NRG Bluewater Wind Signs Non-Competitive Agreement for Delaware Offshore Wind
NRG Bluewater Wind won the exclusive rights to negotiate with the federal government to build an offshore wind farm off the Delaware coast on March 24, 2011. As the first developer to enter into the “Smart from the Start” program released by the BOEMRE on February 7, 2011, NRG Bluewater Wind signed a non-competitive lease agreement for a proposed 450 MW offshore wind energy facility.
The reason for non-competitive lease? After the DOI released a RFI on April 26, 2010, only two commercial parties submitted interest, Occidental Development & Equities, LLC and NRG Bluewater Wind. The RFI, reviewed by the BOEMRE, invited submissions for interested parties to obtain one or more commercial leases for the construction of a wind energy project(s) on the Outer Continental Shelf (OCS) offshore Delaware. Subsequently BOEMRE determined that Occidental’s proposal “lacked development, construction, operation and maintenance or decommissioning cost details,” and as a result was rejected by the committee.
NRG Bluewater Wind has had their eye on the project since 2006, after Delaware's signed a RPS into law, requiring that 10% of the state's electricity come from renewable sources by 2018. In June and July of 2008 NRG Bluewater Wind and Delmarva Power finalized a 25 – year PPA for up to 200 MW. The project proposes 49 large turbines and 150 smaller ones approximately 13.2 miles off the Delaware coast. The contract requires the turbines start producing electricity no later than 2016. (NRG timeline link below)
The future is still unknown. Although the non-competitive lease agreement is in place, there are a whole slew of rigorous environmental reviews and an extensive permitting process at the federal, state, and local level. Ironically, the goal of “Smart from the Start” program was to cut, in half, the time associated with permitting processes. Optimistically, NRG Bluewater Wind allotted 12 – 24 months for permitting into the timeline. However, if Cape Wind can provide any insight to construction and operation, NRG Bluewater Wind may be in for a long ride.
For more information on BOEMRE announcement: http://www.doi.gov/news/pressreleases/Interior-Initiates-Process-for-First-Smart-from-the-Start-Lease-for-Commercial-Wind-Power-Offshore-Delaware.cfm
NRG Bluewater Timeline: http://www.bluewaterwind.com/de_timeline.htm
“Smart from the Start” http://www.doi.gov/news/pressreleases/loader.cfm?csModule=security/getfile&PageID=186636
RFI: http://www.boemre.gov/offshore/PDFs/FinalDelawareRFI.pdf
PG&E Suspends WaveConnect Project
On October 28, 2010, Pacific Gas & Electric ("PG&E") announced that it was suspending development of its Humboldt WaveConnect Pilot Project (FERC Docket No. P-12779) off of the Northern California coast. The company stated that "several major challenges made the project unviable at its current location and configuation." However, "PG&E remains committed to [wave energy] technology."
In fact, PG&E will continue its work to determine the feasibility of its proposed Central Coast project (FERC Docket No. P-13641). The Central Coast project is proposed in 45 square miles of coastal waters off the coast of Santa Barbara County, California. PG&E submitted its preliminary permit application in December 2009, and was awarded its preliminary permit on May 14, 2010.
The hydrokinetic industry has come a long way in the last few years and some bumps in the road should be expected as the industry works toward the commercial deployment of projects in state and federal waters of the United States. However, the federal government continues to "put its money where its mouth is" when it comes of offshore renewable energy development. Most recently, the U.S. Department of Energy, the Bureau of Ocean Energy Management, Regulation, and Enforcement, and the National Oceanic and Atmospheric Administration awarded $5 million to eight research projects related to offshore development through a joint solicitation.
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.
President Creates Interagency Task Force to Develop Marine Policy and Spatial Planning Framework
President Obama has issued a memorandum calling for the creation of a temporary Interagency Ocean Policy Task Force led by the Chair of the Council on Environmental Quality (CEQ) to develop a unifying framework for responsible development and ecosystem management for the nation’s oceans, coasts and the Great Lakes. Specifically, within 90 days the Task Force must develop recommendations for a national ocean, coastal and Great Lakes policy that addresses coastal economies, climate change and adaptive management while prioritizing resource stewardship, as well as a framework for policy coordination and an implementation strategy that identifies and prioritizes policy objectives. Within 180 days, the Task Force must develop a recommended framework for comprehensive, ecosystem-based coastal and marine spatial planning that addresses “conservation, economic activity, user conflict, and sustainable use of ocean, coastal and Great Lakes resources....”
