# Presentation: 513354

## OCS Alternative Energy and Alternate Use

**  ****Maureen A. Bornholdt**
-  Minerals Management Service
**OCS Policy Committee Meeting**
- February 21, 2007

**Notes:**

 My name is Maureen Bornholdt and I am the Program Manager for the Minerals Management Service’s OCS Alternative Energy and Alternate Use Program.

 The MMS is America’s premier ocean energy manager, with over 1.76 billion offshore acres of land under its jurisdiction. The MMS manages the lands called the Outer Continental Shelf (OCS), which are the submerged lands seaward beyond coastal States’ waters.  The MMS’s activities provide major economic and energy benefits to taxpayers, states, and the American Indian community.

 To most, you may be most familiar with my Agency for its role in regulating energy companies that explore for and extract offshore oil and gas resources or that it collects and disburses billions of dollars in mineral revenues, annually.

 What you may not be aware of, is the fact that my Agency is now responsible for managing our Nation’s OCS alternative energy resources.

 You are probably asking yourself, how did this come about?

## Section 388 amended the OCS Lands Act and gave the Department of the Interior (DOI) new authority to regulate Federal OCS alternative energy and alternate uses

 DOI delegated the authority to MMS

-  DOI delegated the authority to MMS

**Energy Policy Act of 2005**

**Notes:**
(See slide comments above)

Why was MMS chosen to manage offshore alternative energy sources?

Since established in 1982, the MMS has been designated by the U.S. Department of the Interior to oversee the management of oil, natural gas, and other mineral activities on offshore Federal lands.  Given the agency’s expertise and experience in managing such complex programs, the MMS was delegated with this new authority as outlined in Section 388. 

## Section 388 of the EPAct05 Does Not:

- Supersede or modify existing Federal authority
- Authorize any oil and gas activities in moratoria areas
- Apply to areas designated as National Marine Sanctuaries, National Parks, National Wildlife Refuges, or any National Monuments

## MMS Action Plan

- Manage existing OCS alternative energy projects
- Develop a regulatory program

## Manage Existing OCS Alternative Energy Projects 

- Cape Wind Energy Project
- Long Island Offshore Wind Park
- MMS will not issue decisions
- until Alternative Energy Program
- is in place

## Cape Wind Energy Project  (CW)

**Cape Wind Energy Project  (CW)**

- Cape Wind Associates, LLC, proposes to construct a wind park in Nantucket Sound, Massachusetts, about 4.7 miles offshore

## Cape Wind Energy Project

- Proposal consists of 130, 3.6 MW wind turbine generators
- CW project could produce up to 468 MW of electricity for distribution throughout the New England States
- EIS is evaluating the project’s potential impacts from construction through decommissioning

## Cape Wind Energy Project

- Draft EIS will consider a range of alternatives:
- no action
- phased build-out
- smaller configuration
- sites offshore RI, MA, and ME are analyzed for comparative purposes
- Targets:
- Spring 2007     File draft EIS
- 			         60-day comment period
- Summer 2007  Hold public hearings

**Notes:**
Cape Wind Schedule

 November 2001-- Filed a Rivers and Harbors Act section 10 permit

 May 2006 --  Publish Notice of Intent to Prepare an EIS

 Spring 2007 -- File Final DEIS/60-Day Comment Period

 Summer 2007 -- DEIS Public Hearings

 Fall/Winter 2007 --File Final EIS and Publish Notice of Availability

 Winter/Spring 2008 -- Publish Record of Decision

## Long Island Offshore Wind Park (LIOWP)

- Long Island Power Authority and Florida Power and Light Energy propose to build offshore wind park about 4 miles off the south shore of Long Island, New York

## LIOWP Project

- The proposal entails installation of 40, 3.0 MW wind turbine generators
- LIOWP could produce 140 MW of electricity for local use on Long Island
- EIS is evaluating the project’s potential impacts from construction through decommissioning

## LIOWP Project

- Draft EIS will consider a range of alternatives:
- no action
- one alternative site off of Long Island
- one alternative site in deepwater
- one alternative site onshore
- Targets
- Fall/Winter 2007   File draft EIS
-                           60-day comment period
- Winter 2008	   Hold public hearings

**Notes:**
LIPA/FPL Schedule

 April 2005 -- Filed a Rivers and Harbors Act section 10 permit

 June 2006 -- Publish Notice of Intent to Prepare an EIS

 4th Quarter 2007 -- File DEIS/60-Day Comment Period

 1st Quarter 2008 -- DEIS Public Hearings

 4th Quarter 2008 -- File Final EIS and Publish Notice of Availability

 1st Quarter 2009 -- Publish Record of Decision

## Developing a Framework

**Developing a Framework**

- Program design premises:
- Enter into meaningful dialogue with stakeholders
- Create new regulatory process
- Focus on “regulator” role
- Use sound science, engineering, and environmental protection principles

