Permitting Offshore Wind Projects Bonnie Ram Energetics Incorporated Southeast and Mid-Atlantic Regional Wind Summit Raleigh, NC September 20, 2005 Research sponsored by the National Renewable Energy Laboratory

Energetics Role Assist NREL in supporting the Department of Energy Office of Wind Assist NREL in supporting the Department of Energy Office of Wind Track environmental policies and laws in the U.S. and Europe Track environmental policies and laws in the U.S. and Europe Review existing marine research Review existing marine research Assist in organizing technical workshops Assist in organizing technical workshops Collaborate with U.S. Army Corp of Engineers & Minerals Management Service Collaborate with U.S. Army Corp of Engineers & Minerals Management Service Track local permit applications & projects Track local permit applications & projects

Results to Date Literature review Literature review Review of environmental regulations & permits Review of environmental regulations & permits Summary of European environmental studies Summary of European environmental studies Technical Workshops Technical Workshops Stakeholder Dialogue Meeting (2003)Stakeholder Dialogue Meeting (2003) Boston Technical Tutorial Meeting (September 2003)Boston Technical Tutorial Meeting (September 2003) Deep Water Technologies Workshop (2003/2004)Deep Water Technologies Workshop (2003/2004) MMS Wind Tutorial (August 2005)MMS Wind Tutorial (August 2005)

Factors Determining Applicable Regulations Project Size, Location and Construction State/Federal Ocean Boundaries Landfall Grid Connection Sensitive Marine/Land Areas Avian and Marine Species Activities and Uses of Project Area

Ocean Jurisdictions S h o r e l i n e 24nm Contiguous Zone Not to Scale 12nm Territorial Sea 12nm Federal Boundary 3nm State Boundary Note: TX & Gulf coast of FL state boundaries are 9 nm 200 nm Exclusive Economic Zone International boundaries

Primary Jurisdictions in the Ocean U.S. Army Corp of Engineers (USACOE) Department of Defense –Navigational obstructions in federal waters (Section 10) –No longer the lead agency for offshore wind permits –Approvals for transmission lines Minerals Management Service Department of Interior –Oil and gas leasing –Sand and gravel program –Energy Policy Act of 2005 gave MMS lead agency status for permitting of non-extractive energy facilities on the OCS 270 days to develop new regulations Interim guidance for new projects

Selected Federal Regulations Legislative Authority Major Program/PermitLead Agencies Energy Policy Act of 2005 amended Outer Continental Shelf Lands Act Designated MMS as lead authority for alternative uses of the OCS. Jurisdiction over leasing rights for minerals production. Minerals Management Service of the Department of the Interior Federal Power Act Issues license for any type of electric power generation within/or on navigable waters; interconnection is parallel process FERC Rivers And Harbors Act - Section 10 Regulates all structures and work in navigable water of the U.S Extended out to 200 nm under the OCSLA for fixed structures/artificial islands U.S. Army Corps of Engineers (District Office) National Environmental Policy Act (NEPA) Requires submission of an environmental review for all major federal actions that may significantly affect the quality of the human environment U.S. Army Corps of Engineers (District) Council on Environmental Quality Coastal Zone Management Act Jurisdictional rights to states to review activities that may affect the state’s coastal resources State Coastal Zone Management Agencies Navigation and Navigable Waters Navigation aid permit (requirements for markings and lighting) U.S. Coast Guard

Selected Federal Regulations Legislative Authority Major Program/PermitLead Agencies Navigational Hazard to Air Traffic Determination of the safe use of airspace from construction start (requirements for lighting) U.S Federal Aviation Administration (Regional Administrator) Migratory Bird Treaty Act No “taking” or harming of birds determination Fish and Wildlife Service Migratory Bird Conservation Commission National Historic Preservation Act Consultation on the protection of historic resources — places, properties, shipwrecks Department of the Interior State Historic Preservation Offices Magnuson-Stevens Fishery Conservation & Management Act Conserves & manages fish stocks to a 200-mile fishery conservation zone & designates essential fish habitat National Marine Fisheries Service (Commerce) National Marine Sanctuary Act (Title III) Designates marine protected areas National Ocean Service (within NOAA) Endangered Species Act Consultation on action that may jeopardize threatened & endangered (listed) species or adversely modify critical habitat. Fish & Wildlife Service (Interior) National Marine Fisheries Service

Selected Federal Regulations Legislative Authority Major Program/PermitLead Agency Clean Water Act Regulates discharges of pollutants into the waters of the United States U.S. Environmental Protection Agency Marine Mammal Protection Act Prohibits or strictly limits the direct of indirect taking or harassment (Permits may be sought for “incidental take”) Fish & Wildlife National Marine Fisheries Service Submerged Lands Act Granting states a title for public lands/natural resources held in trust by the government Minerals Management Service Estuary Protection Act Conserves estuarine areasFish and Wildlife Service

