Interagency Ocean Policy Task Force Issues Final Recommendations
On Monday, July 19, 2010, the White House Council on Environmental Quality ("CEQ") issued the Final Recommendations of the Interagency Ocean Policy Task Force. The Final Recommendations are the culmination of a process that began on June 12, 2009 when President Obama formed the Task Force and tasked it with developing recommendations to enhance national stewardship of the ocean, coasts, and the Great Lakes and promote the long-term conservation of those resources.
The Final Recommendations will likely be carried over into an Executive Order to be signed by the President, which will establish a National Policy for the Stewardship of the Ocean, Coasts, and Great Lakes and create a National Ocean Council to enhance ocean governance and coordination between federal and state agencies. The Final Recommendations also express the Task Force's unanimous agreement that the United States should acceed to the Convention on the Law of the Sea and ratify its 1994 Implementing Agreement.
The CEQ's press release is available here. Attorneys at Stoel Rives are reviewing the Final Recommendations and assessing their impact on, among other things, offshore renewable energy development including offshore wind and marine and hydrokinetic projects. Stay tuned for more on this important development.
DOI/DOE MOU for Offshore Renewable Energy Projects, Part 2
To follow up on my colleague Janet Jacobs' blog on this exciting topic, here's some more detailed information about the MOU, especially as it relates to marine and hydrokinetic ("MHK") technologies:
The United States Department of Energy’s Office of Energy Efficiency and Renewable Energy (“EERE”) and the United States Department of the Interior’s newly-renamed Bureau of Ocean Energy Management, Regulation, and Enforcement (“BOEMRE”) (see Note below) signed a Memorandum of Understanding for the Coordinated Deployment of Offshore Wind and Marine and Hydrokinetic Energy Technologies on the United States Outer Continental Shelf (the “MOU”).
The purpose of the document is to prioritize and facilitate environmentally-responsible deployment of commercial-scale offshore wind and MHK energy technologies on the Outer Continental Shelf (the “OCS”) through collaborative efforts. In a recent blog, I mentioned that the DOE has committed $15.36 million to help researchers and developers alike to bring various MHK technologies closer to commercial deployment. This MOU represents yet another effort to spur the growth of the burgeoning offshore renewable energy industry.
An interagency working group has been tasked with developing an action plan that addresses the deployment of offshore renewable energy projects, including both offshore wind and MHK technologies, within 30 days. The action plan will outline how the BOEMRE and EERE can work together to streamline leasing and regulatory processes on the OCS for those sites with high energy resource potential. The MOU also outlines how the agencies will share information and undertake collaborative activities such as stakeholder engagement, technical and environmental research, joint evaluation of standards and timelines for development, and the dissemination of information to decision makers.
Note: On June 21, 2010, DOI Secretary Ken Salazar issued Order 3302 renaming the Minerals Management Serivce the BOEMRE.
DOI/DOE MOU for Offshore Renewable Energy Projects
Yesterday, the Department of the Interior (“DOI”) and the Department of Energy (“DOE”) entered into a Memorandum of Understanding (“MOU”) to bring together resources and expertise from both agencies as the US develops commercial-scale offshore wind and water energy projects on the U.S. Outer Continental Shelf.
The wind and water resources off the US’ coastline are vast yet largely untapped energy potential. According to DOE's “20% Wind Energy by 2030” report, offshore wind alone has the potential to produce 54,000 megawatts by 2030. The MOU allows for priority leasing and more efficient regulatory processes (including permitting) for sites with high, commercial-scale offshore wind and water power development potential.
Interior Secretary Approves Cape Wind Project
Secretary of the Interior Ken Salazar announced today that he was approving the Cape Wind Project, the Nation’s first deep water offshore wind project. Secretary Salazar’s decision overcomes a recommendation from the Advisory Council on Historic Preservation (ACHP) to disapprove the Project because of impacts to properties listed in or eligible for listing in the National Register of Historic Places, including Nantucket Sound. Earlier this year the Keeper of the National Register determined the Sound is eligible for listing in the National Register for several reasons, including as a traditional cultural property because of its association with cultural practices or religious beliefs of two Indian tribes.
The Cape Wind Project would deploy 130 wind turbines. It is the Nation’s first commercial wind project to be located in marine waters. Several opponents have announced plans to file suit to block the Project.
Secretary Salazar’s decision sends an important signal on the Administration commitment to develop renewable energy resources despite objections from some environmental groups, local governments and Indian tribes. The Project is supported by Massachusetts Governor Deval Patrick, who stood beside Secretary Salazar when the Secretary announced his decision.
