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LEASING & PERMITTINGOFFSHORE WIND & CABLES
IN NEW ENGLAND
Michael Ernst, Esq, Director of Regulatory Affairs
EBC Renewable Energy Committee Meeting
Boston, MA January 15, 2013
Introduction to Tetra Tech Tetra Tech, Inc.
FY 2011 Revenues - $2.6 Billion
More than 13,000 employees in 330 offices worldwide
Ranked #1 Wind Development Consulting Firm in 2012 andTop 10 Environmental Firms by Engineering News Record
Full-Service Firm Providing Integrated Services
Consulting (Siting, Surveys, Permitting), Engineering & Construction
Critical Issues Studies: Siting; Avian, Wetlands & Marine Surveys
Supported Development of over 1000 Energy Projects last decade
Supporting 500 wind projects totaling 25,000 MW
Supporting 65 utility scale solar projects
30 Energy Construction projects 2500 MW and $500 M
Supporting Siting & Permitting of 10 Offshore Wind Farms Atlantic Coast: Maine, RI, MA, NY, NJ, DE, MD, VA, & NC Lakes Erie & Michigan
Outline of Presentation European Offshore Wind Industry Offshore Wind Resource for Coastal U.S. States Federal Offshore Wind Process
Identify Wind Energy Areas/Environmental Assessments Requests for Information & Lease Block Nominations Competitive Bidding or Non-Competitive Process Site Assessment Plan (Surveys) & Construction & Operations Plan
Federal & State Approvals Offshore Submarine Cables Status of East Coast Projects
Massachusetts Rhode Island Maine
Financial Challenges Policies to Overcome Challenges
International Offshore Wind Industry Denmark: First offshore turbines
installed in 1990 European Installations
4.3 GW installed in 2012 40 GW planned for 2020 150 GW by 2030; 14% of EU demand 40,000 European Jobs
> 300,000 jobs by 2020 DOE: Atlantic Coast could produce
>54 GW of offshore wind DOE Projections:
54,000 MW by 2030 =14M homes 300,000 jobs and Cost reduced to 10 cents/kwh
Incentives: RPS, Renewable Energy Credits, Long term contracts,Investment and Production Tax Credits
United States Wind Resource
WindPowerClass
ResourcePotential
Wind PowerDensity at 50 mW/m
2
Wind Speedat 50 mm/s
a Wind Speedat 50 mmph
a
34567
FairGoodExcellentOutstandingSuperb
300 - 400400 - 500500 - 600600 - 800800 - 1600
6.4 - 7.07.0 - 7.57.5 - 8.08.0 - 8.88.8 - 11.1
14.3 - 15.715.7 - 16.816.8 - 17.917.9 - 19.719.7 - 24.8
a Wind speeds are based on a Weibull k value of 2.0
Wind Power Classification
Total Wind Resource Potential ExceedsTotal U.S. Electricity Demand
Eastern Wind Integration Transmission Study
OCS Alternative Energy Rulemaking EPACT 2005 directs DOI to issue rules within 270 days
DOI delegates to MMS, now Bureau of Ocean Energy Management
Programmatic EIS: May 2005 – December 2006 1000 pages of analysis plus appendices PEIS Conclusion: “In general, most impacts would be
negligible to moderate for all phases of wind energydevelopment assuming that proper siting and mitigationmeasures are followed.”
Final Rule June 29, 2009 (233 pages in Federal Register) Minerals Management Service acknowledged final lease process
may take 5-7 years or more by requiring 2 full EISs
Negotiations with MMS, lead NEPA agency, in late 2009 toreduce length of process consistent with NEPA and other federallaws: Level of NEPA review should be commensurate withthe likely environmental impacts
BOEM Smart from the Start Program: BOEM EA for SiteAssessment & 1 EIS before Construction;
BOEM Lease Process State Task Forces Identify Area of Interest aka a
or Wind Energy Area (WEA) Request For Interest (RFI) Call for Information (Call) Determination of Competitive Interest Lease issued for Site Assessment with
Site Assessment Plan (SAP) & EA Construction & Operations Plan (COP) File Permit Applications NEPA Review
Draft EIS (Third Party Contractor) Final EIS Record of Decision
COP approved; Lease for Construction Certified Verification Agent approves Final
Design & Construction Plans
Lease Nominations Request for Interest Process
State Task Force: Area of Interest State Constraint Analyses & Meetings
Request for Interest Nominations for specific lease blocks
Demonstrate Legal, Technical &
Financial Qualifications
Public comments on any concerns
Call for Nominations & Information Identify Wind Energy Area
Environmental Assessment for Site
Assessment & Characterization
Regional EA for VA, MD, DE & NJ
EA for MA and RI/MA Area Mutual Int.
