can the wind power the windy city? prospects for wind turbines in lake michigan kalyna procyk...

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Can the Wind power the Windy City? Prospects for wind turbines in Lake Michigan Kalyna Procyk Chicago-Kent College of Law April 23, 2004 [email protected]

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Can the Wind power the Windy City?

Prospects for wind turbines in Lake Michigan

Kalyna Procyk

Chicago-Kent College of Law

April 23, 2004

[email protected]

Lake Michigan is great resource

Source of drinking water

Tourism Transportation Freshwater

ecosystem Sustains many cities

Lake Michigan has problems

Caused by energy production

Air pollution Coal fired plants 50% of electricity

around Lake from coal-fired plants

                 

                                                                                   

Air pollution: bad for the Lake

Coal plant emissions deposits Mercury in Lake

Fish and Mercury Don’t eat Lake fish

more than 1x per week

                                                                                   

                     

Air pollution: bad for us

Harvard study 2 coal plants caused

43,300 asthma attacks, 1710 ER visits, 159 deaths

Chicago contributes 30% of Lake Mercury

Clean Energy in Lake MI area: wouldn’t it be nice?

Clean Energy Possibilities

Solar Biomass Hydropower Fuel cell Wind – the only

realistic option

Overview – can Lake MI wind provide reliable & cheap energy?

Background History Current projectsLake Michigan project

Pros/ consBenefitsProblems

Public opinion

History of Wind power

Before Common Era (B.C.E./B.C) windmills used to grind grain

By WWII a few were making electricity

1970s oil embargo California “wind rush”

Wind: a growing trend

Wind production increased in last 10 years worldwide

Capacity doubled between 1999-2003 22 states have wind projects IL has 3 projects in the works

Wind production

Offshore wind

1980s Oil prices went down, market dried up

1990s Denmark experiments with offshore wind

World Wide Offshore Wind production

Countries 5

Projects 16

Turbines 299

Capacity 552 MW

Annual Production

1.950.000.000 kWh

 

Offshore Wind Current Projects

International projects expanding fast

Denmark – 18% of all energy Wants to have 50% by

2030

Germany closing down nuclear plants 36 projects in the works 60,000 MW planned

Other countries United Kingdom Belgium Spain Poland France Ireland Sweden Canada

Offshore wind

U.S. Offshore wind projects

“Cape Wind” on Cape Cod, Massachusetts

130 turbines proposed 420 MW capacity Power ¾ of all of Cape

& Islands Graphically enhanced

view from Nantucket, 13.8 mi.

Lake Michigan Offshore Wind?

Already proposed here but not yet accepted

Proposal I - Possible location 3-4 miles offshore SE Wisconsin

Proposal II - Chicago Co. near Chicago but no filings with Army Corp. of Engineers…..yet

Conditions 14mph winds Class 4-5 winds 80-100 ft depth Many transition lines

Lake Michigan Winds

                                              

        

Why wind?

Decrease energy related air emissions

Comply with Kyoto Diversification

protects against price increases

Extends life of fossil fuels

Enhances national security

Revenue for states

Why Offshore Wind?

Higher winds Probably same cost Can be close to Lake urban areas Less noise Wind steadier over water Less visual impact

Problems

Aesthetics Noise & Safety Environmental issues Economics Reliability Regulatory Issues

Aesthetics

They’re ugly? Cape Wind issue Determinative issue Urban areas protest land based turbines Offshore less visually intrusive

View of Cape Wind:Graphically enhanced view from Craigville, 6.8 mi.

Noise

Turbines are noisy? From 250

meters, .43 decibels – a conversation

Industry nearby .50 decibels

Turn slowly 16 turns per minute

Safety

Boats Navigation Paint them red?

Flashing lights?

Environmental issues (1)

Bird kills 1980s California 50-

60 Golden Eagle killed per day

New turbines slower Scientists study bird

migration patterns Lake Michigan –

need further study

Environmental Issues (2)

Fish Turbines serve as

barrier reef promoting different species

Navigation difficulties Noise doesn’t appear

to harm

Habitat degradation w/ maintenance

No issues appear serious

Economics

Wind is still expensive $.03-.06 /KWH

Offshore wind costs more, but produces more wind up to 2x that on land

Land Issues

Land v. Offshore Wind turbines attractive

to rural areas Rent payments to

farmers $1,500-3,500 Taxes to counties MN

155MW farm received $721,000

Texas National Wind Project 20% of funds go to schools

Is wind energy reliable?

No Output varies with wind Need back up generation

Yes BUT, wind patterns very predictable Not a problem in Europe Also, can be serviced one at a time

How is wind reliable?

