The project would be supported by up to $530,000 in Energy Department funding, according to the report.

Maryland Labor Groups Want Guarantees

Maryland labor groups are asking for guaranteed involvement in offshore wind development in exchange for their support on Gov. Martin O’Malley’s resubmitted plans, the Baltimore Sun reported Friday.

“There’s got to be something written in the bill to include organized labor for us to totally commit to the project,” said Rod Easter, president of the Baltimore Building & Construction Trades Council. “We cannot be standing on the curb watching people go to work who don’t live in Maryland.”

Former Congressman In Spotlight For Consulting Work

Former Massachusetts congressman William Delahunt’s office denied any conflict of interest in consulting work on an offshore wind project for which he also earmarked federal funds, the Boston Globe reported.

Delahunt helped the town of Hull receive $1.7 million in federal funds for an offshore wind project and recently received a $72,000 contract to provide strategic guidance on the same issue.

“I think what’s been spun out there is that somehow we’ve been hired by the town to lobby, and that’s not true,’’ said Mark Forest, executive director of The Delahunt Group. “We’re not lobbying; we’re providing guidance and counsel to the town … we’ve had a lot of experience in this area. And our hope is that there is something productive that can be done in this area.’’

Combining famously big geography with a culture supportive of energy development, Texas offers attractive locations for offshore wind projects.  Several developers have proposed Texas offshore wind projects, including projects off south Texas proposed by the Baryonyx Corporation.  The regulatory structure applied to these projects may give Texas unique advantages in pursuing offshore wind.

Named for a genus of fish-eating dinosaur known from fossil records, Baryonyx was founded by the veteran developers of the now-operating Ormonde Offshore Wind Farm in the Irish Sea.  Baryonyx has proposed two offshore wind projects located entirely within Texas-jurisdictional waters in the Gulf of Mexico.

The Mustang Project would be located off Nueces County, about 25 miles from Corpus Christi.  Baryonyx suggests that the site has the potential to accommodate about 200 turbines; using 6 megawatt turbines, the Mustang Project could have an installed capacity of up to 1.2 gigawatts.  Baryonyx leased about 26,210 acres 5 to 10 miles from land from the Texas General Land Office, in water depths ranging from 55 to 75 feet.

The Rio Grande Project would be split across two sites (Rio Grande North and Rio Grande South) off South Padre Island.  These sites are about 34 miles northeast of Brownsville, and range from 5 to 10 miles offshore.  Baryonyx suggests that each site has the potential to accommodate about 160 turbines, resulting in an installed capacity of about 1 gigawatt for each half of the Rio Grande Project.  Baryonyx leased about 40,000 more acres from the Texas General Land Office for the Rio Grande sites, in water depths ranging from 55 to 88 feet. 

These two offshore wind projects will complement two terrestrial wind projects under development in Texas by Baryonyx.  The company’s business model also includes supplying data centers with 100% renewable power from Baryonyx-owned assets under long-term contracts at fixed prices.  Data centers are significant consumers of electricity, and represent a growing sector of electricity consumption as the demand for data storage and processing increases.

Thanks to the way Texas broke from Mexico in 1836, Texas controls far more of the continental shelf than do most other states.  Texas has jurisdiction over its offshore resources up to three marine leagues (about 10 miles) from shore, while other coastal states (all but Florida, and the territory of Puerto Rico) only have jurisdiction over the first three nautical miles out from shore.  As a result, developers must lease submerged land sites from the Texas General Land Office instead of the federal Bureau of Ocean Energy Management.  Some observers believe that this localized control of the offshore resource will lead to choices that are more favorable to project developers.  For example, concerns of neighboring states may be less likely to play a role in the Texas agency’s decision to lease sites than if a federal agency controlled the leasing process.

Even though the projects are proposed in state waters, some federal regulatory approvals are needed.  For example, the U.S. Army Corp of Engineers has jurisdiction over obstructions to the navigable capacity of waters pursuant to Section 10 of the Rivers and Harbors Act of 1899, as well as authority over dredging and filling of navigable waters under Section 404 of the Clean Water Act.  Baryonyx has applied to the Army Corp for these permits for its Texas projects.

The Army Corps recently decided to conduct a full Environmental Impact Statement analysis of Baryonyx’s proposal.  Under the National Environmental Policy Act (NEPA), the Army Corps and other federal agencies must perform an environmental impact study before taking actions “significantly affecting the quality of the human environment”.  An EIS represents the most stringent and thorough federal analysis of environmental impacts of an offshore wind project.

