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OPINION: Major Offshore Wind Projects Advance in Massachusetts and Rhode Island

May 25, 2018 — Commercial-scale offshore wind power may soon become a reality in New England. On May 23, Massachusetts electric distribution companies selected Vineyard Wind, a subsidiary of Avangrid Renewables, LLC, as the preferred provider of 800 megawatts (MW) of offshore wind generation to the Massachusetts power market, and Rhode Island selected Deepwater Wind as the preferred provider of 400 MW of offshore wind generation to the Rhode Island power market. Both companies propose to generate the electricity from wind projects they intend to construct on federal leases on the Outer Continental Shelf offshore of Massachusetts and Rhode Island.

Massachusetts Vineyard Wind Project

In 2017, Massachusetts electricity distribution companies initiated a request for proposals (RFP) process to acquire 400-800 MW of offshore wind. The RFP process is provided for in a series of state laws (collectively known as Section 83C) requiring Massachusetts utilities to enter into long-term contracts for approximately 1,600 MW of offshore wind energy by June 30, 2027. Three companies submitted responses during the RFP process, each submitting multiple bids to provide different options.

On May 23, Vineyard Wind’s proposal to build an array of about 100 8-MW turbines (for a total capacity of approximately 800 MW), capable of supplying 5.5-6% of Massachusetts’ energy needs, won the RFP process. According to the proposal, power will be transmitted from the offshore wind facility through an undersea cable to Cape Cod, where it will tie in with existing transmission and substation infrastructure. The project also will incorporate distributed battery energy storage that would provide benefits to low-income residents and public buildings by establishing a “Resiliency and Affordability Fund” in partnership with Citizens Energy. Vineyard Wind would contribute $15 million to the fund over 15 years, with the objectives of fostering the “wide deployment of distributed battery energy storage,” providing credits to low-income ratepayers, and helping to implement energy storage and solar energy projects at public buildings.

Read the full opinion piece at The National Review

 

Offshore Energy Bill Gains Support as Subcommittee Continues Broad Overhaul of Federal Lands Energy Policy

October 12, 2017 — WASHINGTON — The following was released by the House Committee on Natural Resources 

Today, the Subcommittee on Energy and Mineral Resources held a legislative hearing on a discussion draft of the “Accessing Strategic Resources Offshore Act” or the “Astro Act.” The bill, which improves access to Outer Continental Shelf (OCS) energy resources through more reliable leasing and an improved revenue sharing framework with coastal states, is part of the Committee’s broader overhaul of federal lands energy policy.

“Our offshore oil and gas industry provides our nation and the world with a safe and reliable source of energy, billions of dollars in revenues to the government, and has resulted in the creation of millions of direct and indirect jobs across the country. It is critical that we maintain and increase access to offshore exploration and production to improve upon these trends,” Subcommittee on Energy and Mineral Resources Chairman Paul Gosar (R-AZ) said. 

Under the previous administration, 94% of America’s OCS lands were off limits to development through both the 5 Year Plan process and the withdrawal of acreage.

“Natural gas and oil exploration in the Atlantic could be an opportunity for our state to see much-needed additional economic improvements, investment and job creation,” South Carolina State Senator Stephen Goldfinch stated. “Years of experience have shown that exploration and production can exist safely alongside tourism and fishing industries, as well as the military… If oil and gas is to come to South Carolina, I cannot imagine one of my constituents demanding the state decline much needed revenues for roads, schools and healthcare.”

Studies show that opening the OCS in the Atlantic, Pacific, and Eastern Gulf would create 840,000 new jobs and generate over $200 billion in revenues.

“I believe that the partnership that has worked so well for the interior states to develop federal [onshore] resources should be established for the coastal states that also host federal offshore mineral develop,” former Louisiana Senator and Senior Policy Advisory at Van Ness Feldman, LLP Mary Landrieu stated. 

The “ASTRO Act” establishes revenue sharing for states in the Mid and Southern Atlantic planning areas, in an attempt to fairly compensate the qualifying producing states, and to ensure disbursement certainty into the future.

“Our nation should produce more of the oil and natural gas Americans need here at home. And it can. This would strengthen our energy security and help put downward pressure on prices while also providing many thousands of new jobs for Americans and billions of dollars in additional revenue for our government,” Director of Upstream and Industry Operations at the American Petroleum Institute Erik Milito added. 

The “ASTRO Act” adds flexibility to the national oil and gas leasing process by giving the Secretary of the Interior the authority to conduct lease sales in areas excluded from approved 5 Year Plans. It also limits the president’s authority to withdraw OCS areas from leasing.

Click here for more information.

Interior Department to Auction Over 79,000 Acres Offshore New York for Wind Energy Development

November 1, 2016 — Secretary of the Interior Sally Jewell and the Bureau of Ocean Energy Management (BOEM) Director Abigail Ross Hopper announces that 79,350 acres offshore New York will be offered in a December 15 commercial wind lease sale.

“This announcement not only marks another milestone for the U.S. offshore wind energy program, but also demonstrates how our collaborative efforts with state, local and private sector partners can advance a clean energy future in the United States,” said Secretary Jewell. “Industry interest remains strong with more than a dozen qualified bidders as we take another step closer to harnessing the enormous potential of offshore wind energy for Atlantic coastal communities.”

The New York Wind Energy Area starts approximately 11.5 nautical miles (nm) from Jones Beach, NY. From its western edge, the area extends approximately 24 nm southeast at its longest portion. The lease area consists of five full Outer Continental Shelf blocks and 143 sub-blocks. A map of the lease area can be found here.

“New York is a critical component in building a robust U.S. offshore wind industry,” said BOEM Director Abigail Ross Hopper. “The process to develop and refine the New York lease area, as well as the online auction, reflects the deep commitment BOEM has to listening and responding to stakeholders and ensuring that all voices are heard as we forge a path to a clean energy future.”

To date, BOEM has awarded eleven commercial wind leases, including nine through the competitive lease sale process. These lease sales have generated more than $16 million in winning bids for more than a million acres in federal waters.

After reviewing comments received on the Environmental Assessment, BOEM removed about 1,780 acres from the lease area due to environmental concerns regarding a seafloor feature known as the Cholera Bank. In a comment letter, the National Marine Fisheries Service identified the Cholera Bank feature as a sensitive habitat to be avoided for the placement of structures. As a result of this removal, the revised lease area will be approximately two percent smaller than the lease area considered in the Proposed Sale Notice.

Read the full story at Ocean News & Technology