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States’ Roles inStates’ Roles in
U.S. Offshore WindU.S. Offshore Wind
DevelopmentDevelopmentDevelopmentDevelopment
Presented By
Katherine A. Roek
STOEL RIVES LLP
September 22, 2009
To order any of these books, please contact:To order any of these books, please contact:
Katherine A. Roek * 612.373.8820 [email protected] A. Roek * 612.373.8820 [email protected] ** www.stoel.comwww.stoel.com
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Why are we discussing offshore?Why are we discussing offshore?
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OverviewOverview
• Federal jurisdictional waters vs. Statejurisdictional waters
• Permitting/Siting at the State level
• Which states are active?• Which states are active?
• What are they doing?
• What does the future hold?
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SitingSiting AuthorityAuthority –– Federal WatersFederal Waters
Outer Continental Shelf (OCS) under thejurisdiction of:
• Minerals Management Service (MMS)
• Federal Energy Regulatory Commission (FERC)• Federal Energy Regulatory Commission (FERC)
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Siting AuthoritySiting Authority –– Great LakesGreat Lakes
Each state – out to center of Lake
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SitingSiting AuthorityAuthority –– State WatersState Waters
• Great Lakes– each state out to center of lake
• Atlantic/Pacific coasts– up to 3 nautical miles offshore– up to 3 nautical miles offshore
• Gulf of Mexico (Texas, Florida)– 9 nautical miles offshore
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Outer Continental ShelfOuter Continental ShelfPermitting/Siting of Offshore WindPermitting/Siting of Offshore Wind
• Minerals Management Service (MMS) leadfederal permitting agency under NEPA
– Promulgated regulations for granting competitive /non-competitive commercial leases, limited leases,rights-of-way and rights-of-use and easements on therights-of-way and rights-of-use and easements on theOCS.
– Requires consultation with numerous other federalagencies, including U.S. Coast Guard, Fish & WildlifeService, FERC, Federal Aviation Administration, PLUSstate agencies.
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Great Lakes Permitting / SitingGreat Lakes Permitting / Sitingof Offshore Windof Offshore Wind
• U.S. Army Corps of Engineers will belead federal permitting agency
– NEPA review will be triggered through permit
• Section 10 of Rivers & Harbors Act• Section 10 of Rivers & Harbors Act
• Section 404 of Clean Water Act
– EIS vs. EA? Depends on size, location…
– Programmatic assessments?
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Great Lakes Permitting / Siting ofGreat Lakes Permitting / Siting ofOffshore Wind,Offshore Wind, con’tcon’t
• Other agencies:
– State environmental regulatory agencies
• e.g. Michigan Department of EnvironmentalQuality for placement of structures in the GreatLakes – 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)11
States Active in Offshore WindStates Active in Offshore Wind
12Source: U.S. Offshore Wind Collaborative, www.usowc.org
MassachusettsMassachusetts
• State has issued final approvals for Cape Wind.
• Created Ocean Management Act, requiringcomprehensive development plan, includingidentification of prudent sites (by Dec. 2009).
• Working with Town of Hull (including $1.7M grant)• Working with Town of Hull (including $1.7M grant)to prepare preliminary environmental andengineering studies for 4-turbine nearshore project.
• Massachusetts Technology Collaborative createdU.S. Offshore Wind Collaborative, includingpreparation of Framework for Offshore WindEnergy in the United States.
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Rhode IslandRhode Island
• Ocean Zoning– Special Area Management Plan
• Selected Preferred Developer
• June 2009: Legislation signed into law thatrequires state’s largest electricity supplier torequires state’s largest electricity supplier topurchase energy from offshore wind farm.– National Grid to issue requests for proposals for
10- to 15-year power purchase agreements forat least 90 MW of its load, plus a utility-scaleoffshore project of up to 150 MW.
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New YorkNew York
• April 2009: New York Power Authority issues RFEI tosupport the preparation of an RFP for Great Lakesoffshore wind project.
– Seeking technical, financial, environmental and commercialinformation from the wind industry
– RFP expected to result in selection of developer to– RFP expected to result in selection of developer toconstruct/operate/maintain farm, enter into long-term PPA.
