Morro Bay Offshore Wind Takes a Major Step in 2021: How California and Federal Agencies Created the Wind Energy Area
Morro Bay Offshore Wind in 2021: The Year Planning Became a Federal Energy Project
The modern California offshore-wind story entered a new phase in 2021.
The previous years had been dominated by proposals, studies, public meetings and federal-state planning. But 2021 brought a much more concrete development: the federal government formally designated the Morro Bay Wind Energy Area (WEA) off California’s Central Coast.
That decision transformed the discussion.
Morro Bay was no longer simply an offshore area being considered for wind development.
It became a federally identified area that could move toward commercial offshore-wind leasing.
The year also exposed one of the central challenges that would remain important years later: offshore wind had to coexist with national-security interests, fishing, environmental concerns, coastal communities and other ocean uses.
That is why 2021 is one of the most important years in understanding the later Golden State Wind controversy.
What Happened in 2021?
There were several major developments:
- May 25, 2021: Interior, Defense and California announced an agreement to advance offshore-wind areas.
- July 28, 2021: BOEM announced major progress on California offshore-wind leasing and identified additional Morro Bay areas for public input.
- July 29, 2021: BOEM published a formal Call for Information and Nominations for the Morro Bay East and West Extensions.
- September 13, 2021: The public-comment and industry-nomination period for those extensions closed.
- November 12, 2021: BOEM formally designated the Morro Bay Wind Energy Area.
- December 2021: BOEM began formal environmental-assessment scoping and public meetings.
These events moved California from general offshore-wind planning toward an actual federal leasing framework.
1. May 25, 2021 — A Critical Federal-State-Defense Agreement
One of the most important events came on May 25, 2021.
The U.S. Department of the Interior, Department of Defense and State of California announced an agreement to advance offshore-wind development areas along California’s northern and central coasts.
This was important because offshore wind development could not be considered only as an energy issue.
The federal government also had to consider:
- military training;
- testing;
- national security;
- fishing;
- navigation;
- environmental resources;
- coastal communities;
- tribal interests.
BOEM later described the agreement as enabling a path forward for the Humboldt Call Area and areas within and adjacent to the Morro Bay Call Area.
Why this matters in hindsight
This 2021 agreement is especially important when looking at the 2026 controversy.
In 2026, national-security concerns became part of the federal government’s justification for offshore-wind lease cancellations.
But the historical record shows that national-security interests were already being considered during the 2021 planning process.
That does not by itself determine the legality of the 2026 cancellation.
However, it explains why the 2021 planning record is likely to be important when evaluating later claims.
2. Why the Department of Defense Was Involved
Offshore wind turbines can be enormous structures located far offshore.
For the military, the location of offshore infrastructure can matter because the ocean is also used for:
- naval operations;
- aircraft activities;
- testing;
- training;
- radar and communications;
- national-security missions.
BOEM’s later area-identification documents show that the Morro Bay planning area was adjusted after consultation regarding military activities.
A northern portion of the earlier 2018 Morro Bay Call Area was removed because of conflicts with national-security interests and military training and testing activities.
This is a major point.
The final offshore-wind area was not simply drawn around the strongest wind resources.
The government had to balance wind potential against competing uses.
3. July 2021 — BOEM Expands the Morro Bay Planning Process
On July 28, 2021, BOEM announced further progress in California’s offshore-wind leasing process.
The agency said it would seek public and industry input concerning two additional areas:
- Morro Bay Call Area East Extension
- Morro Bay Call Area West Extension
The extensions were adjacent to the original Morro Bay Call Area identified in 2018.
The combined extensions covered approximately 90,025 acres.
This was significant because federal planners were reconsidering the precise boundaries of the potential offshore-wind development zone.
The government was trying to find an area large enough to support commercial development while avoiding major conflicts.
4. July 29, 2021 — The Formal Call for Information
The following day, July 29, 2021, BOEM published the Morro Bay East and West Extensions Call for Information and Nominations in the Federal Register.
This started a 45-day public-comment period.
BOEM accepted:
- industry nominations;
- public comments;
- information about competing ocean uses;
- information relevant to potential commercial leasing.
