Transcript The Law of Wind - Stoel Rives LLP Attorneys at Law

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 [email protected] * www.stoel.com
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Why are we discussing offshore?
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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?
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Siting Authority – Federal Waters
Outer Continental Shelf (OCS) under the
jurisdiction of:
• Minerals Management Service (MMS)
• Federal Energy Regulatory Commission (FERC)
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Siting Authority – Great Lakes
Each state – out to center of Lake
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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
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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.
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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?
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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)
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States Active in Offshore Wind
Source: U.S. Offshore Wind Collaborative, www.usowc.org
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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.
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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.
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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.
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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
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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
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Delaware
• Bluewater Wind
– July 31, 2008: PPA with
Delmarva Power & Light
approved by DE Public Service
Commission.
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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.
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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
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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.
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Michigan, con’t
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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
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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.
–
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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
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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
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Thank you!
Katherine A. Roek
(612) 373-8820
[email protected]
www.stoel.com
www.lawofrenewableenergy.com
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