• July 2009: Long Island-New York City Offshore WindCollaborative RFI
– Exploring possibility of 350 MW offshore wind project apprx. 13miles off the south shore of Rockaway.
– Interconnect study done (Con Ed/LIPA), applicationfiled with NYISO to interconnect up to 700 MW by 2015.
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New JerseyNew Jersey
• Blue Ribbon Panel to Evaluate Offshore Wind
• Ocean Environmental Assessment
• $12M in grants
• Selected Three Preferred Developers
• Created Energy Master Plan:• 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 fromoffshore wind, based on their percentageof retail sales in NJ
– OREC price to be set by BPU; 20-year term
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MarylandMaryland
• Sept. 2009: Issued Request for Expressions ofInformation and Interest
– Assessing options for offshore wind development
– Seeking to develop “in-state renewable generationability to fulfill some” or all of its RPS needs
– Responses to MEA from interested parties, including– Responses to MEA from interested parties, includingdevelopers, due early 2010
• Simultaneously launching study to evaluateviability of offshore wind in coastal waters
– Building on marine spatial planning work indevelopment by MD DNR and the NatureConservancy
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DelawareDelaware
• Bluewater Wind
– July 31, 2008: PPA withDelmarva Power & Lightapproved by DE Public ServiceCommission.Commission.
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TexasTexas
• TX General Land Office – issued 7 leasessince 2005– Wind Energy Systems Technology (WEST)
• 2005: Signed five leases with TX GLO, beginningwork on 150 MW project (Galveston).work on 150 MW project (Galveston).
• Meteorological tower has compiled almost twoyears of data.
– Baryonyx Corp.• 2009: Signed leases for three sites (two offshore),
with a potential capacity for up to 3,000 MW.
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Great LakesGreat Lakes –– ConsortiumsConsortiums
• Great Lakes Wind Collaborative
– Multi-sector coalition of wind energy stakeholdersworking to facilitate the sustainable development ofwind power in the binational Great Lakes region.
• Great Lakes Wind Council
– Advisory body within the Michigan Department ofEnergy, Labor and Economic Growth to providepublic forum to identify where, in the Great Lakes,wind energy systems may be prudently sited
– Report issued September 1, 2009
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MichiganMichigan
• May 2008: Offshore Wind Permitting Dry-Run
• Feb. 2009: Great Lakes Wind Council created.
• Sept. 2009: Council issues final report to Gov. Granholm.Recommendations include:
– Set of criteria to identify / map prudent siting for offshore wind.
– Legislative / rule changes to establish leasing process.
– Request that the U.S. Army Corps of Engineers prepare aProgrammatic Environmental Impact Statement.
– PSC convene forum to work with stakeholders on an economicanalysis of different policy scenarios.
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Michigan,Michigan, con’tcon’t
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WisconsinWisconsin
• January 2009: Public Service Commission – FeasibilityReport.
– Engineering and Economic Issues
– Human Environment Issues
– Legal Issues
– Community Involvement Issues
• We Energies
– Publicly committed funding to performing offshore wind studies
• Legislation?
– Increase state RPS, mandate portion in-state
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OhioOhio
• Great Lakes Energy Development Task Force– Consortium of Cleveland Foundation, Cuyahoga County,
Case Western, City of Cleveland, others
– Issued RFQ for development of 5-20 MW offshore pilotproject.
– Entered into agreement with JW Great Lakes Wind.– Entered into agreement with JW Great Lakes Wind.
• Spring 2009: Feasibility study issued.– Recommended prudent sites and foundation design
– Evaluated marine ecology and avian issues
– Provided cost estimates
– Recommends next steps
• Currently completing pre-constructionavian/bat and ecological studies 24
ResourcesResources
• www.mms.gov/offshore/alternativeenergy/regulatoryinformation.htm
• www.awea.org/faq/wwt_offshore.html
• www.psc.wi.gov
• www.michigan.gov/dleg• www.michigan.gov/dleg
• www.michiganglowcouncil.org
• www.ri.gov
• www.nj.gov
• www.linycoffshorewind.com
• www.usowc.org25
Thank you!Thank you!
Katherine A. Roek
(612) 373-8820
www.stoel.comwww.stoel.com
www.lawofrenewableenergy.com
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