## Stakeholder Meetings

- Held stakeholder meetings in Oregon, Massachusetts, New Jersey, and New York to share experiences and relevant knowledge associated with regional planning and siting energy facilities
*Identify stakeholders*
*Describe key issues and concerns*
*Characterize energy needs and trends*
*Describe current and future technology development*
*Identify State/Local regulations*

**Notes:**
(Following Winter 2006 . . .) 

 During October of 2006 and January of this year, the MMS held a series of  public stakeholder meetings:
	Salem, Oregon: 10/16-17/2006 ;  
	Boston, Massachusetts: 1/10-11/2007;
	West Long Branch, New Jersey: 1/23-24/2007; and
	New York City, New York: 1/25-26/2007; 

 The objectives of these meetings were for MMS to gather information from the interested and affected parties in the coastal states, to gather information to support MMS’s efforts in rulemaking and program development, and to get input concerning potential alternative energy activity in specific Regions of the OCS.  

## Stakeholder: Issues & Concerns

- Industry losing momentum while MMS develops its regulations
- Nexus with State and local ocean planning initiatives
- Baseline environmental data acquisition may be difficult as well as expensive
- Technology testing or “non-grid” project will get caught up in complex permitting

**Notes:**
 Concern over industry losing momentum during the time required for MMS to develop its regulations.

 Phased development and review may be appropriate, allowing for ongoing resource/site assessments and research prior to securing additional access rights.

 Beneficial to have a national ocean space utilization program to plan future OCS energy projects.

 Difficult to gather necessary baseline data when developers are unable to install met towers to gather the data needed.

 Have an expedited permitting procedure that allows for grid-tied and non-grid-tied projects.

 Adequate baseline information should be collected prior to project installation.

 Need for initial projects to be publicly developed to secure public support.

 Prioritize areas suitable for offshore renewable energy development.

## Stakeholder: Energy Needs & Trends

- Increased interest into diversifying energy sources, including alternatives and renewables:
- Anticipated Pacific coast RPS:  CA 33% by 2020; OR 25% by 2025; WA 15% by 2020
- Possible energy shortfalls forecasted for  the Northeast
- New Jersey and Delaware are involved with the Regional Greenhouse Gas Initiative (RGGI) that caps CO2 emissions

**Notes:**
 Along the Pacific coast, the local planning to increase renewable energy use and development is becoming more and more popular; there is a huge demand for renewable energy.

 There are robust incentives in Oregon for ocean development which could be significant drivers for the industry.

 One of the economic obstacles for development of offshore renewable energy is the above-market cost of technologies, coming out of the gate.

 Many New England/Northeastern states have significant renewable portfolio standards that are a State law, requiring utilities to purchase large quantities of renewable energy or face alternative compliance rates.

 The New England ISO is projecting an energy shortage by 2015 (4000-6700MW).

 New Jersey and Delaware are both involved with the Regional Greenhouse Gas Initiative (RGGI) that caps CO2 emissions—causing greater need for renewable power.

 Increasing education about renewable energy and ocean ecosystems will be an important part of this program.

## Stakeholder: State & Local Regulations

- State ocean planning initiatives are underway
- Interface with State regulators and public utilities commissions could be challenging due to disparate information requirements and regulatory deadlines
- States are interested in partnering to identify appropriate site(s) for OCS-based test facilities and to collect baseline data

**Notes:**
 Developing a strong relationship between state regulators and public utilities commissions will be crucial to ensure that the connection between coastal and offshore permitting is smooth.

 The formation of multi-agency evaluation teams to review potential projects could ease the regulatory process, allowing for consistent timelines, study plans, joint hearings, and consistent permitting processes, wherever possible.

 The Coastal Energy Impact Program under the CZMA worked to identify suitable areas and onshore infrastructure by delegating federal money to states and local communities to perform planning.  This method may be useful for the alternative energy program.

 A number of northeastern states have Energy Siting Boards to make balanced decisions regarding proposed projects.

 The New Jersey Blue Ribbon Panel recommended that the State of New Jersey conduct research to determine an appropriate site for an offshore wind test project, collect baseline date and begin construction of a test facility.   

