The project is designed to connect offshore wind projects along the Atlantic seaboard, removing the need for each project to built a separate connection to the grid.

“The first-of-its-kind Atlantic Wind Connection is an encouraging sign of significant industry interest in developing the infrastructure to support offshore wind development,” said Deputy Interior Secretary David Hayes. “It’s the type of project that will spur innovation that will help us stand-up a clean energy economy to power communities up and down the east coast.”

Hayes announced the project along with BOEM Director Tommy Beaudreau. BOEM regulations require the agency to determine if there is any competition for a particular plot or project. If there is none — as in this situation — the permitting process becomes dramatically more streamlined.

“Our next step will be to evaluate the potential environmental impacts of issuing a renewable energy right-of-way grant for this project,” Beaudreau said.

The first phase of the proposed transmission project would run from New York City to Virginia Beach. In a press release, the company applauded the BOEM permitting process.

The federal Bureau of Ocean Energy Management is considering a proposal to develop an offshore wind project on the outer continental shelf off New York’s Long Island.  Proposed by a collaborative composed of three New York City-area utilities, the Long Island – New York City Offshore Wind Project would be located in federal waters about 13 nautical miles south of Long Island and east of New Jersey.

The collaborative promoting the project involves a “public-private partnership”, a trendy catchphrase that connotes a mix of public interest and private money.  The collaborative includes two public power authorities – the New York Power Authority and the Long Island Power Authority – as well as investor-owned utility Consolidated Edison of New York.

Created in 1931, the New York Power Authority is a political subdivision of the State of New York.  NYPA generates, transmits, and sells about 25% of the electric power and energy consumed in New York, making it the Empire State’s largest public power organization.  Overall, NYPA controls electric generation facilities with a total installed capacity of 6,054 megawatts; in 2010, NYPA generated 24.4 billion kWh of electricity, primarily from hydropower projects.  NYPA had previously pursued an offshore wind project in New York’s piece of the Great Lakes, but its Great Lakes Offshore Wind project was scrapped in the fall of 2011 amid a leadership change and concerns that high costs would make it unfeasible.

Like NYPA, the Long Island Power Authority is also a political subdivision of the State of New York.  A non-profit municipal electric utility formed in 1985 to take over the assets of former investor-owned utility Long Island Lighting Company, LIPA owns the electric grid in most of Long Island.  LIPA does not own electric generation assets on the island but serves 1.1 million customers with electricity generated off-island.

Consolidated Edison Company of New York, Inc. is a subsidiary of Consolidated Edison, Inc., one of the nation’s largest investor-owned energy companies.  At the parent level, ConEd generates about $13 billion in annual revenues off an asset base of $39 billion.  Consolidated Edison Company of New York is the regulated investor-owned utility providing electric service to almost all of New York City and most of New York’s Westchester County.

Together, these entities represent the three largest electric utility providers in the Long Island – New York City region.  Their plans for an offshore wind project currently rest on an unsolicited lease request NYPA submitted to the BOEM in September 2011.  Because BOEM regulations required the lease to be held in the name of one entity, and because New York law restricts LIPA from holding a lease in federal waters, the collaborative members chose NYPA to be the lead applicant on behalf of the collaborative.

The collaborative’s proposal identified a cone-shaped project area constrained by two of the many marine navigational routes, or traffic separation schemes, leading to New York City.  The project area is thus narrowest at its northwest corner, closest to the city, and widens as it extends to the southeast.  The initial project area would cover about 81,500 acres of sea space, and would start with a 350 MW capacity, expandable to 700 MW.  For the full 700 MW buildout, the collaborative expects up to 194 turbines each rated at 3.6 MW, or 140 turbines each rated at 5 MW.  Because water depths range from 60 to 120 feet, turbines are expected to be mounted on towers attached to the sea floor (using monopile, gravity, or tripod technology).  If BOEM awards the requested lease to NYPA, the collaborative’s members plan to seek proposals from private development firms to build the project, turn the lease over to the winning bidder, and enter into agreements to purchase the project’s output.

BOEM is currently reviewing the proposal, and has determined that NYPA is legally, technically, and financially qualified to hold a lease.  Under BOEM’s leasing process, when presented with an unsolicited lease request, BOEM will issue a Request for Competitive Interest.  That step could occur as soon as the summer of 2012.  If, after reviewing the responses to that request, BOEM determines that there is no competitive interest in the area sought by NYPA, the collaborative would move forward with the development of a plan to assess the site and BOEM would begin to prepare an environmental analysis for lease issuance and site characterization studies.

If all goes according to the collaborative’s plan, a lease could issue as early as 2013, with construction possible in 2017 and commercial operation targeted for 2018.  These projections depend on a number of contingencies, including a lack of competition for the site, regulatory approvals, and financing.  The project also depends on continued public and political support for the project, which failed to materialize for NYPA’s earlier Great Lakes offshore wind project.  Nevertheless, if successful, the Long Island – New York City Offshore Wind Project could represent one of the first public-private partnerships to achieve the development of offshore wind in United States waters.

