The Obama administration is gauging interest in wind power development off the coast of New York, after a state agency proposed an offshore project 11 nautical miles south of Long Beach.

The Bureau of Ocean Energy Management issued a request today for any competing interests in the proposed lease area, which covers about 127 square miles (329 square kilometers), according to an e-mailed statement. If no other parties express interest, the New York Power Authority can get a lease on a non- competitive basis.

The agency, part of the U.S. Interior Department, is also seeking comments on potential environmental effects of a wind farm in the area. The authority has proposed a project that would generate 350 to 700 megawatts of power for Long Island and New York City.

There are no offshore wind farms currently operating in the U.S. The government has awarded two offshore wind-energy leases, in Massachusetts in 2010 and in Delaware in October, through non-competitive arrangements with Cape Wind Associates LLC and NRG Energy Inc. The administration plans to conduct the first competitive lease auctions this year for projects off the coasts of Massachusetts, Rhode Island and Virginia.

The Long Island - New York City Offshore Wind Project is being backed by the New York Power Authority, Long Island Power Authority and Consolidated Edison Co., according to its website. The Long Island Power Authority canceled plans in 2007 to build a wind farm off Jones Beach after costs rose.

Copyright 2012 Bloomberg

Lead image: Offshore wind via Shutterstock