Alternative Alternative Energy on the Energy on the

Outer Outer Continental Continental

ShelfShelfRobert P. LaBelleRobert P. LaBelleDeputy Associate DirectorDeputy Associate Director

Offshore Energy and Minerals Offshore Energy and Minerals ManagementManagement

Minerals Management ServiceMinerals Management Service

Marine Renewable Energy Center

Ocean Energy for New England Conference

October 6, 2008

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OverviewOverview Minerals Management ServiceMinerals Management Service

Mission StatementMission Statement Activity HighlightsActivity Highlights

Regulatory Authority and MandatesRegulatory Authority and Mandates Program DevelopmentProgram Development

Major Rule ElementsMajor Rule Elements Rule InstrumentsRule Instruments Lease ProcessLease Process Plans under the RulePlans under the Rule

Interim PolicyInterim Policy Looking AheadLooking Ahead

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MMS MissionMMS Mission

To manage the ocean To manage the ocean energy and mineral energy and mineral resources on the Outer resources on the Outer Continental Shelf and Continental Shelf and Federal and Indian Federal and Indian mineral revenues to mineral revenues to enhance public and enhance public and trust benefits, promote trust benefits, promote responsible use, and responsible use, and realize fair value.realize fair value.

Credit: GE

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Activity Highlights:Activity Highlights: Cape Wind ProjectCape Wind Project

Published Notice of Availability of Draft Published Notice of Availability of Draft EIS on January 18, 2008 (60-day EIS on January 18, 2008 (60-day comment period)comment period)

Held public hearings March 10-13, 2008Held public hearings March 10-13, 2008 Closed comment period on April 21, 2008Closed comment period on April 21, 2008

Over 40,000 comments receivedOver 40,000 comments received

Next Steps:Next Steps: Publish Final EIS Publish Final EIS Issue Record of DecisionIssue Record of Decision

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Activity Highlights: Activity Highlights:

Environmental Studies Environmental Studies ProgramProgram

Comparative Study of Offshore Wind Turbine Comparative Study of Offshore Wind Turbine Generators Standards Generators Standards

Determining Night Time Distribution of Determining Night Time Distribution of Long-Tailed Long-Tailed DucksDucks Using Radio Telemetry Using Radio Telemetry

Effects of Effects of Pile DrivingPile Driving Sounds on Auditory and Non- Sounds on Auditory and Non-Auditory Tissues of FishAuditory Tissues of Fish

Compendium of Compendium of Avian InformationAvian Information and Comprehensive and Comprehensive GIS GeodatabaseGIS Geodatabase

Energy Market and Infrastructure InformationEnergy Market and Infrastructure Information for for Evaluating Alternative Energy Projects for OCS Atlantic Evaluating Alternative Energy Projects for OCS Atlantic and Pacific Regionsand Pacific Regions

Evaluation of Visual Impacts on Evaluation of Visual Impacts on Historic PropertiesHistoric Properties Meteorological and Wave MeasurementsMeteorological and Wave Measurements for Improving for Improving

Meteorological and Air Quality ModelingMeteorological and Air Quality Modeling Potential for Potential for Interactions between Endangered and Interactions between Endangered and

Candidate Bird Species with Wind Facility OperationsCandidate Bird Species with Wind Facility Operations on the Atlantic OCSon the Atlantic OCS

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Activity Highlights:Activity Highlights: Regional CoordinationRegional Coordination

Northeast Regional Ocean Council Northeast Regional Ocean Council ((NROCNROC))

NROC Governors’ Action Plan for 2008-NROC Governors’ Action Plan for 2008-2009 identifies “Ocean Energy Planning 2009 identifies “Ocean Energy Planning and Management” as a major regional and Management” as a major regional ocean management issue for the ocean management issue for the northeast U.S. northeast U.S. Committee on Ocean Energy Planning and Committee on Ocean Energy Planning and

Management (Management (COEPMCOEPM) formed to address ) formed to address these issuesthese issues

Ongoing consultation with Federal, Ongoing consultation with Federal, State, and Local stakeholdersState, and Local stakeholders

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Regulatory Authority: Regulatory Authority: EPAct 2005EPAct 2005

Section 388 amended Section 8 of Section 388 amended Section 8 of OCSLAOCSLA

MMS was granted the authority to MMS was granted the authority to regulate a broad spectrum of activities regulate a broad spectrum of activities on the OCS:on the OCS:

Alternative energyAlternative energy (wind, ocean (wind, ocean wave, ocean current, solar, hydrogen wave, ocean current, solar, hydrogen production)production) Alternate useAlternate use ofof existing facilitiesexisting facilities (research and offshore support (research and offshore support stations, recreation opportunities)stations, recreation opportunities)

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Key Regulatory Mandates Key Regulatory Mandates

Coordinate with affected State & local Coordinate with affected State & local governments and Federal agenciesgovernments and Federal agencies

Ensure safe operationsEnsure safe operations Protect the environmentProtect the environment Issue leases competitivelyIssue leases competitively Ensure fair return for use of OCS Ensure fair return for use of OCS

landslands Share revenue with affected StatesShare revenue with affected States

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MMS Alternative Energy MMS Alternative Energy Program DevelopmentProgram Development

The Rule/Regulations (The Rule/Regulations (proposed July proposed July

20082008))