## Stakeholder: Present & Future Technology

- Several ongoing efforts that focus on developing deepwater (up to 150 feet) wind energy facilities
- Options for storing surplus generated energy are being developed
- Northwest’s focus is on developing ocean wave energy technologies
- Northeast’s focus on wind energy technologies
- Increasing talk about OCS hydrogen

**Notes:**
 Winergy Power is currently developing wind energy platforms that can operate in 150 ft of water and withstand class three hurricanes. 

 Massachusetts Institute of Technology is developing floating systems that can operate in deepwater areas.

 European offshore wind turbine manufacturers do not develop technology that will connect to the U.S. energy grid and there are no offshore wind turbine developers in the U.S. 

 Since there is not a regulatory framework in place for offshore wind, developers and investors are reluctant to enter the market.

 Options for storing surplus wind energy are being developed.

 Wave energy and wind energy should not be placed in the same category due to the fact that the technologies are a very different stages of development

## Two provisions under Section 388:
Production, transportation, or transmission of energy from sources other than oil and gas 
	[Alternative Energy]

Use of currently or previously OCSLA-authorized facilities for energy-related purposes or for other authorized marine-related purposes 
	[Alternate Use]

- Production, transportation, or transmission of energy from sources other than oil and gas
- 	[Alternative Energy]
- Use of currently or previously OCSLA-authorized facilities for energy-related purposes or for other authorized marine-related purposes
- 	[Alternate Use]

**Program & Regulatory Development**

## Examples of Alternative Energy

| Wind Energy |
| --- |
| Wave Energy |
| Ocean Current
 Energy
 |
| Solar Energy |
| Hydrogen |

## Aquaculture
Research
Education
Recreation
Offshore Operations Support
Telecommunications 

    (Only those alternate uses not otherwise authorized by OCSLA, Deepwater Port Act, the Ocean Thermal Energy Conversion Act or other applicable law.)

- Research
- Education
- Recreation
- Offshore Operations Support
- Telecommunications
*    **(Only those alternate uses not otherwise authorized by OCSLA, Deepwater Port Act, the Ocean Thermal Energy Conversion Act or other applicable law.)*

**Examples of Alternate Use**

## Competition Requirement

- Secretary shall issue a lease, easement, or right-of-way on a competitive basis unless the Secretary determines after public notice of a proposed lease, easement, or right-of-way that there is not competitive interest.

## Key Considerations

- Safety
- Protection of the environment
- Coordination with affected State & local governments and Federal agencies
- Fair return for use of OCS lands
- Equitable sharing of revenue with States

**Notes:**
Revenue sharing – Equitable distribution among States within 15 miles –Separate rulemaking

## Major Regulatory Elements*

- Lease Issuance
- Competitive & Noncompetitive
- Coordination
- Lease Administration
- Bonding & Payments
- Project Plan Reviews
- Site Assessment & Construction and Operations
- Conduct of Approved Plan Activities
-  	Installation, Production
- 	Environmental and Safety Monitoring & Inspections
- Decommissioning
- *Includes compliance with Federal statutory requirements
-  (e.g., NEPA, CZMA, ESA, MMPA, CWA, CAA etc.)

## Programmatic EIS/Rulemaking Targets

- 	Spring 2007
- Publish draft Programmatic EIS
- 	www.ocsenergy.anl.gov
- Hold public hearings
- Publish draft rule
- 	Summer 2007
- Open draft rule public comment period

## Programmatic EIS/Rulemaking Targets

- 	Fall 2007
- File final Programmatic EIS
- Publish Record of Decision
- Winter 2007
- Publish Final Rule
- Hold Public Workshops

## Develop Strategic Studies Plan
Contracted with Research Planning, Inc. (RPI) to conduct a 9-month study entitled “The Worldwide Synthesis and Analysis of Existing Information Regarding Environmental Effects on Alternative Energy Uses of the Outer Continental Shelf” 

- Contracted with Research Planning, Inc. (RPI) to conduct a 9-month study entitled “The Worldwide Synthesis and Analysis of Existing Information Regarding Environmental Effects on Alternative Energy Uses of the Outer Continental Shelf”

**Sound Science**

## Worldwide  Synthesis of Environmental Impacts - RPI

- Examines:
- Summary of Existing Literature
- Potential Impacts and Data Gaps
- Prioritizes Research Studies
- Focuses On:
- Physical Processes (tides, currents, waves)
- Benthic and Fish Resources
- Flying Animals (birds, bats, insects)
- Marine Mammals and Sea Turtles
- Aesthetics
- Space-Use Conflicts

