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