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States’ Roles in
U.S. Offshore Wind
  Development
            Presented By
            Katherine A. Roek
            STOEL RIVES LLP


            September 22, 2009
To order any of these books, please contact:

Katherine A. Roek * 612.373.8820 karoek@stoel.com * www.stoel.com




                                                                    2
3
Why are we discussing offshore?




                                  4
Overview

• Federal jurisdictional waters vs. State
  jurisdictional waters
• Permitting/Siting at the State level
• Which states are active?
• What are they doing?
• What does the future hold?


                                            5
Siting Authority – Federal Waters

Outer Continental Shelf (OCS) under the
jurisdiction of:
• Minerals Management Service (MMS)
• Federal Energy Regulatory Commission (FERC)




                                                6
Siting Authority – Great Lakes

Each state – out to center of Lake




                                     7
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




                                       8
Outer Continental Shelf
 Permitting/Siting of Offshore Wind

• Minerals Management Service (MMS) lead
  federal 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 the
    OCS.
  – Requires consultation with numerous other federal
    agencies, including U.S. Coast Guard, Fish & Wildlife
    Service, FERC, Federal Aviation Administration, PLUS
    state agencies.


                                                            9
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?



                                                   10
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)
                                                             11
States Active in Offshore Wind




Source: U.S. Offshore Wind Collaborative, www.usowc.org   12
Massachusetts

• State has issued final approvals for Cape Wind.
• Created Ocean Management Act, requiring
  comprehensive development plan, including
  identification of prudent sites (by Dec. 2009).
• Working with Town of Hull (including $1.7M grant)
  to prepare preliminary environmental and
  engineering studies for 4-turbine nearshore project.
• Massachusetts Technology Collaborative created
  U.S. Offshore Wind Collaborative, including
  preparation of Framework for Offshore Wind
  Energy in the United States.
                                                         13
Rhode Island

• Ocean Zoning
   – Special Area Management Plan
• Selected Preferred Developer
• June 2009: Legislation signed into law that
  requires state’s largest electricity supplier to
  purchase energy from offshore wind farm.
   – National Grid to issue requests for proposals for
     10- to 15-year power purchase agreements for
     at least 90 MW of its load, plus a utility-scale
     offshore project of up to 150 MW.


                                                         14
New York

• April 2009: New York Power Authority issues RFEI to
  support the preparation of an RFP for Great Lakes
  offshore wind project.
   – Seeking technical, financial, environmental and commercial
     information from the wind industry
   – RFP expected to result in selection of developer to
     construct/operate/maintain farm, enter into long-term PPA.

• July 2009: Long Island-New York City Offshore Wind
  Collaborative RFI
   – Exploring possibility of 350 MW offshore wind project apprx. 13
     miles off the south shore of Rockaway.
   – Interconnect study done (Con Ed/LIPA), application
     filed with NYISO to interconnect up to 700 MW by 2015.
                                                                       15
New Jersey

• Blue Ribbon Panel to Evaluate Offshore Wind
• Ocean Environmental Assessment
• $12M in grants
• Selected Three Preferred Developers
• 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
   – OREC price to be set by BPU; 20-year term

                                                               16
Maryland

• Sept. 2009: Issued Request for Expressions of
  Information and Interest
   – Assessing options for offshore wind development
   – Seeking to develop “in-state renewable generation
     ability to fulfill some” or all of its RPS needs
   – Responses to MEA from interested parties, including
     developers, due early 2010
• Simultaneously launching study to evaluate
  viability of offshore wind in coastal waters
   – Building on marine spatial planning work in
     development by MD DNR and the Nature
     Conservancy
                                                           17
Delaware

           • Bluewater Wind
             – July 31, 2008: PPA with
               Delmarva Power & Light
               approved by DE Public Service
               Commission.




                                               18
Texas

• TX General Land Office – issued 7 leases
  since 2005
  – Wind Energy Systems Technology (WEST)
     • 2005: Signed five leases with TX GLO, beginning
       work on 150 MW project (Galveston).
     • Meteorological tower has compiled almost two
       years of data.
  – Baryonyx Corp.
     • 2009: Signed leases for three sites (two offshore),
       with a potential capacity for up to 3,000 MW.


                                                             19
Great Lakes – 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 Michigan 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 issued September 1, 2009
                                                           20
Michigan

• 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 a
     Programmatic Environmental Impact Statement.
   – PSC convene forum to work with stakeholders on an economic
     analysis of different policy scenarios.


                                                                           21
Michigan, con’t




                  22
Wisconsin

• January 2009: Public Service Commission – Feasibility
  Report.
   – 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


                                                                      23
Ohio
• 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 pilot
    project.
  – 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-construction
  avian/bat and ecological studies                         24
Resources

• www.mms.gov/offshore/alternativeenergy/reg
  ulatoryinformation.htm
• www.awea.org/faq/wwt_offshore.html
• www.psc.wi.gov
• www.michigan.gov/dleg
• www.michiganglowcouncil.org
• www.ri.gov
• www.nj.gov
• www.linycoffshorewind.com
• www.usowc.org
                                               25
Thank you!