Delaware
Constraints Map
Competitive Interest Process
Competitive Interest ProcessCall for Information & NominationsArea Identification by BOEM after State InputNEPA Review & Coastal Zone ManagementAct Consistency DeterminationProposed Sale Notice & 60-day CommentsFinal Sale NoticeCompetitive Auction Process Options:
Sealed biddingAscending biddingTwo-stage biddingMultifactor bidding(30 CFR §585.221)
Bid EvaluationIssuance of Lease
NYPA, LIPA, Con Ed Site
South of Long Island, NY
Site Assessment Plan Survey Plan Development
Per the BOEM Rules, the SAP (or GAP) must: Describe the survey activities proposed to characterize the development area;
Demonstrate how site assessment activities will collect the necessary information and datarequired for the COP filing; and
Show how the developer will comply with all relevant Federal statutes when conductingsurvey activities.
The following 5 offshore site assessment surveys will play an integral part ofoffshore wind facility siting, planning, permitting, construction and operation. Avian and Bat Surveys
Marine Mammal and Sea Turtle Surveys
Geological, Geophysical and Hazard Surveys
Marine Cultural Resource Surveys; and
Benthic Surveys
Each survey plan should be developed in closecoordination with resource agencies of concernbefore implementation.
Regional Environmental Assessments reducestudy & review requirements for standard surveys
Individual EA tier off any Regional EA
Construction & Operations Plan
BOEM COP Regs & Guidelines (30 CFR §585.627) Site Investigation Report - Survey Results (shallow
hazards, geological, geotechnical, biological, archeological)
Construction & operation concept
Compliance with Lease Stipulations
Interconnection cables and power lines
Decommissioning Plan
Mitigation Measures
List of Federal, State & Local Approvals
NEPA Compliance Analysis: EIS
Oil Spill Response Plan
Safety Management System
Major Federal, State & Local Approvals Federal, state and local approvals and consultations for the project will include but not
be limited to: CZMA Consistency Determination for SAP and COP (NY Dept. of State) NOAA Letter of Concurrence to support Geophysical surveys activities USACE Section 10/404 Permit EPA Air Permit (construction vessel emissions) NOAA Incidental Harassment Authorization/Incidental Take (IHA/ITS) Permits
under ESA and Marine Mammals Protection Act USFW Consultation and possible Incidental Take Permit under ESA for Eagles or
EFH for endangered species, and Migratory Bird Treaty Act Advisory Council on Historic Preservation & SHPO Consultation under NHPA Dept. of Defense Consultation for military practice areas and defense radar USCG Private Aid to Navigation (PATON) and Local Notice to Mariners (LNM)
State Determines Consistency with State Coastal Zone Management Plans State Siting Board Approval of Interconnection Cables into State State Submerged Lands Easement for Cables State Tidal and Freshwater Wetlands Permits, Coastal Erosion Permits, CWA 401
Water Quality Certification, NPDES Stormwater Construction Permit
Local zoning and building code approvals for interconnections & substations
Offshore Submarine Cables toInterconnect Renewable Projects to Grid
BOEM Regulations for Cable Associated with OffshoreWind Farm A commercial lease will confer the right to a “project
easement” to install on the OCS “gathering, transmission,and distribution cables…” 30 CFR § 585.200(b)
Preliminary transmission plans submitted with theConstruction & Operations Plan (COP) or GeneralActivities Plan (GAP)
Terms and conditions for the project easement will beissued by BOEM in an addendum to the lease
Offshore Cables for Renewable Projects Regulations for Independent Cable to Transmit Offshore
Renewable Energy BOEM will “issue ROW grants to allow for the construction and
use of a cable or pipeline for the purpose of gathering,transmitting, distributing, or otherwise transporting electricity …generated or produced from renewable energy not generated ona lease issued under this part.” §585.300(a).
