent-developments-innatural-gas-and-electricity-markets.

Different turbine configurations and characteristics can affect turbine performance. As mentioned,

offshore wind turbines are typically taller and larger than onshore wind turbine systems. Figure 1

depicts a typical offshore wind turbine configuration.11

Fixed-bottom turbine support structures are the predominantly deployed offshore wind

technology.12 These structures, also referred to as foundations, secure the tower with the turbine

components to the sea floor. There are several types of foundation technologies, including

monopiles, jackets, and gravity-based foundations. Monopiles, which accounted for

approximately 75% of the global operating offshore wind capacity in 2020, are cylindrical

structures driven or drilled into the seafloor and attached to the bottom of the turbine tower.13

Jacket structures, which accounted for nearly 11% of the global operating offshore wind capacity

the electric charge reverses direction periodically. Most electricity in the United States is generated and distributed in

AC at a frequency of 60 Hertz (i.e., cycles per second). Wind turbine generators produce AC electricity, although the

frequency can differ from the electrical grid’s 60 Hertz frequency. Most offshore projects use AC systems, although

there is interest in DC technologies. Both technologies have advantages and disadvantages. See Padmavathi

Lakshmanan, Ruijuan Sun, and Jun Liang, “Electrical Collection Systems for Offshore Wind Farms—A Review,”

CSEE Journal of Power and Energy Systems, (July 2021), pp. 10-11.

11 Generally, there are two basic types of wind turbines: horizontal-axis turbines and vertical-axis turbines.

12 National Offshore Wind Research and Development Consortium, Research and Development Roadmap Version 2.0,

October 2019, p. 6.

13 DOE, Offshore Wind Market Report: 2021 Edition, DOE/GO-102021-5614, August 2021, p. 57 (hereinafter cited as

DOE, 2021 Market Report).

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in 2020, typically consist of four legs that are connected by braces and attached via anchors or

drilled piles into the seafloor.14 Gravity-based foundations are placed on the seafloor and rely on

the structure’s weight to resist overturning. Fixed-bottom structures were designed for European

offshore sites and may not be appropriate for all U.S. offshore sites, due to differences such as

water depth, seabed characteristics, and extreme weather conditions.

Figure 1. Offshore Wind Turbine Components

Source: CRS adaptation of illustration from New York State Energy Research and Development Authority

(NYSERDA), “Offshore Wind 101,” at https://www.nyserda.ny.gov/All-Programs/Programs/Offshore-Wind/

About-Offshore-Wind/Offshore-Wind-101.

In addition to fixed-bottom structures, the offshore wind industry is exploring the use of floating

structures, which are not set into the ocean floor.15 Floating foundations are a potential support

structure for projects in deep water (approximately 60 meters or 200 feet in depth, or deeper),

such as occurs in the Gulf of Maine and off the Pacific coast and Hawaii.16 Most planned floating

projects use semisubmersible structures; other floating structure designs can include barge,

tension leg platform, and spar technology.17 Tension leg platforms are buoyant structures that

have arms connected through tension to a foundation or anchor system.18 Spar technology relies

on spar buoys, ballasted cylindrical buoys that keep the center of gravity below the center of

buoyancy.19 Figure 2 depicts several types of fixed-bottom and floating structures.

14 Ibid., p. 57.

15 U.S. Government Accountability Office (GAO), Offshore Wind Energy: Planned Projects May Lead to Construction

of New Vessels in the U.S., But Industry Has Made Few Decisions amid Uncertainties, GAO-21-153, December 2020,

p. 9.

16 DOE, 2021 Market Report, pp. xii and 48.

17 Ibid., p. 59.

18 International Renewable Energy Agency (IRENA), Floating Foundations: A Game Changer for Offshore Wind

Power, 2016, p. 5.

19 Ibid., p. 5.

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Figure 2. Offshore Wind Structural Support

Source: CRS adapted illustration from Josh Bauer, National Renewable Energy Laboratory (NREL), at

https://www.energy.gov/eere/articles/us-conditions-drive-innovation-offshore-wind-foundations.

Federal Offshore Wind Leasing Process20

BOEM oversees leasing for offshore wind energy on the U.S. outer continental shelf, as well as

permitting of wind projects on developed leases. This regulatory structure generally differs from

that for offshore oil and gas, where BOEM has responsibility for leasing but its sister agency, the

Bureau of Safety and Environmental Enforcement (BSEE), is primarily responsible for permits to

develop projects on existing leases and for inspections and environmental enforcement.21

The OCSLA and agency regulations allow BOEM to offer commercial wind leases and “limited

leases” (e.g., leases for pilot or research projects that do not result in commercial production

beyond a specified limit).22 The agency must afford a competitive process for offshore wind

leasing unless it determines after public notice that there is no competitive interest.23 BOEM has

awarded most wind leases as competitive commercial leases, especially in recent years.

20 This section provides background on BOEM’s leasing process and activities, including relevant regulations and

policies. For a discussion of the statutory framework underlying the BOEM process, see CRS Report R40175, Wind

Energy: Offshore Permitting, by Adam Vann.

21 Under DOI Secretarial Order 3299 (August 29, 2011), BOEM has authority over all aspects of DOI’s offshore

renewable energy program until the Assistant Secretary for Land and Minerals Management “determines that an

increase in activity justifies transferring the inspection and enforcement functions to the Bureau of Safety and

Environmental Enforcement.” For more information, see BOEM and BSEE, “Memorandum of Agreement Between the

Bureau of Ocean Energy Management and the Bureau of Safety and Environmental Enforcement,” December 22, 2020,

at https://www.boem.gov/sites/default/files/documents/renewable-energy/BOEM-BSEE-Renewable-EnergyMOA_0.pdf. Under this memorandum of agreement, BSEE is to assist BOEM with its safety, environmental

compliance, inspection, enforcement, and other specified activities, such as by advising and consulting with BOEM.

22 30 C.F.R. §585.202.

23 30 C.F.R. §585.201. For information on the award of noncompetitive leases, see 30 C.F.R. §585.230-585.232.

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The commercial leasing process consists of four broad phases (Figure 3). In the planning and

analysis phase, BOEM seeks industry interest in wind leasing by publishing a call for information

and nominations for a selected offshore area, known as a call area. BOEM may proactively

initiate consideration of a potential call area, or BOEM’s receipt of one or more unsolicited

applications for a lease could trigger such consideration.24 Wind energy developers and other

stakeholders—such as state and tribal governments, natural resource agencies, and other ocean

users—may provide comments at the call stage. The responses to the call may help BOEM

determine if there is competitive interest in leasing in the area.25 Based partly on the feedback

received, BOEM may identify, within the call area, targeted wind energy areas (WEAs) that

appear “most suitable” for leasing.26 The WEA identification process includes public input and

environmental evaluation under the National Environmental Policy Act (NEPA).27 For example,

the U.S. Coast Guard may evaluate the impacts of potential projects on navigation safety and

provide input to BOEM.28 BOEM has previously identified call areas and/or WEAs off the

Atlantic and Pacific coasts, and in November 2021, BOEM published a call for information and

nominations for an area in the Gulf of Mexico.29

In the second phase (the leasing phase), BOEM determines if there is competitive interest in

leases within the WEAs by publishing a request for interest in the Federal Register. If interest

exists, BOEM holds a lease auction.30 To date, BOEM has held lease auctions only in the Atlantic

region. If no competitive interest exists, BOEM may negotiate a lease noncompetitively after

consultation with affected federal agencies, state and local governments, and Indian tribes.31

In the third phase, a company that has obtained a lease conducts site assessment activities—for

example, constructing a meteorological tower or installing meteorological buoys to estimate wind

resources. BOEM must approve the lessee’s site assessment plan (SAP) through a process that

includes environmental review under NEPA. BOEM has approved multiple SAPs (Table 1), all of

them in the Atlantic region.

The final phase is the construction and operations phase, in which the lessee builds and operates

the wind facility after obtaining BOEM’s approval of its construction and operations plan (COP).

The COP approval process requires a further round of environmental review and public comment,

in addition to those performed in earlier phases. To date, BOEM has approved two COPs (Table

1); other COPs are at various stages of review.

24 30 C.F.R. §585.211 and 585.230.

25 For example, see BOEM, “Commercial Leasing for Wind Power Development on the Outer Continental Shelf (OCS)

Offshore California—Call for Information and Nominations (Call),” 83 Federal Register 53096, October 19, 2018.

26 BOEM, “Wind Energy Commercial Leasing Process,” fact sheet, January 2017, at http://www.boem.gov/sites/

default/files/boem-newsroom/Wind-Energy-Comm-Leasing-Process-FS-01242017-%281%29.pdf.

27 42 U.S.C. §4321. For more information on National Environmental Policy Act (NEPA) evaluations, see CRS Report

RL33152, The National Environmental Policy Act (NEPA): Background and Implementation, by Linda Luther.

28 U.S. Coast Guard, Guidance on the Coast Guard’s Roles and Responsibilities for Offshore Renewable Energy

Installations (OREI), Navigation and Vessel Inspection Circular No. 01-19, August 1, 2019, at

https://www.dco.uscg.mil/Portals/9/DCO%20Documents/5p/5ps/NVIC/2019/NVIC%2001-19-COMDTPUB-P167004-dtd-01-Aug-2019-Signed.pdf?ver=2019-08-08-160540-483. Also see Bureau of Ocean Energy Management,

Regulation, and Enforcement (BOEMRE), “BOEMRE and Coast Guard Sign Agreement Outlining Roles for Offshore

Renewable Energy Installations,” press release, July 27, 2011, at https://www.boem.gov/sites/default/files/boemnewsroom/Press-Releases/2011/press0727.pdf. BOEMRE was the predecessor agency to BOEM.

29 BOEM, “Call for Information and Nominations—Commercial Leasing for Wind Power Development on the Outer

Continental Shelf in the Gulf of Mexico,” 86 Federal Register 60283, November 1, 2021.

30 30 C.F.R. §585.210.

31 30 C.F.R. §585.231.

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Figure 3. Bureau of Ocean Energy Management (BOEM) Wind Energy Commercial

Leasing Process

Source: CRS adaptation of BOEM, “Wind Energy Commercial Leasing Process,” January 2017, at

http://www.boem.gov/sites/default/files/boem-newsroom/Wind-Energy-Comm-Leasing-Process-FS-01242017%281%29.pdf.

Table 1. Active Outer Continental Shelf (OCS) Offshore Wind Leases

(as of December 2021)

Site

Construction &

Year Awarded:

Assessment

Operations

Competitive (C) /

Company or

Plan (SAP)

Plan (COP)

Commercial

Noncompetitive (N)b Project Name(s) Final Approval? Final Approval? Operations?

State(s)a

Lease No.

