BALTIMORE – Interior Secretary Ken Salazar announced today that leases for offshore wind development off of Maryland, Virginia, New Jersey and Delaware would be issued by the end of 2012 after an environmental review resulted in a finding of no significant environmental impact.

The announcement followed President Obama’s call for additional clean energy development in his State of the Union address last week.

“When it comes to powering our nation’s homes, businesses and economy, we need to take an all-of-the-above approach to safely and responsibly developing our domestic energy resources,” Secretary Salazar said. “Offshore wind holds incredible potential for our country, and we’re moving full-steam ahead to accelerate the siting, leasing and construction of new projects.”

Under the National Environmental Policy Act (NEPA), the Bureau of Ocean Energy Management (BOEM) first had to conduct an environmental assessment of the proposed lease sites. This recently completed assessment found that there would be no significant environmental and socioeconomic impacts from issuing wind energy leases in the previously designated Outer Continental Shelf (OCS) lease areas off the mid-Atlantic Coast.

According to OWW contributor and wind energy expert Todd Griset, the finding of no significant impact (FONSI) will allow BOEM to move forward with the leasing process without preparing a more intensive and time consuming environmental impact statement. However, the assessment does not permit construction or cover any specific projects.

BOEM has received several responses to a Request for Interest issued in 2010 for lease areas off of Maryland, New Jersey and Virginia, and lease blocks in these areas will be awarded based on an auction held sometime this year. BOEM received only one response to the RFI for the lease blocks off of Delaware, and will issue a non-competitive lease to that developer sometime this year, presuming that the developer is still interested.

Overall, the announcement was met with excitement by industry observers.

“Today’s announcement gives us hope that the United States will now be able to develop our enormous offshore wind resources more quickly – and deliver the enormous economic, environmental and public health benefits that come with them.” said Kit Kennedy, Clean Energy Counsel for the NRDC.

“This is a critical step in the establishment of the U.S. offshore wind industry, which will create thousands of high skilled jobs and allow for billions of dollars in investment.” added Jim Lanard, President of the Offshore Wind Development Coalition.

The officials will appear at the Baltimore World Trade Center with BOEM Director Tommy Beaudreau.

According to the announcement, the press conference will focus on a “major step towards developing wind energy on the Outer Continental Shelf off the coasts of Maryland, Virginia, New Jersey and Delaware.”

Former Congressman Will Support Offshore Wind Project For Free

Former Massachusetts Rep. Bill Delahunt has announced that he will not accept payment for his consulting work to support the town of Hull’s offshore wind project, the Patriot Ledger reported yesterday.

Delahunt was recently criticized in several high-profile articles for consulting on the Hull project shortly after helping them secure federal funding.

“It’s a big plus for us,” said Patrick Cannon, who heads the Hull Municipal Light Board. That money “can be spent toward that project.”

UK Company Teams With Samsung On New Offshore Wind Gear System

U.K.-based company David Brown is working with Samsung Heavy Industries to design, develop and build a new 7 megawatt wind turbine gearbox, North American Windpower reported today.

During the first offshore wind conference in the post-Solyndra era, optimism was high and the event was well attended, despite being a conference for, as one observer put it, “an industry that does not exist.”

Interior Secretary Ken Salazar created a minor buzz when he announced that the feds expect to announce lease agreements for as many as five wind farms in the coming weeks or months. It was not quite the same splash that Salazar created when he announced Cape Wind’s first-ever offshore wind lease during the 2010 conference, but reason for hope nonetheless.

While questions regarding federal tax credits weighed heavily on the minds of potential developers, several reasons for optimism emerged. In the event’s biggest announcement, Deepwater Wind and Siemens announced an agreement to purchase five 6 megawatt wind turbines for Deepwater’s Block Island Wind Farm. The announcement of a firm agreement to purchase what will be the largest turbines ever built brought the Block Island project one step closer to reality. It also lent credence to Deepwater CEO William Moore’s statement that “good projects always get financed.”

The other concrete announcement to come from the conference was the news that a cutting edge turbine testing and certification center is coming to Virginia. The project, dubbed Poseidon Atlantic, has received strong backing from Virginia officials. The facility should fill a void in the industry and demonstrates very clearly that when jobs are being created, politicians line up to support offshore wind.

Several states, including Maine, North Carolina and Maryland put on impressive presentations touting their respective potential for wind energy development. Some disagreement, however, seems to exist between Maine and North Carolina as to who specifically has the best offshore wind potential in the country.