Despite a June 2011 public notice by the Army Corps suggesting that “preliminary review of this application indicates that an Environmental Impact Statement (EIS) is not required”, environmental groups and Baryonyx itself expressed interest in having a full environmental study performed given the project’s magnitude and its potentially first-in-Texas status.  As a result, the Army Corps has decided to move forward with the full EIS, a decision Baryonyx appears to have welcomed.

The study will be prepared by third-party contractors selected by the Army Corps over the next two years.  After the EIS is complete, construction on the projects could start as early as 2015.

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.

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.

Offshore Wind Wire: Ocean and Coastal Consultants is involved in 4 of the 41 teams awarded Department of Energy grants to accelerate offshore wind development.  Please give us an overview of these projects.

Stanley White: Ocean and Coastal Consultant (OCC) is part of the COWI group based in Denmark.  COWI is a leading consultant in Europe for both offshore and onshore wind projects.  This expertise encompasses the complete project cycle.  OCC has brought this wind expertise to North America.

The Department of Energy (DOE) grants that OCC is involved with use COWI’s expertise as well as OCC’s project expertise on the four (4) different assignments.

The Freshwater Wind project looks at developing innovative methods for the fabrication, launching and installation of gravity based foundations (GBF) to be located in the Great Lakes.  The selection of a foundation type for any offshore project is a major cost component.  A GBF has historically been very competitive in water depths up to 45m.  The other major benefit is local content – the GBF can be constructed by local contractors with heavy highway experience.  The intent of this grant is to find ways to lower the overall installed cost.

We are working on two (2) Navigant Consulting, Inc. grants that are looking at: 1) assessing the US supply chain and manufacturing infrastructure; and 2) an annual assessment of the US offshore wind market.  The DOE wants to explore ways of removing market barriers.

The final DOE project is to facilitate development of the concept for a deepwater, floating wind turbine as promoted by Nautica Windpower LLC.  OCC will be responsible for the development of cost-effective anchoring and deployment.

OWW: Your projects cover a range of issues.  What is the biggest obstacle facing the offshore wind industry?

White: I believe the biggest obstacle facing the offshore wind industry is the lack of a federal renewable standard as well as federal support of this very important industry (federal loan guarantees, Feed in Tariffs, etc.) that is already found in Europe.

Another obstacle is concern that the regulatory environment is overly complex and will take too much time and money.  The federal leasing process is an additional hurdle to overcome and directly adds to the cost of electricity once a lease is granted.  The federal government has to look at future energy needs and stop looking no further than the next election cycle.  If the individual states take the lead, we will not have regionalization and the cost of electricity will be higher.

OWW: You are working with Santee Cooper on a project in South Carolina.  What are the particular challenges and opportunities with developing offshore wind in southern states?

White: Santee Cooper has been working under the radar for two (2) years.  Because they are an established utility company, interconnect issues can be solved more easily.  Santee Cooper has done an outstanding job bringing together other utilities, environmental groups, local citizens and other stakeholders whereby the region is well educated and informed on the project.  There is a genuine groundswell of support which they are harnessing.  I believe that the southern states look at offshore wind as an opportunity for renewable energy because the potential for onshore wind is not as promising.

OWW: Aside from grant-making, what federal leadership or policy would you like to see to support the offshore wind industry?

White: The federal government needs to develop a renewables energy standard.  We are the most highly developed country and we lead the world with innovations.  But we are a third world country when it comes to offshore wind.

We do not have unlimited supplies of fossil fuels.  We need to build today to support our future.  That is the only way our children will be able to support a high standard of living.

The moratorium was implemented 15 months ago by the Cape Cod Commission. Since then, the regulatory body had determined where offshore wind turbines development will be allowed. The regional Assembly of Delegates must approve the regulations, but the moratorium will be lifted no matter that outcome of the vote.

The article noted that no specific projects have been proposed for state waters near Cape Cod.

Baryonx Says No Rush To Develop Offshore Wind Site

A senior official for Baryonyx Corporation told a public hearing Tuesday that the company is “not in a rush” to develop its offshore wind farm near the south Texas coast and would be thorough in its environmental evaluation of the proposed site, the Brownsville Herald reported.

Mark Leyland, Baryonx senior vice president, said that birds, sea turtles, economics and views were the most discussed issues for the project.

“We want to make sure that the issues are properly investigated and quantified before we move forward,” Leyland said.

“If you were to take the wind generated annually off the coast, you could generate something like 200 percent of all of our power needs,” said Dr. Paul Gayes, director of the Center for Marine and Wetland Studies at Coastal Carolina University and a panelist at the meeting.