Delaware /

Maryland

OCS-A 0482

2012 (N)

Garden State

Offshore Energy

(GSOE 1)

Yes

—

—

OCS-A 0519

2018 (N)

Skipjack

Yes

—

—

Maryland

OCS-A 0490

2014 (C)

U.S. Wind /

MarWin

Yes

—

—

Massachusetts

OCS-A 0500

2015 (C)

Bay State Wind

Yes

—

—

Sunrise Windc

Yes

—

—

OCS-A 0501

2015 (C)

Vineyard Wind 1

Yes

Yes

—

OCS-A 0534

2015 (C)d

New England Wind /

Park City /

Commonwealthd

Yes

—

—

OCS-A 0520

2018 (C)

Beacon Wind

Yes

—

—

OCS-A 0521

2018 (C)

Mayflower Wind

Yes

—

—

OCS-A 0522

2018 (C)

Liberty Wind

—

—

—

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Site

Construction &

Year Awarded:

Assessment

Operations

Competitive (C) /

Company or

Plan (SAP)

Plan (COP)

Commercial

Noncompetitive (N)b Project Name(s) Final Approval? Final Approval? Operations?

State(s)a

Lease No.

New Jersey

OCS-A 0498

2016 (C)

Ocean Wind 1

OCS-A 0532

2016 (C)e

Ocean Wind 2e

OCS-A 0499

2016 (C)

New York

OCS-A 0512

North

Carolina

Rhode Island /

Massachusetts

Virginia

Yes

—

—

Atlantic Shores

Yes

—

—

2017 (C)

Empire Wind

Yes

—

—

OCS-A 0508

2017 (C)

Kitty Hawk

Yes

—

—

OCS-A 0486

2013 (C)

Revolution Wind

Yes

—

—

OCS-A 0487

2013 (C)

Sunrise Windc

Yes

—

—

OCS-A 0517

2013 (C)

South Fork Wind

Yes

Yes

—

OCS-A 0483

2013 (C)

Dominion Coastal

Virginia Offshore

Wind (CVOW)

Yes

—

—

OCS-A 0497

2015 (N; research

lease)

CVOW pilot

project

Yesf

Yesf

Yesg

Source: CRS.

a. Column shows the state (or states) identified by BOEM as being the adjoining coastal state(s), based on

BOEM’s offshore administrative boundary lines at https://www.boem.gov/oil-gas-energy/mapping-and-data/

map-gallery/administrative-boundaries. Depending on offtake agreements between wind developers and

power purchasers, the BOEM-identified state might not be the state where power eventually would be

delivered. For example, the Revolution Wind project on Lease OCS-A 0486 lies off Rhode Island and

Massachusetts, according to BOEM’s administrative boundaries, but the developer has a purchase

agreement to deliver some power to Connecticut.

b. All leases are commercial leases unless otherwise noted.

c. The Sunrise Wind project spans parts of two leases, OCS-A 0500 and OCS-A 0487.

d. In June 2021, BOEM approved the assignment of a portion of Lease OCS-A 0501 to become Lease OCS-A

0534. Originally known as Vineyard Wind South, the project on this lease was renamed New England Wind.

The project will have two phases, known as Park City Wind (Phase 1) and Commonwealth Wind (Phase 2).

e. In March 2021, BOEM approved the assignment of a portion of Lease OCS-A 0498 to become Lease OCSA 0532.

f.

Because the CVOW pilot project was constructed on a research lease rather than a commercial lease,

BOEM approved a research activities plan (RAP) rather than a SAP and COP for the project. BOEM’s

approval of the RAP included initial approval in March 2016 and approval of a revised RAP in June 2019.

BOEM’s approvals of the RAP and the revised RAP provided authorization for construction of the twoturbine project.

g. The CVOW pilot project began generating power in September 2020 and completed steps required to

begin commercial operations in January 2021 (CRS communication with BOEM Office of Legislative Affairs,

April 13, 2021). BOEM is not collecting an operating fee for the CVOW pilot project because the project

operates on a research lease.

BOEM Leasing Activities

BOEM granted its first leases for wind energy development in 2009 and administered 19 active

wind leases as of the date of this report (Figure 4 and Table 1). BOEM issued two

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noncompetitive commercial wind leases, one in 2010 and one in 2012.32 More recently, BOEM

has awarded all commercial leases through competitive auctions.33 All of the issued leases have

been in the Atlantic region.34 BOEM has undertaken pre-leasing evaluations, including

identifying call areas, in the Pacific region and the Gulf of Mexico region.

Figure 4. Map of BOEM’s Renewable Energy Leases

(as of March 2021)

Source: BOEM, Renewable Energy Map Book, March 2021, p. 2, at https://www.boem.gov/Renewable-EnergyLease-Map-Book/. As of November 2021, BOEM has not held new lease sales beyond those shown on the map.

32 BOEM awarded Lease OCS-A 0478 noncompetitively to Cape Wind Associates, LLC, in 2010. The lease was

relinquished in 2018. For more information, see BOEM, “Cape Wind,” at https://www.boem.gov/renewable-energy/

studies/cape-wind. In 2012, BOEM awarded Lease OCS-A 0482 noncompetitively to Bluewater Wind Delaware. The

lease was later split into two leases and reassigned to two companies, Skipjack Offshore Energy and GSOE 1.

33 For more information on the auction process, see 30 C.F.R. §585.210-585.225.

34 BOEM divides the outer continental shelf (OCS) into four regions for administrative purposes: the Atlantic region,

the Gulf of Mexico region, the Pacific region, and the Alaska region.

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Note: Depictions of some of the smaller lease areas in the figure may appear darker compared to larger lease

areas.

Frequency and Regularity of Lease Sales

The frequency and regularity with which BOEM schedules offshore wind lease sales has been a

topic of congressional interest. For oil and gas, the OCSLA requires BOEM to prepare and

maintain forward-looking plans (referred to as five-year programs) that periodically evaluate all

available lease areas and determine when and where lease sales will take place.35 There is no

similar requirement for offshore wind leasing. As discussed, BOEM determines when and where

to hold wind lease sales based either on unsolicited lease applications or on area evaluations

undertaken at the agency’s discretion. Under this process, BOEM has conducted eight

competitive wind lease sales in total, with varying numbers of sales held in recent years. BOEM

held one wind lease sale in 2016, one in 2017, one in 2018, and none in 2019 or 2020.36

Some Members of Congress and other stakeholders have advocated for greater predictability and

regularity in BOEM’s offshore wind leasing program, similar to that provided by the five-year

planning process for oil and gas leasing. They assert that BOEM’s current leasing process

produces “uncertainty for a wide range of stakeholders,” such as offshore wind developers,

coastal communities, the Department of Defense (DOD), the fishing industry, and other ocean

users.37 They contend that a more comprehensive wind leasing program would ensure a consistent

offshore wind supply, facilitate state clean energy targets, and spur investment in an offshore

wind supply chain.38 Such a program could require BOEM to evaluate all offshore regions, rather

than just selected or requested areas, for wind leasing potential.

Others, including some BOEM officials, have expressed concerns about a more standardized

leasing process for offshore wind, arguing for the importance of maintaining flexibility in

scheduling lease sales. BOEM has noted in past years that planning for individual wind lease

35 For more information on offshore oil and gas five-year programs, see CRS Report R44504, Five-Year Program for

Offshore Oil and Gas Leasing: History and Program for 2017-2022, by Laura B. Comay, Marc Humphries, and Adam

Vann; and CRS Report R44692, Five-Year Offshore Oil and Gas Leasing Program: Status and Issues in Brief, by

Laura B. Comay.

36 The December 2016 lease sale was for an area off the coast of New York, the March 2017 sale was for an area off

North Carolina, and the December 2018 sale was for areas off Massachusetts. Note that revenues (bonus bids) from

these lease sales in Table 2 are shown by fiscal year rather than by calendar year (e.g., bonus bids from the lease sale in

December 2018 show as FY2019 revenue).

37 U.S. Congress, House Committee on Natural Resources, “Legislative Hearing on Offshore Renewable Energy

Opportunities,” hearing memo, 115th Cong., 2nd sess., June 26, 2018, at https://republicans-naturalresources.house.gov/

uploadedfiles/hearing_memo_—

_leg_hrg_on_discussion_draft_offshore_renewable_energy_for_territories_act_06.26.18.pdf. Also see discussion by

Senator Angus King and BOEM Director Amanda Lefton at U.S. Congress, Senate Committee on Energy and Natural

Resources, Full Committee Hearing to Examine Offshore Energy Development, hearing, 117th Cong., 1st sess., May 13,

2021, at https://www.energy.senate.gov/hearings/2021/5/full-committee-hearing-to-examine-offshore-energydevelopment.

38 See, for example, testimony of Randall Luthi, National Ocean Industries Association, in U.S. Congress, House

Committee on Natural Resources, Subcommittee on Energy and Mineral Resources, Legislative Hearing on Offshore

Renewable Energy Opportunities, hearing, 115th Cong., 2nd sess., June 26, 2018, at https://republicansnaturalresources.house.gov/UploadedFiles/6.26_Luthi_Testimony.pdf; memorandum from Vincent DeVito, Chair,

Royalty Policy Committee, to Secretary of the Interior Ryan Zinke, “Royalty Policy Committee Recommendations,”

July 9, 2018, p. 2, at https://www.doi.gov/sites/doi.gov/files/uploads/

signed_june_rpc_meeting_summary_with_memo.pdf; and letter from nine Atlantic coast governors to President Joseph

Biden, “Prioritization of Offshore Wind Development,” June 4, 2021, at https://www.eenews.net/assets/2021/06/07/

document_gw_03.pdf.

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sales often involves revisions based on stakeholder input and has stated that any more

comprehensive program must “retain the flexibility to allow BOEM to respond to rapid changes

in technology and regional demand.”39 However, in hearing testimony in May 2021, the BOEM

director expressed a goal “that we have a more certain leasing process in which we can

demonstrate what our future lease sales will be in various wind energy areas.”40

Leasing Activities and Issues by Region

BOEM and NREL have explored possibilities for wind development in all four of the federal

offshore regions administered by BOEM: the Atlantic, Pacific, Gulf of Mexico, and Alaska

regions.41 NREL found that all the regions have offshore wind energy potential, taking into

account factors such as wind speed (Figure 5), water depth, competing ocean uses, and

environmental compatibility (but excluding economic feasibility).42 Congress has weighed in on

regional leasing issues through oversight and legislation in the 117th and previous Congresses.

Atlantic Region Activities and Issues

Many leasing issues have pertained to activities in the Atlantic region, where all offshore wind

lease sales to date have occurred. Multiple factors, including but not necessarily limited to those

listed below, have made the Atlantic region attractive for BOEM’s initial wind leasing activities:

Resource Potential. The Atlantic region, especially in the northeast, has strong

average wind speeds (Figure 5) and relatively high wind energy potential.43

Geology. The Atlantic OCS is relatively shallow, allowing for installation of

commercially available fixed-bottom foundations.

Markets. The populous eastern U.S. states offer potential demand for offshore

wind-generated electricity.

