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The Evolution of Offshore Wind Energy in the U.S.  Virginia’s Role in Achieving Energy Independence.

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Presentation on theme: "The Evolution of Offshore Wind Energy in the U.S.  Virginia’s Role in Achieving Energy Independence."— Presentation transcript:

1 The Evolution of Offshore Wind Energy in the U.S.  Virginia’s Role in Achieving Energy Independence


3 “All of the Above” Energy Policy Dirty/Fossil Fuels Clean/Renewable Energy Coal Oil Natural Gas Biofuels Solar Wind Onshore Offshore : 85% of total energy production

4 “All of the Above” Energy Policy Dirty/Fossil Fuels Clean/Renewable Energy Coal Oil Natural Gas Biofuels Solar Wind Onshore Offshore : hidden costs economic environmental social

5 Hidden Costs of Dirty/Fossil Fuels National/Energy Security: $1B/Day to Import Crude Oil $67-83B/yr on Overseas Oil Security Missions X X The Pew Project on National Security, Energy and climate VA: $44.5MM/yr Coalfield Employment Enhancement Tax Credit* * Commonwealth Institute economic Federal Coal Subsidies & Benefit Payments Estimated at $3.2-$5.4B/YR + + Mining Coal, Mounting Costs: The Life Cycle Consequences of Coal KY: $115MM/yr Coal Subsidies +

6 Hidden Costs of Dirty/Fossil Fuels environmental Climate Change Contributor: Methane & Carbon due to Mining-Related Land Disturbance: $2.2B/yr Gulf Oil Spill MTR 500 Appalachian Summits Removed Transforming 1.4mm Acres of Forest and Burying 2000 Miles of Streams; 2500 miles of Polluted Streams in KY alone Air Pollution Sludge, Slurry, and “Fly Ash” Ponds 1300 Coal Combustion Waste (“Fly Ash”) impoundments are adjacent to Coal- Fired Plants, receiving 130 Million Tons of Waste/YR

7 COAL: $345B/yr Health & Environmental Costs* * harvard medical school survey released 2/17/11 Hidden Costs of Dirty/Fossil Fuels Social 100,000 U. S. Miner Deaths since 1900 + 200,000 More from Black Lung Disease

8 “All of the Above” Energy Policy Dirty/Fossil Fuels Clean/Renewable Fuels Coal Oil Natural Gas Solar Wind Onshore Offshore : The Last Mountain : Gasland : FUEL Biofuels Biomass : FUEL : Gasland The Last Mountain

9 SCALE Distributed Generation ROOFTOP SOLAR MICROTURBINES Community-Scale BIOMASS WIND: ONSHORE Biomass Klickitat County, WA “Wind Power is an Economic Engine for a Rural American Community” (YouTube) Sherman County, OR “Wind Blows in to a Patch of Oregon Known for Its Unrelenting Winds” (NYT, 5/30/11) U. S. Currently has 35GW of Onshore Wind in Place and More on the Way

10 SCALE Distributed Generation ROOFTOP SOLAR MICROTURBINES Community-Scale BIOMASS WIND: ONSHORE Biomass Utility-Scale SOLAR 2/23/10 BrightSource Energy $1.4B Loan Guarantee to Build Some of the World’s Largest Solar Plants 6/17/11 Blythe Solar Plant “Construction Begins on World’s Largest Solar Power Plant”

11 SCALE Distributed Generation ROOFTOP SOLAR MICROTURBINES Community-Scale BIOMASS WIND: ONSHORE Utility-Scale SOLAR Biomass Wind: Offshore U. S. Could Have 20GW of Offshore by 2020 If It Made the Commitment To Do So Offshore Wind Energy has Existed commercially in europe for nearly 20 Years Offshore Winds Are Stronger and Steadier than Onshore Winds Offshore Wind Loads are Closer to Customers



14 1953: Outer Continental Shelf Lands Act (OCSLA) enacted 1969: National Environmental Policy Act (NEPA) 1970: The Clean Air Act 1972: The Clean Water Act 1981: Congress enacts a moratorium banning offshore drilling for oil and natural gas in the majority of the Outer Continental Shelf (OCS) 1990: President George H. W. Bush issues Presidential Directive supporting the 1981 offshore drilling ban 1998: President Bill Clinton extends the Presidential Directive against offshore drilling through 2012

15 2005: Energy Policy Act of 2005 authorizes the Minerals Management Service (MMS) to regulate alternative energy on the OCS including wind, wave, current, tidal, and hydrogen generation sources. 2006: “An Inconvenient Truth” premieres 2006: Virginia Energy Plan creates the Virginia Coastal Energy Research Consortium (VCERC) to serve as an interdisciplinary study, research, and information resource for the Commonwealth on coastal energy issues with an initial focus on offshore winds, waves, and marine biomass 2008: President George W. Bush lifts a presidential moratorium on drilling for oil and natural gas on the OCS 2009: 2009 Virginia General Assembly streamlines regulatory process for small renewable energy policy through passage of Permit by Rule (PBR)

