Virginia Jumping in to Offshore Wind
In late February, the Associated Press reported that the Minerals Management Service received proposals from two Virginia companies for leases on the outer continental shelf to develop offshore wind farms. Apex Wind Energy Inc. is proposing to lease 116,000 acres for an undetermined number of wind turbines with the potential to generate up to 1,500 megawatts of power, and Seawind Renewable Energy Corp. envisions building 240 turbines to generate enough power for more than 250,000 homes annually, according to a company statement.
Both wind farms would be located 12 miles off of Virginia Beach.
The Virginia Offshore Wind Coalition estimates the development of a wind power hub in Virginia has the potential to become an $80 billion industry creating more than 10,000 jobs. Coalition members include the Cities of Virginia Beach and Norfolk, Apex Offshore Wind, AREVA, BAE Systems Ship Repair, Colonna’s Shipyard, Dominion Virginia Power, Earl Energy, Fugro Atlantic, Old Dominion Electric Cooperative, Science Applications International Corporation, Seawind Renewable Energy Corporation, Weeks Marine and W. F. Magann.
Michigan GLOW Council Issues Legislative Recommendations for Offshore Wind
Michigan's Great Lakes Wind Council (GLOW Council), an advisory body within the Michigan Department of Energy, Labor & Economic Growth to examine issues and make recommendations related to offshore wind development in Michigan, has issued recommendations for a regulatory framework for offshore wind in Michigan's Great Lakes. These recommendations follow the GLOW Council's September 1, 2009 report (see previous blog entry), which contained proposed steps forward to developing an offshore wind industry in Michigan.
The recommendations, dated March 3, 2010, include a process that the Council recommends for inclusion in any bill introduced into the legislature to regulate offshore wind energy development in the Great Lakes, as well as recommendations for changes to transmission siting laws when the transmission relates to service of an offshore wind energy development.
Register Now for Live Meeting/Teleconference: Perspectives on Current Issues Facing Midwest Wind Projects
RENEWABLE ENERGY & DEMAND-SIDE MANAGEMENT COMMITTEE
Live Meeting/Teleconference
Midwest Wind Development: Perspectives on Current Issues Facing Regional Wind Projects
February 23, 2010
12:00 noon - 1:30 p.m. (Eastern Time)
11:00 a.m. - 12:30 p.m. (Central Time)
9:00 a.m. - 10:30 a.m. (Pacific Time)
In this seminar, the expert panelists will discuss current issues for developing commercial wind projects in the Midwest. In particular, the panelists will address:
- State regulatory issues for regional wind projects;
- Current prospects for developing wind energy on the Great Lakes;
- Community wind projects: current prospects for small scale wind projects;
- MISO cost allocation and market/operational issues affecting regional wind projects.
| Moderator: | David Gilles, Godfrey & Kahn, S.C. | |
| Presenters: | David Sapper, Customized Energy Solutions (Presenting from Madison Host Location)
William H. Holmes, Stoel Rives, LLP (Presenting from Minneapolis Host Location) Jeffery C. Paulson; Jeffery C. Paulson & Associates, Ltd. (Presenting from Minneapolis Host Location) |
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| Organizers: | David Gilles, Godfrey & Kahn, S.C. Jeff Dennis, Edison Electric Institute |
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| Host Locations: | Godfrey & Kahn, S.C. (beverages and light lunch provided)
Stoel Rives LLP (beverages and light lunch provided) McCarthy, Sweeney & Harkaway, P.C. (beverages provided) |
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| Questions for the Panelists: | Please send any questions for the panelists to David Gilles at dgilles@gklaw.com at any time prior to the Program. | |
REGISTRATION INFORMATION
To register for this Live Meeting/Teleconference, please complete and return the registration form.
Pre-registration is required and registration forms along with payment must be returned by no later than February 18, 2010. If you have questions, please contact Marlo Brown at marlo@eba-net.org.