Significant Role for State and Local Authorities Selected State Permits & Approvals Selected State Permits & Approvals –Environmental Quality Review Boards (NEPA analysis) –Coastal Zone Management Programs –Siting Boards for Energy Facilities and Transmission Lines –State Parks, Forests, and Cultural & Historic Resources –Tidal Wetlands, Coastal Erosion Hazard, Water Quality Assessing Environmental and Health Benefits Assessing Environmental and Health Benefits –Renewable Portfolio Standards requirements –Clean Air Act Local Land Use Entities Local Land Use Entities –Town Planning Boards –Zoning Boards –By-laws (e.g., setbacks)

U.S. Army Corps of Engineers Section 10 Permit Process Day Public Notice Complete For Processing Application Submitted Final Decisions by District Issued Denied May be Appealed to Division May Need Public Hearing Comments By Agencies, Interested Groups, Public Full Public Interest Review Environmental Regulatory Review and Project Evaluation Reference: Adapted from USACE presentation, Christine Godfrey

U.S. Army Corp of Engineers Permit and NEPA Process Reference: Adapted from USACE presentation, Karen Adams

Community Involvement Primary Objective of the Permit Process is Public Involvement Primary Objective of the Permit Process is Public Involvement –Assessing public interest –Educating broad group of stakeholders –Uncertainty of potential impacts on the human & physical environment  Viewshed  Environmental tradeoffs –Economic benefits

Permitting Unknowns Transition from USACOE to MMS –NEPA documents –Risk assessment –Standards and codes Interim Guidelines for New Projects Designating Planning “Zones” Public Involvement Leases, Fees and Royalties

Status of USACOE Offshore Wind Applications ApplicantProject LocationApplication Filed Status Cape WindNantucket SoundNovember 2001 Draft EIS issued November 2004 Bald Eagle Power Long Island SoundMay 2002Application on hold GreenlightLake ErieMay 2003Project on hold WinergyPlum Island, NYJune 2003Incomplete Application WinergySmith Island, VAJuly 2003Application administratively withdrawn Winergy4 sites in New Jersey NAPre-application meeting Nov 2002 WinergyIndian River, Delaware NAPre-application meeting Feb 2003 LIPA & Florida Power and Light Long Island SoundJuly 2005Utility awarded the competitive project; joint application filed

Offshore Wind Project Anatomy Site and Feasibility Assessment 1-year Pre- construction and Permitting 1-3 years?? Construction – Installation – Commissioning 1+ years Operation and Maintenance 20-years Decommission or Re-power >1-year

Potential Effects/Benefits Viewshed Sea mammals Fisheries Avian Hydrography & Coastal effects Seabed Artificial Reef Socioeconomics Community ownership Noise/Vibrations Radar/Radio Disturbances (military/commercial uses) Transmission Lines Subsea Cables Electromagnetic Fields Navigation & Risk collision Air Traffic Safety Marine Archaeology Cumulative Effects (e.g., air quality)

Site Assessment – Micro-siting Capewind MET Tower 60-m Capewind Avian Radar Wind/Wave Design Basis

Cape Wind Nantucket Sound 468 MW = MW GE turbines About 24 square miles Two lawsuits Meteorological Tower installed Draft EIS issued (Nov. 04) Lack of political support

Cape Wind Project Status Federal Jurisdiction – ENF/USACOE application filed – fall 2001 – DEIS/DEIR – released November 2004 Currently reviewing 5000 comments State Jurisdiction – Energy Facility Siting Board filing – fall 2002 Decision approving the Cape Wind project was released May 2005 – CZMA determination pending

Long Island Power Authority Long Island Sound  MW  LIPA - a municipal utility Guaranteeing purchase power agreement Substation construction  Early public involvement process  Strong state political support  LIPA selected FPL Energy as the developer May 2004

Long Island Power Authority Jones Beach April 2005 Section 10 permit application –Public comment period ended August 12, 2005 –Imminent NEPA decision 3/2004 – Aerial & boat surveys weekly during migration seasons & monthly in off-season through next spring Marine radar – 9/2005 Onshore and Offshore fall and spring Construction start April 2008

Consistent Policy Needed! Muddled institutional & legal boundaries –Jurisdictional control shifted to MMS August 2005 –New regulations by May 2006 No national offshore wind strategy –Federal agencies setting their own policies –Lead role for States (MA, NY, NJ) –Regional collaboratives

Uncertainties Regulated Species & Habitats –Ecological risk assessment methods –Best available data & standards –Quantified environmental benefits –Cumulative effects No national experience with the technology –Need for education and debate Market-driven development requires due diligence - Land speculators

Learning Curve History of land-based permitting –Siting criteria is critical –Need standardized protocols –Lack of baseline data Need collaborations between industry, government & NGOs to define & fund studies Viewshed is important –Not near my beach! –“Put it further away in deeper water!”

Recommendations for State Agencies  Verify Offshore Wind Resource  Conduct Feasibility Studies Designate development zones & map exclusion areas  Establish Strategic Planning Team  Establish One-stop Shop for Permitting  Leverage Resources for Baseline Studies  Involve Stakeholders Early  Consider Costs and Benefits

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