BOEM will consider “on a case-by-case basis, renewable energyROWs supporting the transmission of energy from oil or gassources that is combined with energy from sources other than oilor gas, provided that renewable energy generated from sourcesother than oil and gas is primarily what is beingtransmitted.” 74 Fed Register 19671
Application for ROW (200 foot width plus area necessary forsubstation(s)
Atlantic Wind Connection filed ROW Request & BOEM issuedRequest for & Determination Competitive Interest
Offshore Submarine Cable Backbone Atlantic Wind Connection
6000 MW HVDC Cable Interconnections in
NY, NJ, DE & VA
Filed application for lease &GAP at BOEM in March 2011
No Competitive Interest
Deepwater Wind Cable Rhode Island Sound Wind
Farm Cable to Long Island
Mass. RFI 2 Cable Bids
Dominion Resources Study Virginia Cable Study multiple wind farms
Delaware Atlantic CoastWeather Study
Northeast Submarine Cables Rhode Island Sound Maine – Mass. NH – Mass.
Massachusetts – Cape Wind Wind Farm in Federal Waters >3 miles offshore
12 mile 115kV transmission cable within MA borders and subject to Mass. regulation
Coastal Zone Management Act gives state jurisdiction over wind farm impacts to MA
USACE Application 2001 - Met Tower: USACE IP & EA 2003
EFSB
Petition for Interconnection only filed 2002
Interconnection approval conditioned on approval of wind farm 2005; upheld by SJC
Composite Permit – All State & Local Approvals – 2009 SJC Upheld 2010: sufficient delegation of DEP Authority to EFSB for Tidelands License
Chapter 91 Waterways License 2008
Water dependent use: “infrastructure facility” because it “delivers or otherwise provideselectric . . . services to the public from an offshore facility located outside theCommonwealth.” 310 CMR 9.12(2)(b)10
DEP 401 Water Quality Certificate 2008
MA Ocean Sanctuaries Act-Sec.16 exemptions for electric power; cables approved by DPU
Cape Cod Commission & Local Conservation Commission Approvals
BOEM FEIS & Lease 2010
Final geotech surveys 2012 and construction planned fall 2014
Massachusetts – Cape Wind MEPA MEPA ENF Filed 2001, MEPA Certificate 2002
Coordinated MEPA/NEPA Review until EPACT 2005 made MMS Lead Fed Agency
Draft EIR/EIS 2004; FEIR Filed February 2007; FEIR MEPA Certificate 2008
Energy Policy Act of 2005 gives MMS NEPA Jurisdiction
Draft EIS 2008; MMS Final EIS 2009
MEPA Issues Cable under MEPA threshold, but CW agreed to Discretionary EIR under MEPA Regs: Section 11.06
Avian impacts:
Loss of less than 1 Piping Plover and Roseate Tern per year for full wind farm
Environmental Management System for post construction monitoring
Marine mammal construction noise impact limit of 180dB
Secretary designated OCZM to oversee and allocate $10M compensation, incl. 27% of fed lease feesfor MA programs
Finds “environmental benefits and compensatory mitigation adequate to mitigate the project impacts”
No strict MEPA requirement to present alternatives due to limited state jurisdiction
CW still presented alternative fossil and renewable generation options at same scale
Conclusion: Massachusetts “impacts adequately avoided, minimized & mitigated”
Wind Turbine Visibility
Massachusetts Lease Area Ocean Management
Plan 2009
BOEM Request forInformation: Dec.2010
11 Bids for leases>2,000 sq. nautical mi.
Commercial fishermenobjected: => 1,000 mi.
