Climate Jobs NY Comments On the Proposed Sale Notice for the eight lease areas in the NY Bight

August 13, 2021

Amanda Lefton, Director
Bureau of Ocean Energy Management Department of the Interior
45600 Woodland Road,
VAM-OREP Sterling, VA 20166

Re: [Docket No. BOEM–2021–0033] Atlantic Wind Lease Sale 8 (ATLW–8) for Commercial Leasing for Wind Power on the Outer Continental Shelf in the New York Bight—Proposed Sale Notice 

Dear Director Lefton:

Climate Jobs NY (CJNY) is a growing coalition of labor unions—representing 2.6 million working New Yorkers—united to combat climate change and reverse inequality. We are educating our fellow workers, building alliances, and advocating for policy solutions—demonstrating that we do not have to choose between a healthy planet and good jobs.

We appreciate the opportunity to submit comments on the Proposed Sale Notice (PSN) for the eight lease areas in the New York Bight and thank the Bureau of Ocean Energy Management (BOEM) for doing the necessary work to propel the United States’ offshore wind industry forward.

As a country, we are facing several related crises, and offshore wind development will play an important role in rebuilding our economy, advancing environmental justice, combatting climate change, and addressing the crisis of extreme inequality. At a moment when we must take decisive action to move our economy forward, we need to make sure that our actions and investments are driving clean-energy development at the scale we know we need to in order to take on climate change, and doing it with good union jobs. BOEM can take a crucial step toward building a clean-energy future and creating good union jobs by having a timely and competitive lease sale for the eight designated areas in the NY Bight.

The NY Bight and BOEM’s Engagement

BOEM continues to demonstrate its commitment to responsibly developing the offshore wind industry by identifying the areas that are most suitable for offshore wind and prioritizing coexistence among ocean users. Through thoughtful stakeholder engagement, the original call areas identified were winnowed down from 1,700,000 acres to 800,000 acres to account for potential conflicts in commercial and recreational fishing, maritime navigation, marine and avian species, etc. As a result of further feedback, BOEM has removed two wind energy areas, Fairways North and South, from consideration in this proposed lease sale. We encourage BOEM to continue to engage with stakeholders and work with the Department of Defense, the U.S. Coast Guard, mariners, fishermen, and ecologists to continue to evaluate ways to mitigate conflicts and the viability of lease areas not included in this proposed notice.

To date, BOEM has held eight competitive lease sales and issued seventeen active commercial leases along the east coast. By completing another lease sale by the end of 2021, we can maximize the economic development and job opportunities in offshore wind and provide the industry and its future workforce confidence that the market is moving forward. With regional offshore wind commitments totaling over 30 gigawatts (GW) and New York’s goal of procuring 9,000 megawatts (MW) of offshore wind by 2035, the region is dependent on the proposed lease sales to meet clean energy targets, as highlighted in BOEM’s March 26, 2021 memorandum.1 At the same time, offshore wind presents a substantial opportunity for economic development. With respect to the New York region, the New York Energy Research and Development Authority (NYSERDA) forecasts that the state’s five awarded offshore wind projects will create 6,800 family- sustaining jobs, power 2.4 million homes, and have over $12 billion in economic impact across the state. To achieve the goals of New York’s nation-leading climate law, the Climate Leadership and Community Protection Act, we need to move projects forward expeditiously and provide the necessary lease areas for future projects. We urge BOEM to maintain at least 7,600 MW of generating capacity and the eight lease areas identified to ensure competitiveness in the market and the region’s ability to meet its offshore wind targets.

The Creation of Family-Supporting Union Jobs in the Offshore Wind Industry

As we are building this industry, we must ensure the jobs created are good family-supporting union jobs, not only in the construction and installation of projects but across the supply chain and the operations and maintenance (O&M) of offshore wind farms. A 2020 Wood Mackenzie study estimated that the NY Bight alone would account for more than 32,000 construction jobs from 2025 to 2030 and an estimated 5,800 annual operations and maintenance jobs from 2025- 2055.2 These are tangible, community-sustaining, clean-energy career pipelines for New Yorkers. The study also noted that $183 million in state tax revenue could be raised, $828 million in revenue for the federal treasury, and almost $50 billion in general economic activity. While the study used areas outside the scope of this proposed sale notice, it highlights the industry’s vast potential and the job opportunities it can create for New Yorkers.