State Renewable Power Commitments. Many states along the East Coast have

committed to timelines for sourcing fixed portions of their overall power from

renewable sources in general and offshore wind in particular.

39 Testimony of James Bennett, BOEM Office of Renewable Energy Programs, in U.S. Congress, House Committee on

Natural Resources, Subcommittee on Energy and Mineral Resources, Legislative Hearing on Offshore Renewable

Energy Opportunities, hearing, 115th Cong., 2nd sess., June 26, 2018, at https://republicans-naturalresources.house.gov/

UploadedFiles/6.26_Bennett_Testimony.pdf.

40 Testimony of BOEM Director Amanda Lefton, in U.S. Congress, Senate Committee on Energy and Natural

Resources, Full Committee Hearing to Examine Offshore Energy Development, hearing, 117th Cong., 1st sess., May 13,

2021, at https://www.energy.senate.gov/hearings/2021/5/full-committee-hearing-to-examine-offshore-energydevelopment.

41 NREL, 2016 Assessment; NREL, 2017 Alaska Assessment. Offshore wind also has been pursued in the Great Lakes,

but BOEM does not administer those efforts because those waters are state-owned. The federal government cooperates

with Great Lakes states through a memorandum of understanding on offshore wind (Great Lakes Wind Collaborative,

“State-Fed Agreement Announced to Enhance Coordination of Offshore Wind Projects in the Great Lakes,” press

release, March 30, 2012, at https://www.glc.org/wp-content/uploads/2016/10/glc-newsrelease-state-fed-agreementenhance-coordination-offshore-wind-20120330-1.pdf; Great Lakes Offshore Wind Energy Consortium, “Memorandum

of Understanding” and “Fact Sheet,” both available at https://www.glc.org/library/2012-great-lakes-offshore-windmemorandum-of-understanding.

42 NREL, 2016 Assessment, p. viii; NREL, 2017 Alaska Assessment, p. v.

43 For the contiguous United States and Hawaii, NREL found “the best resource, based on quality and quantity,” to be

offshore of northeastern states. NREL, 2016 Assessment, p. viii.

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Land Constraints. Compared with some other parts of the country, the heavily

developed East Coast has relatively little land available for onshore renewable

development, making offshore development potentially attractive.

Wind leasing efforts in the Atlantic also have encountered challenges, including those related to

potential conflicts between wind energy development and other ocean uses, among others.

Figure 5. U.S. Offshore Wind Speed Estimates

(top figure shows continental United States and Hawaii; bottom figure shows Alaska)

Source: NREL, 2016 Offshore Wind Energy Resource Assessment for the United States, Technical Report NREL/TP5000-66599, September 2016, p. 9, at https://www.nrel.gov/docs/fy16osti/66599.pdf; and NREL, Offshore Wind

Energy Resource Assessment for Alaska, Technical Report NREL/TP-5000-70553, December 2017, p. v, at

https://www.nrel.gov/docs/fy18osti/70553.pdf.

Note: Figures show estimated annual average wind speeds at 100 meters above the surface, a typical height for

offshore wind turbine hubs; nm = nautical miles; m/s = meters per second.

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To date, BOEM has awarded offshore wind leases off the coasts of Delaware, Maryland,

Massachusetts, New Jersey, New York, North Carolina, Rhode Island, and Virginia.44 (BOEM

identifies the adjoining states based on defined administrative boundaries, but, depending on

offtake agreements between wind developers and power purchasers, the power could be delivered

to a different state.45) In June 2021, BOEM issued a proposed sale notice for a new wind lease

sale in the New York Bight, an ocean area lying between Long Island and the New Jersey coast.46

In November 2021, BOEM issued a proposed sale notice for a lease sale in the Carolina Long

Bay area offshore of the Carolinas (see text box, “The Carolinas and Southward: President

Trump’s Leasing Withdrawals”).47 BOEM also has engaged in preliminary discussions regarding

wind leasing off other Atlantic states, such as through its Gulf of Maine Task Force.48

Congress could influence the scope and pace of BOEM’s Atlantic wind leasing through

legislation and oversight. Some Members and other stakeholders have advocated for expediting

wind lease sales in the Atlantic, contending that additional sales are needed to enable East Coast

states to meet renewable power commitments and that the sales will lead to economic benefits

and employment in the offshore wind sector. For example, these advocates point to a report

commissioned by offshore wind industry groups that estimated significant job creation and capital

investment from a BOEM lease sale in the New York Bight.49

Other Members and stakeholders have expressed a contrasting concern that Atlantic wind leasing

has proceeded too quickly, especially in consideration of potential conflicts with other ocean uses,

such as fishing. These stakeholders have emphasized the economic benefits accruing to northeast

44 For more information, see BOEM, “Lease and Grant Information,” at https://www.boem.gov/renewable-energy/

lease-and-grant-information; and BOEM, “State Activities,” at https://www.boem.gov/renewable-energy/stateactivities.

45 See Table 1, note (a), for additional information.

46 BOEM, “Atlantic Wind Lease Sale 8 (ATLW–8) for Commercial Leasing for Wind Power on the Outer Continental

Shelf in the New York Bight—Proposed Sale Notice,” 86 Federal Register 31524, June 14, 2021. In March 2021,

BOEM announced the identification of wind energy areas (WEAs) for the New York Bight area (BOEM, “BOEM

Advances Offshore Wind in Major U.S. East Coast Energy Market,” press release, March 29, 2021, at

https://www.boem.gov/boem-advances-offshore-wind-major-us-east-coast-energy-market). In August 2021, BOEM

published a draft environmental assessment for the sale (BOEM, Commercial and Research Wind Lease and Grant

Issuance and Site Assessment Activities on the Atlantic Outer Continental Shelf of the New York Bight: Draft

Environmental Assessment, August 2021, at https://www.boem.gov/sites/default/files/documents/renewable-energy/

state-activities/NY-Bight-Draft-EA-2021.pdf).

47 BOEM, “Atlantic Wind Lease Sale 9 (ATLW-9) for Commercial Leasing for Wind Power on the Outer Continental

Shelf in the Carolina Long Bay Area—Proposed Sale Notice,” 86 Federal Register 60274, November 1, 2021, at

https://www.federalregister.gov/documents/2021/11/01/2021-23801/atlantic-wind-lease-sale-9-atlw-9-for-commercialleasing-for-wind-power-on-the-outer-continental.

48 See BOEM, “Maine Activities,” at https://www.boem.gov/renewable-energy/state-activities/maine-activities.

49 Feng Zhang, Maxwell Cohen, and Aaron Barr, Economic Impact Study of New Offshore Wind Lease Auctions by

BOEM, Wood Mackenzie Power and Renewables, August 2020, at https://bit.ly/33qRcf6. The report estimated that

leasing in the New York Bight would support up to 11.5 gigawatts of offshore wind development, would create more

than 32,000 jobs annually during the construction phase and almost 6,000 jobs annually thereafter, and would generate

capital investment of more than $45 billion during the construction phase and more than $750 million annually

thereafter. The estimate assumed an “optimistic” policy scenario under which both “primary” and “secondary” areas

identified by BOEM would be leased. The American Wind Energy Association (AWEA), National Ocean Industries

Association, New York Offshore Wind Alliance, and Special Initiative on Offshore Wind at the University of Delaware

commissioned the report. See National Ocean Industries Association, “Offshore Energy Industry Releases Economic

Impact Study of New Federal Offshore Wind Lease Auctions,” August 4, 2020, at https://www.noia.org/offshoreenergy-industry-releases-economic-impact-study-new-federal-offshore-wind-lease-auctions/. For other industry

estimates, see, for example, AWEA, U.S. Offshore Wind Power Economic Impact Assessment, March 2020, at

https://cleanpower.org/resources/u-s-offshore-wind-economic-impact-assessment/.

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states from the seafood industry and potential obstacles posed to that industry by a fast pace of

offshore wind development. Some stakeholders have questioned whether BOEM may be using

incomplete data on fisheries, or gathering insufficient input from seafood industry groups, when

making leasing decisions.50 For further discussion, see the section on “Permitting Activities and

Issues.”

The Carolinas and Southward: President Trump’s Leasing Withdrawals

Within the Atlantic region, the Bureau of Ocean Energy Management’s (BOEM’s) southernmost wind lease sale to

date has been for the Kitty Hawk area offshore of North Carolina. On September 8 and September 25, 2020,

President Trump used his authority under Section 12(a) of the Outer Continental Shelf Lands Act (OCSLA; 43

U.S.C. §1341(a)) to issue two memoranda that collectively withdraw from disposition by leasing, through June

2032, the southern portion of BOEM’s Atlantic region. This area includes waters off North Carolina and all areas

to the south, as well as the majority of the Eastern Gulf planning area in the Gulf of Mexico region. Although some

previous presidential withdrawals under Section 12(a) specifically applied to oil and gas leasing or to mineral

leasing, President Trump’s Atlantic and Gulf of Mexico withdrawals do not contain such language. At the time of

the withdrawal, BOEM reportedly stated its interpretation that the President’s memoranda prohibit offshore wind

leasing as well as oil and gas leasing in the affected areas. However, in November 2021, BOEM published a

proposed sale notice for a lease sale in the Carolina Long Bay area, which lies within President Trump’s

withdrawal area. Legislation in the 117th Congress (e.g., H.R. 2635, H.R. 5376) would explicitly authorize wind

leasing in the withdrawn areas, and the House-passed Interior appropriations bill for FY2022 (H.R. 4502) would

prohibit the use of funds to implement President Trump’s withdrawals with respect to offshore wind.

Pacific Region Activities and Issues

BOEM has engaged in preliminary offshore wind planning activities in the Pacific region,

including off the coasts of California and Hawaii.51 Some observers have identified California as

a promising area for offshore wind, particularly because the populous state has enacted legislation

to source 100% of its electricity from zero-carbon sources by 2045.52 Because water depths drop

rapidly off the California coast, projects in federal waters likely would require floating wind

turbines; this technology has not been deployed in the United States and is costlier than the fixedbottom turbines usable in shallower waters.53

50 See, for example, Responsible Offshore Development Alliance (RODA), “Gulf of Maine Offshore Wind,” at

https://rodafisheries.org/portfolio/gulf-of-maine-osw/; and letter from Senators Markey, Whitehouse, Warren, and Reed

to BOEM Acting Director Walter Cruickshank, December 14, 2018, at https://www.markey.senate.gov/imo/media/doc/

Minimizing%20Conflicts%20Offshore%20Wind%20&%20Fishing.pdf.

51 BOEM also has undertaken some preliminary planning activities off the coast of Oregon but has not initiated the

formal wind planning process by identifying a call area for Oregon. For more information, see BOEM, “Oregon

Activities,” at https://www.boem.gov/Oregon.

