Transcript The Law of Wind
How to Grow the U.S. Offshore Wind Industry
Presented By
Katherine A. Roek STOEL RIVES LLP
February 24, 2010
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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Which States are Active?
Source: U.S. Offshore Wind Collaborative, www.usowc.org
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Overview
• What are the major regulatory challenges?
• What are the driving factors?
• What are states doing to encourage development?
• What about public/private partnerships?
• 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 – Texas: General Land Office
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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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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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State Leasing/Permitting
• State Waters – Great Lakes – Within 3 nautical miles of coasts – Within 9 nautical miles of TX, FL • States to Develop Permitting/Leasing – TX has process, administered through General Land Office – Rhode Island, New Jersey creating state water zoning – Other states, such as Michigan, need to amend current regulatory scheme
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What are the Driving Factors?
• Pricing • Financing • Regulatory Certainty • Infrastructure • Supply Chain • Jobs • Economic Development
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What are States Doing to Encourage Development?
• Performing Feasibility Studies or Environmental Assessments • Working with Developers or Industry • Offering or Developing Incentives
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Environmental Assessments / Feasibility Studies
• Rhode Island – Coastal Resources Management Council developing Special Area Management Plan • New Jersey – Department of Environmental Protection preparing Environmental Baseline Assessment • Massachusetts – Ocean Management Act; created U.S. Offshore Wind Collaborative; MA Executive Office of Energy & Environmental Affairs prepared Massachusetts Ocean Plan
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Environmental Assessments / Feasibility Studies, con’t
• Maryland – Study announced to evaluate offshore viability • Virginia – Coastal Energy Research Consortium preparing report • Delaware – University of DE conducted assessment from MA to DE
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Environmental Assessments / Feasibility Studies, con’t
• New York – NYSERDA funded studies to explore feasibility • Michigan – GLOW Council prepared report, includes criteria for identifying/mapping prudent siting areas • Wisconsin – Wind Working Group prepared feasibility study
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States Working with Developers or Industry
• Rhode Island – Selected preferred developer (Deepwater) • New Jersey – Selected three preferred developers (Bluewater, Deepwater + PSEG, Fishermen’s Energy) • Maine – Governor’s Task Force include offshore legislative recommendations; Univ. of ME received $8M to develop deepwater offshore wind test center.
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States Working with Developers or Industry, con’t
• Delaware – PSC approved PPA between Bluewater and utility for offshore project.
• New York – NYPA issued RFP for Great Lakes project (Lake Erie, Ontario); Long Island-NYC Offshore collaborative issued RFI and has filed interconnect request.
• Maryland – Issued RFEI assessing options for offshore development.
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States Working with Developers or Industry, con’t
• North Carolina – Governor established offshore energy advisory panel.
• South Carolina – State partnering with local utility and universities on feasibility studies.
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States Offering or Developing Incentives
• Rhode Island – Legislation requiring state’s largest electricity supplier to purchase energy from offshore wind farm • New Jersey – Working on Offshore Renewable Energy Credit (OREC) program, modeled after solar REC program – Issued $12M in grant/rebate for met towers to preferred developers • Wisconsin – Legislation including in-state carveout for increased RPS?
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Public/Private Partnerships
• Rhode Island – Quonset Development Corp. working with Deepwater Wind to locate staging and assembly facility at port (former Naval base) • North Carolina – Duke Energy Carolinas partnering with UNC to install three offshore turbines
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Public/Private Partnerships, con’t
• South Carolina – Santee Cooper partnering with Coast Carolina University & SC Energy Office to launch and analyze data from offshore buoys and land based stations • Wisconsin – We Energies issued RFP for data collection in Lake Michigan • Ohio – Cleveland Foundation, Cuyahoga County, Case Western University partnering on feasibility study, pilot project
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Projects and Incentives
Source: U.S. Offshore Wind Collaborative, www.usowc.org
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Resources
• www.mms.gov/offshore/alternativeenergy/regulator yinformation.htm
• www.awea.org/faq/wwt_offshore.html
• www.psc.wi.gov
• www.mass.gov
• 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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