k roek infocast sept 2009 presentation

States’ Roles inStates’ Roles in

U.S. Offshore WindU.S. Offshore Wind

DevelopmentDevelopmentDevelopmentDevelopment

Presented By

Katherine A. Roek

STOEL RIVES LLP

September 22, 2009

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

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

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

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OverviewOverview

• Federal jurisdictional waters vs. Statejurisdictional waters

• Permitting/Siting at the State level

• Which states are active?• Which states are active?

• What are they doing?

• What does the future hold?

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SitingSiting AuthorityAuthority –– Federal WatersFederal Waters

Outer Continental Shelf (OCS) under thejurisdiction of:

• Minerals Management Service (MMS)

• Federal Energy Regulatory Commission (FERC)• Federal Energy Regulatory Commission (FERC)

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Siting AuthoritySiting Authority –– Great LakesGreat Lakes

Each state – out to center of Lake

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SitingSiting AuthorityAuthority –– State WatersState Waters

• Great Lakes– each state out to center of lake

• Atlantic/Pacific coasts– up to 3 nautical miles offshore– up to 3 nautical miles offshore

• Gulf of Mexico (Texas, Florida)– 9 nautical miles offshore

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Outer Continental ShelfOuter Continental ShelfPermitting/Siting of Offshore WindPermitting/Siting of Offshore Wind

• Minerals Management Service (MMS) leadfederal 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 therights-of-way and rights-of-use and easements on theOCS.

– Requires consultation with numerous other federalagencies, including U.S. Coast Guard, Fish & WildlifeService, FERC, Federal Aviation Administration, PLUSstate agencies.

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Great Lakes Permitting / SitingGreat Lakes Permitting / Sitingof Offshore Windof Offshore Wind

• U.S. Army Corps of Engineers will belead federal permitting agency

– NEPA review will be triggered through permit

• Section 10 of Rivers & Harbors Act• 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 ofGreat Lakes Permitting / Siting ofOffshore Wind,Offshore Wind, con’tcon’t

• Other agencies:

– State environmental regulatory agencies

• e.g. Michigan Department of EnvironmentalQuality for placement of structures in the GreatLakes – 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 WindStates Active in Offshore Wind

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

MassachusettsMassachusetts

• State has issued final approvals for Cape Wind.

• Created Ocean Management Act, requiringcomprehensive development plan, includingidentification of prudent sites (by Dec. 2009).

• Working with Town of Hull (including $1.7M grant)• Working with Town of Hull (including $1.7M grant)to prepare preliminary environmental andengineering studies for 4-turbine nearshore project.

• Massachusetts Technology Collaborative createdU.S. Offshore Wind Collaborative, includingpreparation of Framework for Offshore WindEnergy in the United States.

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Rhode IslandRhode Island

• Ocean Zoning– Special Area Management Plan

• Selected Preferred Developer

• June 2009: Legislation signed into law thatrequires state’s largest electricity supplier torequires state’s largest electricity supplier topurchase energy from offshore wind farm.– National Grid to issue requests for proposals for

10- to 15-year power purchase agreements forat least 90 MW of its load, plus a utility-scaleoffshore project of up to 150 MW.

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New YorkNew York

• April 2009: New York Power Authority issues RFEI tosupport the preparation of an RFP for Great Lakesoffshore wind project.

– Seeking technical, financial, environmental and commercialinformation from the wind industry

– RFP expected to result in selection of developer to– RFP expected to result in selection of developer toconstruct/operate/maintain farm, enter into long-term PPA.

• July 2009: Long Island-New York City Offshore WindCollaborative RFI

– Exploring possibility of 350 MW offshore wind project apprx. 13miles off the south shore of Rockaway.

– Interconnect study done (Con Ed/LIPA), applicationfiled with NYISO to interconnect up to 700 MW by 2015.

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New JerseyNew Jersey

• Blue Ribbon Panel to Evaluate Offshore Wind

• Ocean Environmental Assessment

• $12M in grants

• Selected Three Preferred Developers

• Created Energy Master Plan:• 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 fromoffshore wind, based on their percentageof retail sales in NJ

– OREC price to be set by BPU; 20-year term

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MarylandMaryland

• Sept. 2009: Issued Request for Expressions ofInformation and Interest

– Assessing options for offshore wind development

– Seeking to develop “in-state renewable generationability to fulfill some” or all of its RPS needs

– Responses to MEA from interested parties, including– Responses to MEA from interested parties, includingdevelopers, due early 2010

• Simultaneously launching study to evaluateviability of offshore wind in coastal waters

– Building on marine spatial planning work indevelopment by MD DNR and the NatureConservancy

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DelawareDelaware

• Bluewater Wind

– July 31, 2008: PPA withDelmarva Power & Lightapproved by DE Public ServiceCommission.Commission.

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TexasTexas

• TX General Land Office – issued 7 leasessince 2005– Wind Energy Systems Technology (WEST)

• 2005: Signed five leases with TX GLO, beginningwork on 150 MW project (Galveston).work on 150 MW project (Galveston).

• Meteorological tower has compiled almost twoyears 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 LakesGreat Lakes –– ConsortiumsConsortiums

• Great Lakes Wind Collaborative

– Multi-sector coalition of wind energy stakeholdersworking to facilitate the sustainable development ofwind power in the binational Great Lakes region.

• Great Lakes Wind Council

– Advisory body within the Michigan Department ofEnergy, Labor and Economic Growth to providepublic forum to identify where, in the Great Lakes,wind energy systems may be prudently sited

– Report issued September 1, 2009

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MichiganMichigan

• 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 aProgrammatic Environmental Impact Statement.

– PSC convene forum to work with stakeholders on an economicanalysis of different policy scenarios.

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Michigan,Michigan, con’tcon’t

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WisconsinWisconsin

• January 2009: Public Service Commission – FeasibilityReport.

– 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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OhioOhio

• 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 pilotproject.

– Entered into agreement with JW Great Lakes Wind.– 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-constructionavian/bat and ecological studies 24

ResourcesResources

• www.mms.gov/offshore/alternativeenergy/regulatoryinformation.htm

• www.awea.org/faq/wwt_offshore.html

• www.psc.wi.gov

• www.michigan.gov/dleg• www.michigan.gov/dleg

• www.michiganglowcouncil.org

• www.ri.gov

• www.nj.gov

• www.linycoffshorewind.com

• www.usowc.org25

Thank you!Thank you!

Katherine A. Roek

(612) 373-8820

karoek@stoel.com

www.stoel.comwww.stoel.com

www.lawofrenewableenergy.com

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