52 On California renewable power commitments, see Energy Information Administration (EIA), “California: State

Profile and Energy Estimates,” at https://www.eia.gov/state/analysis.php?sid=CA. California’s Senate Bill 100 (SB

100), The 100 Percent Clean Energy Act of 2018, did not define zero-carbon resources. The California Energy

Commission (CEC), California Public Utilities Commission, and California Air Resources Board interpreted zerocarbon resources to mean energy resources that qualify as renewable or generate zero greenhouse gas emissions on-site

in a report. See CEC, 2021 SB100 Joint Agency Report: Achieving 100 Percent Clean Electricity in California: An

Initial Assessment, CEC-200-2021-001, March 2021, p. 54, at https://efiling.energy.ca.gov/EFiling/GetFile.aspx?tn=

237167&DocumentContentId=70349.

53 For more information, see the “Overview of Offshore Wind Technology” section of this report. A floating offshore

wind research array has been proposed off the coast of Maine in federal waters. For more information, see State of

Maine, Governor’s Energy Office, “Gulf of Maine Floating Offshore Wind Research Array,” at

https://www.maine.gov/energy/initiatives/offshorewind/researcharray.

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In 2018, BOEM published a call for information and nominations to assess interest in offshore

wind leasing in certain areas off Central and Northern California.54 These call areas had been the

subject of commercial wind developers’ unsolicited leasing requests to BOEM and had been

identified as having high average wind speeds (Figure 5) and available transmission

infrastructure.55 Until May 2021, BOEM had not taken the next step of identifying WEAs most

suitable for leasing within the California call areas. A complication in finalizing the WEAs was

DOD’s concern about potential conflict between offshore wind development and military training

and readiness activities in these areas, especially off the central coast.56 In May 2021, BOEM

announced an agreement under which the agency, in partnership with DOD and the State of

California, has identified two potential WEAs off the central and northern coasts of California.57

Following the completion of environmental analysis and input from stakeholders and the public,

BOEM anticipates a possible lease sale for the two WEAs in mid-2022. BOEM stated that it “will

work with the Department of Defense to ensure long-term protection of military testing, training

and operations, while pursuing new domestic clean energy resources.”58

BOEM also published a call for information and nominations for areas offshore of Oahu, HI, in

2016.59 The agency had received several unsolicited requests from commercial wind developers

to lease in these areas. Hawaii has enacted legislation setting a deadline to transition to 100%

renewable electricity by 2045.60 As with California, wind projects offshore of Hawaii likely

would require floating turbines, given water depths. BOEM has not yet identified WEAs within

the Hawaii call areas. Supporters of Hawaiian offshore wind development contend it could reduce

dependence on expensive imported petroleum for electricity, in addition to creating jobs and

fostering economic growth in the state.61 A challenge for wind development offshore of Oahu

54 For more information, see BOEM, “California Activities,” at https://www.boem.gov/california. In this context, a

nomination would be the submission of a company’s commercial interest in obtaining a wind energy lease within the

call area.

55 BOEM, “California Offshore Renewable Energy,” fact sheet, 2017, at https://www.boem.gov/sites/default/files/

renewable-energy-program/State-Activities/CA/BOEM-Offshore-Renewables-Factsheet—02-22-17.pdf.

56 See, for example, U.S. Navy, California Offshore Planning Areas: Informational & Operational Overview, February

15, 2018, at https://efiling.energy.ca.gov/Lists/DocketLog.aspx?docketnumber=17-MISC-01%20. Legislative

provisions passed by the House in the 116th Congress (House-passed H.R. 6395, National Defense Authorization Act

for FY2021) would have specified parameters under which DOD would have been required to engage with BOEM and

other entities to identify wind leasing options in California’s Morro Bay call area. However, this provision was not

included in the law (P.L. 116-283). Included in the House Appropriations Committee report to accompany H.R. 2968,

the Department of Defense Appropriations Bill, 2020 (H.Rept. 116-84), was a direction to the Secretary of Defense to

submit a report to the congressional defense committees to address “any potential national security concerns with

respect to the construction of offshore wind arrays, to include an examination of legacy and new turbines, and any

appropriate mitigation measures that should be implemented to address these concerns.”

57 BOEM, “Biden-Harris Administration Advances Offshore Wind in the Pacific,” press release, May 25, 2021, at

https://www.doi.gov/pressreleases/biden-harris-administration-advances-offshore-wind-pacific.

58 Ibid.

59 BOEM, “Call for Information and Nominations for Commercial Leasing for Wind Power on the Outer Continental

Shelf, Offshore the Island of Oahu, Hawaii,” 81 Federal Register 41335, June 24, 2016, at

https://www.federalregister.gov/documents/2016/06/24/2016-14830/commercial-leasing-for-wind-power-on-the-outercontinental-shelf-offshore-the-island-of-oahu. For a map of the call areas, see BOEM, “Map Showing the Hawaii Call

for Information and Nominations,” at https://www.boem.gov/Hawaii-commercial-wind-lease-areas/. For general

information, see BOEM, “Hawaii Activities,” at https://www.boem.gov/renewable-energy/state-activities/hawaiiactivities.

60 EIA, “Hawaii State Energy Profile,” at https://www.eia.gov/state/print.php?sid=HI; and Hawaii State Energy Office,

“Hawaii Clean Energy Initiative,” at http://energy.hawaii.gov/testbeds-initiatives/hcei.

61 On potential economic impacts of offshore wind development in Hawaii, see BOEM and NREL, Floating Offshore

Wind in Hawaii: Potential for Jobs and Economic Impacts from Two Future Scenarios, April 2016, at

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could potentially be concerns from DOD, owing to naval activities in the area.62 Some have raised

additional concerns about access to fishing grounds in offshore wind areas, visibility of turbines

from shore, potential disturbances to marine life, and encroachment into ocean areas sacred to

Native Hawaiians.63

Offshore Wind and U.S.Territories

OCSLA and its offshore wind leasing provisions (43 U.S.C. §1337(p)) currently do not apply to the exclusive

economic zones of U.S. territories and possessions. Bills introduced in the 117th Congress (e.g., H.R. 2780, H.R.

3764, H.R. 5376) and previous Congresses would authorize BOEM to conduct wind lease sales offshore of U.S.

territories and possessions, and would require the agency to study the technological and economic feasibility, as

well as the environmental effects, of offshore wind leasing in the territorial jurisdictions of American Samoa,

Guam, the Commonwealth of the Northern Mariana Islands, Puerto Rico, and the U.S. Virgin Islands.

Congressional supporters have expressed interest in offshore wind as a potential way to address high energy costs

and dependence on imported petroleum in the territories. The five territories covered by the proposed study all

have set renewable energy targets, such as American Samoa’s goal of 100% renewable energy by 2040 and Puerto

Rico’s goal of 100% renewable energy by 2050.

Gulf of Mexico Region Activities and Issues

In February 2020, BOEM and NREL completed two studies exploring possibilities for offshore

wind development in the Gulf of Mexico.64 The first study considered various offshore renewable

technologies (wind, wave, tidal, current, solar, and others) and determined that offshore wind is

the “leading” renewable technology for application in the Gulf, given the region’s wind resource

potential and the relative maturity of offshore wind compared to the other renewable

technologies.65 The second study considered the economic feasibility of offshore wind for sites in

the Gulf. It found several potential development sites where wind might become cost-competitive

without subsidies by 2030, including sites off Port Isabel, TX; Port Arthur, TX; and Pensacola,

FL, among others. The study estimated that a single offshore wind project in the Gulf could

contribute more than 4,000 jobs and $445 million in gross domestic product (GDP) to the

economy during the construction phase, as well as an ongoing 150 jobs and $14 million in GDP

during project operations.66

The BOEM and NREL studies found the Gulf advantageous for offshore wind development in

several ways. For example, the presence of a robust supply chain for offshore oil and gas in the

region—which could be transitioned for wind development—could lower costs for fabrication,

installation, and maintenance of offshore wind infrastructure. The Gulf’s shallow waters, mild

temperatures, and relatively low average wave heights also could facilitate turbine siting and

https://www.nrel.gov/docs/fy16osti/65481.pdf.

62 See DOE, Office of Energy Efficiency and Renewable Energy, 2017 Offshore Wind Technologies Market Update,

August 2018, pp. 31, 69, at https://www.energy.gov/sites/prod/files/2018/08/f54/71709_0.pdf.

63 See, for example, Heather Richards, “Hawaii NIMBY Fight Reveals Biden Offshore Wind Challenge,” Energywire,

April 6, 2021, at https://www.eenews.net/energywire/stories/1063728671/print.

64 BOEM and NREL, Survey and Assessment of the Ocean Renewable Energy Resources in the U.S. Gulf of Mexico,

OCS Study BOEM 2020-017, February 2020, at https://espis.boem.gov/final%20reports/BOEM_2020-017.pdf; and

BOEM and NREL, Offshore Wind in the U.S. Gulf of Mexico: Regional Economic Modeling and Site-Specific

Analyses, OCS Study BOEM 2020-018, February 2020, at https://espis.boem.gov/final%20reports/BOEM_2020018.pdf (hereinafter cited as BOEM and NREL, Offshore Wind in the Gulf).

65 BOEM, “Availability of Two New Studies on Renewable Energy in the Gulf of Mexico,” press release, April 23,

2020. On the offshore wind resource potential in the Gulf, see NREL, 2016 Assessment.

66 BOEM and NREL, Offshore Wind in the Gulf, p. xv.

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accessibility for maintenance. However, the study also identified challenges for offshore wind in

the Gulf region, particularly the need to adapt wind technologies to withstand the region’s

hurricane potential, relatively low average wind speeds (see Figure 5), and weak soils on the

seafloor.

Unlike many Atlantic and Pacific coast states, most Gulf coast states do not have renewable

energy mandates.67 However, some Gulf coast states have expressed interest in exploring offshore

wind development. In November 2020, Louisiana Governor John Bel Edwards requested that

BOEM establish a task force to explore Gulf offshore wind, a potential first step toward wind

leasing.68 In June 2021, BOEM published a request for interest in offshore wind and other

renewable technologies in the Central and Western planning areas of the Gulf and announced its

intention to establish a Gulf of Mexico Renewable Energy Task Force.69 BOEM’s request for

interest did not include the Eastern Gulf of Mexico planning area (see text box above, “The

Carolinas and Southward: President Trump’s Leasing Withdrawals”).70 In November 2021,

BOEM took the next step in potential Gulf wind leasing by publishing a call for information and

nominations for an area off the coasts of Louisiana and Texas.71

More broadly, the general development of offshore wind in the United States has been of interest

to Gulf coast states and some of their Members of Congress, owing to potential economic

opportunities the new industry could create for Gulf-based businesses that traditionally have

served the offshore oil and gas industry. For example, facilities in the Gulf are participating in

developing some of the first U.S. offshore wind supply vessels for work on offshore wind projects

in the Atlantic region (see section on “Deployment Issues,” below).72

Alaska Region Activities and Issues

An NREL assessment found that Alaska has a technical offshore wind resource capacity larger

than that of all other U.S. states combined.73 However, the study also identified “significant

challenges [that] inhibit large-scale offshore wind deployment in Alaska,” including the

“remoteness” of the offshore wind resources, their distance from load centers in the state, and the

67 Texas has a mandate that 10,000 megawatts (MW) of the state’s electricity-generating capacity come from renewable

sources by 2025, but the state has already surpassed this goal, owing mostly to its onshore wind energy generation. See

EIA, “Texas: State Profile and Energy Estimates,” at https://www.eia.gov/state/analysis.php?sid=TX.

