Hogan Lovell OffshoreBook 2023 230809 OnlinePDF - Flipbook - Page 301
Offshore Wind Worldwide 2023
it for resubmission. 21 A state also has the
authority to review the BOEM permit once it
is issued, following a similar procedure.
States also oversee other permitting process related to aspects of the offshore wind
project located within state jurisdiction, including onshore transmission issues, landfall
areas, and impacts to state resources.
301
3.4 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."22 An offshore wind project’s lease will
dictate the payment structure between the
lessee and lessor, pursuant to the Renewable Energy Program Regulations. 23 For example, the Vineyard Wind’s lease provides that,
for rent payments prior to the Commercial
Operations Date, 24 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. 25 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. 26
21 https://www.boem.gov/environment/environmental-assessment/coastal-zone-management-act.
22 43 U.S.C. §1337(p)(2)(B).
23 30 CFR 585.
24 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.
25 Id.
26 Id.
