Oregon’s offshore lease sale canceled as bidders back out

Opposition to offshore-wind energy is growing. Critics are concerned it could negatively affect fisheries and the marine environment

Doldrums: Enthusiasm for offshore wind-power installations in Oregon (similar to these off Rhode Island) is waning. Photo: Dennis Schroeder/National Renewable Energy Laboratory

By Monica Samayoa/OPB. September 30, 2024. Oregon’s upcoming floating offshore wind auction has been canceled due to insufficient bidder interest.

On Friday, the U.S. Department of Interior’s Bureau of Ocean Energy Management, or BOEM, said it was delaying the upcoming Oregon auction due to lack of interest.

The agency said only one of the five companies eligible to bid was still interested.

It’s still possible that offshore wind will eventually be developed off the Southern Oregon coast. BOEM says it will collaborate with the state and with tribal governments to determine if there’s a future opportunity for a lease sale, and it will work with them on the development of the state’s Offshore Wind Energy Roadmap.

Environmental groups, fishing industry representatives and local tribes praised Friday’s decision to cancel the planned Oct. 15 auction.

They’ve repeatedly raised concerns about how development could affect fisheries and the marine environment.

“This is not only a huge relief to the fishing industry, but to all Oregonians who want to understand what the impacts from floating offshore wind energy development could be to the environment, fisheries and coastal economies,” Midwater Trawlers Cooperative Executive Director Heather Mann said in a statement.

Hours before BOEM’s announcement, Oregon Gov. Tina Kotek had called on the federal government to cancel the floating offshore wind auction, set for next month in two areas off the Southern Oregon coast.

Kotek sent a letter to BOEM requesting the agency “halt all current leasing activities off the coast of Oregon and terminate the current auction.”

In the letter, Kotek said BOEM’s accelerated process over the past year has contributed to the growing opposition to floating offshore wind from renewable energy advocates, labor groups, the fishing industry and local communities.

“I believe that Oregon has no choice but to withdraw from the BOEM Oregon Intergovernmental Renewable Energy Task Force in order to ensure that Oregon’s interests are fully protected, and that we have adequate time to complete our state Roadmap with engagement and participation of key constituencies and the public,” she said in the letter.

Sites identified by the Bureau of Ocean Energy Management for wind-energy production off the Oregon Coast. “Wind Energy Areas” are those “that appear most suitable for commercial wind energy activities, while presenting the fewest apparent environmental and user conflicts.” Graphic: BOEM

Oregon opposition to floating offshore wind has grown exponentially over the past few months.

The Confederated Tribes of the Coos, Lower Umpqua and Siuslaw Indians filed a lawsuit against BOEM with the intent to delay the upcoming auction, and at least two counties, Coos and Curry, will be voting on whether to publicly oppose offshore wind.

Tribal Chair Council Brad Kneaper praised Kotek’s letter and BOEM’s decision to cancel the auction.

“Canceling the lease sale makes sense,” he said in an emailed statement. “The Tribe, elected officials, commercial fishing interests and others have consistently urged that BOEM delay moving forward with wind energy development until a better understanding is made of the impacts to fish, wildlife, the marine environment and cultural resources important to the Tribe.”

Many groups, including BlueGreen Alliance which works to unify labor unions and environmental organizations, said canceling the auction represents a delay that will allow Oregon to spend more time working on its Offshore Wind Energy Roadmap.

“Offshore wind continues to be a critical opportunity for Oregon to meet its 100% clean energy goals by 2040, address climate change, and provide economic opportunities for Oregon workers and businesses,” BlueGreen Alliance’s Oregon Senior State Policy Manager Ranfis Villatoro said in a statement. “However, building large renewable energy infrastructure takes time and Oregon owes it to its communities and coastal ecosystem to do it the right way.”

The Oregon Offshore Wind Energy Roadmap will create guidelines and standards to be considered during offshore wind development. Those range from effective community engagement, creation of energy workforce and protecting the environment.

The Oregon Department of Land Conservation and Development will be the agency leading the development of the roadmap. It’s currently seeking people to join as advisors.

This is not the first time BOEM has canceled an offshore auction due to lack of interest from developers. Earlier this year, it canceled a sale set for the Gulf of Mexico. The agency said only one company expressed interest.

It is not clear when BOEM might propose another lease sale in Oregon.