Offshore Wind Worldwide Regulatory Framework in Selected Countries 5th Edition 2024 - Flipbook - Page 359
Offshore Wind Worldwide 2024
D. Governmental payments for an
offshore wind project
Section 388 of the EPAct requires that the
Secretary of Interior “establish payments to
ensure a fair return to the United States for
any lease, easement or right-of-way granted.”26 An offshore wind project’s lease will
dictate the payment structure between the
lessee and lessor, pursuant to the Renewable Energy Program Regulations. 27 For example, the Vineyard Wind’s lease provides that,
for rent payments prior to the Commercial
Operations Date, 28 or the lease end date,
whichever is sooner, the lessee must pay
an annual rental rate of USD 3.00 per acre,
which results in a USD 500,658 rent payment
per year. 29 For rent outside of that period,
the lease dictates a formula that takes into
account generating capacity of the project,
as well as portions of the lease not authorized for commercial operations. In addition
to rent, a lessee also pays an initial, annual
and final operating fee, as provided for in
the lease. 30
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IV. SAFEGUARDING THE
ENVIRONMENT
A. The National Environmental Policy Act
NEPA requires that environmental consequences be considered when a major
federal action may have an impact on the
environment.31 Under NEPA, any new project
with potential environmental impact must
undergo an Environmental Assessment (EA)
and/or an Environmental Impact Statement
(EIS).32 These assessments consider both
the adverse impacts and socio-economic
benefits of an action.33
If an action is unlikely to have a significant
impact, an EA is prepared, which can then
result in a finding of no significant impact
(FONSI).34 If a FONSI is issued, an EIS is not
necessary. If it is clear from the outset that
the action will result in a significant impact,
however, or if an EA does not yield a FONSI,
then an EIS must be prepared.35 An EIS involves a multi-step process that includes more
rigorous analysis of environmental impacts
and the opportunity for public comment.
It is reasonable to expect that BOEM will
require an EIS for the Construction and
26 43 U.S.C. §1337(p)(2)(B).
27 30 CFR 585.
28 The Commercial Operations Date is the date on which the lessee first begins Commercial Operations, which is the “generation of electricity or other
energy product for commercial use, sale or distribution.” https://www.boem.gov/sites/default/files/renewable-energy-program/State-Activities/MA/
Lease-OCS-A-0501.pdf.
29 Id.
30 Id.
31 42 USC § 4321.
32 https://www.epa.gov/nepa/national-environmental-policy-act-review-process.
33 https://www.boem.gov/sites/default/files/environmental-stewardship/Environmental-Studies/Renewable-Energy/Final-Version-Offshore-BenefitsWhite-Paper.pdf.
34 https://www.epa.gov/nepa/national-environmental-policy-act-review-process.
35 https://www.epa.gov/nepa/national-environmental-policy-act-review-process.