Call for NominationsFebruary 2012: 10 bids
EA issued Oct. 2012;
Comments due Dec.3
Competitive processextend through 2013
Environmental Assessment for MA Wind Energy AreaCommercial Leases & Site Assessment Activities Reasonably Foreseeable Activities & Impacts
Assumes 5 Leases and up to 2500 turbines
(<1800 MW/lease and up to 9000 MW total)
Site Characterization Surveys
Met Tower or Buoy Construction Impacts
Commercial Fishing
North Atlantic Right Whales – Std. Operating Conditions
No Pile-driving November 1 to April 30
NOAA Marine Fisheries trained observers onboard always
1500 foot buffer from sighted whales and 10 knot max. speed
160dB & 180dB Exclusion Zones for Geophysical Surveys
Night surveys only with active or passive acoustic monitoring
Public Comments Due December 3, 2012
Proposed Sale Notice to be issued in 2013
Rhode Island Special Area Management
Plan (SAMP)
RI-MA Area of MutualInterest
Call for Nominations
Draft EA June 2012
Competitive Process
Proposed process:Simultaneous Ascend-ing Clock Auction
Pre-Sale Notice & EA
Final Sale Notice
Lease Award
SAP, COP, Final Lease
.
Rhode Island Block Island Wind Farm & Cable
30 MW – 5 6-MW Turbines
110 meter hub height; blades 77 m
21 mile cable from Block Island toNarragansett Switchyard
Power Purchase Contract
State RFP: Preferred Developer
24.4 cents/kwh with National Grid
PUC: not commercially reasonable
New Standard of Review enacted: Compare with new renewable energy
BOEM Right of Way for Cable
All Permits filed October 2012
USACE NEPA Lead FederalAgency – EnvironmentalAssessment Spring 2013
BOEM ROW & other permits 2013
Block Island Wind Farm & Cable
Rhode Island
Deepwater Wind EnergyCenter
150 6-MW SiemensTurbines
15 miles off Martha’sVineyard
Power Contract
300 MW to Rhode Islandor Massachusetts
Preferred RI Developer
600 MW to Long Island
Cost in mid-teens/kwh Deepwater Wind Energy Center
Maine
Statoil Hywind Floating Turbines
4 3-MW Turbines
20 miles offshore
500 feet deep
BOEM Lease & ROW
Determination of NoCompetitive Interest 12/19/12
Surveys & COP 2013
EIS & Approvals 2015
DOE Grant
Maine PUC Contract Rejected
29 cents/kwh
$40M committed to Mainecompanies
Overcoming Financial Challenges Offshore Wind Development Cost Savings
Manufacture Components and Turbines in U.S. Manufacture Cables in U.S. Offshore Submarine Cable Backbone for Many Wind Farms Construct U.S. Construction Vessels; Train U.S. Crews Extend Production & Investment Tax Credits Competitive Long Term Contract RFPs Broad Net Benefits Standard of Review for PPA at PUCs Increase Ocean Renewable Energy Credits (ORECs-NJ) Federal and State Loan Guarantees Federal and State Low Interest Loans Accelerated Depreciation Federal R&D (foundations; turbines, e.g.,floating)
Future U.S. Offshore Wind Project Prices Deepwater projects low teens/kwh for 1000 MW wind farms DOE & U.Maine project 10 cents/kwh by 2030
Navigant Consortium Offshore Wind Market ReportInitial Major Policy Recommendations
Extend Investment Tax Credits: (~5 cents/kwh)
Strengthen Renewable Portfolio Standards -- Offshore Carve Outs
Ocean Renewable Energy Credits (NJ, MD)
Mandate Long Term Power Purchase Agreements
Coordinated Competitive Procurement: (~3.5 cents/kwh)
• Provide Low Interest Financing
• Loan Guarantees/Tax Exempt Bonds: (~2 cents/kwh)
Expand Transmission/Interconnection Incentives
Offshore Submarine Backbones (Atlantic Wind Connection)
Broaden Transmission Cost Allocation (FERC Order 1000)
Streamline Leasing & Permitting
Target Total Price: <10 cents/kwh
Questions? ? ?Contact Info:Michael Ernst, Esq.
Director, Regulatory Affairs
Tetra Tech Energy Program
617 443-7520
160 Federal StreetSuite 300
Boston, MA 02110
QUESTIONS??
1. Is this sun setting or rising overoffshore wind industry in New England?
Michael Ernst, Esq.Director Regulatory AffairsTetra Tech Inc.160 Federal Street, Suite 300, Boston