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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