68 Louisiana Office of the Governor, “Gov. Edwards Announces Renewable Energy Initiative for Gulf of Mexico,”

press release, November 9, 2020, at https://gov.louisiana.gov/index.cfm/newsroom/detail/2790.

69 BOEM, “Interior Department to Explore Offshore Wind Potential in the Gulf of Mexico,” press release, June 8,

2021, at https://www.doi.gov/pressreleases/interior-department-explore-offshore-wind-potential-gulf-mexico.

70 President Donald Trump, “Memorandum on the Withdrawal of Certain Areas of the United States Outer Continental

Shelf from Leasing Disposition,” September 8, 2020, at https://trumpwhitehouse.archives.gov/presidential-actions/

memorandum-withdrawal-certain-areas-united-states-outer-continental-shelf-leasing-disposition/.

71 BOEM, “Call for Information and Nominations—Commercial Leasing for Wind Power Development on the Outer

Continental Shelf in the Gulf of Mexico,” 86 Federal Register 60283, November 1, 2021, at https://www.

federalregister.gov/documents/2021/11/01/2021-23800/call-for-information-and-nominations-commercial-leasing-forwind-power-development-on-the-outer.

72 See, for example, Rep. Garret Graves, “Graves Announces Edison Chouest Executes a Long-Term Charter

Agreement for First-Ever U.S. Jones Act Compliant Windfarm Service Operation Vessel,” press release, October 2,

2020, at https://garretgraves.house.gov/media-center/press-releases/graves-announces-edison-chouest-executes-longterm-charter-agreement; and Dominion Energy, “Dominion Energy Continues Development of First Jones Act

Compliant Offshore Wind Turbine Installation Vessel,” press release, December 16, 2020, at https://news.

dominionenergy.com/2020-12-16-Dominion-Energy-Continues-Development-of-First-Jones-Act-Compliant-OffshoreWind-Turbine-Installation-Vessel.

73 NREL, 2017 Assessment, p. v. Also see footnote 2.

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“wealth of land” available for onshore wind development.74 Alaska has a goal to supply 50% of

its electricity from renewable sources by 2025 and has pursued hydropower, biomass, and

onshore wind projects, among others.75 BOEM has not undertaken any offshore wind leasing

activities in Alaska to date.76

Permitting Activities and Issues

Lessees in the Atlantic region have submitted site assessment plans (SAPs) and construction and

operation plans (COPs) for offshore wind projects on the leases they hold (Table 1). To date, DOI

has approved multiple SAPs and two COPs—the COP submitted in December 2017 by the

offshore lessee Vineyard Wind, LLC, for the Vineyard Wind 1 project off the coast of

Massachusetts, and the COP submitted by South Fork Wind, LLC, for the South Fork Wind Farm,

located off the coasts of Rhode Island and Massachusetts and supplying power to New York.77

The approval of a COP enables the issuance of permits for wind turbine construction and

operation.78

BOEM also has announced further work on pending COPs for other projects. In general, BOEM

anticipates that construction on many Atlantic region projects, if approved, would take place

between now and 2030, potentially resulting in installation of some 2,000 offshore turbines in the

region with up to 22 gigawatts of generating capacity.79

Fishing Industry Concerns

Commercial fishing groups have expressed concerns about potential impacts to their industry

from offshore turbine construction and operation in the Atlantic region, including potential effects

on fish stocks and fishing vessel navigation, among others.80 Partly in response to such concerns,

74 NREL, 2017 Assessment, p. v.

75 EIA, “Alaska: State Profile and Energy Estimates,” at https://www.eia.gov/state/analysis.php?sid=AK.

76 NREL has explored the potential for other types of offshore renewable energy (apart from offshore wind) in the

Alaska region, such as marine hydrokinetic energy. See, for example, NREL, “Harnessing Marine Energy at All Scales,

from a Village Microgrid to a Vast Tidal Inlet: NREL Leads Pioneering Alaska Projects,” March 24, 2020, at

https://www.nrel.gov/news/program/2020/harnessing-marine-energy-at-all-scales.html.

77 DOI, Record of Decision: Vineyard Wind 1 Offshore Wind Energy Project Construction and Operations Plan, May

10, 2021, at https://www.boem.gov/renewable-energy/state-activities/final-record-decision-vineyard-wind-1

(hereinafter cited as DOI, Vineyard Wind ROD), and DOI, Record of Decision: South Fork Wind Farm and South Fork

Export Cable Project Construction and Operations Plan, November 24, 2021, at https://www.boem.gov/sites/default/

files/documents/renewable-energy/state-activities/Record%20of%20Decision%20South%20Fork_0.pdf (hereinafter

cited as DOI, South Fork ROD). For the two-turbine pilot project operating off the coast of Virginia, DOI approved an

RAP rather than a COP, because the project was leased under a research lease. See BOEM, “Coastal Virginia Offshore

Wind Project (CVOW),” at https://www.boem.gov/renewable-energy/state-activities/coastal-virginia-offshore-windproject-cvow.

78 In addition to BOEM, the National Marine Fisheries Service (NMFS) within the National Oceanic and Atmospheric

Administration (NOAA), as well as the U.S. Army Corps of Engineers, can potentially sign on to DOI’s record of

decision for a COP, thus fulfilling these agencies’ NEPA obligations with respect to permits they administer for an

offshore wind project (for more information, see CRS Report R40175, Wind Energy: Offshore Permitting, by Adam

Vann). For example, these agencies all concurred on the Vineyard Wind 1 COP (BOEM, Vineyard Wind ROD, p. 3).

Alternatively, other agencies could issue separate decisions based on their evaluations.

79 BOEM, Vineyard Wind 1 Offshore Wind Energy Project: Final Environmental Impact Statement, vol 1, p. 1-6, at

https://www.boem.gov/renewable-energy/state-activities/vineyard-wind-1-feis-volume-1; and vol. 2, Appendix A, at

https://www.boem.gov/renewable-energy/state-activities/vineyard-wind-1-feis-volume-2.

80 See, for example, RODA, “RODA Statement on Recent Developments in Southern New England Offshore Wind,”

March 3, 2021, at https://rodafisheries.org/southern-new-england-offshore-wind/; and other RODA statements at

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BOEM undertook a supplement to its draft EIS for the Vineyard Wind 1 COP to analyze

additional fishing data and consider cumulative impacts of potentially widespread wind

development throughout the region.81 With respect to industry concerns about safe navigation for

fishing vessels through wind turbine arrays, BOEM’s supplemental EIS considered an alternative

for Vineyard Wind’s turbine layout involving a designated transit lane suggested by fishing

industry groups.82 The U.S. Coast Guard also published a study on turbine spacing and vessel

transit in wind lease areas off Massachusetts and Rhode Island.83 The Coast Guard study

recommended a “standard and uniform” turbine grid layout with commercial fishing lanes

measuring 1 nautical mile (nm) wide and oriented in an east-west direction. Fishing industry

groups published objections to the study’s findings.84 In May 2021, DOI issued a record of

decision (ROD) for the Vineyard Wind COP, approving a turbine grid arrangement largely

consistent with the Coast Guard recommendations.85

DOI also approved a similar layout, with 1-nm spacing, in its ROD for the South Fork project,

rather than a proposal by fishing industry groups for a 4-nm-wide transit lane. DOI stated that the

fishing industry proposal would “unnecessarily reduce the energy production potential of the

lease,” given the Coast Guard’s finding that turbines with 1-nm spacing would safely

accommodate fishing and transit.86 Fishing industry groups also had raised concerns about

potential interference with marine radar from turbines, impacts to sensitive fish habitat, and the

availability of compensatory mitigation for fishing communities.87 DOI chose a “Habitat

Alternative” for the South Fork project that reduced the number of allowed turbines (from the 15

proposed by the developer to a maximum of 12) to reduce impacts to complex fisheries habitats.

Other Permitting Issues

Some stakeholders have expressed additional concerns about offshore wind permitting as Atlantic

region projects have begun to advance. For example, some individuals and communities have

https://rodafisheries.org/.

81 BOEM, Vineyard Wind 1 Offshore Wind Energy Project: Supplement to the Draft Environmental Impact Statement,

June 2020, at https://www.boem.gov/sites/default/files/documents/renewable-energy/Vineyard-Wind-1-Supplement-toEIS.pdf. BOEM stated (p. ES-2) that its assessment of the scope of future offshore wind development had “greatly

expanded from what was considered in the Draft EIS, which only considered in detail projects that had submitted

construction plans (approximately 130 MW) in federal waters at that time.” For the supplemental EIS, BOEM assumed

“approximately 22 gigawatts of Atlantic offshore wind development are reasonably foreseeable along the east coast.”

82 Ibid., pp. 2-3 to 2-6.

83 U.S. Coast Guard, The Areas Offshore of Massachusetts and Rhode Island Port Access Route Study: Final Report,

Docket No. USCG-2019-0131, May 14, 2020, at https://www.regulations.gov/document?D=USCG-2019-0131-0101.

84 See letter from RODA to U.S. Coast Guard, “REQUEST FOR CORRECTION: Massachusetts/Rhode Island Port

Access Route Study; Docket No. USCG-2019-0131,” June 29, 2020, at https://rodafisheries.org/wp-content/uploads/

2020/07/200629-MARIPARS-correction-RODA.pdf. Some fishing groups objected to “key errors” in the study, which

they characterized as including “inappropriate selection of fisheries data sources,” “absence of analysis of fishing

vessel operational requirements,” “unjustified analysis of only one layout design rather than a range,” “inclusion of

clear mathematical errors,” and “false assertions regarding radar interference.” On October 27, 2020, the Coast Guard

sent the fishing groups a response denying the request for a correction (letter from U.S. Coast Guard to RODA, October

27, 2020, at https://rodafisheries.org/wp-content/uploads/2020/10/RESPONSE-TO-RODA-SIGNED-10-27-2019.pdf).

85 DOI, Vineyard Wind ROD. For further details, see BOEM, Vineyard Wind 1 Offshore Wind Energy Project: Final

Environmental Impact Statement, March 12, 2021, at https://www.boem.gov/vineyard-wind.