Altogether, Baltimore was a great location and a gracious host. While the uncertainty regarding federal tax credits may slightly impede the industry’s transition from “potential” to “actual”, the uncertainty may also have the effect of separating the wheat from the chaff. Projects with solid financial footing will survive these uncertain times and that separation will likely help the industry in the long run by preventing Solyndra-type disasters down the line.

Ultimately, the mood in AWEA Baltimore was one of reserved optimism, as the industry eagerly awaits news of several new offshore wind leases and casts its eyes towards AWEA Offshore Windpower 2012, Virginia Beach.

Offshore wind off the New England coast has been in the spotlight of late.

As a region, New England offers a strong offshore wind resource and is particularly rich in deep water sites.  The region also offers a number of deep water ports, many with useful infrastructure but depressed local economies, highlighting the onshore services and supply chain opportunity for the region.  Geography and demography combine to place potential New England offshore wind sites relatively close to major load pockets from Boston south.  These features make New England’s waters attractive to offshore wind developers.

Regulatory initiatives also play a part in the recent interest in New England’s offshore wind resource.  Last week, U.S Secretary of the Interior Ken Salazar toured the region to promote the department’s Smart from the Start offshore wind program.  Secretary Salazar announced the Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE)’s issuance of a Call for Information and Nominations (9 page PDF) to solicit interest in developing offshore wind projects on the Outer Continental Shelf off Massachusetts and Rhode Island.

Structurally a bureau within the Department of the Interior, BOEMRE is responsible for leasing federally-owned submerged lands for energy development.  Typically, after the process is initiated by a Call, a developer enters into a commercial wind energy lease with BOEMRE.  This lease gives the developer the exclusive right to study the site, and to seek final approval from BOEMRE to construct and operate the project.  Once a developer secures its site lease, the developer must secure BOEMRE’s approval of its plan to assess the site’s potential and characteristics like meteorological and subsea conditions.  Construction and operation of the project will require a third BOEMRE approval.

In the recently-announced Call, BOEMRE describes an area of the Outer Continental Shelf previously identified as an “Area of Mutual Interest” in a memorandum of understanding between the governors of Rhode Island and Massachusetts.  This area is divided into two blocks: a small block beginning approximately 9 nautical miles southeast of Point Judith, Rhode Island, and a much larger (246 square nautical miles) block beginning approximately 10 nautical miles south of Newport, Rhode Island, and extending approximately 20 nautical miles seaward.

This Call covering southern New England waters follows a similar call covering New Jersey, as well as previous wind energy area designations off Delaware and Maryland.  As in these mid-Atlantic areas, BOEMRE has announced its intent to prepare an Environmental Assessment (EA) to analyze the effects of its offshore wind site leasing program off Rhode Island and Massachusetts.  The National Environmental Policy Act requires BOEMRE to analyze the reasonably foreseeable consequences of offering project site leases prior to doing so.  The agency’s recently-issued draft EA for sites on the Outer Continental Shelf off New Jersey, Delaware, Maryland and Virginia may serve as a model for the southern New England EA.

Whatever its form, the southern New England EA will present BOEMRE’s evaluation of the environmental impacts of lease issuance and site assessment plan approval.  Notably, BOEMRE’s environmental assessment will not be an analysis of the impacts of approving the ultimate development of any site, nor an analysis of the impacts of any particular project.  Nevertheless, the New England EA will represent the next step toward lease issuance in the region.

Nominations responding to the Call are due by October 3, 2011.  One developer – start up Neptune Wind LLC – has already made a statement that it intends to file its interest for a lease in these waters.  Neptune’s proposed Noman’s Wind project is proposed for a site 20 miles south of the border between Massachusetts and Rhode Island; current plans suggest 80 to 100 turbines totaling 500 MW in capacity.  Other developers are anticipated to express interest in leasing sites in the designated area.

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.

Salazar is scheduled to meet with state officials, including Gov. Lincoln Chafee, according to the report.

UMaine Offshore Wind Lab Set For November Opening

The University of Maine’s Offshore Wind Laboratory at the Advanced Structures and Composites Center received its certificate of occupancy this spring and employees have been working at the lab during the summer, the Bangor Daily News reported on Friday.

The $17.5 million blade testing facility is scheduled to open in November. The project was funded by the National Institute of Standards and Technology and the Maine Technology Institute, according to the report.

German Report Suggests Bubble Wrap To Contain Installation Noise

The German Federal Agency for Nature Conservation has released a report suggesting surrounding offshore wind farm construction sites with “bubble curtains” to contain underwater noise, Spiegel Online reported last week.