## Greater availability of information on impacts from wind development than all others (wave, tidal, current)
Studies of existing offshore wind parks are informative, but results may be difficult to transfer to U.S. settings
Many studies use predictive assessments 
Strong need for long-term monitoring to provide empirical data

- Studies of existing offshore wind parks are informative, but results may be difficult to transfer to U.S. settings
- Many studies use predictive assessments
- Strong need for long-term monitoring to provide empirical data

**Worldwide Synthesis (Cont.)**

**Notes:**
Difficult to transfer due to:
Adequacy of study design (for example on place a infrared camera on 1 monopole in the farm and extrapolation results from the finds).
Proposed U.S. wind farms are on a larger scale – 200 turbines vs. 20

## Strategic Studies Plan

- April 2007—Final RPI Report
- Includes outside peer review
- Provides a solid foundation for workshop
- Identifies Subject Matter Experts (SME)
- Summer 2007—Workshop
- Attended by SME and MMS Scientific Advisory Committee
- Identify data gaps and study needs
- Develop appropriate methods and
- Suggest priorities for future studies
- Fall 2007—Final Strategic Studies Plan
- MMS Scientific Advisory Committee review/input

## Marine Mapping Initiative

- Establish an interagency, comprehensive digital mapping initiative
- Use to assist in decision making relative to siting alternative energy activities

**Marine Mapping Initiative**

## What is a “Marine Cadastre”?

**Fishing  Rights**

**Navigation Rights**

**Development**
**Rights**

**   ****Riparian**
**Rights**

**Public Access**
**Rights**

**Mineral Rights**

**Seabed Use **
**Rights**

**  ****Multiple and Often Overlapping Rights**

***Air Column***

***Water Surface***

***Seabed***

***Water Column***

***Subsurface***

**Native American Rights**

**What is a “Marine Cadastre”?**

## Marine Mapping Initiative

- Marine Cadastre Working Group, associated with the Federal Geographic Data Committee (FGDC), was formed to accomplish this task
- FGDC
- Coast Guard
- U.S. Army Corps of Engineers
- National Marine Fisheries Service
- Florida Wildlife Fish and Wildlife Conservation Commission
- NOAA Coastal Services Center
- Federal Communications Commission

## Marine Mapping Initiative

- OCS locations of Federally-permitted activities;
- Obstructions to navigation;
- Submerged cultural resources;
- Undersea cables;
- Offshore aquaculture projects;
- Areas designated for the purpose of safety, national security, environmental protection, or conservation and management of living marine resources

**Marine Mapping Initiative**

**Notes:**
The Energy Policy Act of 2005, (Public Law 109-58) was signed into Law on August 8, 2005.   Sec. 388 – Alternative Energy-Related Uses on the Outer Continental Shelf, of the Act granted the Minerals Management Service (MMS) new authority to regulate energy uses on the Outer Continental Shelf (OCS).  Moreover, it directed the Secretary of the Interior, in cooperation with the Secretary of Commerce, the Commandant of the Coast Guard, and the Secretary of Defense to establish an OCS Mapping Initiative to assist in decision making related to alternative energy uses on the OCS.  The goal of the initiative is the identification of OCS locations of Federally-permitted activities; obstructions to navigation; submerged cultural resources; undersea cables; offshore aquaculture projects; and any area designated for the purpose of safety, national security, environmental protection, or conservation and management of living marine resources.

## Marine Mapping Initiative

- Targeting FY08 to develop the online, interactive map depending on resource availability

## Opportunities

- Opening the OCS to alternative energy possibilities
- Building partnerships with new stakeholders
- Expanding our offshore expertise and scientific knowledge
- Balancing multiple uses on the OCS
- Diversification of the Nation’s domestic energy portfolio

**Notes:**
In closing:

 The United States energy picture for the next 20 years may be one of increasing demand, as-well-as increasing domestic supply.

 As the Nation explores its ocean frontiers in the coming years, we may yet discover astonishing alternative sources of energy that could revolutionize how we generate electricity, heat our homes, and fuel our automobiles.

 The MMS is not only working to solve many puzzles of the ocean, but is helping secure America’s energy future and quality of life, while protecting the environment and providing fair equity for the use of our federal lands.

 Thank you for the opportunity to speak to you today!

## Questions?

Maureen A. Bornholdt
(703) 787-1300
www.mms.gov/offshore/
RenewableEnergy/RenewableEnergyMain.htm

**Maureen A. Bornholdt**
**(703) 787-1300**
**www.mms.gov/offshore/**
**RenewableEnergy/RenewableEnergyMain.htm**