16 2010: March 31: President Obama proposes to open vast expanses of American coastlines that would open up the eastern Gulf and parts of the Atlantic, including off the coast of Virginia, to offshore oil and gas exploration ending a longstanding moratorium on oil exploration along the East Coast from the northern tip of Delaware to the central coast of Florida, covering 167 million acres of ocean


18 2010: April 8: My 10-year-old son Louie, a Jack Russell Terrier, loses a 4-month battle with lymphoma, heightening my awareness of carcinogens in our environment April 20: Deepwater Horizon Oil Rig explodes and sinks off the Louisiana coast June 8: U. S. Secretary of the Interior Ken Salazar and the governors of 10 East Coast states (ME, NH, MA, RI, NY, NJ, DE, MD, VA, and NC) sign a Memorandum of Understanding that formally establishes an Atlantic Offshore Wind Energy Consortium to promote the efficient, orderly, and responsible development of wind resources on the OCS. Salazar quoted as saying “By one estimate, if our nation fully pursues its potential for wind energy on land and offshore, wind can generate as much as 20% of our electricity by 2030 and create a quarter-million jobs in the process.” June 18: Salazar renames MMS the Bureau of Ocean Energy Management, Regulation, and Enforcement (BOEMRE) June 19: EPA Administrator Lisa Jackson reports: "Three out of four city officials expect that their use of clean energy technologies will increase in the next five years, according to a survey from the U.S. Conference of Mayors. It's great to hear that local leaders recognize that despite tough economic times, an investment in clean energy technology is also an investment in job growth, in healthy communities and families and in the future of our country."

19 2010: October 6: Salazar signs the nation’s first lease for commercial wind energy on the Outer Continental Shelf (OCS) 4.7 miles off the shore of Cape Cod, MA, with Cape Wind Associates, LLC potential to meet 75% demand for Cape Cod, Martha’s Vineyard, and Nantucket Island November 23: Salazar launches a “Smart from the Start” wind energy initiative for the Atlantic OCS to facilitate siting, leasing, and construction of new projects October 12: Google (37.5% Equity Share “ES”), renewable energy investment firm Good Energies (37.5% ES), Japanese trading company Marubeni Corporation (15% ES), and Trans-Elect Development Company (10% ES), LLC, partner to create the Atlantic Wind Connection (AWC) project an underwater transmission “backbone” that will connect more than 6,000 MW of offshore wind to the transmission grid 350 miles of high voltage direct current (“HVDC”) lines New York City to Virginia $5B over 10 years in 5 phases to power 1.9mm HH Estimated construction start: 2013 First phase operational: 2016

20 SMART FROM THE START 17-20 Agencies/Acts 8 years from application to permit AGENCIES Department of the Interior (DOI) National Parks & Recreation Fish & Wildlife Department of Defense (DOD) U. S. Coast Guard Environmental Protection Agency (EPA) U. S. Army Corps of Engineers National Oceanic and Atmospheric Administration (NOAA) Department of Energy (DOE) Federal Aviation Administration (FAA) ACTS The Rivers and Harbors Act of 1899 Section 401, Clean Water Act Endangered Species Act Coastal Zone Management Act NEPA Fish & Wildlife Coordination Act National Historic Preservation Act (Sunken Historic Vessels)

21 2010: December 1: The Obama Administration rescinds its decision to expand offshore oil exploration into the eastern Gulf of Mexico and along the Atlantic and Pacific Coasts as part of the next five-year drilling plan, reversing 3/31 policy changes and effectively extending the drilling moratorium in this area through 2017 2011: March 23: Swedish Vattenfall Group announces the installation of one of the world's largest offshore wind turbines, the first of 30 to be installed at its Ormonde Offshore Wind Farm in The Irish Sea that will ultimately supply clean energy for 100,000 homes each year.Vattenfall Group Farm in The Irish Sea tha March 24: Salazar announces plans to auction off 758 million tons of coal reserves in Wyoming that will take somewhere between 10-20 years to mine

22 2011 : March 30 : The VA Marine Resources Commission unanimously votes to allow Gamesa Energy to conduct scientific surveys to determine if conditions are ripe for construction of a single, prototype windmill that would generate as much as 5MW electricity in waters about 3 miles west of Cape Charles on the Eastern Shore. May 19: The Federal Energy Regulatory Commission (FERC) unanimously granted a 12.59% return on AWC’s equity investment clearing the way for the energy transmission backbone to move forward

23 MID-ATLANTIC BIGHT Cape Cod, Ma to Cape Hatteras, NC

24 Mid-Atlantic Bight Cape Cod, Ma to Cape Hatteras, NC Windy Shallow Close to Consumers “the Saudi Arabia of offshore wind” 81% of the Population (245mm People) Live in 28 Coastal States Consuming 75% of the Country’s Electricity