Todd J. Griset practices energy law with Preti Flaherty Beliveau & Pachios in Maine. He also writes a blog on offshore wind, renewable energy and policy issues.

“This agreement among federal agencies and Great Lakes states is a smart, practical way to encourage the development of homegrown energy that will create jobs, power homes and reduce pollution in American communities,” said Nancy Sutley, chairwoman of the White House Council on Environmental Quality.

Illinois, Michigan, Minnesota, New York and Pennsylvania have signed onto the plan, according to the report.

Maryland Offshore Wind Bill Set To Pass House of Delegates

Maryland Gov. Martin O’Malley’s offshore wind legislation is on track for final passage in the state House of Delegates today, the Baltimore Sun reported.

Democrats in the House of Delegates rejected several Republican attempts to weaken the bill, including an amendment that would limit the offshore wind development to one prototype turbine.

The bill still faces a daunting challenge in the Senate, according to the Sun report.

According to the text of the plan, temporary production tax credits have ”created an uncertain investment climate, undermined the effectiveness of our tax expenditures and hindered the development of a clean energy sector in the United States.”

Consultants Want More Details From Fishermen’s Energy Project

Consultants hired by the state of New Jersey to review the Fishermen’s Energy offshore wind farm, slated for state waters near Atlantic City, have said the project needs to provide more details, Philly.com reported today.

The consultants did not recommend rejecting the project. Their primary criticism was not, in fact, directly related to the project itself, according to the report. In its recommendation to the New Jersey Board of Public Utilities, the consultant said the company needed to  provide more information about potential negative job impact due to increased electric rates.

“Net benefits of the project were not demonstrated because key underlying assumptions of applicants’ cost-benefit analysis were not adequately substantiated,” the consultants said.

The January 3 report said that “the ISO and its consultants … have determined that it is unlikely that the project will achieve Commercial Operation” by June 1, 2015.

The company disagreed with the ISO New England assessment.

“We think it is very likely we’ll be online by June 2015, either in whole or in part,” said Cape Wind Vice President Dennis Duffy.

Atlantic City Project Aims For 2013 Commissioning

Fishermen’s Energy vice president and senior counsel Paul Gallagher said yesterday that his company’s Atlantic City offshore wind project is almost ready to begin construction, the Press of Atlantic City reported today.

Construction is waiting on a decision in March from the New Jersey Board of Public Utilities on the sale of the project’s electricity.

“We have arranged our financing, selected our turbines and lined up our contractors … We are, in what Obamaspeak refers to, as ‘shovel ready,’” Gallagher said. The decision in March “will allow us to put steel in the water next summer (2013), with turbines installed in August and power being generated by Labor Day 2013.”

Maryland Rallies For Offshore Wind

Over 100 protesters rallied at the Maryland statehouse this week to urge state lawmakers to support Gov. Martin O’Malley’s offshore wind plan, the Huffington Post reported.

The Sustainable Business Forum blog reported the comments from a press briefing held late last month at the National Press Club.

Delaware Online reported on Friday that the NRG Bluewater Wind project is still alive.

North American Windpower reported today that the Bureau of Ocean Energy Management is seeking comments on proposed lease-sale auction formats for offshore wind projects.

The publication also reported last Friday that Fishermen’s Energy recently installed a Lockheed Martin LIDAR wind measurement device to provide offshore wind data.

Welcome to the November edition, where we ask our experts which state will host the country’s first offshore wind turbines. And oh my, how the playing field has changed since we last checked in.

After holding the top spot for the first four rankings — and really, for the past decade — Massachusetts is no longer the favorite to build the first US offshore wind farm. Thanks to strong political backing, a project in state waters and an apparent absence of local opposition, New Jersey has taken the lead. Fishermen’s Energy has an outside chance to begin construction before the end of this calendar year.

Rhode Island also surged in the vote totals to take second place. Deepwater Wind cleared a huge hurdle when the state’s Supreme Court rejected a challenge to the company’s power purchase agreement with National Grid. Deepwater is now pushing forward to secure the remaining permits and plans to begin construction of its Block Island offshore wind farm in 2013 or 2014.

Cape Wind, meanwhile, suffered a potential setback last week when a federal court vacated its FAA “no hazard” ruling. That challenge, difficulty selling the project’s remaining power and the continued opposition of William Koch’s Alliance to Protect Nantucket Sound caused Massachusetts to slide all the way to the third slot in the rankings.

1) New Jersey: “I don’t like to say we’re going to be first, but we have a good shot,’’ said Rhonda Jackson of Fishermen’s Energy, discussing the Atlantic City project.

