Boston — The Massachusetts Department of Energy Resources (DOER) and the electric distribution companies (EDCs) today jointly issued a Request for Proposals (RFP) for Massachusetts' fourth and largest offshore wind solicitation to date. This RFP will more than double the Commonwealth's current wind power solicited compared to previous procurements, a key step in Governor Healey's commitment to make Massachusetts a global leader in offshore wind.

The RFP invites submittals for offshore wind generation to select up to 3,600 MW, which represents 25 percent of the state's annual electricity demand and is the largest procurement for offshore wind energy generation ever in New England. Bidders can offer proposals of between 200 MW and 2400 MW.

"Our administration continues to build a robust, sustainable offshore wind industry, and we are excited to issue this historic RFP, the largest yet in our region," said Governor Maura Healey. "With this RFP, Massachusetts is continuing on our path to be a global leader in this growing industry. With our top academic institutions, robust workforce training programs, innovative companies, and support from every level of government – Massachusetts is all-in on offshore wind."

"This RFP shows our commitment to support communities as we establish Massachusetts as an offshore wind industry hub. We are seeking projects that foster economic development and create good paying, high-demand jobs all along our coastlines," said Lieutenant Governor Kim Driscoll. "This is the promise of offshore wind – tremendous economic development, while delivering clean, affordable energy to our communities."

"We are excited to embark on the fourth round of offshore wind solicitation. This adaptive RFP was drafted to create a transparent, competitive process that will benefit Massachusetts' residents and businesses with cleaner air, lower energy bills, jobs in a growing industry and economic development opportunities," said Energy and Environmental Affairs Secretary Rebecca Tepper. "Offshore wind is the cornerstone of Massachusetts' clean energy transition and will help us build a healthier, more resilient Massachusetts."

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"We are excited to increase the amount of offshore wind potential for Massachusetts and grow our blue energy economy," said DOER Commissioner Elizabeth Mahony. "We crafted this RFP to provide flexibility in the procurement process and secure the greatest advantages for Massachusetts, including benefits to environmental justice populations and low-income ratepayers, and opportunities for diversity, equity and inclusion in workforce development."

"Offshore wind is a key part of our energy future in Massachusetts," said Chrissy Lynch, Secretary-Treasurer and Chief of Staff of the Massachusetts AFL-CIO and Vice President and Climate Jobs Massachusetts. "This RFP is an important step toward making sure that we are simultaneously fighting climate change and creating more union careers that grow the middle class."

Contents of the RFP

The RFP allows for additional flexibility in proposals. To account for challenges driven by inflation and other macroeconomic trends, the RFP permits bidders to submit an alternative indexed pricing proposal intended to reduce risk to ratepayers and bidders. The RFP provides for the potential for savings resulting from federal tax credits, and requires details on how bids would use applicable tax credits. It also allows for flexibility in the schedule if IRS program guidance on the Inflation Reduction Act is announced late in the bid preparation timeline to allow time for bidders to incorporate the guidance and importantly, to capture as much savings for ratepayers as possible.

The RFP directs projects to demonstrate advantages to environmental justice populations and low-income ratepayers, and opportunities for diversity, equity and inclusion in workforce development. DOER will consider in its evaluation direct and indirect costs and benefits, environmental and socioeconomic impacts from siting, and diversity, equity, and inclusion plans. In contrast with previous years, this RFP makes clear the weight given to projects with robust economic development proposals that support minority- and women-owned businesses and support for low-income workers, workers of color, and workers from impacted environmental justice communities. Projects must also develop an environmental and fisheries mitigation plan that considers commercial, recreational, and indigenous fishing rights.

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To ensure low-income ratepayers can gain directly from the transition to clean energy, the RFP requires bidders to enter into agreements with DOER and the Massachusetts Clean Energy Center to provide various support for low-income ratepayers.

To ensure competition, the RFP does not limit eligibility to bid based on the bidder's previous history of terminated contracts. However, the experience and track record of the bidder will be included in the evaluation to help ensure projects are viable and have a high likelihood of achieving commercial operation to help the Commonwealth meet its clean energy goals and reach emissions limits.

Under the RFP's timeline, bids are due January 31, 2024. This timeline allows project developers to incorporate several emerging initiatives, including anticipated federal program guidance on tax credits, federal grants for transmission upgrades, and additional coordination with regional state partners. Anticipated dates in RFP's timeline are:

• Selection of projects: June 12, 2024
  
  
• Execute Long Term Contracts and DOER MOU: August 14, 2024
  
  
• Submit Long Term Contracts for DPU Approval: September 18, 2024
  
  

If the U.S. Treasury Department issues any applicable tax guidance close to the bid submittal date, the bid submission deadline will be 60 days from the date of the guidance issuance, and all subsequent deadlines in the RFP will be extended by the same number of days for bidders.

Process

This solicitation is the first time DOER is primarily responsible for drafting the RFP, leading the evaluation team, and selecting the winning bidders. DOER will be joined by the Executive Office of Economic Development, the EDCs, and an Independent Evaluator (IE) in conducting a robust and complete evaluation of proposals received under the RFP.

The RFP is based on the Commonwealth's previous offshore wind procurements, lessons learned, stakeholder comments received in March of this year, and directives from the Department of Public Utilities' approval on August 23, 2023.

The goal of the procurement is to solicit proposals in an open, fair, and transparent fashion. The Commonwealth seeks to identify offshore wind projects that have a strong likelihood of being financed, constructed, and provide a reliable and cost-effective source of clean energy to the Commonwealth.

The procurement will be monitored by the IE, who will report to the DPU on both the solicitation and bid selection process. Following the RFP evaluation process, DOER may select a project or projects, in consultation with the IE, that most effectively meet(s) the goals of the RFP and the objectives and requirements of Section 83C of the Green Communities Act.

For more information and to receive updates as this process continues, please visit the Massachusetts Clean Energy website at https://macleanenergy.com.

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