Offshore Wind Wire

By William Morgan

Virginia Gov. Bob McDonnell signed legislation earlier this month creating the Virginia Offshore Wind Project Development Commission to pursue federal funding and remove regulatory obstacles.

“With the creation of the Virginia offshore wind development authority we are taking important steps to make wind energy a reality in Virginia’s coastal waters,” McDonnell said about the April 2 bill signing.

The authority is scheduled to have 11 commissioners, all of whom will be selected by the governor.  Three of the commissioners will come from a list of candidates proposed by the Secretary of the Navy, according to the legislation.  The new organization is tasked with applying to the federal Minerals Management Service to secure leases of prime offshore wind development areas.  Those leases, the legislation says, can then be assigned to a private developer.

The legislation also directs the commissioners to seek federal loan guarantees which could also be made available to offshore wind developers.

“The Commission, on behalf of the Commonwealth, shall apply to the U.S. Department of Energy for up to $4 billion of federal loan guarantees,” the legislation said.  “Upon obtaining federal loan guarantees for offshore wind energy projects … the Commission, subject to any restrictions imposed by federal law, may allocate or assign all or portions thereof to qualified third parties.”