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Environmental, Engineering and Pre- Construction Cost Considerations for Wind Power Development Anntonette Alberti, JD Tetra Tech IPED Financing Wind Power July 25, 2007

Environmental, Engineering and Pre- Construction Cost Considerations for Wind Power Development Anntonette Alberti, JD Tetra Tech IPED Financing Wind Power

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Page 1: Environmental, Engineering and Pre- Construction Cost Considerations for Wind Power Development Anntonette Alberti, JD Tetra Tech IPED Financing Wind Power

Environmental, Engineering and Pre-Construction Cost

Considerations for Wind Power Development

Environmental, Engineering and Pre-Construction Cost

Considerations for Wind Power Development

Anntonette Alberti, JDTetra Tech

IPED Financing Wind PowerJuly 25, 2007

Page 2: Environmental, Engineering and Pre- Construction Cost Considerations for Wind Power Development Anntonette Alberti, JD Tetra Tech IPED Financing Wind Power

Introduction to Tetra Tech

7500 employees and 250 offices nationwideFull service wind energy contractor Environmental Engineering Construction O&M

Over 70 wind projects for about 30 clients across the US Our current projects range from:

– Drafting the American Wind Energy Association (AWEA) Environmental Siting Guide with Nixon Peabody

– Turnkey meteorology, engineering design and environmental permitting of a 300 to 500 MW facility on Lanai with AWS

– Civil construction of several New York State wind farms– Offshore wind

Page 3: Environmental, Engineering and Pre- Construction Cost Considerations for Wind Power Development Anntonette Alberti, JD Tetra Tech IPED Financing Wind Power

Presentation Goals

Provide an overview of the steps associated with developing a wind power project

Identify aspects of development that can affect overall costs of construction

Page 4: Environmental, Engineering and Pre- Construction Cost Considerations for Wind Power Development Anntonette Alberti, JD Tetra Tech IPED Financing Wind Power

Anatomy of a Wind Project

Page 5: Environmental, Engineering and Pre- Construction Cost Considerations for Wind Power Development Anntonette Alberti, JD Tetra Tech IPED Financing Wind Power

Components of a Wind Project

It is not just turbines. . . Temporary met towers Construction trailers and lay-down

areas Concrete batch plant Construction spoil disposal sites Construction work areas around

turbine foundations Access roads Public road improvements Electrical collection lines Transmission lines Switchyards, substations, point of

interconnection stations Permanent met towers Restoration and mitigation projects Operations and maintenance

building Visitor kiosk

Page 6: Environmental, Engineering and Pre- Construction Cost Considerations for Wind Power Development Anntonette Alberti, JD Tetra Tech IPED Financing Wind Power

Wind

Meteorology costs: Wind Measurement Equipment and Installation Data Collection and Interpretation Meteorological Consultation and Advice

Page 7: Environmental, Engineering and Pre- Construction Cost Considerations for Wind Power Development Anntonette Alberti, JD Tetra Tech IPED Financing Wind Power

Transmission

Transmission Costs: Development Electrical Engineering (What you

need to get the right permits/land rights and get interconnection, not develop final construction drawings)

– Feasibility Study– Conceptual collection system and high

voltage interconnection design– System Reliability Interconnection Study– Feasibility Study

Utility Interconnection– Fees and filings associated with

interconnection– Cost allocation for system upgrades

Transmission legal– Outside counsel for interconnection

agreements, filings, FERC

Page 8: Environmental, Engineering and Pre- Construction Cost Considerations for Wind Power Development Anntonette Alberti, JD Tetra Tech IPED Financing Wind Power

Land

Land costs: Costs of hired land men

– Hours and expenses Landowner payments

– Signing payments– Met tower payments– Option payments– Lease conversion payments– Neighbor agreement payments

Land legal and title– Outside counsel– Title company– ALTA– Recording fees

Page 9: Environmental, Engineering and Pre- Construction Cost Considerations for Wind Power Development Anntonette Alberti, JD Tetra Tech IPED Financing Wind Power

Public and Governmental Relations

Public and Governmental Relations Costs Local Office

– Staff– Equipment

Landowners and neighbors– Newsletters– Dinners

Community Public Relations– Mailings– Ads– Open houses– Fairs and community events– Charitable sponsorships