Host Locations:
Godfrey & Kahn, S.C., One East Main Street, Suite 500, Madison, WI 53703
Stoel Rives LLP, Minneapolis City Center, 33 South Sixth Street, Suite 4200, Minneapolis, MN 55402
McCarthy, Sweeney & Harkaway, P.C., 1825 K Street N.W., Suite 700, Washington, DC 20006
Michigan Announces $1.3M in Grants for Offshore Wind Research
On February 8, 2010, the Michigan Public Service Commission issued an order approving $1.6 million in Michigan Energy Efficiency grants, $1.3 million of which will go to Grand Valley State University, Michigan Alternative and Renewable Energy Center, in partnership with the University of Michigan Memorial Phoenix Energy Institute to conduct and/or perform studies to explore the feasibility of deployment of offshore wind technologies in Michigan.
The grants are part of the Low‑Income and Energy Efficiency Fund, which provides energy bill assistance for low‑income customers and promotes the efficient use of energy by all customer classes.
Cuyahoga County Issues RFP for Studies on Lake Erie
On January 21, 2010, the Great Lakes Energy Development Task Force, under the authority of Cuyahoga County, issued a Request for Proposals to agencies and organizations interested in providing Avian and Bat ecological studies. The studies supplement the Task Force's Feasibility Study for an early stage commercial deployment project consisting of up to eight (8) turbines with total rated capacity at 20 MW for a Lake Erie Wind Power Project near the water intake crib of the City of Cleveland, Ohio.
Completed proposals must be submitted to the Cuyahoga County Office of Procurement and Diversity, no later than 11:00 a.m. on February 22, 2010.
New York Power Authority issues RFP for Great Lakes Wind
Earlier this week, the New York Power Authority issued a Request for Proposals for the development of offshore wind projects in either Lake Ontario or Lake Erie. The Power Authority is soliciting proposals for the development of a utility scale, offshore wind power project in the range of 120 to 500 MW. The date for submitting an optional Notice of Intent to submit a proposal is March 20, 2010. Questions about the RFP will be accepted until April 9, 2010. The due date for proposals is June 1, 2010. Any winning project(s) would be expected to be awarded by December 2010. The target date for completion of the power purchase agreement (PPA) negotiations is May 31, 2011. Prospective developers are encouraged to periodically check the NYPA website to see if there are any modifications to the dates.
The RFP can be accessed directly through the NYPA website.
FERC Conditionally Approves MISO Tariff Amendment on Cost Allocation
This afternoon, the Federal Energy Regulatory Commission conditionally approved the Midwest Independent Transmission System Operator's (MISO) proposed tariff amendment regarding allocating the cost of network upgrades for generation interconnection projects meeting MISO's regional expansion criteria and benefits (RECB) standards. See my previous blog entry for a more detailed discussion on the history of the tariff amendment, as well as protests to the amendment filed by AWEA and others.
Under the decision rendered today, FERC found that the proposed solution provides an interim solution, and directs MISO to make a compliance filing (1) to fulfill its commitment to file superseding tariff revisions regarding the Phase II cost allocation methodology on or before July 15, 2010, and (2) to reflect certain conforming changes to its tariff. In addition, FERC expects MISO to provide the Commission with status reports on the Phase II process.
To see any of the documents filed in this proceeding, go to FERC's eLibrary website and enter in Docket No. ER09-1431.
News from the 2009 Northern Plains Bioeconomy Conference
Below are some perspectives from the recent 2009 Northern Plains Bioeconomy Conference, as attended (and prepared by) my colleague, Joel Dahlgren.
According to Dr. Bruce Dale, a professor of chemical engineering at Michigan State University (MSU), in a carbon-constrained world, cellulosic biomass is the cheapest energy per dollar of gigajoule (GJ) of energy produced. At $60 per ton paid for biomass material, cellulosic ethanol costs $4 per GJ of energy produced, which compares to $6 per GJ for sugarcane purchased for $93 per ton, $9 per GJ for petroleum for $50 per barrel for crude oil, or $6.50 per GJ for coal purchased for $150 per ton (this price per ton includes the cost of carbon capture).
