K Roek MARC June 2009 Presentation Wind On The Water In The Great Lakes

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Presentation given at the 2009 Mid-America Regulatory Conference providing an overview of U.S. offshore wind development, focusing on the Great Lakes

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K Roek MARC June 2009 Presentation Wind On The Water In The Great Lakes

  1. 1. Permitting & Policies of Wind on the Water – Great Lakes – Presented By Katherine A. Roek STOEL RIVES LLP June 16, 2009
  2. 2. To order any of these books, please contact: Katherine A. Roek * 612.373.8820 karoek@stoel.com * www.stoel.com 2
  3. 3. Why are we discussing offshore? 3
  4. 4. Overview • Offshore vs. Onshore permitting issues • Federal jurisdictional waters vs. State jurisdictional waters • Lessons from East Coast • State of offshore wind development in the Great Lakes • What are other states doing? • What does the future hold? 4
  5. 5. Permitting Issues ONSHORE OFFSHORE • Marine mammals • Land interest acquisition • Fish • Local zoning • Navigation • Avian impacts • Existing uses (commercial • Other wildlife/ fisheries, crabbing) endangered species • Electromagnetic field • Wetlands • Creation of new environments / • Aviation adaptive management • Visual impacts • Water quality • Noise/human health • Ease of removal consequences • Military radar 5 • Jones Act
  6. 6. Siting Authority – Federal Waters Outer Continental Shelf (OCS) under the jurisdiction of: • Minerals Management Service (MMS) • Federal Energy Regulatory Commission (FERC) 6
  7. 7. Siting Authority – Great Lakes Each state – out to center of Lake 7
  8. 8. Siting Authority – State Waters • Great Lakes – each state out to center of lake • Atlantic/Pacific coasts – up to 3 nautical miles offshore • Gulf of Mexico (Texas, Florida) – 9 nautical miles offshore – Texas: General Land Office 8
  9. 9. Offshore Wind Development – Federal Laws • National Environmental Policy Act • Submerged Lands Act of 1953 • Coastal Zone Management Act • Endangered Species Act • Clean Water Act • Others: – Fish & Wildlife Coordination Act – Rivers & Harbors Act – Migratory Bird Treaty Act 9 – Marine Mammals Protection Act
  10. 10. Offshore Wind Development – State Laws • State environmental policy act (if applicable) • Great Lakes submerged lands • Water quality • Endangered species / wildlife protection • Commercial fishing / crabbing • Coastal zone management • Onshore issues (cables, waterfront development) • Marine safety • Water rights (?) 10
  11. 11. Federal – MMS Leasing Regulations April 22, 2009 • MMS issued final regulations for granting competitive / non-competitive commercial leases, limited leases, rights-of-way and rights-of-use and easements on the OCS. – Finalized proposed regs that were issued July 9, 2008 11
  12. 12. Federal – MMS Leasing Regulations • Types of leases: – Commercial • Energy development • ~30 years • Competitively bid – Limited • Data gathering • ~5 years • BUT: limited power sale permitted 12
  13. 13. Federal – MMS Leasing Regulations • Regulations also specify: – Required Financial Assurance – Rental Amounts and Operating Fees – Environmental Review • Changes from proposed rules include: – Allowance of limited power production during limited lease – Addition of multiple-factor auction format with respect to bidding process 13
  14. 14. Interaction between MMS & FERC April 9, 2009 • FERC-MMS signed a Memorandum of Understanding. – FERC will issue licenses for hydro projects on OCS – MMS will issues leases, easements, and ROW on OCS 14
  15. 15. Great Lakes Permitting / Siting of Offshore Wind • U.S. Army Corps of Engineers will be lead federal permitting agency – NEPA review will be triggered through permit • Section 10 of Rivers & Harbors Act • Section 404 of Clean Water Act – EIS vs. EA? Depends on size, location… – Programmatic assessments? 15