The comment period closed on September 13, 2021.
This procedure is important because it shows that the federal government was not simply announcing a predetermined wind farm.
It was still asking:
Where should offshore wind be developed?
Who could be affected?
What conflicts need to be addressed?
5. The Fishing Industry Was One of the Major Concerns
The Central Coast is economically important for commercial fishing.
Offshore wind development therefore raised questions about:
- fishing access;
- vessel movement;
- fishing grounds;
- construction activity;
- navigation;
- potential changes to marine ecosystems.
BOEM’s later area-identification documents specifically acknowledged concerns regarding potential impacts on commercial fishing activities.
This matters because offshore-wind development was never simply a climate-versus-oil debate.
For coastal communities, it was also an ocean-use debate.
A wind project could produce clean electricity while simultaneously creating concerns for existing ocean industries.
6. Environmental Issues Were Built Into the Process
Another important feature of the 2021 process was environmental review.
On November 12, 2021, when BOEM announced the designation of the Morro Bay Wind Energy Area, the agency also announced that it would prepare an Environmental Assessment.
The review was designed to consider potential impacts from:
- biological surveys;
- archaeological surveys;
- geological surveys;
- geophysical surveys;
- site characterization;
- installation of meteorological buoys;
- related site-assessment activities.
BOEM said the environmental review would be conducted under the National Environmental Policy Act (NEPA).
This distinction is important:
WEA designation did not mean construction approval.
It meant the federal government had identified an area where commercial offshore-wind leasing could potentially proceed.
Actual development would require additional reviews and approvals.
7. November 12, 2021 — Morro Bay Wind Energy Area Is Officially Designated
This was the defining event of 2021.
Morro Bay became a major focus of California’s offshore wind planning after federal agencies designated the Wind Energy Area in November 2021.
BOEM officially designated the Morro Bay Wind Energy Area.
The area was approximately:
240,898 acres
or:
376 square miles
and was located approximately:
20 miles offshore central California.
The area lies off the Central Coast, near San Luis Obispo County.
This was a major federal milestone.
After years of planning, the government had moved from a broad offshore-wind concept to a formally identified federal Wind Energy Area.
8. Why 240,898 Acres Matters
The size of the WEA is enormous compared with the footprint of an individual turbine.
The area was designed to provide room for potential commercial development while accounting for ocean conditions and competing uses.
BOEM’s later analysis estimated that the WEA could potentially support roughly 2.9 GW of electricity generation under one configuration. Other federal estimates later described the area as capable of supporting up to 3 GW of clean-energy capacity.
That scale explains why California considered Morro Bay strategically important.
If developed at full potential, the area could eventually contribute electricity equivalent to the needs of more than one million homes, according to BOEM’s later environmental assessment.
But again:
Potential capacity is not the same as electricity actually generated.
The WEA designation did not guarantee that 3 GW would be built.
9. Why Floating Offshore Wind Was Necessary
Morro Bay’s offshore waters are very deep.
BOEM’s environmental documentation shows water depths across the WEA of approximately:
900–1,300 meters
or roughly:
2,953–4,265 feet.
That makes traditional fixed-bottom offshore wind difficult.
California’s offshore-wind strategy therefore depends heavily on floating offshore wind technology.
Instead of fixing the turbine foundation directly into the seabed, turbines can be mounted on floating structures connected to the seabed through mooring systems.
This creates a major opportunity.
But it also creates engineering challenges.
Floating wind requires:
- specialized platforms;
- mooring systems;
- subsea cables;
- installation vessels;
- specialized ports;
- new supply chains;
- new maintenance capabilities.
In 2021, much of this industrial ecosystem was still developing.
10. December 2021 — Environmental Scoping Begins
After the WEA designation, BOEM began the next stage of the environmental process.
A public scoping meeting was held on December 1, 2021.
Another meeting was scheduled for January 5, 2022.
The public-comment period ran until January 11, 2022.
The December meeting included participants from:
- federal agencies;
- California agencies;
- tribal nations;
- local governments;
- industry;
- academic institutions;
- NGOs;
- community organizations;
- members of the public;
- press.