Katherine A. Roek
(612) 373-8820
karoek@stoel.com
www.stoel.com
www.lawofrenewableenergy.com




                               26

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K Roek Infocast Sept 2009 Presentation

  • 1. States’ Roles in U.S. Offshore Wind Development Presented By Katherine A. Roek STOEL RIVES LLP September 22, 2009
  • 2. To order any of these books, please contact: Katherine A. Roek * 612.373.8820 karoek@stoel.com * www.stoel.com 2
  • 3. 3
  • 4. Why are we discussing offshore? 4
  • 5. Overview • Federal jurisdictional waters vs. State jurisdictional waters • Permitting/Siting at the State level • Which states are active? • What are they doing? • What does the future hold? 5
  • 6. Siting Authority – Federal Waters Outer Continental Shelf (OCS) under the jurisdiction of: • Minerals Management Service (MMS) • Federal Energy Regulatory Commission (FERC) 6
  • 7. Siting Authority – Great Lakes Each state – out to center of Lake 7
  • 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 8
  • 9. Outer Continental Shelf Permitting/Siting of Offshore Wind • Minerals Management Service (MMS) lead federal 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 the OCS. – Requires consultation with numerous other federal agencies, including U.S. Coast Guard, Fish & Wildlife Service, FERC, Federal Aviation Administration, PLUS state agencies. 9
  • 10. 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? 10
  • 11. 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) 11
  • 12. States Active in Offshore Wind Source: U.S. Offshore Wind Collaborative, www.usowc.org 12
  • 13. Massachusetts • State has issued final approvals for Cape Wind. • Created Ocean Management Act, requiring comprehensive development plan, including identification of prudent sites (by Dec. 2009). • Working with Town of Hull (including $1.7M grant) to prepare preliminary environmental and engineering studies for 4-turbine nearshore project. • Massachusetts Technology Collaborative created U.S. Offshore Wind Collaborative, including preparation of Framework for Offshore Wind Energy in the United States. 13
  • 14. Rhode Island • Ocean Zoning – Special Area Management Plan • Selected Preferred Developer • June 2009: Legislation signed into law that requires state’s largest electricity supplier to purchase energy from offshore wind farm. – National Grid to issue requests for proposals for 10- to 15-year power purchase agreements for at least 90 MW of its load, plus a utility-scale offshore project of up to 150 MW. 14
  • 15. New York • April 2009: New York Power Authority issues RFEI to support the preparation of an RFP for Great Lakes offshore wind project. – Seeking technical, financial, environmental and commercial information from the wind industry – RFP expected to result in selection of developer to construct/operate/maintain farm, enter into long-term PPA. • July 2009: Long Island-New York City Offshore Wind Collaborative RFI – Exploring possibility of 350 MW offshore wind project apprx. 13 miles off the south shore of Rockaway. – Interconnect study done (Con Ed/LIPA), application filed with NYISO to interconnect up to 700 MW by 2015. 15
  • 16. New Jersey • Blue Ribbon Panel to Evaluate Offshore Wind • Ocean Environmental Assessment • $12M in grants • Selected Three Preferred Developers • 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 – OREC price to be set by BPU; 20-year term 16
  • 17. Maryland • Sept. 2009: Issued Request for Expressions of Information and Interest – Assessing options for offshore wind development – Seeking to develop “in-state renewable generation ability to fulfill some” or all of its RPS needs – Responses to MEA from interested parties, including developers, due early 2010 • Simultaneously launching study to evaluate viability of offshore wind in coastal waters – Building on marine spatial planning work in development by MD DNR and the Nature Conservancy 17
  • 18. Delaware • Bluewater Wind – July 31, 2008: PPA with Delmarva Power & Light approved by DE Public Service Commission. 18
  • 19. Texas • TX General Land Office – issued 7 leases since 2005 – Wind Energy Systems Technology (WEST) • 2005: Signed five leases with TX GLO, beginning work on 150 MW project (Galveston). • Meteorological tower has compiled almost two years of data. – Baryonyx Corp. • 2009: Signed leases for three sites (two offshore), with a potential capacity for up to 3,000 MW. 19
  • 20. Great Lakes – 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 Michigan 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 issued September 1, 2009 20
  • 21. Michigan • 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 a Programmatic Environmental Impact Statement. – PSC convene forum to work with stakeholders on an economic analysis of different policy scenarios. 21
  • 23. Wisconsin • January 2009: Public Service Commission – Feasibility Report. – 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 23
  • 24. Ohio • 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 pilot project. – 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-construction avian/bat and ecological studies 24
  • 25. Resources • www.mms.gov/offshore/alternativeenergy/reg ulatoryinformation.htm • www.awea.org/faq/wwt_offshore.html • www.psc.wi.gov • www.michigan.gov/dleg • www.michiganglowcouncil.org • www.ri.gov • www.nj.gov • www.linycoffshorewind.com • www.usowc.org 25
  • 26. Thank you! Katherine A. Roek (612) 373-8820 karoek@stoel.com www.stoel.com www.lawofrenewableenergy.com 26