86 DOI, South Fork ROD, p. 15.

87 See, for example, RODA comments on the South Fork draft EIS, February 22, 2021, at https://rodafisheries.org/wpcontent/uploads/2021/02/210222-SFWF_DEIS.pdf; and “RODA Statement on Recent Developments in Southern New

England Offshore Wind,” March 3, 2021, at https://rodafisheries.org/southern-new-england-offshore-wind/.

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objected to proposed projects because of the potential visibility of offshore wind turbines from

shore.88 In response to such concerns, DOI’s chosen alternative for the Vineyard Wind project

included an area where no surface occupancy (i.e., no wind turbines) would be allowed, in order

to reduce visibility.89 Others have cited potential impacts to birds and marine mammals from

offshore wind development as a cause of concern (see text box, “Offshore Wind and Marine

Wildlife”).90

Offshore Wind and Marine Wildlife

Federal agencies and other researchers are studying the effects of offshore wind energy development on marine

wildlife, including birds, marine mammals, sea turtles, fish, and other species. Research studies have considered

multiple ways in which offshore wind may affect marine wildlife at different stages of wind project development.

For example, researchers have studied potential impacts from animals’ collisions with turbines or construction

vessels, noise associated with project development, displacement from traditional habitat areas, changes in prey

availability, and animals’ sensitivity to changes in local geomagnetic fields from the anthropogenic electromagnetic

fields emitted by power transmission cables. Some researchers also have pointed to potential benefits to marine

wildlife from offshore wind development, including direct benefits, such as artificial reef development on offshore

wind structures, and indirect benefits stemming from offshore wind’s potential to reduce greenhouse gas

emissions.

Federal agencies must adhere to statutory requirements related to wildlife, pursuant to several laws relevant to

offshore wind development. For example, the National Environmental Policy Act (42 U.S.C. §4321) requires

agencies to assess potential effects on wildlife in environmental analyses of offshore wind lease sales, plans, and

permits. Some species also are protected under other statutes, such as the Marine Mammal Protection Act

(MMPA; 16 U.S.C. §§1361 et seq.), Endangered Species Act (ESA; 16 U.S.C. §§1531 et seq.), and Migratory Bird

Treaty Act (16 U.S.C. §§703-712).

In its final environmental impact statement (EIS) for the Vineyard Wind construction and operations plan, BOEM

found that its preferred alternative for the project would have adverse impacts on birds, fish, marine mammals,

and other living resources ranging in strength from negligible to moderate, as well as some minor to moderate

beneficial impacts. The record of decision (ROD) for the Vineyard Wind project, jointly issued by BOEM and

partnering agencies—the Army Corps of Engineers and the National Oceanic and Atmospheric Administration’s

National Marine Fisheries Service (NMFS)—requires Vineyard Wind to undertake mitigation, monitoring, and

reporting activities to reduce potential harm to wildlife. For instance, the developer’s mitigation activities could

include installing bird deterrent devices on turbines, adopting various best management practices for construction,

and adhering to seasonal work restrictions to protect marine wildlife at sensitive life stages, among others. The

ROD anticipated that the mitigation steps would result in the project having overall “neutral effects” on fish and

wildlife. As part of the ROD (Section 5.3.1), NMFS indicated its decision to approve an incidental harassment

authorization under the MMPA to take “small numbers” of marine mammals during construction of the wind

project. The MMPA (16 U.S.C. §1362) defines take as “to harass, hunt, capture, or kill, or attempt to harass, hunt,

capture, or kill any marine mammal.”

Supporters of Atlantic offshore wind projects also have raised issues, including about whether the

pace of BOEM’s permitting has been unnecessarily slow, causing project delays for wind

developers.91 Congress has expressed interest in the pipeline of wind projects in the Atlantic

88 For example, visibility concerns have been at issue in the development of wind projects off the Maryland shore; see,

for example, Heather Richards, “NIMBY Concerns Threaten Md. Plans for Bigger Turbines,” EnergyWire, January 2,

2020, at https://www.eenews.net/energywire/stories/1061970701/; and Heather Richards, “Inside the Fight over Md.

Offshore Wind Project,” EnergyWire, January 24, 2020, at https://www.eenews.net/energywire/stories/1062151633/.

89 BOEM, Vineyard Wind ROD. BOEM has defined surface occupancy as “the placement of wind facilities” (see, e.g.,

BOEM, “Commercial Leasing for Wind Power on the Outer Continental Shelf Offshore North Carolina—Call for

Information and Nominations,” 77 Federal Register 74204, December 13, 2012).

90 For BOEM studies of the wildlife impacts of offshore wind development, see BOEM, “Renewable Energy Research

Completed Studies,” at https://www.boem.gov/renewable-energy-research-completed-studies.

91 See, for example, David Iaconangelo, “Largest U.S. Offshore Wind Developer May Delay 5 Projects,” EnergyWire,

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region, and legislators have considered whether BOEM needs additional staff and financial

resources to review the growing number of submitted COPs.92 In appropriations acts for FY2020

and FY2021, Congress appropriated additional funding to BOEM beyond amounts requested for

the agency’s Renewable Energy account to improve permitting capacity for offshore wind

projects.93 For FY2022, BOEM requested an increase of 60% over FY2021 funding for its

Renewable Energy account to increase its workforce capacity, among other purposes.94

Deployment Issues

Congress may consider multiple issues pertaining to deployment of offshore wind energy

projects. Potential issues relate to domestic capacity for construction and installation of offshore

wind infrastructure in the coming years, and to the ability to sell into domestic electricity markets.

Jones Act and Port Infrastructure Considerations

The Jones Act requires that vessels transporting cargo from one U.S. point to another U.S. point

be (1) U.S.-built and (2) owned and crewed by U.S. citizens. Under the Jones Act, vessels

carrying offshore wind supplies and vessels for offshore wind turbine installation that travel from

U.S. ports to project sites on the OCS must be built in the United States, registered under the U.S.

flag, and owned and crewed by U.S. citizens.95 The Government Accountability Office (GAO)

reported in December 2020 that the United States had no domestic-built vessels capable of

transporting and installing wind turbines of the size planned for many upcoming projects.96 The

GAO report described two potential strategies for wind developers to comply with the Jones Act.

In the first strategy, a Jones Act-compliant wind turbine installation vessel would carry turbine

components from a U.S. port to the project site and install them. In the second strategy, a foreignflagged vessel would travel from a foreign port to install the turbines, but a Jones Act-compliant

feeder vessel would transport the components to the site from a U.S. port.97 In both scenarios,

April 30, 2020, at https://www.eenews.net/energywire/stories/1063007345/.

92 See, for example, Silvio Marcacci, “Four Federal Policies Could Help Offshore Wind Jump Start Our Coronavirus

Economic Recovery,” Forbes, March 24, 2020, at https://www.forbes.com/sites/energyinnovation/2020/03/24/thesefederal-policies-could-help-offshore-wind-jump-start-americas-economic-recovery/?sh=2a0014da78cc.

93 For more information, see CRS In Focus IF11405, Offshore Energy Agency Appropriations, FY2020, by Laura B.

Comay; and CRS In Focus IF11752, Offshore Energy Agency Appropriations, FY2021, by Laura B. Comay.

94 BOEM, Budget Justifications and Performance Information, Fiscal Year 2022, at https://www.doi.gov/sites/doi.gov/

files/fy2022-boem-budget-justification.pdf.

95 46 U.S.C. §55102. For more information on the Jones Act (Section 27 of the Merchant Marine Act of 1920; P.L. 66261), see CRS Report R45725, Shipping Under the Jones Act: Legislative and Regulatory Background, by John

Frittelli. The National Defense Authorization Act for Fiscal Year 2021 (NDAA; P.L. 116-283, §9503) contained

provisions concerning jurisdiction over the OCS; these provisions have been interpreted to clarify the applicability of

the Jones Act to offshore wind project sites on the OCS. See, for example, Rep. John Garamendi, “Congress Passes

Garamendi Amendment Requiring Jones Act Enforcement in Offshore Wind,” press release, December 11, 2020, at

https://garamendi.house.gov/media/press-releases/congress-passes-garamendi-amendment-requiring-jones-actenforcement-offshore. Although the NDAA provisions clarified that the coastwise laws apply generally to wind

projects, U.S. Customs and Border Patrol is primarily responsible for determining what activities fall under the act,

namely, defining what constitutes “transportation” and whether the origin and destination of a voyage are “U.S. points”

(19 C.F.R. §§4.80-4.93).

96 GAO, Offshore Wind Energy: Planned Projects May Lead to Construction of New Vessels in the U.S., but Industry

Has Made Few Decisions amid Uncertainties, GAO-21-153, December 2020, at https://www.gao.gov/products/gao-21153 (hereinafter cited as GAO, Offshore Wind Energy).

97 Wind turbine installation vessels (WTIVs) are designed specifically for the installation of wind turbines. WTIVs

have a large deck and can elevate on legs to lift the vessel out of the water. WTIVs also have a crane to lift and place

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stakeholders identified a need to build new Jones Act-compliant vessels, especially to handle

increasingly large turbine components expected to be used in future projects. Dominion Energy

announced that it contracted with Keppel AmFELS to begin construction of the first Jones Actcompliant offshore wind turbine installation vessel.98

Congress may consider whether to incentivize U.S. vessel construction through financial

assistance, job training programs,99 or other mechanisms and whether to provide infrastructure

funding for U.S. port facilities that could serve as staging areas for offshore wind installation

activities.100 Relatedly, Congress may consider whether to incentivize the manufacturing of

offshore wind components.101 Other considerations may include whether to introduce additional

requirements; for example, some states have required hiring priorities for companies developing

offshore wind projects.102 Another option could be to amend the Jones Act to exempt the offshore

wind industry.

Electricity Transmission Considerations

With offshore wind projects moving forward in the Atlantic region, some stakeholders have

identified potential issues with access to markets to sell the generated electricity. One potential

challenge is ensuring the markets operate in a manner that is competitive to both new generators

(e.g., offshore wind farms) and existing generators. Another potential challenge is ensuring there

is sufficient infrastructure and demand in place to accept the generated electricity and direct the

electricity to consumers.

Access to markets is a key consideration for the success of the offshore wind industry. According

to DOE, “capital expenditures (CapEx) are the single largest contributor to the life cycle costs of

offshore wind power plants and include all expenditures incurred prior to the start of commercial

operation.”103 CapEx data are typically self-reported by developers; because of this, the data are

uncertain. For example, independent verification of the data may not be possible, and some

expenditures may or may not be included in the data.104 Researchers at the National Renewable

Energy Laboratory have estimated that both CapEx and operation and maintenance expenditures

turbines. Such vessels can cost up to $500 million, according to GAO. GAO, Offshore Wind Energy, p. 14.

98 Dominion Energy, “Dominion Energy Continues Development of First Jones Act Compliant Offshore Wind Turbine

Installation Vessel,” news release, December 16, 2020, at https://news.dominionenergy.com/2020-12-16-DominionEnergy-Continues-Development-of-First-Jones-Act-Compliant-Offshore-Wind-Turbine-Installation-Vessel.