2) Rhode Island: Deepwater Wind announced last month that they are buying Siemens’ 6 megawatt turbines for their Block Island project.

3) Massachusetts: Cape Wind continues to face well-funded opposition and must obtain another “no hazard” determination from the FAA. But don’t forget, this is the only project that has a signed federal lease.

4) Texas: The Lone Star State has built in advantages, but we’ve been saying that for two years now.

5) Maryland: In his opening address to AWEA’s annual offshore wind conference last month, Gov. Martin O’Malley promised to push his offshore wind plan.

The New York Power Authority Board of Trustees voted today to end an effort to develop an offshore wind project on the Great Lakes.

The NYPA announced that it would end its competitive solicitation process for the proposed wind farm without choosing a developer. The Trustees cited the higher than average cost of offshore wind electricity and the current economic climate as justification for the decision.

The project, however, was cast in doubt in May when NYPA board chairman Michael Townsend said that he doesn’t “think that project is very viable at this time, politically or economically.”

NYPA officials said that the organization is still interested in developing offshore wind projects.

“While deciding not to proceed with [the Great Lakes Offshore Wind project], the Power Authority will continue its commitment to developing and implementing wind and other clean alternative energy sources to produce emissions-free power for the benefit of New Yorkers today and for future generations,” said Gil Quiniones, the acting president and chief executive officer, NYPA. “The Power Authority’s participation in the evaluation of the LI-NYC Offshore Wind Project and in the regional efforts of such organizations as the Great Lakes Commission and the Great Lakes Wind Collaborative shows NYPA’s dedication to affordable and environmentally-sound development of future offshore wind projects in New York State waters.”

NYPA staff reportedly reviewed five proposals and determined the project is technically feasible but prohibitively expensive.

Offshore Wind Wire: Deepwater experienced a recent legal victory when the Rhode Island Supreme Court upheld the power purchase agreement with National Grid for the Block Island wind farm. When do you expect construction to begin on that project?

William Moore: The victory at the Rhode Island Supreme Court upholding our PPA for the Block Island Wind Farm was extremely good news for the project. We are now moving forward with our final permitting surveys so that we can submit our permit applications to the federal and state agencies in the first quarter of 2012. When construction begins depends on the permitting process and several other factors, but we are hopeful that we can begin construction in 2013 or 2014.

OWW: Deepwater has proposed a transmission system tied to planned offshore wind projects. Where will you interconnect and what benefit do you envision from this project?

Moore: We have proposed both in New England and in New York to combine utility-scale offshore wind with new regional transmission systems. We have identified markets where transmission not only helps to enable offshore wind, but where transmission provides additional benefits, such as increased system reliability.

OWW: Federal financial support for offshore wind development has become less reliable. Can Deepwater develop its projects without federal loan guarantees and tax incentives?

Moore: As an emerging industry, offshore wind requires the assistance of the federal government to help finance these large infrastructure projects. U.S. Senators Tom Carper of Delaware and Olympia Snowe of Maine are the lead sponsors of legislation that would extend the federal Investment Tax Credit for offshore wind projects. The industry is enthusiastically supporting that effort, because the continuation of tax incentives is a key to building the first wave of projects in the U.S.

OWW: What is the single most important federal policy or incentive to support the offshore wind industry?

Moore: Extension of the Investment Tax Credit is very important, as is an accelerated leasing and permitting regime for offshore sites.

The Long Island–New York City Offshore Wind Collaborative filed an offshore wind lease application today with the Bureau of Ocean Energy Management, Regulation and Enforcement and announced that they would competitively seek a developer.

The collaborative — which consists of Consolidated Edison Company of New York, the Long Island Power Authority, and the New York Power Authority — announced in a press release that they were seeking the lease 13 miles south of New York City after studies “indicated that the project can be economically productive, environmentally responsible, and technically feasible.”

Officials from Rhode Island-based Deepwater Wind said that they would pursue the contract.

“This is tremendously exciting news for New York and for the entire renewable energy industry,” said Deepwater Wind CEO William Moore. “We have invested considerable resources over the last several years in preparing our proposal for a utility-scale wind farm to serve New York City and Long Island, and we’re eager and ready to move forward.”

New York advocacy groups applauded the collaborative’s announcements.

“Talk about a win-win for New York’s economy and environment,” said Marcia Bystryn, President of the New York League of Conservation Voters. “For too long, New York has sent its energy dollars out of state and out of the country – and in return, we have gotten dirtier air and climate-altering emissions. The Long Island-New York City Offshore Wind Project will help reverse that trend, by generating clean energy and creating new jobs close to home. We congratulate Governor Cuomo, the New York Power Authority, Long Island Power Authority, and Con Edison for this important step forward, and we look forward to working with them to completing a world-class wind-energy project.”