1 United States Department of Interior, Bureau of Offshore Energy Management, Memorandum from James F Bennett, March 26, 2021, Page 8. https://www.boem.gov/sites/default/files/documents/renewable- energy/Memorandum%20for%20Area%20ID%20in%20the%20NY%20Bight.pdf

2 Economic Impact Study of New Offshore Wind Lease Auctions by BOEM, Wood Mackenzie, August 2020. https://www.noia.org/wp-content/uploads/2020/08/Offshore-wind-economic-impact-analysis-white-paper-final- 1.pdf

CJNY is encouraged to see proposed project labor agreement (PLA) requirements for construction work in the PSN’s Revised Lease Stipulations (Section VII b.). PLAs provide structure and stability for large projects, help bring projects in on budget and on time, and ensure access to high-quality skilled labor.

There are also other opportunities for including strong labor standards for offshore wind projects through additional lease conditions under consideration in Section IV that would directly benefit underserved communities and train the future workforce. As the Biden Administration’s Executive Order 14008, “Executive Order on Tackling Climate Crisis at Home and Abroad” argues, we must create a clean energy economy that puts working people first. As stated in the Executive Order, despite the clear perils of climate change, “there is promise in the solutions— opportunities to create well-paying union jobs to build a modern and sustainable infrastructure, deliver an equitable, clean energy future, and put the United States on a path to achieve net-zero emissions, economy-wide, by no later than 2050.”3 We can only create family-supporting jobs and address inequities in our communities by requiring strong labor standards, like PLAs and prevailing wage, for projects in the eight lease areas. This is a profound proprietary interest for the federal government as the U.S. Department of Treasury is slated to received hundreds of millions in revenue from offshore wind projects. CJNY proposes that the following be included in the lease stipulations:

Require Project Labor Agreements for Construction Work performed pursuant to the lease agreements.

BOEM should stipulate in its lease terms that developers must enter into Project Labor Agreements (PLAs) covering their contractors and subcontractors for the duration of the construction project, including work at dedicated staging and layout areas that may be remote from the actual construction site. PLAs generate cost savings, ensure timely, stable, and efficient project delivery, and provide unparalleled access to the highest quality skilled labor.

Require Labor Peace Agreements for all Operations & Maintenance performed pursuant to the lease agreements.

The lease stipulations should require Labor Peace Agreements (LPAs) for the operations and maintenance work performed in conjunction with the leased area as an ongoing condition of the lease and operating fee payments. LPAs require that government contractors and permittees have binding agreements with labor organizations that either represent their employees or are seeking to represent their employees that prohibit strikes, work stoppages, and lockouts.

 Support for Requiring PLA’s and LPA’s

The Outer Continental Shelf Lands Act (OCSLA) “vests the federal government with a proprietary interest in the Outer Continental Shelf and

3 Executive Order 14008, “Executive Order on Tackling Climate Crisis at Home and Abroad.” https://www.whitehouse.gov/briefing-room/presidential-actions/2021/01/27/executive-order-on-tackling-the-climate-crisis-at-home-and-abroad

establishes a regulatory scheme governing leasing and operations there.”4 Because the federal government is acting as both landlord of the leased Outer Continental Shelf (OCS) area and as an investor, it has a significant proprietary interest in ensuring that the project is constructed safely, expeditiously, and efficiently, and that the operations on the leased area both maximize a fair return to the public and protect the affected human and natural environment.5 To this end, the government has an interest in avoiding strikes, work stoppages, or other forms of labor unrest that might delay or interfere with either the construction or the operations phase of the project, as both would be costly interruptions to its anticipated return on investment.

