Biden-Harris Administration Announces Winners of California Offshore Wind Energy Auction

First offshore wind lease sale in the Pacific results in over $757 million in winning bids for five lease areas, which have the potential to power over 1.5 million homes

12/07/2022
Last edited 12/07/2022

Date: Wednesday, December 7, 2022
Contact: Interior_Press@ios.doi.gov

WASHINGTON — The Department of the Interior today announced results from the Bureau of Ocean Energy Management’s wind energy auction for five leases offshore California. The lease sale represents the third major offshore wind lease sale this year and the first ever for the Pacific region. Today’s sale drew competitive high bids from 5 companies totaling $757.1 million, well exceeding the first lease sales that were held in the Atlantic.

“The Biden-Harris administration believes that to address the climate crisis head on, we must unleash a new era of clean, reliable energy that serves every household in America. Today’s lease sale is further proof that industry momentum – including for floating offshore wind development – is undeniable,” said Secretary Deb Haaland. “A sustainable, clean energy future is within our grasp and the Interior Department is doing everything we can to ensure that American communities nationwide benefit.”

The interest and success of today’s sale represents a significant milestone toward achieving President Biden’s goal of deploying 30 gigawatts of offshore wind energy capacity by 2030 and 15 gigawatts of floating offshore wind capacity by 2035.

“The innovative bidding credits in the California auction will result in tangible investments for the floating offshore wind workforce and supply chain in the United States, and benefits to Tribes, communities, and ocean users potentially affected by future offshore wind activities. This auction commits substantial investment to support economic growth from floating offshore wind energy development – including the jobs that come with it,” said BOEM Director Amanda Lefton. “These credits and additional lease stipulations demonstrate BOEM’s commitment to responsibly grow the offshore wind industry to achieve our offshore wind goals.”

BOEM’s lease sale offered five lease areas covering 373,268 total acres off central and northern California. The leased areas have the potential to produce over 4.6 gigawatts of offshore wind energy, enough to power over 1.5 million homes.

Provisional Winner   

Lease Area  

Acres  

High Bid  

RWE Offshore Wind Holdings, LLC   

OCS-P 0561     

63,338    

$157,700,000   

California North Floating, LLC  

OCS-P 0562 

69,031 

$173,800,000 

Equinor Wind US, LLC  

OCS-P 0563 

80,062 

$130,000,000  

Central California Offshore Wind, LLC  

OCS-P 0564 

80,418 

$150,300,000 

Invenergy California Offshore LLC  

OCS-P 0565 

80,418 

$145,300,000 

The lease sale included a 20-percent credit for bidders who committed to a monetary contribution to programs or initiatives that support workforce training programs for the floating offshore wind industry, the development of a U.S. domestic supply chain for the floating offshore wind energy industry, or both. This credit will result in over $117 million in investments for these critical programs or initiatives.

The auction also included 5% credits for bidders who committed to entering community benefit agreements (CBAs). The first type of agreement is a Lease Area Use CBA with communities, stakeholder groups, or Tribal entities whose use of the lease areas or use of the resources harvested from the lease areas is expected to be impacted by offshore wind development. The second type of agreement is a General CBA with communities, Tribes, or stakeholder groups that are expected to be affected by the potential impacts on the marine, coastal or human environment from lease development.

Under stipulations in the leases, lessees are required to engage with Tribes, ocean users, and local communities that may be affected by their lease activities. Lessee engagement must allow for early and active information sharing, focused discussion of potential issues, and collaborative identification of solutions. These communication and engagement activities must be routinely reported to BOEM. These lease stipulations are intended to promote offshore wind energy development in a way that coexists with other ocean uses, addresses potential impacts and benefits, and protects the ocean environment, while also facilitating our nation’s energy future for generations to come.

More information about today’s sale, including a map of the lease areas and requirements regarding the bidding credits, can be found on BOEM’s website.

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