Approximately 95 participants attended the December 1 virtual meeting.
This demonstrates how broad the consultation had become.
11. What Were People Being Asked to Comment On?
The environmental scoping process was designed to identify issues that BOEM should study.
Those included potential effects associated with site characterization and site assessment.
In practical terms, this meant asking:
What could happen when developers begin surveying the seabed?
Could marine species be affected?
Could archaeological resources be disturbed?
Could fishing operations be disrupted?
Could vessel traffic be affected?
Could survey equipment create environmental impacts?
These questions were part of the regulatory process before actual commercial development.
12. 2021 Also Created California’s Offshore-Wind Planning Framework
Another major development occurred at the state level.
In September 2021, California enacted Assembly Bill 525 (AB 525).
The law required the California Energy Commission to develop a strategic plan for offshore wind development in federal waters off California.
The CEC was required to coordinate with agencies and organizations including:
- California Coastal Commission;
- Ocean Protection Council;
- State Lands Commission;
- Department of Fish and Wildlife;
- Governor’s Office of Business and Economic Development;
- California Independent System Operator;
- California Public Utilities Commission;
- relevant federal, state and local agencies.
This was another major piece of the 2021 puzzle.
California was not simply waiting for the federal government to develop offshore wind.
The state was building its own strategic planning framework.
13. Why AB 525 Was Important
AB 525 recognized that offshore wind would require much more than turbines.
The state would need to plan for:
Ports
Large floating turbines and components require specialized port facilities.
Transmission
Electricity generated far offshore needs to reach the California grid.
Workforce
The industry requires engineers, electricians, marine workers, construction workers and specialized technicians.
Manufacturing
Floating wind requires a supply chain capable of producing large components.
Fisheries
Fishing communities need to be included in development planning.
Environmental protection
Marine ecosystems must be monitored and protected.
The legislation therefore treated offshore wind as an industrial and infrastructure strategy, not merely a renewable-energy target.
14. The Central Coast Was Becoming an Economic Opportunity
By the end of 2021, offshore wind was increasingly being discussed as an economic opportunity for California’s Central Coast.
Potential benefits included:
- port modernization;
- construction jobs;
- maritime employment;
- engineering work;
- manufacturing;
- workforce training;
- long-term operations and maintenance.
But these were potential benefits, not guaranteed outcomes.
The industry still had to overcome high costs, immature floating technology and complex permitting requirements.
That balance is important in responsible reporting.
15. The National-Security Issue Was Already Visible in 2021
One of the strongest connections between the 2021 history and the 2026 legal controversy is national security.
BOEM’s area-identification work shows that military and national-security considerations influenced the boundaries of the offshore-wind area.
A portion of the earlier Morro Bay Call Area was removed because of conflicts with military training and testing.
That means national security was not an issue that suddenly appeared in 2026.
It had already been part of the planning process.
However, there is an important legal distinction:
The existence of earlier national-security consultation does not automatically prove that a later federal cancellation is unlawful.
That question belongs to the courts.
16. The Biggest Misunderstanding About the 2021 Decision
A common mistake is to say:
“California approved a 3-GW offshore wind farm in 2021.”
That is inaccurate.
What happened was:
BOEM designated a Wind Energy Area.
The WEA could potentially support commercial offshore-wind leases.
But a specific commercial project still required:
- leasing;
- project development;
- environmental review;
- additional federal approvals;
- state and local coordination;
- transmission planning;
- construction authorization.
This distinction becomes extremely important when explaining what happened in 2026.
17. 2021 Was the Bridge Between Planning and Commercial Leasing
The easiest way to understand the year is:
2016–2020
Planning and investigation
↓
2021
Federal area designation + state strategic planning
↓
2022
Environmental review + commercial lease auction
↓
2023
Federal leases become effective
↓
2026
Federal cancellation controversy
This sequence makes the larger story much easier to understand.