BOEM can look to Executive Order 13502 for an explanation of how PLAs advance the government’s interest in achieving “economy and efficiency,” “producing labor-management stability,” and “ensuring compliance with laws and regulations governing safety and health, equal employment opportunity, labor and employment standards.”6 While the contemplated NY Bight projects may not fall under EO 13502, it is useful to look at the FAR regulations for guidance.7

Prevailing Wage (PW) Requirements for Construction, Operations & Maintenance Workers

BOEM should require that workers employed in the construction, operations and maintenance of offshore wind projects be paid no less than the prevailing wage rate applicable to the classification in the state where the power is being delivered. Prevailing wages ensure that the workforce is well paid, thereby reducing employee turnover and increasing productivity and the likelihood of reliable performance.

In New York State, the Public Service Commission has included prevailing wage requirements for construction workers in offshore wind and large- scale renewables solicitations. This standard should be echoed in the NY Bight lease areas.

Apprenticeship and Labor-Management Training Partnership Utilization Requirement

BOEM should require all construction contractors and subcontractors on all projects to participate in registered apprenticeship programs in the trades in which they are performing work. Apprenticeship utilization requirements ensure a skilled and safe workforce and provide increased employment opportunities for women, minorities, and members of disadvantaged communities. Where there are no DOL-approved or state- approved apprenticeship programs, such as operations and maintenance,

4 Laredo Offshore Constructors, Inc. v. Hunt Oil Co., 754 F.2d 1223 (5th Cir. 1985) (emphasis added)
5 See 43 U.S.C. § 1332(5)
6 48 CFR 22.503(b)(1)
7 See 48 CFR 22.504(b)

BOEM should require the utilization of labor-management training partnerships. Labor-management training partnerships have strong records of producing high-quality training that leads to a good union job.

The OCSLA acknowledges the dangers involved in the work of constructing offshore wind platforms and turbines, and therefore requires that these operations “shall be conducted in a safe manner by well-trained personnel using technology, precautions, and techniques sufficient to prevent or minimize...occurrences which may cause damage to the environment or to property, or endanger life or health.”8 Lease holders are required to maintain all places of employment within the lease area “in compliance with occupational safety and health standards,” and “free from recognized hazards to employees of the lease holder...or of any contractor or subcontractor operating within such lease area or within the area covered by such permit on the outer Continental Shelf.”9 Industry best practices include ensuring that all personnel are highly trained through an apprenticeship program that is registered with the state or DOL. Because the requirements extend to all contractors and subcontractors involved in the lease, it is essential that BOEM’s lease stipulations regarding these registered training programs apply to all employees performing work in connection with the lease, including those working offsite to manufacture or transport materials or supplies.

Providing Opportunity and Investment in Disadvantaged Communities

To maximize the number of good jobs for disadvantaged communities, BOEM should require its lessees to enter into Community Workforce Agreements that would include community hiring goals for underserved communities, historically underrepresented groups, workers displaced by the transition to renewables, and environmental justice communities. These agreements would also include investments in established workforce training programs such as registered apprenticeship programs and pre-apprenticeship programs.

Through such a partnership, BOEM and its lessees could access state-approved direct-entry pre- apprenticeship programs to recruit, train and place residents from disadvantaged communities into union apprenticeship programs and onto offshore wind projects. State-approved pre- apprenticeship programs provide their graduates direct entry access to union apprenticeship programs to prioritize opportunity for traditionally disadvantaged populations.

On Long Island, the Building and Construction Trades Council of Nassau and Suffolk Counties has a successful partnership with Opportunities Long Island, a direct-entry pre-apprenticeship program that connects Long Island community members directly to union apprenticeships and middle-class career opportunities in the union building trades. In New York City, the four direct- entry pre-apprenticeship programs working with NYC Building and Construction Trades Council affiliated apprentice programs formed the first Apprentice Readiness Collective (“ARC”) in the country. These four programs are the Edward J. Malloy Initiative for Construction Skills, Non-

8 43 U.S.C. § 1332(6)
9 43 U.S.C. § 1348(e)(i)(1)

Traditional Employment for Women (NEW), Helmets to Hardhats, and Pathways to Apprenticeship. ARC is a collaborative effort of these four pre-apprentice programs preparing individuals for success in building trades apprentice programs. The success of these programs is evidenced by the data: 81% of those entering the pre-apprentice programs are placed in NYS registered apprentice programs; 76% are NYC residents; 77% are minorities; and 35% are women.10