Wind energy contributes to overall reliability of overall electricity network

Decreases cost of electricity When fossil fuels are expensive, price forces

instability in industry costs Wind energy has stable price As % of energy system wind can decrease

overall costs, preventing volatile shifts in energy costs

Most significant factor in Wind cost - Policies

Policies are the main causes of price instability & decrease investment

Federal tax Credit ~1.5 cents Due to be renewed? internalizes benefits

of clean energy

Policies – States

State credits Low interest loans Property tax break Policy uncertainty drives price up because

increases risk

Policies – States (2)

Renewable Portfolio Standard Requires certain % of

energy bought/ created by a public utility to be from renewables

Soon, TX > CA in wind Incremental increase of

% of renewables 400MW in ’04, 600 MW in ‘06

Policies – Transmission Lines

Transmission line hookups Need to get energy from

turbines to markets No one wants to build

new transmission lines No incentive, no public

support, no $ Lake Michigan has many

lines

Offshore Regulatory Issues

Where federal & state jurisdiction meets & overlaps

How existing environmental regulations should be applied to Offshore Wind Development

How environmental permitting and Land use permitting relate to one another

Cape Wind I

Filed by opponents of project

Judge held that Cape Wind did not have to get fisheries license and environmental review from MA

Statute at issue said that state can determine “who, by what means and how much” someone can fish

Judge held nothing says MA can regulate non-fishing activities just because they impact fish

The point – its unclear what state environmental regulations would apply to offshore wind projects

Cape Wind II

Alliance to Protect Nantucket Sound asked to invalidate a permit by Army Corps of Engineers to build a data collection tower

Argued USACE did not have jurisdiction to issue permit unless it related to resource extraction

Judge held that under sec. 10 Rivers and Harbors Act USACE has broad approval over any navigable water

Up to 3 miles offshore Sec 4(f) of Outer

Continental Shelf Lands Act gives authority to regulate Outer Continental Shelf activities

Cape Wind II (2)

Wrongly decided? Outer Continental

Shelf Lands act ONLY relates to resource extraction

The point – there is no system for federal regulation to put things in Federal waters

Cape Wind’s regulatory problems

Under regulation causes regulatory uncertainty, thus increases risk & costs

no federal regulation ! Don’t want to give

private companies unfettered access to public lands

Very bad precedent to set in Lake Michigan, which is held in the public trust

Possible legislation?

Two bills (1) to regulate/ approve

energy activities on outer continental shelf under Minerals Management service under Dpt. Of Interior

No mechanism f/ distribution of land

Easements f/ right of way

(2) Ocean zoning Implication for Lake

Michigan unclear

Lake MI – Special Issues

Drinking water & Contained area make it a unique place

Other project should go first to determine implications

Energy supply in Lake area is stable

Could set a bad precedent for laying unwanted telecom cable or oil & gas pipelines

Lake Michigan – Public opinion

Hingtgen study Strong preference f/

onshore (65%) v. offshore (16%) in Lake Michigan area especially where visible

Exception – where area used for agriculture or industry

Public relations crucial in siting

Conclusions

It’s too early to tell what specific projects should or should not be developed in Lake Michigan

Watch legislation/ regulations closely

Bird & fish studies needed

More information needed on areas within agricultural or industrial zones

Unclear who would own the towers – co op v. independent producer

Unclear who would regulate local v. state v. federal government

But, wind turbines in Lake Michigan are a cleaner source of local energy and probably will be developed soon.

Sources

Davis, Brent. The Winds of Change, WL 102207060 (2002).

Galiano, Troy. Renewing the energy debate, WL 9686955 (2002)

GLREA RPS Position Statement, www.glrea.org/glrea_rps_position.html

Lerner, Howard. Cleaning, Greening and Modernizing the Electric Power Sector in the 21st Century, 14 Tul. Envtl. L.J. 277 (2001)

Hartland, Nathanael, The Wind and The Waves: Regulatory Uncertainty and Offshore Wind Power in the United States and United Kingdom, 24 U. Pa. J. Int’l Econ. L. 691 (2003)

Sources (II)

Millard, Pete. Prepare for wind farms on the Lake, milwaukee.bizjournals.com/milwaukee/stories/2003/07/14/newscolumn1.html

Hingtgen, John. Offshore Wind Farms in the Western Great Lakes: An Interdisciplinary Analysis of Their Potential. https://www.regweb.com/ECW/eserc/Presentation_for_Novem_seminar_JHingtgen.pdf

Doyle, Timothy. Can the Windy City Harness its Power? Xxx.cs.northwestern.edu:8000/article.asp?articleID=9179&item=archives

Sources (III)

Real de Azua, Christine, The Future of Wind Energy, 14 Tul. Envtl. L.J. 485.

Schulz, Michael. Questions Blowing in the Wind: The Development of Offshore Wind as a Renewable Source of Energy in the United States, 38 New Eng. L. Rev. 415.

www.capewind.org www.awea.org www.ewea.org