18. 2021 Timeline
| Date | Event | Significance |
|---|---|---|
| May 25, 2021 | Interior, Defense and California announce agreement | Creates path forward for offshore-wind areas |
| July 28, 2021 | BOEM announces progress on California leasing | Expands federal planning |
| July 29, 2021 | Morro Bay East/West Extensions Call published | Public and industry input begins |
| Sept. 13, 2021 | Comment/nominations period closes | Federal planners receive stakeholder information |
| Sept. 2021 | California enacts AB 525 | State creates offshore-wind strategic planning requirement |
| Nov. 12, 2021 | Morro Bay WEA designated | Major federal milestone |
| Dec. 1, 2021 | First environmental scoping meeting | NEPA environmental review begins |
| Dec. 2021 | Public comment continues | Community and stakeholder concerns enter review |
19. What Changed Because of 2021?
The year changed the status of Morro Bay offshore wind in three important ways.
First: A defined federal area existed
The government had formally identified 240,898 acres for potential offshore-wind leasing.
Second: Environmental review became formal
BOEM began the NEPA-related Environmental Assessment process.
Third: California created its own strategic framework
AB 525 required the state to plan for the infrastructure and economic consequences of offshore wind.
These three developments created the foundation for the much larger events of 2022.
20. Why 2021 Matters to the 2026 Legal Battle
When California challenged the federal cancellation of the Golden State Wind lease in 2026, the state was not challenging a project that appeared overnight.
The lease emerged from a federal process that included:
2016 planning
→ 2018 Call Area
→ 2021 federal-state-defense agreement
→ 2021 Morro Bay WEA designation
→ environmental review
→ 2022 lease auction
→ 2023 effective lease
The 2021 record therefore provides important context for understanding why California considers the later federal reversal so significant.
But it is important not to go beyond the evidence.
The 2021 agreements and planning documents do not themselves determine whether the 2026 cancellation was lawful.
That is a legal question for the federal courts.
21. What Readers Should Remember
If you remember only five things about 2021, remember these:
1. California and federal agencies reached an important offshore-wind agreement in May.
2. The Department of Defense was involved in the planning.
3. BOEM expanded public and industry input around the Morro Bay area during the summer.
4. BOEM officially designated the 240,898-acre Morro Bay Wind Energy Area on November 12, 2021.
5. California passed AB 525, creating a state strategic-planning framework for offshore wind.
Together, these decisions moved California offshore wind from a long-term concept toward a commercial leasing program.
Conclusion
2021 was the year Morro Bay offshore wind became real at the federal planning level.
The federal government did not yet approve a completed wind farm.
Instead, it established the geographic and regulatory foundation needed for future commercial development.
The Morro Bay Wind Energy Area covered approximately 240,898 acres, roughly 20 miles offshore.
At the same time, California created its own offshore-wind strategic planning requirement through AB 525.
The year also demonstrated that offshore wind would have to coexist with military operations, fishing, environmental resources, tribal interests and coastal communities.
That combination of energy policy, environmental regulation and national security would become increasingly important.
In 2022, the story moved to its next stage:
environmental review, federal leasing and the historic California offshore-wind auction.
That is where the path toward the eventual Golden State Wind lease truly accelerated.
FAQ
When was the Morro Bay Wind Energy Area designated?
BOEM designated the Morro Bay Wind Energy Area on November 12, 2021.
How large was the Morro Bay Wind Energy Area?
The WEA covered approximately 240,898 acres, or about 376 square miles, roughly 20 miles offshore.
Did the 2021 decision approve construction of a wind farm?
No. The WEA designation identified an area for potential commercial offshore-wind leasing. Additional environmental, leasing and project-specific approvals were still required.
Why was the Department of Defense involved?
Military training, testing and national-security interests were among the ocean-use considerations examined during the planning process. BOEM’s later documents show that some areas were removed because of military conflicts.
What was California AB 525?
AB 525 was a 2021 California law requiring the California Energy Commission to develop a strategic plan for offshore wind development in federal waters off the California coast.
Was Golden State Wind’s lease issued in 2021?
No. The commercial offshore-wind lease auction occurred in December 2022, and the Golden State Wind lease became effective in 2023.