The federal government is required to hold the OCS in “the national interest,” including promoting the “social and economic components” of the development’s impact on those affected by activities occurring on the OCS.11 One significant consideration is the impact of transitioning to renewable energy on communities most disproportionately affected by climate change. Lease stipulations should set targeted hiring and training goals for historically marginalized groups, including Black, Indigenous, and people of color, women, LGBTQ, veterans, and persons with disabilities. This is also consistent with the spirit of the OCSLA nondiscrimination provisions requiring the government to “assure that no person shall, on the grounds of race, creed, color, national origin, or sex, be excluded from receiving or participating in any activity, sale, or employment, conducted pursuant to the provisions of this chapter.”12

Creating the Domestic Offshore Wind Supply Chain with Good Union Jobs

CJNY believes BOEM and the Department of the Interior can advance the national interest and create thousands of good-paying jobs by modifying lease stipulations to encourage offshore wind developers to purchase American-made components. It is in the national interest to develop a domestic offshore wind supply chain, not only to revitalize American manufacturing but strengthen energy security. Currently, the U.S. is heavily reliant on foreign-made components to support offshore wind. Establishing domestic manufacturing bases for offshore wind components will be critical in meeting the Biden Administration’s goal of 30 GW of offshore wind by 2030. Domestic content provisions for the offshore wind supply chain are consistent with BOEM’s mission to manage the OCS resources in an environmentally and economically responsible way, and also fulfills the Secretary of the Interior’s responsibility to manage public lands in a manner consistent with the national interest.

For these reasons, BOEM should use lease stipulations to require its lessees to maximize their use of American goods, products, components, and material to ensure the most efficient and sustainable development of the OCS. Lease stipulations that require use of domestic content are allowable under the OCSLA. The OCSLA requires development to be both efficient and to use “the best available and safest technologies.”13 Promoting the nascent supply chain for domestic wind turbine production supports both of these goals, as it ensures that parts will be readily available to the OCS projects without navigating the time-consuming international shipping process and assures the government that the production will be done according to U.S. safety standards. These lease stipulations would in turn promote offshore wind production, which advances the agency’s goals of utilizing the OCS for the benefit of the national economy.

10 Apprentice Readiness Collective (“ARC”)
11 43 U.S.C. § 1332
12 43 U.S.C. § 1863
13 43 U.S.C. § 1347(b)

BOEM should also coordinate its leasing activities with Department of Energy’s (DOE) Loan Programs Office to incentivize suppliers through grants or loans in connection with the planned projects, as well as issue credits toward operating fee revenues for developers that use responsible sources. Using rental credits, grants, or other financial incentives to support a domestic supply chain is consistent with White House recommendations regarding leveraging the Defense Production Act (DPA) and similar authorities to support the domestic supply chain for renewables.

As a recent White House report concluded in reference to mining materials for renewables, for example, “When the Federal Government is responsible for incentivizing domestic production,” it should “requir[e] strong labor protections, including prevailing wage requirements, use of Project Labor Agreements and community hire on construction projects, [and] union neutrality policies for employers....” These terms support creating good union jobs, consistent with the goals of Executive Order 14008.

To truly build back better, it is crucial to ensure the jobs created in a domestic supply chain are good-paying union jobs. BOEM should incentivize high-road labor standards in the offshore wind supply chain. Promoting a domestic supply chain with strong labor standards will maximize the economic benefits of the development, including maximizing union career opportunities for underserved communities, and ensuring safer production, high-quality products, and an uninterrupted flow of materials.

The “Best Value” Model

• CJNY encourages BOEM to use a “best value” bidding model when determining lease recipients. In the “best value” model, leases would be awarded to developers that demonstrate the best economic, environmental and community value, rather than the lowest bidder. Along with the factors it currently uses to evaluate bids, we encourage BOEM to adopt criteria in its bidding formula that encourage domestic manufacturing and promote strong labor standards at offshore wind facilities. Some criteria could include:

• labor conditions among suppliers (i.e., paying prevailing wages and benefits, labor peace or neutrality agreements).

