US ocean energy regulators consider NY-NJ offshore transmission line

After receiving a request from a developer of offshore electricity transmission lines for a right-of-way in ocean waters offshore New York and New Jersey, U.S. ocean energy regulators have asked whether any other developers are interested in the same area.

On April 30, 2018, Anbaric Development Partners, LLC (ADP) applied to the federal Bureau of Ocean Energy Management (BOEM) for a right-of-way grant for a proposed project called the New York/New Jersey Ocean Grid. As envisioned by ADP, the project would include a submarine system approximately 185 nautical miles in length. It would also include up to 9 offshore collector platforms which would collect and distribute power generated from existing offshore wind leases, each capable of handling 800 to 1,200 megawatts of offshore wind energy, as well as up to 6 onshore landings at locations from Long Island, New York to Cardiff, New Jersey. On June 22, 2018, BOEM approved ADP's legal, technical, and financial qualifications to acquire and hold a Right of Way Grant on the Outer Continental Shelf.

Under BOEM's regulations, different procedures apply depending on whether the agency is following a competitive lease process or a noncompetitive lease award process. ADP's application was "unsolicited," meaning it was not submitted in response to a BOEM solicitation, Request for Interest, or Call for Information and Nominations. Under BOEM's case-by-case process for considering unsolicited requests, the agency will issue a public notice and solicit comments to determine whether competitive interest exists, before considering the application itself. If BOEM determines that competitive interest exists in the requested lease area, BOEM will proceed with its competitive process; otherwise, BOEM will publish a notice of Determination of No Competitive Interest, and may proceed to review the unsolicited lease request.

On June 17, 2019, BOEM announced that it would publish a Request for Competitive Interest for project; the Notice of Proposed Grant Area and Request for Competitive Interest was published in the Federal Register on June 19, 2019. Indications of interest in acquiring a right-of-way grant for the area ADP requested must be sent by mail, postmarked no later than July 19, 2019, to be considered. Comments or other information may be sent by mail, postmarked by the same date, or may be submitted through the Federal Rulemaking Portal at http://www.regulations.gov.

If BOEM receives indications of competitive interest from qualified entities, the bureau may decide to move forward with the right-of-way grant issuance process using competitive procedures. BOEM will continue to consult with the state task force and partners regarding the proposed transmission project.

As an increasing number of states and utilities are procuring offshore wind, functions that must be provided include collecting the power produced, transmitting it to shore, and integrating it into the onshore grid. Depending on their design and configuration, offshore transmission grids could play these roles, and could also help wheel power along the coastline from one region to another. Questions of cost recovery -- who pays for these systems -- will continue to arise, at the intersection between state policies calling for offshore wind and regional markets rooted in economics.