In addition to the Chair of CEQ, the Task Force will be composed of senior officials from the Departments of State, Defense, the Interior, Agriculture, Health and Human Services, Commerce, Labor, Transportation, Energy, and Homeland Security and Justice, the Environmental Protection Agency, Office of Management and Budget, National Aeronautics and Space Administration, National Intelligence, Office of Science and Technology Policy, National Science Foundation, and Joint Chiefs of Staff, as well as several Presidential assistants and an employee designated by the Vice President.
For additional information, please contact my colleague Cherise Oram.
MMS Finalizes Regulations for Renewable Energy Projects on the OCS
The Minerals Management Service (MMS) has issued its final regulations for renewable energy projects on the Outer Continental Shelf (OCS). Stoel Rives attorneys are reviewing the 579-page rule now and will provide further updates soon!
FERC and MMS Reach Agreement on Offshore Renewable Energy
Today, Department of Interior Secretary Salazar and FERC Chairman Wellinghoff signed a Memorandum of Agreement (MOA) clarifying each agency’s jurisdictional responsibilities for siting renewable energy on the Outer Continental Shelf (OCS). The MOA should clear the way for wind, wave, tidal, ocean current, and solar energy projects on the OCS. My colleagues, including Cherise Oram, are reviewing the MOA now, and will provide more details and analysis shortly!
Interior Highlights Opportunities for Renewable Energy Development on OCS
The U.S. Department of Interior recently published a report highlighting the information currently available regarding the nature and scope of energy resources on the Outer Continental Shelf (OCS), including renewable energy. The report is a result of the new administration's approach to developing energy resources on the OCS, and will serve as background information for four regional meetings that Secretary Salazar is hosting in April to review the findings of the report and gather input from all interested parties on whether, where, and how the U.S. will develop conventional and renewable energy resources on the OCS. The report also identifies information gaps regarding available data on and environmental issues connected with energy development on the OCS. The report's three main sections are: (1) renewable energy resources, (2) oil and gas resources, and (3) sensitive environmental areas and resources.
WOW - Wisconsin's Wind on the Waters Report Finalized
The final report commissioned by the Wisconsin Public Service Commission on the feasibility of Great Lakes offshore wind development was published on January 15, 2009. The final report reflects comments made from the draft report that was circulated for public comment in the fall of 2008. As reported in a previous blog entry, the report analyzed the feasibility from four perspectives: Engineering and Economic Issues, Human Environment Issues, Legal Issues, and Community Involvement Issues.
The report was discussed in detail this morning in a webinar put on by the Great Lakes Regional Wind Energy Institute. Presenters included representatives from the National Renewable Energy Lab and the Wisconsin PSC. Check back for presentations, they'll be posted soon!
WOW - Wind on the Water in Wisconsin?
In Spring 2008, the Wisconsin Public Service Commission opened a docket and created an external Study Group to complete a study to assist with examining the technical feasibility, economic potential, environmental impacts, and legal requirements associated with developing wind energy on Lake Michigan and Lake Superior. Last Friday, the Study Group released its draft report, with the final report due by December 31, 2008. The draft report is a comprehensive analysis of key issues in the areas of engineering and economics (including transmission and the cost of operation and maintenance), the human environment (including the freshwater ecosystem), legal issues (including consultation of federal, state, local and tribal authorities), and community involvement (including public perception). The draft report does not make a recommendation for or against the development of offshore wind in the Great Lakes, but identifies possible next steps to further evaluate the feasibility of such projects.
The draft report is open for public comment, and the PSC will take comments until Monday, November 10. The docket number is 5-EI-144.
Minerals Management Service Issues Proposed Rules For Alternative Energy on the OCS
On Tuesday, MMS released its proposed rule for alternative energy development on the Outer Continental Shelf, including wave, current, and wind energy technologies. You can access the rule from MMS's website.
Stoel Rives attorneys are in the process of reviewing the rule and will release a client alert soon. Please feel free to subscribe if you'd like to receive that alert.
