How to Grow the How to Grow the U.S. Offshore Wind U.S. Offshore Wind

Industry Industry

Presented By

Katherine A. RoekSTOEL RIVES LLP

February 24, 2010

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

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

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Which States are Active?Which States are Active?

5Source: U.S. Offshore Wind Collaborative, www.usowc.org

Overview 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 Siting Authority – Federal WatersWaters

Outer Continental Shelf (OCS) under the jurisdiction of:

•Minerals Management Service (MMS)

•Federal Energy Regulatory Commission (FERC)

Siting Authority – Great LakesSiting Authority – Great Lakes

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Each state – out to center of Lake

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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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

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 permitted

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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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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) 13

State Leasing/PermittingState 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 scheme14

What are the Driving What are the Driving Factors?Factors?

• Pricing

• Financing

• Regulatory Certainty

• Infrastructure

• Supply Chain

• Jobs

• Economic Development15

What are States Doing to What are States Doing to Encourage Development?Encourage Development?

• Performing Feasibility Studies or Environmental Assessments

• Working with Developers or Industry

• Offering or Developing Incentives

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Environmental Environmental Assessments / Feasibility Assessments / Feasibility StudiesStudies

• 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 preparedMassachusetts Ocean Plan 17

Environmental Environmental Assessments / Feasibility Assessments / Feasibility Studies, Studies, con’tcon’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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• 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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Environmental Environmental Assessments / Feasibility Assessments / Feasibility Studies, Studies, con’tcon’t

States Working with States Working with Developers or IndustryDevelopers 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 States Working with Developers or Industry, Developers or Industry, con’tcon’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. 21

• 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 Working with States Working with Developers or Industry, Developers or Industry, con’tcon’t

States Offering or States Offering or Developing IncentivesDeveloping 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? 23

Public/Private PartnershipsPublic/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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• 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 25

Public/Private Partnerships, Public/Private Partnerships, con’tcon’t

Projects and IncentivesProjects and Incentives

26Source: U.S. Offshore Wind Collaborative, www.usowc.org

ResourcesResources

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

Thank you!Thank you!

Katherine A. Roek

(612) 373-8820

karoek@stoel.com

www.stoel.com

www.lawofrenewableenergy.com

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