99 Multiple proposals have been introduced in the 117th Congress related to job training programs for offshore wind,

including proposed grant programs under the Secretary of Energy (e.g., S. 2501) and the Secretary of the Interior (e.g.,

H.R. 998).

100 NREL reported on U.S. port and infrastructure investments in its 2019 Offshore Wind Technology Data Update,

October 2020, p. 21, at https://www.nrel.gov/docs/fy21osti/77411.pdf. For more information on federal programs that

support maritime industry, including port infrastructure development, see CRS Report R46654, U.S. Maritime

Administration (MARAD) Shipping and Shipbuilding Support Programs, by Ben Goldman.

101 For example, S. 2766—the Offshore Wind American Manufacturing Act of 2021—would provide a manufacturing

investment tax credit and a production tax credit for manufacturing facilities of offshore wind turbine components.

102 The Virginia Clean Economy Act (Virginia H.B. 1526 and S.B. 851 of the 2020 Session, Chapters 1193 and 1194),

as enacted, established requirements for Dominion Energy Virginia’s qualified offshore wind projects, including

prioritizing the hiring, apprenticeship, and training of veterans, local workers, and workers from historically

economically disadvantaged communities.

103 DOE, 2021 Market Report, p. 75.

104 DOE, 2021 Market Report, p. 101.

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for offshore wind installations were more than twice those for onshore wind installations in

2019.105

Electricity Markets

Offshore wind projects may encounter issues with access to markets to sell the generated

electricity. One challenge involves ensuring market competitiveness for both existing generators

and new generators, such as offshore wind farms. Regional transmission organizations (RTOs)

and independent system operators (ISOs) manage the electric transmission systems and the

competitive wholesale electric energy markets, under the Federal Energy Regulatory

Commission’s (FERC’s) oversight.106 Some regions are outside of these markets, including much

of the Northwest, Southwest, and Southeast. RTOs and ISOs generally run several markets to

ensure enough generation is available to reliably meet power demands. Some RTOs and ISOs use

forward capacity markets to ensure sufficient generation will be available years in the future. As

RTOs and ISOs developed these markets, some participants and observers raised concerns that

states could incentivize new generation, which could undermine competitiveness, enabling new

generators to submit artificially low offers.107 Some states have set offshore wind procurement

goals and have encouraged utilities to enter into power purchase agreements with offshore wind

projects.108 These long-term contracts, in addition to other state legislative or executive policies in

support of offshore wind, could be considered “subsidies” to offshore wind projects, thus

potentially allowing offshore wind developers to sell into electricity markets at lower prices than

other types of generators could offer. To address concerns of artificially low prices, RTOs and

ISOs may have a minimum offer price rule (MOPR), which is a specific minimum dollar amount

that a resource can offer into the capacity market. Several RTOs and ISOs implement MOPRs.

In the Atlantic region, some have expressed concerns that MOPRs could undermine state clean

energy goals and negatively affect offshore wind industry development.109 At the heart of the

debate is a state’s authority under the Federal Power Act over in-state generation facilities, as

opposed to FERC’s exclusive authority over sales in interstate wholesale electricity markets.110

Congress may consider whether states can provide incentives in federal competitive markets.

Congress also may consider whether clean energy generation is a national goal and whether to

105 National Renewable Energy Laboratory (NREL), 2019 Cost of Wind Energy Review, NREL/TP-5000-78471,

December 2020, p. 44.

106 An exception is the Electric Reliability Council of Texas (ERCOT), which operates a transmission system and

electricity market covering much of Texas. Many aspects of ERCOT are outside Federal Energy Regulatory

Commission (FERC) jurisdiction. FERC, “ERCOT,” at https://www.ferc.gov/industries-data/electric/electric-powermarkets/ercot.

107 For more information on electricity markets, see CRS Report R43093, Electricity Markets—Recent Issues in Market

Structure and Energy Trading, by Richard J. Campbell.

108 For example, according to Rhode Island General Laws §39-26.1-8, once a developer was identified for a utilityscale offshore wind farm located offshore in Rhode Island waters or in adjacent federal waters, the developer could

apply to the Rhode Island Public Utilities Commission to request a long-term contract with the electric distribution

company to buy up to 150 MW from a utility-scale offshore wind power project. For the Block Island Wind Farm,

Deepwater Wind Block Island and National Grid entered into a power purchase agreement in 2009; see National Grid

and Deepwater Wind, Power Purchase Agreement Between the Narragansett Electric Company, D/B/A/ National Grid

and Deepwater Wind Block Island, LLC, Docket No. 41111, December 9, 2009, at https://offshorewindhub.org/sites/

default/files/resources/natlgrid_12-10-2009_docket4111deepwaterppa_0.pdf.

109 CRS Insight IN11412, PJM Minimum Offer Price Rule Impact on Future Renewables, by Richard J. Campbell and

Corrie E. Clark.

110 16 U.S.C. §§791a–825r; 16 U.S.C. §824. For discussion of federal authority over electric power, see CRS In Focus

IF11411, The Legal Framework of the Federal Power Act, by Adam Vann.

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establish a national clean energy standard, which could affect the pace of offshore wind

deployment.111

Connections to the Electrical Grid

With interest in developing offshore wind resources, stakeholders including regulators and system

operators are concerned about connecting offshore wind farms to existing transmission and

distribution infrastructure.112 One approach is to connect wind projects to onshore electric grid

infrastructure as the projects are individually approved and developed (which was the approach

used for the Block Island Wind Farm and the Dominion Coastal Virginia Offshore Wind pilot

project). Another potential approach is to connect multiple wind projects to a transmission

infrastructure that would be built offshore, forming a transmission backbone that could deliver

electricity to onshore electric grids at multiple points and share the costs of transmission among

offshore wind projects. By attaching to onshore grids at multiple points, a backbone could address

potential reliability and congestion issues within a region. Such a transmission backbone could be

managed privately or publicly.113

One option is for BOEM to authorize one or more private entities to develop an offshore

transmission backbone on the OCS. For example, in June 2019, BOEM published a request for

competitive interest in commercial renewable energy transmission on the OCS offshore of New

York and New Jersey.114 The request was triggered by a proposal from a private developer,

Anbaric Development Partners, LLC, to build an offshore network of subsea transmission cables,

including up to eight offshore collector platforms that would collect power generated from

offshore wind facilities and distribute it to landings at locations from Massachusetts to the Long

Island Sound.115

Another option is for the federal government to develop and manage an offshore transmission

backbone.116 Such an approach could be modeled on other federal onshore projects involving

111 For more on clean energy standards, see CRS Report R46691, Clean Energy Standards: Selected Issues for the

117th Congress, by Ashley J. Lawson.

112 The New Jersey Board of Public Utilities (BPU) requested that PJM, a regional transmission organization,

incorporate state public policies into its planning process and consider the development of offshore wind generation

and the incorporation of offshore wind generation into New Jersey’s transmission grid. In the order to PJM, New Jersey

BPU noted that staff recommendations include the initiation of “a competitive solicitation process to examine whether

an integrated suite of open access offshore wind transmission facilities, both on-shore and potentially off-shore, could

best facilitate meeting the State’s offshore wind goals in an economically efficient and timely manner.” New Jersey

BPU, Order in the Matter of Offshore Wind Transmission, Docket No. QO20100630, November 18, 2020, p. 4, at

https://www.nj.gov/bpu/pdf/boardorders/2020/20201118/8D%20%20ORDER%20Offshore%20Wind%20Transmission.pdf. PJM has examined onshore transmission needs in response

to anticipated increased growth in renewable energy generation, including offshore wind. PJM estimates that upgrades

to the existing onshore transmission system range between $2.16 billion and $3.21 billion for several long-term

scenarios building out transmission needs to 2035. PJM Interconnection, Offshore Wind Transmission Study: Phase 1

Results, October 19, 2021, p. 17, at https://www.pjm.com/-/media/library/reports-notices/special-reports/2021/

20211019-offshore-wind-transmission-study-phase-1-results.ashx.

113 Labor Energy Partnership, Roundtable Summary: The Future of Offshore Wind Energy in the United States, April

2021, p. 7 (hereinafter cited as Labor Energy Partnership, Future of Offshore Wind Energy).

114 BOEM, “Commercial Renewable Energy Transmission on the Outer Continental Shelf Offshore New York and

New Jersey; Notice of Proposed Grant Area and Request for Competitive Interest,” 84 Federal Register 28582, June

19, 2019.

115 BOEM, “Regional Proposals: Anbaric,” at https://www.boem.gov/renewable-energy/state-activities/regionalproposals.

116 Labor Energy Partnership, Future of Offshore Wind Energy, p. 7.

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Offshore Wind Energy: Federal Leasing, Permitting, Deployment, and Revenues

electricity generation and transmission. One example for a federal government model generation

and transmission system is the Western Area Power Administration, which is one of four power

marketing administrations (PMAs) under DOE that markets and transmits power from federally

owned and operated hydropower projects.117 In general, the PMAs came into being because of the

government’s need to dispose of electric power produced by dams constructed largely for

irrigation, flood control, or other purposes and to promote small community and farm

electrification—that is, to provide service to customers whom it would not have been profitable

for a private utility to serve. The government created the PMAs to market federal power and

share the common mission of providing electricity at cost-based rates with preference to public

customers.118 Another example is the Tennessee Valley Authority (TVA), a federal government

corporation created by Congress in 1933. The preamble to the TVA Act of 1933 lists flood

control, reforestation, and agricultural and industrial development as primary considerations in

the original establishment of TVA.119 Congress established TVA to “exist in perpetuity.”120

Although TVA initially focused its activities largely on its flood control and economic

development roles, TVA is now essentially a power generation company. Its business metrics

focus on optimizing TVA’s financial position, and its operational goals focus on providing

electricity at the lowest feasible rates to its wholesale customers in the multistate Tennessee

Valley region.121

Without a sufficient number of offshore wind projects for a coordinated offshore grid, offshore

wind projects likely will be integrated by generator interconnections, which could result in a

combination of many connections to the electric grid.122 On the one hand, the use of separate

interconnections for each generator is straightforward and reportedly has been the approach for

many offshore wind projects in the United States and Europe.123 On the other hand, large numbers

of individual connections to the onshore electric grid could complicate landfall connections and

transmission planning. Congress may consider whether the federal government would incentivize

offshore transmission infrastructure development and to what extent that development could be

coordinated.124

117 The Western Area Power Administration (WAPA) was created by the Department of Energy Organization Act of

1977 (P.L. 95-91). Western Area Power Administration, “About WAPA,” April 13, 2021, at https://www.wapa.gov/

About/Pages/about.aspx.

118 Each power marketing administration (PMA) also has unique elements and regional issues that affect its business.

For more on PMAs, see CRS Report R45548, The Power Marketing Administrations: Background and Current Issues,

by Richard J. Campbell.

119 16 U.S.C. §831.

