Developing an offshore wind site requires quite a bit of documentation before construction can begin – or before the Bureau of Energy Management (BOEM) will even consider your bid! With an auction at the end of August for areas in the Gulf of Mexico, it is especially important that prospective offshore wind farm operators know what documentation they will need. Below, we cover some of the details of that documentation as well as why it’s so important to be prepared and well-organized..
What Documentation is Included in a Project Proposal for Offshore Wind Bids?
Several types of documentation are necessary to submit a project proposal and bid to the BOEM. Some of them are described below.
Bidder’s Financial Form
Even before the auction of an area takes place, the company submitting a bid must complete the Bidder’s Financial Form (BFF), which includes:
- The bidder’s conceptional strategy.
- Vital contact information.
- Details on the individuals who are authorized to bid for the company.
- Other statements.
The BFF must be received by a specific date although the BOEM may accept the BFF after that deadline, at its discretion. A new BFF is required for each sale; previous BFFs submitted for other potential projects will not be considered.
Equal Opportunity Forms
The BOEM also requires the submission of Equal Opportunity forms: The Equal Opportunity Affirmative Action Representation Form BOEM-2032 and The Equal Opportunity Compliance Report Certification Form BOEM-2033.
These documents require that companies submitting proposals and bids have a detailed Equal Opportunity Affirmative Action program that is documented and in compliance with federal law.
After the auction, the BOEM delivers three copies of the lease to each provisional winner, including instructions for completion. Organizations are required to take the following actions within 10 (calendar?) days of receiving the lease copies:
- Post financial assurance
- Pay any outstanding bonus bid balances
- Sign and return the three lease copies
In addition, within 45 calendar days for receipt, organizations must submit the first year’s rent.
Both the BOEM and state governments may request additional documentation detailing the bidder’s plan for development of the offshore wind farm. This can include details on:
- Finances: including revenue, cost-benefit analysis, financing, pricing schedule and strategy.
- Project description.
- Operations and maintenance.
- Environmental protection.
- Economic development.
The requirements for proposals and bids can vary from state to state.
The Final Sale Notice requires eligible bidders to be “legally, technically, and financially qualified to hold a commercial wind lease offshore” in the location that is going up for bid. They must also comply with sections 30 CFR 585.107 and 585.108 of the Code of Federal Regulations. These sections require demonstration, respectively, of
- Qualification to be a lessee or grant holder; and
- Notification to BOEM of any actions filed alleging insolvency or bankruptcy.
Why Is Quality Documentation Important to Offshore Wind Bids?
It’s not enough to simply have your documentation completed for an offshore wind bid. Quality is an absolute must. Errors, typos, delays in submitting documents, and paperwork that is missing completely could very well result in your organization losing out to a competitor who has all their documentation in order. This can also lead to serious consequences for companies in the industry, including increased costs, delayed projects, and more.
And quality documentation should continue to be a top concern even after the bid is won. The BOEM and other government agencies require regular plans and reports through every stage of development and construction. Serious mistakes can result in severe project delays, unexpected costs, and even withdrawal of the lease. Companies in the offshore wind industry need to have a strategy for their documentation to ensure they are meeting the requirements of all federal, state, and local regulations and laws.
Careful planning, and working with an expert partner like Shea Writing & Training Solutions, can help ensure that your paperwork meets all of the requirements of the BOEM and state and local laws before you submit your bid. We’ve worked with countless organizations across multiple sectors of the energy industry to help ensure their documentation meets all relevant requirements while also positioning them ahead of the competition.
If you’re curious about what we can do for your company and your upcoming bid, don’t hesitate to reach out. You can contact us here today to get started.