  16. 16. Great Lakes Permitting / Siting of Offshore Wind, con’t • Other agencies: – State environmental regulatory agencies • e.g. Michigan Department of Environmental Quality for placement of structures in the Great Lakes – joint application process already in place – U.S. Coast Guard • Guidance on Offshore Renewable Energy Installations (OCS) – will adapt to Great Lakes (Corps, not MMS) – State coastal management agency – Fish and wildlife (state and federal) 16
  17. 17. State Initiatives • New Jersey – Blue Ribbon Panel to Evaluate Offshore Wind – Ocean Environmental Assessment – $12M in grants – Selected Preferred Developer – Created Energy Master Plan: • 1,000 MW by 2012; 3,000 MW by 2020 – Offshore Wind Renewable Energy Certificates • All load-serving entities required to obtain ORECs from offshore wind, based on their percentage of retail sales in NJ 17 • OREC price to be set by BPU; 20-year term
  18. 18. State Initiatives, con’t • Rhode Island – Ocean Zoning • Special Area Management Plan – Selected Preferred Developer – June 2009: Legislation proposed that would require state’s largest electricity supplier to purchase energy from offshore wind farm 18
  19. 19. State Initiatives, con’t • Michigan – May 2008: Offshore Wind Permitting Dry-Run • Wisconsin – January 2009: Public Service Commission – prepared Feasibility Report. Looked at: • Engineering and Economic Issues • Human Environment Issues • Legal Issues • Community Involvement Issues 19
  20. 20. Consortiums • Great Lakes Wind Collaborative – Multi-sector coalition of wind energy stakeholders working to facilitate the sustainable development of wind power in the binational Great Lakes region. • Great Lakes Wind Council – Advisory body within the Department of Energy, Labor, and Economic Growth to provide public forum to identify where, in the Great Lakes, wind energy systems may be prudently sited – Report due September 1, 2009 20
  21. 21. 21
  22. 22. Current U.S. Projects • Cape Wind (130 turbines, 420 MW, Nantucket) – January 16, 2009: Final EIS (2,800-pages) issued by MMS. Awaiting lease from MMS. – Spring 2009: Received consistency determination, composite approval from state. SOURCE: GreenPeace USA 22
  23. 23. Current U.S. Projects • Bluewater Wind (450 MW, Delaware) – July 31, 2008: PPA with Delmarva Power approved by DE Public Service Commission. – Evaluating wind resources, preparing environmental and permitting documents for submission to MMS. 23
  24. 24. Current U.S. Projects • Deepwater Wind – January 2009: agreement with RI to construct two-phased project: 5-8 turbines in state waters (2012); utility-scale (~400 MW) in federal waters (TBD). – October 2008: selected by NJ Board of Public Utilities to build 350 MW wind farm in federal waters. Includes $19 million in state grant monies (2013). 24
  25. 25. Current U.S. Projects • Wind Energy Systems Technology (WEST) – 2005: Signed lease with TX GLO for 150 MW project. – Meteorological tower off of Galveston has compiled almost two years of data. • Great Lakes Energy Development Task Force (off coast of Cuyahoga County, OH – Lake Erie) – Has begun resource assessment. – Spring 2009: feasibility study. 25
  26. 26. Current U.S. Projects • Long Island Power Authority / Con Edison – Joint FS for interconnection of 350 MW project 13 miles offshore of Long Island, with the ability to extend up to 700 MW. – Interconnect request filed w/ NY ISO. – April 2009: Wind collaborative of state, municipal entities interested in supporting / purchasing power from the project. 26
  27. 27. Land-based Shallow Transitional Deepwater Water Depth Floating Offshore Comercially Wind Proven Technology Demonstration Technology Phase Estimated 0m-20m 30m-60m 60m-900m US Resource 430-GW 541-GW 1533-GW No exclusions assumed for resource estimates 27
  28. 28. Resources • www.mms.gov/offshore/alternativeenergy/ regulatoryinformation.htm • www.awea.org/faq/wwt_offshore.html • www.psc.wi.gov • www.michigan.gov/dleg • www.ri.gov • www.nj.gov 28
  29. 29. Thank you! Katherine A. Roek (612) 373-8820 karoek@stoel.com www.stoel.com 29

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