The Bureau of Ocean Energy Management (BOEM) published a proposed rule in the Federal Register proposing amendments to the existing 2024 offshore financial assurance requirements that apply to offshore wind and oil and gas activities on the Outer Continental Shelf (OCS). The proposed rule seeks to modify how BOEM evaluates the financial strength and risk of companies holding offshore leases and grants, including those for renewable energy projects. Financial assurance requirements are designed to ensure that companies have adequate resources to meet their decommissioning, plugging and abandonment, and other lease obligations, thereby protecting taxpayers from bearing the costs if a company defaults. The proposed amendments could affect the financial obligations and risk calculations for offshore wind developers holding leases along the Atlantic Coast, including in the New York Bight and New England regions. The rulemaking is part of broader BOEM efforts to update its financial risk management framework for OCS activities. More information can be found here.
