Transcript The Law of Wind

Permitting Policies
and Pitfalls of
Offshore Wind
Presented By
Katherine A. Roek
STOEL RIVES LLP
May 5, 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
• Offshore vs. Onshore permitting issues
• Federal jurisdictional waters vs. State
jurisdictional waters
• State of offshore wind development in
the U.S.
• What does the future hold?
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Permitting Issues
ONSHORE
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Land interest acquisition
Local zoning
Avian impacts
Other wildlife/
endangered species
Wetlands
Aviation
Visual impacts
Noise/human health
consequences
OFFSHORE
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Marine mammals
Fish
Navigation
Existing uses (commercial
fisheries, crabbing)
Electromagnetic field
Creation of new environments /
adaptive management
Water quality
Ease of removal
Military radar
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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 – State Waters
• Atlantic/Pacific coasts
– up to 3 nautical miles offshore
• Great Lakes
– each state out to center of lake
• Gulf of Mexico (Texas, Florida)
– 9 nautical miles offshore
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Offshore Wind Development –
Federal Laws
• Submerged Lands Act of 1953
• Coastal Zone Management Act
• National Environmental Policy Act
• Endangered Species Act
• Clean Water Act
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Offshore Wind Development –
Federal Laws
• Others
– Fish & Wildlife Coordination Act
– Rivers & Harbors Act
– Migratory Bird Treaty Act
– Marine Mammals Protection Act
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Offshore Wind Development –
State Laws
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State environmental policy act (if applicable)
Water quality
Endangered species / wildlife protection
Commercial fishing / crabbing
Coastal zone management
Marine safety
Onshore issues (cables, waterfront
development)
• Water rights (?)
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Federal – MMS Leasing
Regulations
April 22, 2009
• MMS issued final regulations for granting
competitive / non-competitive commercial
leases, limited leases, rights-of-way and
rights-of-use and easements on the OCS.
– Finalized proposed regs that were issued
July 9, 2008
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Federal – MMS Leasing
Regulations
• Types of leases:
– Commercial
• Energy development
• ~30 years
• Competitively bid
– Limited
• Data gathering
• ~5 years
• BUT: limited power sale permitted
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Federal – MMS Leasing
Regulations
• Regulations also specify:
– Required Financial Assurance
– Rental Amounts and Operating Fees
– Environmental Review
• Changes from proposed rules include:
– Allowance of limited power production
during limited lease
– Addition of multiple-factor auction format
with respect to bidding process
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MMS Limited Leases Issued
July 2008
• MMS issued limited leases (under interim
policy) to companies to conduct data
collection and technology assessment
activities on the OCS.
– Does not authorize energy production.
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MMS Limited Leases Issued
• Wind energy recipients of leases
include:
– Fisherman’s Energy (NJ, RI)
– Deepwater Wind (NJ, RI)
– Southern Company (GA)
– Bluewater Wind (DE, NJ, NY, RI)
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Interaction between MMS & FERC
• Federal Power Act
– authorizes FERC to issue licenses for
non-federal hydropower projects
• OCSLA
– authorizes MMS to issue leases/ROW
on OCS
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Interaction between MMS & FERC
April 9, 2009
• FERC-MMS signed a Memorandum of
Understanding.
– FERC will issue licenses for hydro projects
on OCS
– MMS will issues leases, easements, and ROW
on OCS
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Current U.S. Projects
• Cape Wind (130 turbines, 420 MW,
Nantucket)
– January 16, 2009: Final
EIS (2,800-pages)
issued by MMS. Awaiting
lease from MMS.
– January-March 2009:
Received consistency
determination, composite
approval from state.
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SOURCE: GreenPeace USA
Current U.S. Projects
• Bluewater Wind (450 MW,
Delaware)
– July 31, 2008: PPA with Delmarva
Power approved by DE Public
Service Commission.
– Evaluating wind resources,
preparing environmental and
permitting documents for
submission to MMS.
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Current U.S. Projects
• Deepwater Wind
– January 2009: agreement with RI to
construct two-phased project: 5-8 turbines in
state waters (2012); utility-scale (~400 MW)
in federal waters (TBD).
– October 2008: selected by NJ Board of
Public Utilities to build 350 MW wind farm in
federal waters. Includes $19 million
in state grant monies (2013).
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Current U.S. Projects
• Wind Energy Systems Technology (WEST)
– 2005: Signed lease with TX GLO for 150
MW project.
– Meteorological tower off of Galveston has
compiled almost two years of data.
• Great Lakes Energy Development Task
Force (off coast of Cuyahoga County, OH –
Lake Erie)
– Has begun resource assessment.
– Spring 2009: feasibility study.
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Current U.S. Projects
• Long Island Power Authority / Con Edison
– Joint FS for interconnection of 350 MW
project 13 miles offshore of Long Island, with
the ability to extend up to 700 MW.
– Interconnect request filed w/ NY ISO.
– April 2009: Wind collaborative of state,
municipal entities interested in supporting /
purchasing power from the project.
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State Initiatives
• Wisconsin
– January 2009: Public Service Commission –
prepared Feasibility Report
– Working with Michigan on potential cooperation
• Michigan
– May 2008: Offshore Wind Permitting Dry-Run
– Great Lakes Wind Council created by Governor
to identify prudent locations for offshore
wind farms.
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State Initiatives
• Rhode Island
– Ocean Zoning
– Selected Preferred Developer
– Legislation to Facilitate PPAs
• New Jersey
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Blue Ribbon Panel to Evaluate Offshore Wind
Ocean Environmental Assessment
Selected Preferred Developer
Created Energy Master Plan
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Land-based
Shallow
Water
Offshore
Wind
Technology
Estimated
US Resource
Comercially
Proven
Technology
Transitional
Depth
Deepwater
Floating
Demonstration
Phase
60m-900m
1533-GW
No exclusions assumed for resource estimates
0m-20m
430-GW
30m-60m
541-GW
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Resources
• www.mms.gov/offshore/alternativeenergy/
regulatoryinformation.htm
• www.awea.org/faq/wwt_offshore.html
• www.psc.wi.gov
• www.michigan.gov/dleg
• www.ri.gov
• www.nj.gov
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Thank you!
Visit our booth - #3148!
Katherine A. Roek
(612) 373-8820
[email protected]
www.stoel.com
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