120

Many government corporations, such as the Tennessee Valley Authority, were established to exist in perpetuity.

Other government corporations, such as the U.S. Enrichment Corporation, were designed to serve as transition vehicles

to transform from governmental entities into private firms.

121 For more information on the Tennessee Valley Authority, see CRS Report R43172, Privatizing the Tennessee Valley

Authority: Options and Issues, by Richard J. Campbell.

122 John P. Daniel et al., National Offshore Wind Energy Grid Interconnection Study Executive Summary, 2014, p. 35.

123 David Iaconangelo, “Fearing Bottlenecks, States Eye New Transmission Options,” Energywire, May 31, 2019.

In the 117th Congress, H.R. 5376, “To provide for reconciliation pursuant to title II of S.Con.Res. 14,” would

include provisions for interregional planning for offshore wind and grants and loans for offshore wind transmission

infrastructure (see Sections 30461 and 30464).

124

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Offshore Wind Energy: Federal Leasing, Permitting, Deployment, and Revenues

Offshore Wind Revenues

Under the OCSLA, the Department of the Interior’s Office of Natural Resources Revenue

(ONRR) is authorized to collect several types of revenue during the offshore wind leasing

process.125 When BOEM holds a lease sale, developers bid on the offered leases and the winning

company pays the bid amount (known as a bonus) to the federal government. A second type of

revenue is rents, which developers pay annually on a lease prior to the stage when a project

begins commercial operations. Under BOEM regulations, annual rents on commercial offshore

wind leases are set at $3 per acre, unless otherwise specified in the lease or final sale notice.126

Third, developers pay an operating fee (similar to an oil and gas royalty) on electricity produced

from an operating wind facility. The operating fee is calculated based on the nameplate capacity

of the facility, a capacity factor representing the anticipated efficiency of facility operations (e.g.,

accounting for fluctuations in wind speeds), and the annual average wholesale electric power

price in the state where the transmission cable makes landfall for each year that the operating fee

applies.127 ONRR also records other types of offshore wind revenue, such as settlement

agreements and interest payments, in its other revenues category.

Revenue amounts from offshore wind have varied annually over the past decade, with the highest

total—$420 million—collected in FY2019 (Table 2). The majority of revenue in that fiscal year

came from a wind lease sale off the Massachusetts coast in December 2018 that yielded

$405 million in winning bids, considerably more than any previous offshore wind lease sale.

Generally, revenues in the past decade have been from bonus bids, rents, and other sources but

not from operating fees, because no projects were commercially operating in federal waters

during this period.

Table 2. Federal Offshore Wind Revenues, FY2010-FY2020

($ in millions)

Fiscal Year

Bonus Bids

Rents

Other Revenues

Total

FY2010

0

0.1

0

0.1

FY2011

0

0.2

0

0.2

FY2012

0

0.1

0

0.1

FY2013

<0.1

0.4

0

0.4

FY2014

4.7

1.7

<0.1

6.4

FY2015

9.1

2.2

0

11.4

FY2016

1.9

3.3

<0.1

5.2

FY2017

42.5

4.0

<0.1

46.5

125 43 U.S.C. §1337(p)(2). Also see BOEM regulations at 30 C.F.R. §585.221, 30 C.F.R. §585.503, and 30 C.F.R.

§585.506.

126 30 C.F.R. §585.503. Rents are applied to acres that are not yet authorized for commercial operations. By comparison

with the rental rate of $3/acre for offshore wind leases, rental rates for offshore oil and gas leases typically range from

$7/acre to $44/acre, depending on factors such as water depth and the length of time the lease has been held (with rents

increasing in later years). See BOEM, “Gulf of Mexico Rental Rate, Minimum Bid, and Royalty Rate History,” at

https://www.boem.gov/GOM-Lease-Term-History/.

127 30 C.F.R. §585.506. The regulations define the nameplate capacity as the “total installed capacity of the equipment

you install, as specified in your approved COP” (30 C.F.R. §585.506(c)(5)). The regulations provide for capacity factor

adjustments according to production data once a project is in commercial operation (30 C.F.R. §585.506(c)(3)).

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Offshore Wind Energy: Federal Leasing, Permitting, Deployment, and Revenues

Fiscal Year

Bonus Bids

Rents

Other Revenues

Total

FY2018

0

3.3

0

3.3

FY2019

414.2

5.9

<0.1

420.0

FY2020

0

5.2

0

5.2

Total

472.4

26.5

<0.1

498.9

Source: Office of Natural Resources Revenue (ONRR), Natural Resources Revenue Data, at

https://revenuedata.doi.gov/query-data/?dataType=Revenue#.

Notes: FY2010 is the earliest year for which ONRR recorded federal offshore wind revenues. BOEM did not

collect any offshore wind operating fees during the FY2010-FY2020 period, because no projects had begun

commercial electricity generation. The “Other Revenues” category includes revenues not in the bonus, rent, or

operating fee categories, such as settlement agreements or interest payments.

Under the OCSLA, revenues collected from offshore wind projects that lie within 3 nautical miles

of the seaward boundary of state waters are shared with adjacent coastal states at a rate of 27%.128

To date, the states of Massachusetts and Rhode Island have received revenue-sharing payments in

some years from eligible projects in the zone adjacent to state waters, with no payment totaling

more than $25,000 in any year.129 For projects farther from state waters—the majority of the

proposed projects to date—all revenues are deposited in the U.S. Treasury as miscellaneous

receipts. This disposition differs from that for offshore oil and gas leases. Oil and gas revenue

sharing for projects within 3 nautical miles of state waters is similar to that for wind (revenues are

shared at a rate of 27% with coastal states), but there is additional revenue sharing for projects on

deeper-water oil and gas leases under the Gulf of Mexico Energy Security Act of 2006

(GOMESA).130 GOMESA provides for revenues from qualified oil and gas leases in broad areas

of the Gulf of Mexico to be shared with eligible Gulf coast states at a rate of 37.5%, up to a

legislated cap.

Some Members of Congress seek a revenue-sharing arrangement for offshore wind leases similar

to that provided by GOMESA for qualified oil and gas leases, or alternatively seek to raise the

amounts shared with states from both wind and oil and gas leasing. Legislation in the 117th

Congress would provide that, for offshore wind projects farther from shore than the OCSLA

revenue-sharing zone, 50% of revenues would be shared with coastal states under a prescribed

formula (with no cap on amounts to be shared).131 As with GOMESA’s oil and gas revenue

shares, the legislation would provide that a state could use the revenues only for specified

purposes, generally related to coastal conservation and restoration.

128 43 U.S.C. §1337(p)(2)(B). State waters in most states extend to 3 nautical miles from shore, so the OCSLA revenue-

sharing zone generally would be for leases lying between 3 and 6 nautical miles from shore. Revenues from projects

lying wholly or partly within that area are shared with states under a formula detailed at 30 C.F.R. §585.540-585.543.

129 ONRR disbursement data queries at https://revenuedata.doi.gov/query-data. Massachusetts has received a revenuesharing payment of approximately $24,000 in each year since FY2011. Rhode Island received revenue-sharing

payments of approximately $170 in each of FY2015 and FY2016 and received approximately $1,700 in FY2017.

130 P.L. 109-432, 43 U.S.C. §1331 note. For more information, see CRS Report R46195, Gulf of Mexico Energy

Security Act (GOMESA): Background, Status, and Issues, by Laura B. Comay and Marc Humphries.

131

S. 2130, 117th Congress. The formula would be used to determine which coastal states were eligible for revenue

shares from a given project. S. 2130 also would increase the portion of offshore oil and gas revenues shared with Gulf

coast states under the Gulf of Mexico Energy Security Act of 2006 (GOMESA; P.L. 109-432, 43 U.S.C. §1331 note)

from 37.5% to 50% and would eliminate the GOMESA revenue-sharing cap. Legislation for offshore wind revenue

sharing with coastal states also was introduced in the 116th Congress as S. 3485; the 116th Congress legislation would

have shared 37.5% of revenues with eligible coastal states.

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Offshore Wind Energy: Federal Leasing, Permitting, Deployment, and Revenues

Some legislators also have proposed using offshore wind revenues to fund specified federal

programs. For example, several bills in the 116th and 117th Congresses would set aside a portion

of offshore wind revenue for the National Oceans and Coastal Security Fund.132 Some

stakeholders that favor the reduction of federal oil and gas leasing have considered whether

offshore wind revenues could be a potential future funding source for federal programs that

currently rely on offshore oil and gas revenues, such as the Land and Water Conservation Fund

and the Historic Preservation Fund.133 To date, revenues from offshore wind leasing have been

considerably less than revenues from offshore oil and gas leasing. For example, federal offshore

oil and gas revenues totaled $5.566 billion for FY2019 and $3.708 billion for FY2020, more than

10 times the amount from offshore wind in FY2019 and three orders of magnitude more than in

FY2020. In its FY2022 budget justification, ONRR projected future annual revenues from

offshore wind ranging from $5 million to $878 million for the FY2021-FY2031 period.134

Author Information

Laura B. Comay

Specialist in Natural Resources Policy

Corrie E. Clark

Analyst in Energy Policy

Disclaimer

This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan

shared staff to congressional committees and Members of Congress. It operates solely at the behest of and

under the direction of Congress. Information in a CRS Report should not be relied upon for purposes other

than public understanding of information that has been provided by CRS to Members of Congress in

connection with CRS’s institutional role. CRS Reports, as a work of the United States Government, are not

subject to copyright protection in the United States. Any CRS Report may be reproduced and distributed in

its entirety without permission from CRS. However, as a CRS Report may include copyrighted images or

material from a third party, you may need to obtain the permission of the copyright holder if you wish to

copy or otherwise use copyrighted material.

132 S. 2130 in the 117th Congress, in addition to providing for offshore wind revenue sharing with coastal states, would

set aside 37.5% of offshore wind revenues for the National Oceans and Coastal Security Fund. Also in the 117 th

Congress, H.R. 3892 would direct that 30% of offshore wind revenues be deposited to this fund. H.R. 8253, H.R. 8632,

and S. 3485, all in the 116th Congress, would have set aside differing percentages of offshore wind revenues for the

National Oceans and Coastal Security Fund (16 U.S.C. §7503).

133 For more information on the Land and Water Conservation Fund, see CRS Report RL33531, Land and Water

Conservation Fund: Overview, Funding History, and Issues, by Carol Hardy Vincent. For more information on the

Historic Preservation Fund, see CRS Report R45800, The Federal Role in Historic Preservation: An Overview, by

Mark K. DeSantis.

134 DOI Office of the Secretary, Department-Wide Programs, Budget Justifications and Performance Information:

Fiscal Year 2022, p. ELR-18, Table 9, at https://www.doi.gov/sites/doi.gov/files/fy2022-os-dwp-budgetjustification.pdf.

Congressional Research Service

R46970 · VERSION 3 · UPDATED

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This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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