Governmental Relations– Lobbyists– Public meeting support

Page 10: Environmental, Engineering and Pre- Construction Cost Considerations for Wind Power Development Anntonette Alberti, JD Tetra Tech IPED Financing Wind Power

Development Civil Engineering

Costs for Development Civil Engineering (What you need to get the right permits/land rights, not develop final construction drawings): Conceptual Layout

– Constraint mapping– Initial geotech (desktop?)– Transportation study (identify

routes, need for improvements to bridges, culverts, intersections, etc)

– Initial siting turbines, roads, collection, transmission, substation, construction work areas, etc

– Walk-overs

Page 11: Environmental, Engineering and Pre- Construction Cost Considerations for Wind Power Development Anntonette Alberti, JD Tetra Tech IPED Financing Wind Power

Development Civil Engineering Cont.

Permitting Layout development (need coordination with electrical on collection system/high voltage portions of design)

– 2’ contours

– Initital horizontal alignment

– Geotechnical study

– Survey and Staking

– Engineering/environmental walk

– Landowner walk

– Agency walk as needed

– Finalize horizontal layout for permitting

Page 12: Environmental, Engineering and Pre- Construction Cost Considerations for Wind Power Development Anntonette Alberti, JD Tetra Tech IPED Financing Wind Power

Development Civil Engineering Cont.

Engineering-heavy permits– DOT permits for road improvements and cutting access into state

roads

– Local permits for road improvements and cutting access into local roads

– NPDES (or state equivalent) NOI for construction with SWPPP and SPCCP

– NPDES (or equivalent) NOI for operation with SWPPP and SPCCP (this is important to consider during design because of potential need for secondary containment around transformers)

Page 13: Environmental, Engineering and Pre- Construction Cost Considerations for Wind Power Development Anntonette Alberti, JD Tetra Tech IPED Financing Wind Power

Environmental Studies and Permitting

Environmental Studies and Permitting Costs: Consultants

– Permit applications and regulatory representation– Avian and bat studies, reports, consultations– Wetland studies, reports, permits, mitigation– Wildlife and vegetation studies, reports,

consultations, mitigation– Agricultural protection consultation, mitigation– Cultural and historical resource studies and

consultations, mitigation– Communications interference studies (including

homeland security)– Aviation interference studies– Visual impact analysis– Groundwater studies– Socioeconomic studies as required– Other studies as required– EAs, DEISs. FEISs and/or equivalent reports and

processes

Page 14: Environmental, Engineering and Pre- Construction Cost Considerations for Wind Power Development Anntonette Alberti, JD Tetra Tech IPED Financing Wind Power

Environmental Studies and Permitting Cont.

Permitting fees– Actual permit fees

– Agency collection agreements Permitting Legal

– Outside counsel

Page 15: Environmental, Engineering and Pre- Construction Cost Considerations for Wind Power Development Anntonette Alberti, JD Tetra Tech IPED Financing Wind Power

Preconstruction

Preconstruction Costs: Negotiations with turbine and other equipment/service providers Finalize Turbine and Long-Lead-Time Item Procurement Final Construction Plans and Drawings Develop Environmental Construction Compliance Plan Secure Construction Owner-Representative Team Secure Construction Contractors Develop Mobilization Plan

Page 16: Environmental, Engineering and Pre- Construction Cost Considerations for Wind Power Development Anntonette Alberti, JD Tetra Tech IPED Financing Wind Power

Take Away Points

Wind project development is highly iterative

Change management in scope, schedule and budget is key

Early engineering and constructability review can save tens of millions during construction

Appropriate planning can vastly improve long term economics

Page 17: Environmental, Engineering and Pre- Construction Cost Considerations for Wind Power Development Anntonette Alberti, JD Tetra Tech IPED Financing Wind Power

Contacts

Environmental and Engineering

Anntonette Alberti, JD

[email protected]

518-488-8588

Charlie Karustis

[email protected]

503-222-4536

Construction and Operations & Maintenance

John Hueston

[email protected]

678-983-0863