Record of Decision (Record of Decision (Jan. 2008Jan. 2008)) Adoption of Adoption of 52 best 52 best

management practicesmanagement practices

Programmatic EIS (Programmatic EIS (Nov. 2007Nov. 2007)) Interim Policy for Leasing (Interim Policy for Leasing (Nov. 2007Nov. 2007))

Over 40 nominations receivedOver 40 nominations received Lease Form & Information CollectionLease Form & Information Collection Stakeholder meetingsStakeholder meetings with State with State

agencies agencies

AE Study Program (AE Study Program (OngoingOngoing))

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The Rule:The Rule: CommentsComments

280280 comments estimated in total in comments estimated in total in response to Notice of Proposed response to Notice of Proposed RulemakingRulemaking

Most Common TopicsMost Common Topics: Aquaculture, : Aquaculture, State and Local Consultation, State and Local Consultation, Bonding, Confidentiality, Alternate Bonding, Confidentiality, Alternate Use Liability Transference, Use Liability Transference, Jurisdiction, Revenue Sharing, and Jurisdiction, Revenue Sharing, and Environmental Review ProcessesEnvironmental Review Processes

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The Rule: The Rule:

Preliminary Comment Preliminary Comment EstimatesEstimates

TypeType Number ReceivedNumber Received

State GovernmentState Government 3838

NGOsNGOs 3737

Oil and Gas IndustryOil and Gas Industry 33

Alternative Energy Alternative Energy IndustryIndustry

2727

Local GovernmentLocal Government 77

CongressCongress 44

Tribal GovernmentTribal Government 11

Federal GovernmentFederal Government 77

Research Research OrganizationsOrganizations

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IndividualsIndividuals 155155

280280

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Coordination Coordination ((throughout the rulethroughout the rule)) State/Federal Task ForcesState/Federal Task Forces

Leasing Process and IssuanceLeasing Process and Issuance ((Subpart BSubpart B))

Competitive & Noncompetitive LeasingCompetitive & Noncompetitive Leasing Commercial & Limited LeasesCommercial & Limited Leases

Plans Plans ((Subpart FSubpart F)) Site Assessment & Construction & OperationsSite Assessment & Construction & Operations General ActivitiesGeneral Activities

Conduct of Approved Plan Conduct of Approved Plan ActivitiesActivities

((Subpart HSubpart H)) Environmental & Safety Monitoring & InspectionsEnvironmental & Safety Monitoring & Inspections

PaymentsPayments ( (Subpart ESubpart E)) Bonding & PaymentsBonding & Payments

Decommissioning Decommissioning ((Subpart ISubpart I)) Alternate UseAlternate Use ( (Subpart JSubpart J))

The Rule: The Rule: Major Elements Major Elements

Credit: GE

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The Rule: The Rule:

PlansPlans Site Assessment Plan Site Assessment Plan (SAP) – describes (SAP) – describes

assessment and survey activities needed to assessment and survey activities needed to characterize the site (characterize the site (applies to commercial leasesapplies to commercial leases))

Construction & Operations PlanConstruction & Operations Plan (COP) – (COP) – describes all activities and facilities to be installed describes all activities and facilities to be installed and used to gather, transport, transmit, generate, and used to gather, transport, transmit, generate, or distribute energy from the lease (or distribute energy from the lease (applies to applies to commercial leasescommercial leases))

General Activities Plan General Activities Plan (GAP) – describes all (GAP) – describes all activities and operations related to technology activities and operations related to technology testing, including any facility siting and project testing, including any facility siting and project easement (easement (applies to limited leases, ROWs, and applies to limited leases, ROWs, and RUEsRUEs))

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Interim PolicyInterim Policy Interim policyInterim policy currently in effect for currently in effect for

limited leasing before final limited leasing before final regulationsregulations

Covers resource data collection and Covers resource data collection and technology testing activitiestechnology testing activities

Will authorize 5-year termWill authorize 5-year term Will Will notnot give priority right for give priority right for

subsequent commercial developmentsubsequent commercial development Initially received over 40 site Initially received over 40 site

nominationsnominations Currently considering 15 lease areasCurrently considering 15 lease areas Anticipate issuing a number of Anticipate issuing a number of

limited leases over the next yearlimited leases over the next year

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Interim Policy:Interim Policy: Lease Areas Under Lease Areas Under

ConsiderationConsideration

New Jersey

Delaware

Georgia

*All wind met towers*

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Interim Policy: Interim Policy:

Lease Areas Under Lease Areas Under ConsiderationConsideration

Florida California

*Ocean current and wave*

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On the HorizonOn the Horizon

Completing the rulemakingCompleting the rulemaking Continuing to collaborate Continuing to collaborate

with stakeholderswith stakeholders Initiating environmental Initiating environmental

studies under the MMS studies under the MMS Studies ProgramStudies Program

Issuing Interim Policy Issuing Interim Policy leases and reviewing lease leases and reviewing lease plansplans

Preparing environmental Preparing environmental compliance documentscompliance documents

Monitoring activitiesMonitoring activitiesCredit: GE

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More Information…More Information…

Robert P. LaBelle

Deputy Associate Director

Offshore Energy and Minerals Management

703-787-1700

On the Web at:

www.mms.gov/offshore/alternativeenergy