BOEM proposes Renewable Energy Modernization Rule for offshore wind

The U.S. Department of Interior's Bureau of Ocean Energy Management (BOEM) has announced a proposed rulemaking to amend its regulations governing offshore wind and other clean energy development on the U.S. Outer Continental Shelf (OCS). BOEM describes its proposed rule as "a major modernization of the regulations", reflecting lessons learned from the past 13 years. If finally adopted, BOEM projects that its Renewable Energy Modernization Rule would save the renewable energy industry $1 billion over 20 years, by reshaping the way the U.S. federal government leases sites on the OCS for offshore wind development.

The Energy Policy Act of 2005 authorized BOEM's predecessor, the Minerals Management Service (MMS), to issue leases, easements, and rights of way to allow for renewable energy development on the OCS. MMS first promulgated regulations governing renewable energy development on the OCS in 2009. In the ensuing years, the agency was restructured several times; since then, BOEM has conducted 11 auctions and issued 27 active commercial leases under its regulations implementing the OCS Lands Act.

According to BOEM, its accumulated experience and industry feedback have enabled the agency to identify "opportunities to modernize its regulations to facilitate the development of offshore wind energy resources to meet U.S. climate and renewable energy objectives." BOEM's proposed Renewable Energy Modernization Rule, issued on January 12, 2023, contains reforms including proposals for incremental funding of decommissioning accounts; more flexible geophysical and geotechnical survey submission requirements; streamlined approval of meteorological (met) buoys; revised project verification procedures; reform of BOEM’s renewable energy auction process; and greater clarity regarding safety requirements. 

In its notice of proposed rulemaking, BOEM asserts:

This proposed rule would facilitate the development of OCS renewable energy and would promote U.S. climate and renewable energy objectives in a safe and environmentally sound manner while providing a fair return to the U.S. taxpayer. These important goals would be accomplished by modernizing regulations, streamlining overly complex and burdensome processes, clarifying ambiguous provisions, enhancing compliance provisions, and correcting technical errors and inconsistencies. Through these changes, the Department aims to reduce administrative burdens for both developers and the Department’s staff, reduce developer costs and uncertainty, and introduce greater regulatory flexibility in a rapidly changing industry to foster the supply of OCS renewable energy to meet increasing demand, while maintaining environmental safeguards. 

These updates are necessary to ensure a durable and appropriate process is in place to advance renewable energy on the OCS.

BOEM's proposed rule contains eight major components, categorized under the following headings:

1. Eliminating unnecessary requirements for the deployment of met buoys.
2. Increasing survey flexibility.
3. Improving the project design and installation verification process.
4. Establishing a Public Renewable Energy Leasing Schedule.
5. Reforming BOEM's renewable energy auction regulations.
6. Tailoring financial assurance requirements and instruments.
7. Clarifying safety management system regulations.
8. Revising other provisions and making technical corrections.

Comments will be due 60 days after the notice's publication in the Federal Register.