Speakers agreed that South Carolina has an impressive offshore wind resource — fifth among Atlantic Coast states — and that offshore wind development would create jobs.

“Ten to twenty-thousand jobs,” said Nicholas Rigas, a scientist from Clemson University.

The official, senior vice president Mark Leyland, said that he gave a similar presentation in Corpus Christi earlier this month and heard concerns about the impact on birds and the altered views. Leyland said that the company would study the area to assess the bird impact and that there was no reason to assume that large numbers of birds would be killed.

“We need to go out there and put in place proper studies to be able to verify that,” Leyland said. “I’m not going to say it’s not going to happen, but there’s no basis for saying it is going to happen.”

Evanston City Council Votes To Continue Offshore Wind Push

The Evanston, Illinois, city council voted Monday to continue pursuing an offshore wind project in Lake Michigan, the Daily Northwestern reported.

City officials decided, however, that they cannot take immediate decisive action on the project without a state plan in place for offshore wind development, according to the report.

The city will also ask that a representative from Evanston serve on the state offshore wind panel.

Wittman introduced H.R. 2173, the Advancing Offshore Wind Production Act, to reduce what he sees as unnecessary regulation that is hampering temporary monitoring infrastructure. The National Wildlife Federation has opposed the bill, saying that inconsistent federal incentives — not over-regulation — is the real barrier to offshore wind development.

“We must continue to develop energy for this country, and allow innovators to develop clean energy by removing unnecessary government over-regulation,” Wittman said.

Renewable Energy World Analyzes Southern Offshore Wind Progress

In an analysis published yesterday, Renewable Energy World focused particular attention on offshore wind development in North and South Carolina.

“There’s a lot happening in a lot of different places,” said Fara Courtney, executive director of the US Offshore Wind Collaborative. “The industry needs to develop on a regional level because it needs to be at a market-scale to leverage investment to create manufacturing facilities. The states are going to compete with each other, which is also going to drive things, but they need to develop regional markets.”

The article made note of a recent offshore wind meeting between officials and organizations from the two Carolinas.

The meeting was “a great first step in organizing the Southeastern states and working together towards some common goals,” said Hamilton Davis of the South Carolina Coastal Conservation League.

“Our states are uniquely positioned with strengths and advantages that complement each other.” said Elizabeth Colbert-Busch of the Clemson University Restoration Institute, which has been heavily involved in offshore wind research.

The meeting included the Energy Department’s Savannah River National Laboratory, utility Santee Cooper, the North Carolina Offshore Wind Coalition, the North Carolina Department of Commerce, the North Carolina Solar Center, the North Carolina Energy Office, the North Carolina Sustainable Energy Association, the South Carolina Energy Office, the Clemson University Restoration Institute, Coastal Carolina University, the South Carolina Coastal Conservation League, North Strand Coastal Wind Team, and the City of North Myrtle Beach.

Officials Say Utility Merger Will Not Depend On Cape Wind

A planned merger between utilities NStar and Northeast Utilities must offer “net benefits” to customers and the environment, but Massachusetts officials said that it will not hinge on the combined utility buying electricity from the planned Cape Wind project, the Boston Herald reported this week.

Mark Sylvia, commissioner of the Massachusetts Department of Energy Resources, said that the purchase of electricity from Cape Wind and the utility merger are “apples and oranges.”

Earlier today, North Carolina Governor Beverly Perdue issued an executive order creating the “Offshore Wind Economic Development Task Force.”

The executive order was issued in conjunction with the Governor’s veto of Senate Bill 709, which would have promoted offshore oil and gas as well as land-based gas “fracking”. In a statement, Governor Perdue stated that she was “completely committed to North Carolina’s energy policy of developing jobs that foster America’s energy independence.”

The executive order creates a 15-member task force with a chair appointed by the governor. The duties of the Task Force include studying the benefits of the state establishing a non-binding goal of developing 5,000 MW of offshore wind energy generation by 2030, examining the laws in North Carolina and other states to determine what policy framework is needed to support the offshore wind industry, and creating guidelines on viable areas for offshore wind facilities. The Task Force is to report their findings and recommendations to the Governor by March 31, 2012.

“I am impressed with the vision shown by Governor Bev Perdue today in recognizing the potential economic benefits of offshore wind to the state of North Carolina” said Brian O’Hara, president of the North Carolina Offshore Wind Coalition. “This is great news for offshore wind in North Carolina and the Southeast.”

A copy of Executive Order #96 can be found by following this link: http://www.governor.nc.gov/NewsItems/UploadedFiles/0348ffba-a810-4f08-b925-0baa2524c75e.pdf