permitting & policies of wind on the water – great lakes –

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Permitting & Permitting & Policies of Wind on Policies of Wind on the Water – Great the Water – Great Lakes – Lakes – Presented By Katherine A. Roek STOEL RIVES LLP June 16, 2009

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Permitting & Policies of Wind on the Water – Great Lakes –. Presented By Katherine A. Roek STOEL RIVES LLP June 16, 2009. To order any of these books, please contact:. Katherine A. Roek * 612.373.8820 [email protected] * www.stoel.com. Why are we discussing offshore?. Overview. - PowerPoint PPT Presentation

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Page 1: Permitting & Policies of Wind on the Water – Great Lakes –

Permitting & Policies of Permitting & Policies of Wind on the Water – Wind on the Water –

Great Lakes – Great Lakes –

Presented By

Katherine A. RoekSTOEL RIVES LLP

June 16, 2009

Page 2: Permitting & Policies of Wind on the Water – Great Lakes –

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To order any of these books, please contact:To order any of these books, please contact:

Katherine A. Roek * 612.373.8820 [email protected] * www.stoel.comKatherine A. Roek * 612.373.8820 [email protected] * www.stoel.com

Page 3: Permitting & Policies of Wind on the Water – Great Lakes –

Why are we discussing Why are we discussing offshore?offshore?

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Page 4: Permitting & Policies of Wind on the Water – Great Lakes –

Overview Overview

• Offshore vs. Onshore permitting issues

• Federal jurisdictional waters vs. State jurisdictional waters

• Lessons from East Coast

• State of offshore wind development in the Great Lakes

• What are other states doing?

• What does the future hold?4

Page 5: Permitting & Policies of Wind on the Water – Great Lakes –

Permitting IssuesPermitting Issues

• Land interest acquisition

• Local zoning

• Avian impacts

• Other wildlife/endangered species

• Wetlands

• Aviation

• Visual impacts

• Noise/human health consequences

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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• Jones Act

ONSHORE OFFSHORE

Page 6: Permitting & Policies of Wind on the Water – Great Lakes –

Siting Authority – Federal Siting Authority – Federal WatersWaters

Outer Continental Shelf (OCS) under the jurisdiction of:

•Minerals Management Service (MMS)

•Federal Energy Regulatory Commission (FERC)

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Page 7: Permitting & Policies of Wind on the Water – Great Lakes –

Siting Authority – Great Siting Authority – Great LakesLakes

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Each state – out to center of Lake

Page 8: Permitting & Policies of Wind on the Water – Great Lakes –

Siting Authority – State WatersSiting 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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Page 9: Permitting & Policies of Wind on the Water – Great Lakes –

Offshore Wind Development Offshore Wind Development –Federal Laws–Federal Laws

• National Environmental Policy Act• Submerged Lands Act of 1953• Coastal Zone Management Act• Endangered Species Act• Clean Water Act• Others:

– Fish & Wildlife Coordination Act– Rivers & Harbors Act– Migratory Bird Treaty Act– Marine Mammals Protection Act 9

Page 10: Permitting & Policies of Wind on the Water – Great Lakes –

Offshore Wind Development Offshore Wind Development –State Laws–State Laws

• State environmental policy act (if applicable)

• Great Lakes submerged lands• Water quality• Endangered species / wildlife protection• Commercial fishing / crabbing• Coastal zone management• Onshore issues (cables, waterfront development)• Marine safety• Water rights (?)

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Page 11: Permitting & Policies of Wind on the Water – Great Lakes –

Federal – MMS Leasing Federal – MMS Leasing RegulationsRegulations

• 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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April 22, 2009

Page 12: Permitting & Policies of Wind on the Water – Great Lakes –

Federal – MMS Leasing Federal – MMS Leasing Regulations Regulations

• Types of leases: – Commercial

• Energy development

• ~30 years

• Competitively bid

– Limited• Data gathering

• ~5 years

• BUT: limited power sale permitted12

Page 13: Permitting & Policies of Wind on the Water – Great Lakes –

Federal – MMS Leasing Federal – MMS Leasing RegulationsRegulations

• 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 process13

Page 14: Permitting & Policies of Wind on the Water – Great Lakes –

Interaction between MMS & Interaction between MMS & FERCFERC

• 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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April 9, 2009

Page 15: Permitting & Policies of Wind on the Water – Great Lakes –

Great Lakes Permitting / Great Lakes Permitting / Siting of Offshore WindSiting 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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Page 16: Permitting & Policies of Wind on the Water – Great Lakes –

Great Lakes Permitting / Great Lakes Permitting / Siting of Offshore Wind, Siting of Offshore Wind, con’tcon’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)16

Page 17: Permitting & Policies of Wind on the Water – Great Lakes –

State InitiativesState Initiatives

• New Jersey– Blue Ribbon Panel to Evaluate Offshore Wind– Ocean Environmental Assessment– $12M in grants– Selected Preferred Developer– 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 term17

Page 18: Permitting & Policies of Wind on the Water – Great Lakes –

State Initiatives, con’tState Initiatives, con’t

• Rhode Island– Ocean Zoning

• Special Area Management Plan

– Selected Preferred Developer– June 2009: Legislation proposed that would

require state’s largest electricity supplier to purchase energy from offshore wind farm

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Page 19: Permitting & Policies of Wind on the Water – Great Lakes –

State Initiatives, con’tState Initiatives, con’t

• Michigan– May 2008: Offshore Wind Permitting Dry-Run

• Wisconsin – January 2009: Public Service Commission –

prepared Feasibility Report. Looked at:• Engineering and Economic Issues

• Human Environment Issues

• Legal Issues

• Community Involvement Issues

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Page 20: Permitting & Policies of Wind on the Water – Great Lakes –

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Page 21: Permitting & Policies of Wind on the Water – Great Lakes –

Current U.S. ProjectsCurrent 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.

– Spring 2009: Received consistency determination, composite approval from state. 21

SOURCE: GreenPeace USA

Page 22: Permitting & Policies of Wind on the Water – Great Lakes –

Current U.S. ProjectsCurrent 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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Page 23: Permitting & Policies of Wind on the Water – Great Lakes –

Current U.S. ProjectsCurrent 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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Page 24: Permitting & Policies of Wind on the Water – Great Lakes –

Current U.S. ProjectsCurrent 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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Page 25: Permitting & Policies of Wind on the Water – Great Lakes –

Current U.S. ProjectsCurrent 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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Page 26: Permitting & Policies of Wind on the Water – Great Lakes –

Land-based

OffshoreWindTechnology

EstimatedUS Resource

0m-20m430-GW

ComerciallyProven

Technology DemonstrationPhase

No exclusions assumed for resource estimates

30m-60m541-GW

60m-900m1533-GW

ShallowWater

TransitionalDepth

DeepwaterFloating

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Page 27: Permitting & Policies of Wind on the Water – Great Lakes –

ResourcesResources

• 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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Page 28: Permitting & Policies of Wind on the Water – Great Lakes –

Thank you!Thank you!

Katherine A. Roek

(612) 373-8820

[email protected]

www.stoel.com

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