Until recently, I was under the impression that cellulosic ethanol was facing difficult obstacles. But that perception was challenged when I heard Dr. Dale’s presentation at the 2009 Northern Plains Bioeconomy Conference in Fargo, North Dakota, sponsored by North Dakota State University (NDSU). Now, I will not be surprised if within five years companies whose plans to produce cellulosic ethanol have been frustrated by the difficulty of breaking down cellulose will successfully produce cellulosic ethanol from switchgrass, corn stover, miscanthus, DDGs and other cellulosic material as well.
Dr. Dale is developing a biomass pretreatment process called AFEX (batch process) or FIBEX (continuous process) that may revolutionize the production of cellulosic ethanol. The ethanol yield from pretreated biomass is an estimated two-and-a-half times that of untreated biomass. Dr. Dale’s objective is to produce clean, fermentable sugars for an estimated six cents per pound. These pre-treatment processes are expected to be commercialized within five years if the Department of Energy (DOE) grant that these universities have applied for is approved.
AFEX/FIBEX employs a reactor to treat and explode biomass with hot liquid anhydrous ammonia for five to 10 minutes. One key advantage of the AFEX/FIBEX pre-treatment process is that it can be used to co-produce animal feed. Co-producing animal feed with cellulosic ethanol reduces the break-even point by up to 50% over a single-product approach.
Dr. Dale stressed that we are not faced with the choice of food or fuel; as a society, we can have both reasonably priced. Our society can also enjoy rural economic development, less expensive food, improved environmental conditions and a declining reliance on petroleum.
Dr. Dale is also working on a densification process that produces material that is three to five times as dense as untreated biomass and pelletizes the material for transportation and storage. A densification process allows for larger, centrally located biomass refineries with outlying pretreatment facilities. The densified biomass material is more economical to transport, and it stores more easily, much like corn or soybeans.
This project is a joint effort of NDSU, South Dakota State University (Brookings, SD) and MSU (Lansing, MI). MBI International is a member of this group as well. MBI is a 501(c)(3) that is owned by the MSU Foundation. These participants have applied for a DOE grant, and they intend to build a large biorefinery if the grant is approved by the DOE.
For additional information on this conference or on any topics discussed in this posting, please contact Joel or any of our other biofuels attorneys.
Wisconsin Bill Addresses State Wind Siting Standards
Wisconsin Governor Jim Doyle has signed a bill into law that will require the state Public Service Commission (PSC) to promulgate rules establishing common standards for political subdivisions to regulate the construction and operation of wind energy systems. The legislation seeks to address the patchwork regulatory framework created by local jurisdictions' development of their own siting regulations, and to address the concerns of developers who have been hesitant to develop wind energy systems in the state.
Previously, a municipality was prohibited from placing any restriction on the installation of a wind energy system unless the restriction satisfies certain conditions, including protection of public health or safety. The new law allows limited and generally uniform regulation of wind energy systems, and specifies that a municipality (i) may not regulate wind energy systems unless it adopts an ordinance that is no more restrictive that the PSC rules, and (ii) may not impose any restriction on a wind energy system that is more restrictive than the PSC rules.
Maryland Jumps Into Offshore Wind
The Maryland Energy Administration has issued a Request for Expression of Information and Interest to gather information from industry representatives on the potential for offshore wind development in the state. The MEA is also simultaneously initiating a study to evaluate opportunities for offshore wind energy on the Maryland coast (state waters) and the Outer Continental Shelf (federal waters). This study will "assess the viability of offshore wind energy generation and build on important marine spatial planning work being currently developed by the Maryland Department of Natural Resources and The Nature Conservancy."
Under Maryland's Renewable Portfolio Standard, at least 20 percent of the retail sales of electricity in the state must come from renewable resources by 2022. Responses to the REII are due by January 31, 2010. Prospective developers interested in participating in the strategy process must submit a response to the MEA by February 28, 2010.



