27 Rank by % of Electricity Wind Can Provide State % of State Electric Generation Potentially Supplied by Offshore Wind Economically Recoverable Offshore Wind Resource (MW) % of State Electricity Supplied by Fossil Fuel (2008) Primary Source of Electric Energy (2008) 1Delaware137%2,85091.3%Coal (70%) 2Massachusetts130%13,80080.6%Natural Gas (50.6%) 3North Carolina112%37,90064.1%Coal (60.5%) 4New Jersey92%16,00047.3%Nuclear (50.6%) 5Virginia83%16,00058.1%Coal (43.7%) 6South Carolina64%19,20047.0%Nuclear (51.3%) 7Rhode Island38%73997.8%Natural Gas (97.4%) 8Maryland36%4,68062.3%Coal (57.5%) 9Florida16%10,30082.1%Natural Gas (47.1%) 10New York12%4,73047.7%Natural Gas (31.3%) 11Georgia3%1,19073.2%Coal (62.8%) Total48%127,38964.9%Coal (39%) Maine913%38,90048.4%Natural Gas (43.2%) New Hampshire21%1,23046.6%Natural Gas (30.9%) Source: Untapped Wealth: Offshore Wind Can Deliver Cleaner, More Affordable Energy and More Jobs Than Offshore Oil Developing 127GW (30% more capacity than comparable oil & gas) offshore wind energy over 20 years would provide energy at a cost of about $36B less than the production of economically recoverable new offshore oil and natural gas.

28 Offshore Wind PotentialOffshore Wind as Percent of Electric GenerationCarbon Dioxide Displaced 16 GW83%43.6 million metric tons Renewable 3% Coal 44% Oil 2% Natural Gas 13% Nuclear 38% 83% Of Virginia’s Electricity Generation Offshore Wind Potential Current Energy Mix Annual Electricity Fuel Costs Coal$926.5 Million Natural Gas$762.6 Million Petroleum$196.5 Million Nuclear$147.7 Million Average Residential Cost per kWh 09.6¢ Average Offshore Wind Cost per kWh 11.8¢ 4th Largest Offshore Wind Capacity Potential on East Coast 5.5 Million Average Homes Powered Annually Source: Untapped Wealth: Offshore Wind Can Deliver Cleaner, More Affordable Energy and More Jobs Than Offshore Oil Virginia Job Creation Estimates of 10,000 to 16,700-26,600 permanent jobs Nearly 58% from Fossil Fuel

29 Cape Wind NJ Capacity 16GW 468MW 130 Turbines 200,000HH 75% of the electricity for Cape Cod, Martha’s Vineyard, and Nantucket Island Bluewater Wind DE Capacity 2.85GW 450MW DE Gamesa VA Capacity 16GW 5MWVA

30 BARRIERS TO ENTRY OF OFFSHORE WIND ENERGY Former EPA Air Enforcement Division Director Bruce Buckheit is currently working on a comprehensive study Environmental Impact Study (EIS) Adjustment in migratory patterns (Danish 8 year avian study) Prime scalloping dredging fleet Military Radar Interference Shipping Lanes Intermittency

31 Eliminate federal subsidies for fossil fuels and redirect these funds to renewable energies and energy efficiency programs. Stop all new offshore oil and gas drilling to prevent future spills and minimize competition for resources and expertise that will slow the development of offshore wind energy. Require leasing of installation vessels for offshore wind turbine construction be given priority so that it is not impeded by offshore oil and natural gas development. Increase and make permanent the tax credit for investment in advanced energy property outlined in the American Recovery and Reinvestment Tax Act of 2009. This legislation extends the 30% credit for investment in qualified property used in a qualified advanced energy manufacturing project, but ends in 2012. In addition, these tax credits should be extended to manufacturers of offshore wind turbine components and turbine installation vessels. RECOMMENDATIONS Source: Untapped Wealth: Offshore Wind Can Deliver Cleaner, More Affordable Energy and More Jobs Than Offshore Oil

32 Increase and make permanent the Innovative Technology Loan Guarantee Program for opening, expanding or modernizing facilities to manufacture offshore wind turbine components and extend this program to turbine installation vessel manufacturing. Use policy mechanisms that increase the long-term demand for and supply of renewable energies, such as a robust Renewable Electricity Standard or Feed-In Tariffs, Production and Investment Tax Credits, Loan Guarantee programs for renewable energy products and technology manufacturers and training programs. Accelerate the electrification of the transportation fleet through incentives to automobile manufacturers and purchasers and by building the needed infrastructure such as charging stations to allow maximal use of this new technology. Recognize external costs of fossil fuels to ensure realistic cost comparisons. Set mandatory Renewable Portfolio Standards (RPS) for VA. RECOMMENDATIONS Source: Untapped Wealth: Offshore Wind Can Deliver Cleaner, More Affordable Energy and More Jobs Than Offshore Oil


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