How to Grow the U.S. Offshore Wind Industry
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Transcript of How to Grow the U.S. Offshore Wind Industry
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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
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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)
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Siting Authority – Great LakesSiting Authority – Great Lakes
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Each state – out to center of Lake
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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
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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
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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
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What are the Driving What are the Driving Factors?Factors?
• Pricing
• Financing
• Regulatory Certainty
• Infrastructure
• Supply Chain
• Jobs
• Economic Development15
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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
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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
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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
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• 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
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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
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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
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Projects and IncentivesProjects and Incentives
26Source: U.S. Offshore Wind Collaborative, www.usowc.org
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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
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Thank you!Thank you!
Katherine A. Roek
(612) 373-8820
www.stoel.com
www.lawofrenewableenergy.com
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