“A bubble curtain is one way to minimize noise and potentially reduce the impact of offshore wind farm construction on sea life,” said Greenpeace oceans & biodiversity campaigner Thilo Maack.

The agency announced today that it is seeking public comment on a draft Environmental Assessment for the offshore Wind Energy Areas.

“America’s offshore wind resources offer great potential for helping power the Eastern seaboard and spurring new jobs and innovation,” Interior Secretary Ken Salazar said.  “With today’s announcement, we are taking another step toward ensuring that renewable development along the Atlantic Outer Continental Shelf becomes a reality.”

The Environmental Assessment covers the potential environmental and socioeconomic effects offshore wind development.

“We welcome stakeholder input throughout the renewable energy leasing process and invite public comments on this draft EA,” BOEMRE Director Michae Bromwich said. “If leases are issued in these geographic areas, we will conduct a thorough environmental analysis of each proposed commercial project.  We will continue to work with our state renewable energy task forces to advance renewable energy development carefully and responsibly.”

New Jersey Activists Say Christie Policies Hurt Renewable Energy

New Jersey environmental activists believe that Gov. Chris Christie’s energy policy is discouraging renewable energy development in the state, the Asbury Park Press reported on Saturday.

“These cuts will cost the state green jobs,” said New Jersey Sierra Club Director Jeff Tittle. “It sends the wrong message to companies that develop and promote clean energy. The message is to go to some other state.”

“This streamlined approach could cut up to a year off the leasing process for some commercial wind energy projects in the Atlantic,” Salazar said. “It would increase regulatory efficiency without affecting our ability to rigorously review, analyze and monitor projects to assure they are carried out in a safe and environmentally responsible manner.”

Currently, if BOEMRE launches the leasing process and only receives one expression of interest in a particular lease, the agency is still required issue a second notice to make sure that there is no competitive interest. The rule — which will become effective June 15th — eliminates the need for the second notice.

“This rule eliminates a redundancy in the offshore renewable energy leasing process,” BOEMRE Director Michael Bromwich said. “It will make the process more efficient and will shave significant time from the current renewable energy project timetable. It is part of our ongoing effort to eliminate unnecessary delays in the process and encourage commercial offshore wind development.”

Salazar will hold the press conference at 10:30 this morning, along with Massachusetts Energy and Environment Secretary Richard Sullivan and Cape Wind Vice President Dennis Duffy.

Salazar will describe a final operation and construction plan for the offshore wind farm, the Associated Press reported.

Cape Wind has received its final federal permits and has an approved power purchase agreement with utility National Grid for half of the electricity produced by the 130 turbines.  The developer is searching for a buyer to take the second half of the project’s electricity and a financial partner.

Deputy Interior Secretary David Hayes reportedly said that the department is committed finding funding for deep water offshore wind technology development and that Maine “is the place to test drive this new technology.”

Political Leadership Influenced Maryland Blade Factory Decision

A Maryland businessman who recently announced plans to open an offshore wind turbine blade factory was driven, in part, by recent political leadership on the issue, according to Maryland’s Cumberland Times-News.

Maryland Gov. Martin O’Malley has been pushing for legislation that would require utilities to sign long term contracts with offshore wind developers.  The federal government, meanwhile, has established a designated wind energy area in the ocean near Maryland.

“The momentum … from the state of Maryland was toward offshore wind-energy production, so Salisbury was the natural place for him to grow his business,” said Matt Diaz, director of the Department of Economic Development for Allegany County.

The offshore wind “industry is transfixed on Maryland,” factory owner John Congedo said.

Last month, Collins released a seven-point job growth plan that included a focus on offshore wind development.

“Estimates show that development of just five gigawatts of offshore wind in Maine — a fraction of the potential — could power more than 1 million homes, attract $20 billion of investment, and create more than 15,000 green-energy jobs,” Collins wrote in today’s article, published on Seacoastonline.com. “I want those jobs to be in Maine, not China.”

Administration’s Energy Officials Testify Today On Budget

The Obama Administration’s senior energy and environmental officials are scheduled to appear today at Senate hearings to defend the proposed fiscal 2012 budget, The Hill reported.

Energy Secretary Steven Chu will be appearing before the Senate Budget Committee and Interior Secretary Ken Salazar was scheduled to testify to the Senate Energy and Natural Resources Committee.

North Carolina Offshore Wind Meetings Rescheduled

The last two of North Carolina’s federal state offshore wind task force meetings have been rescheduled, ENCToday reported.

The first meeting will be on March 10 in Morehead City and the second will be on March 24 in Manteo. The meetings had been postponed due to winter storms.