LEASING & PERMITTING OFFSHORE WIND & CABLES IN NEW ...
LEASING & PERMITTING OFFSHORE 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 and
Top 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
Wind Power Classification Wind Power Class 3 4 5 6 7 a
Resource Potential
Wind Power Density at 50 m 2 W/m
Wind Speeda at 50 m m/s
Wind Speeda at 50 m mph
Fair Good Excellent Outstanding Superb
300 - 400 400 - 500 500 - 600 600 - 800 800 - 1600
6.4 - 7.0 7.0 - 7.5 7.5 - 8.0 8.0 - 8.8 8.8 - 11.1
14.3 15.7 16.8 17.9 19.7 -
Wind speeds are based on a Weibull k value of 2.0
15.7 16.8 17.9 19.7 24.8
Total Wind Resource Potential Exceeds Total 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 energy development assuming that proper siting and mitigation measures 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 to
reduce length of process consistent with NEPA and other federal laws: Level of NEPA review should be commensurate with the likely environmental impacts BOEM Smart from the Start Program: BOEM EA for Site Assessment & 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
Design & Construction Plans
Final
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 Process Call for Information & Nominations Area Identification by BOEM after State Input NEPA Review & Coastal Zone Management Act Consistency Determination Proposed Sale Notice & 60-day Comments Final Sale Notice Competitive Auction Process Options: Sealed bidding Ascending bidding Two-stage bidding Multifactor bidding (30 CFR §585.221) Bid Evaluation Issuance 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 data required for the COP filing; and Show how the developer will comply with all relevant Federal statutes when conducting survey activities. The following 5 offshore site assessment surveys will play an integral part of
offshore 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 close
coordination with resource agencies of concern before implementation. Regional Environmental Assessments reduce study & 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 to Interconnect Renewable Projects to Grid BOEM Regulations for Cable Associated with Offshore
Wind 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 the Construction & Operations Plan (COP) or General Activities Plan (GAP) Terms and conditions for the project easement will be issued 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 on a lease issued under this part.” §585.300(a). BOEM will consider “on a case-by-case basis, renewable energy ROWs supporting the transmission of energy from oil or gas sources that is combined with energy from sources other than oil or gas, provided that renewable energy generated from sources other than oil and gas is primarily what is being transmitted.” 74 Fed Register 19671 Application for ROW (200 foot width plus area necessary for substation(s)
Atlantic Wind Connection filed ROW Request & BOEM issued
Request 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 Coast Weather 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 provides
electric . . . services to the public from an offshore facility located outside the Commonwealth.” 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 fees for 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
Ocean Management
Plan 2009 BOEM Request for Information: Dec.2010 11 Bids for leases >2,000 sq. nautical mi. Commercial fishermen objected: => 1,000 mi. Call for Nominations February 2012: 10 bids EA issued Oct. 2012; Comments due Dec.3 Competitive process extend through 2013
Massachusetts Lease Area
Environmental Assessment for MA Wind Energy Area Commercial Leases & Site Assessment Activities Reasonably Foreseeable Activities & Impacts Assumes 5 Leases and up to 2500 turbines
(
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 and
Top 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
Wind Power Classification Wind Power Class 3 4 5 6 7 a
Resource Potential
Wind Power Density at 50 m 2 W/m
Wind Speeda at 50 m m/s
Wind Speeda at 50 m mph
Fair Good Excellent Outstanding Superb
300 - 400 400 - 500 500 - 600 600 - 800 800 - 1600
6.4 - 7.0 7.0 - 7.5 7.5 - 8.0 8.0 - 8.8 8.8 - 11.1
14.3 15.7 16.8 17.9 19.7 -
Wind speeds are based on a Weibull k value of 2.0
15.7 16.8 17.9 19.7 24.8
Total Wind Resource Potential Exceeds Total 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 energy development assuming that proper siting and mitigation measures 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 to
reduce length of process consistent with NEPA and other federal laws: Level of NEPA review should be commensurate with the likely environmental impacts BOEM Smart from the Start Program: BOEM EA for Site Assessment & 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
Design & Construction Plans
Final
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 Process Call for Information & Nominations Area Identification by BOEM after State Input NEPA Review & Coastal Zone Management Act Consistency Determination Proposed Sale Notice & 60-day Comments Final Sale Notice Competitive Auction Process Options: Sealed bidding Ascending bidding Two-stage bidding Multifactor bidding (30 CFR §585.221) Bid Evaluation Issuance 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 data required for the COP filing; and Show how the developer will comply with all relevant Federal statutes when conducting survey activities. The following 5 offshore site assessment surveys will play an integral part of
offshore 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 close
coordination with resource agencies of concern before implementation. Regional Environmental Assessments reduce study & 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 to Interconnect Renewable Projects to Grid BOEM Regulations for Cable Associated with Offshore
Wind 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 the Construction & Operations Plan (COP) or General Activities Plan (GAP) Terms and conditions for the project easement will be issued 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 on a lease issued under this part.” §585.300(a). BOEM will consider “on a case-by-case basis, renewable energy ROWs supporting the transmission of energy from oil or gas sources that is combined with energy from sources other than oil or gas, provided that renewable energy generated from sources other than oil and gas is primarily what is being transmitted.” 74 Fed Register 19671 Application for ROW (200 foot width plus area necessary for substation(s)
Atlantic Wind Connection filed ROW Request & BOEM issued
Request 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 Coast Weather 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 provides
electric . . . services to the public from an offshore facility located outside the Commonwealth.” 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 fees for 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
Ocean Management
Plan 2009 BOEM Request for Information: Dec.2010 11 Bids for leases >2,000 sq. nautical mi. Commercial fishermen objected: => 1,000 mi. Call for Nominations February 2012: 10 bids EA issued Oct. 2012; Comments due Dec.3 Competitive process extend through 2013
Massachusetts Lease Area
Environmental Assessment for MA Wind Energy Area Commercial Leases & Site Assessment Activities Reasonably Foreseeable Activities & Impacts Assumes 5 Leases and up to 2500 turbines
(