• diversity and workforce training programs among suppliers targeting underserved communities (such as through Registered Apprenticeship programs, community workforce or --community benefits agreements, and targeted hire agreements), and the use of domestically manufactured component parts, such as iron, steel, and concrete.

 We have seen the success of this type of model in New York. After discussion with labor and climate groups, NYSERDA indicated that it would review labor standards as one of the factors when awarding offshore wind solicitations. In the 2019 solicitation, one of the two winning developers, Equinor Wind US, included stipulations for a PLA with the Building and Construction Trades Council of Nassau and Suffolk Counties. The other developer, Orsted/Eversource, included an investment of $10 million in a National Offshore Wind Training Center that will coordinate Long Island’s union apprenticeship programs to train the future offshore wind workforce. These commitments to local labor unions were a win for workers and for the state’s energy portfolio, helping demonstrate the overall value projects can bring to our communities.

The OCSLA authorizes BOEM to grant each lease to the “highest responsible qualified bidder.”14 When making the “responsibility” determination, BOEM must ensure that the planned development effectively manages the impacts on the immediate jobsite and lease area, as well as the broader “human environment,” including “the physical, social, and economic components, conditions, and factors which interactively determine the state, condition, and quality of living conditions, employment, and health of those affected, directly or indirectly, by activities occurring on the outer Continental Shelf.”15 Thereby, the statute requires the government to look at the far-reaching impacts of the production it oversees. A “best value” or similar points-based bidding model is an effective and comprehensive way to assess the many factors affecting the human impact of the proposed project. BOEM should include factors in its responsibility determination that evaluate the living conditions, working conditions, and health impacts of workers down the supply chain.

By incentivizing high-road labor standards and domestic manufacturing during the bidding process, BOEM can establish a preference for developers that pay good wages and support American manufacturers—all of which has the benefit of kickstarting the green economic recovery.

Offshore Wind Transmission Coordination

As we continue to put the United States on the path to harnessing offshore wind energy, we need to address our transmission infrastructure needs. It is clear that robust transmission upgrades are crucial not only for New York’s long-term energy future, but for the country. Over the next few years, New York will see retrofits to our substation transformers, voltage upgrades, and reconductoring lines to higher capacities, which must move swiftly. As noted in the Initial Report on the New York Power Grid Study, “proposed Phase 1 local transmission projects would unbottle the delivery of an estimated 6.6 GW of renewable generation,” and local distribution upgrades would unbottle 2 GW of renewables.16 In order to reduce the frequency of congestion, constraints, and curtailments of the electrical grid, we must be sure that this work moves forward as expeditiously as possible and coordination among states, utilities, independent system operators and the Federal Regulatory Commission (FERC) is realized for necessary offshore wind transmission and distribution infrastructure, like an offshore meshed system. Updating the grid in a safe and reliable way also requires qualified workers. We must ensure that those who complete the transmission and distribution work are properly qualified, including graduating from a state registered apprenticeship program.

14 43 U.S.C. § 1337a)(1)
15 43 U.S.C. § 1331(i)
16 Initial Report on the New York Power Grid Study, 21

Moving Offshore Wind Forward

We urge BOEM to complete the Environmental Assessment, issue a Final Sales Notice and hold an auction by the end of 2021. The only way to achieve 9,000 megawatts of offshore wind energy by 2035—New York State's goal, codified into law in July 2019—is to advance permitting and lease sales in a timely manner and develop safe and fair conditions with community stakeholders.

We also support BOEM’s efforts to discover creative and new ways to engage with offshore wind stakeholders while also creating processes that mitigate stakeholder fatigue. Robust stakeholder engagement is crucial to moving this nascent industry forward. We encourage BOEM to coordinate with stakeholders, developers/suppliers, states, DOI, DOE, and other federal entities to create a public engagement process that includes direct outreach to communities, especially those affected by climate the most.

In this time of bold transformation, smart investments in a clean-energy future can simultaneously put people back to work, build infrastructure to address climate change, and spur economic development in our communities.

Thank you for your consideration.
Respectfully submitted,

Jeff Vockrodt
Executive Director Climate Jobs NY