Check back here for more details as they are released, and please contact Cherise Oram, Michael O'Connell or any of our other renewable energy attorneys for more details!
GVSU and MAREC Seek Partner for Met Tower in Lake Michigan
Grand Valley State University (GVSU) and its Michigan Alternative and Renewable Energy Center (MAREC) have issued a Request for Proposals seeking funding partners to develop an offshore research platform and wind assessment meteorological (MET) tower installation. GVSU and MAREC have acquired $3.1 Million in grants and research monies to fund a portion of the Project. Partners are being sought to: contribute the additional funds, expertise, and resources needed to complete the Project beyond those already committed by GVSU/MAREC and federal/state sources; design the MET Tower/Research Platform; construct the MET Tower/Research Platform (to be completed by September 1, 2011); and provide the overall operation and maintenance of the structure to support data collection and research.
A pre-proposal conference is being held at GVSU on May 3, 2010, and proposals are due June 10, 2010.
Rhode Island PUC Rejects Offshore Wind PPA
Last week, the Rhode Island Public Utilities Commission rejected a power purchase agreement (PPA) between Deepwater Wind and National Grid, the state's largest utility, stating that the deal’s projected cost of electricity did not qualify as “commercially reasonable” under a test required by state law. Deepwater would have charged National Grid 24.4 cents per kilowatt-hour in 2013, the first year of the contract. Prices would increase 3.5 percent per year after that.
The state previously passed legislation requiring National Grid to purchase the energy output from an offshore wind project. The PPA that was ultimately signed was for the output of a 28.8 MW project near Block Island.
The news of the PUC rejection comes shortly after receipt of $23.3 million in stimulus funds by the Quonset Business Park to improve piers, roads and rails and to install a crane in preparation for offshore wind development. Deepwater Wind has signed an agreement to lease 117 acres in the Quonset Business Park to store and assemble components, and ultimately create 800 jobs, as projected by Deepwater.
NYPA Receives 11 Notices of Intent to Bid for Offshore Wind Projects
The New York Power Authority stated today that it has received eleven (11) Notices of Intent to Bid into its RFP for offshore wind projects in Lakes Erie and Ontario. Formal proposals are due June 1. For more information, see my previous blog entry on NYPA's plans.
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.
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.
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.
Michigan's Great Lakes Wind Council Finalizes Offshore Report
On September 1, 2009, the Great Lakes Wind Council, created by Michigan Governor Jennifer Granholm in February 2009, issued its final report to the Governor. The intended purpose of the report is to identify criteria that can be used to review applications for offshore wind development in the Great Lakes, and to identify criteria for identifying and mapping areas that should be categorically excluded from offshore wind development as well as those areas that are most favorable to such development.
Recommendations contained in the report include a set of criteria (broken out into most favorable areas, conditional areas, and categorical exclusion areas) to identify and map prudent siting for offshore wind, legislative and rule changes to establish a bottomland leasing process, the state ask the U.S. Army Corps of Engineers prepare a Programmatic Environmental Impact Statement, and the Public Service Commission convene a forum to work with stakeholders on the economic analysis of different policy scenarios.
The report further recommends exclusion of offshore wind permits and leases from Part 325 of Michigan’s Natural Resources and Environmental Protection Act, clarification of state law to provide for offshore waters to be included in the public trust, and creation of a new statute governing offshore wind that would outline application requirements, permit review criteria, site assessment requirements, construction and operation plans requirements, decommissioning plans, and uses of funds by the state.
Interior Issues Limited Leases for Offshore Wind Projects
On June 23, 2009, the Minerals Management Service, a division within the U.S. Department of Interior, issued five limited leases to offshore wind energy developers for wind data collection on the Outer Continental Shelf. These leases will allow for the construction of meteorological towers to collect site-specific data on wind speed, intensity, and direction. The data collected under these leases will be shared with the MMS, and "used to inform and support future commercial renewable energy projects, such as wind turbine farms, to help coastal States meet mandated renewable energy portfolio standards."
The leases were issued to Deepwater Wind (two locations off the coast of New Jersey), Bluewater Wind (one location off New Jersey, one location off Delaware), and Fishermen's Energy (one location off New Jersey).
Rhode Island Legislation Proposed to Move Offshore Wind Forward
Rhode Island has introduced legislation to encourage offshore wind development. Under the draft bill, the state's largest electricity supplier, National Grid, would be required to purchase the energy output from an offshore wind project proposed by the state's selected preferred offshore wind developer, Deepwater Wind. National Grid has said that it supports the proposal, under which it would be permitted to collect a payment from its customers equal to around 3 percent of the value of the renewable energy contracts it signs.
