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Posts Tagged ‘Offshore Energy Plan’

MARK CLAYTON, The Christian Science Monitor, September 17, 2009

wave-ocean-blue-sea-water-white-foam-photoWith demands on US ocean resources control growing quickly, the Obama administration today outlined a new comprehensive ocean management plan to guide federal agencies in restoring and protecting a badly stressed US coastal and ocean environment.

Today’s policy shift proposed by the president’s Interagency Ocean Policy Task Force holds enormous potential for sweeping changes in how the nation’s oceans are managed, including energy development, experts say.

At its core, the plan would set up a new National Ocean Council to guide a holistic “ecosystem-based” approach intended to elevate and unify what has long been a piecemeal approach by US agencies toward ocean policy and development — from oil and gas exploration to fisheries management to ship transportation to recreation.

The proposal would include “a more balanced, productive, and sustainable approach to using managing and conserving ocean resources,” Nancy Sutley, chairman of the president’s Council on Environmental Quality told reporters in a teleconference unveiling the plan. It would also set up “a comprehensive national approach to uphold our stewardship responsibilities and ensure accountability for our actions.”

Dr. Sutley, who also chaired the interagency task force, appeared alongside representatives from the Department of Interior, the Coast Guard, the Department of Transportation, and the National Oceanic and Atmospheric Administration. But the proposal would apply to 24 agencies.

“This will be the first time we have ever had this kind of action for healthy oceans from any president in US history,” Sarah Chasis, director of the ocean initiative at Natural Resources Defense Council wrote in her blog. She called it the “most progressive, comprehensive national action for our oceans that we have ever seen.”

The changes could affect new offshore wind energy proposals as well as oil and natural gas exploration. “We haven’t fully looked at all aspects of the report,” says Laurie Jodziewicz, manager of siting policy for the American Wind Energy Association. “The one concern we have is we don’t want to stop the momentum of offshore wind projects we’re already seeing. So while we’re certainly not opposed to marine spatial planning, we would like to see projects already in the pipeline move ahead and start getting some offshore projects going in the US.”

One senior official of the American Petroleum Institute said he had not yet seen the proposal and could not comment on it.

The new push comes at a time when major decisions will be needed about whether and how to explore or develop oil and gas in now-thawing areas of the Arctic Ocean near Alaska. Policy changes could also affect deep-water regions in the Gulf of Mexico as well as the siting of wave power and renewable offshore wind turbines off the East Coast.

At the same time, desalination plants, offshore aquaculture, and liquefied natural gas (LNG) terminals are clamoring for space along coastal areas where existing requirements by commercial shipping and commercial fishing are already in place.

All of that – set against a backdrop of existing and continuing damage to fisheries, coral, coastal wetlands, beaches, and deteriorating water quality – has America’s oceans “in crisis,” in the words of a landmark Pew Oceans Commission report issued in 2003. More than 20,000 acres of wetlands and other sensitive habitat disappear annually, while nutrient runoff creates “dead zones” and harmful algal blooms. Some 30% of US fish populations are overfished or fished unsustainably, the report found.

Among the Interagency Ocean Policy Task Force’s national objectives were:

  1. Ecosystem-based management as a foundational principle for comprehensive management of the ocean, coasts, and Great Lakes.
  2. Coastal and marine spatial planning to resolve emerging conflicts to ensure that shipping lanes and wind, wave, and oil and gas energy development do not harm fisheries and water quality.
  3. Improved coordination of policy development among federal state, tribal, local, and regional managers of ocean, coasts, and the Great Lakes.
  4. Focus on resiliency and adaptation to climate change and ocean acidification.
  5. Pay special attention to policies needed to deal with changing arctic conditions.

Experts said that the new, unified policy was timely, after decades of hit-or-miss development policies.

“We have been managing bits and pieces of the ocean for a long time, but while some good has been done on pollution and resource management, it hasn’t been sufficient.” says Andrew Rosenberg, professor of natural resources at the University of New Hampshire and an adviser to the president’s ocean task force.”This policy shift comes at a critical time for our oceans for so many reasons.”

The new proposal won’t be finalized until next year, after a 30-day comment period that begins now. Still, environmentalists were quick to hail the plan as a critical and timely step to begin healing disintegrating environmental conditions in US coastal waters and in the US exclusive economic zone that extends 200 miles beyond its territorial waters.

In June, President Obama set up the commission to develop: “a national policy that ensures the protection, maintenance, and restoration of the health of ocean, coastal, and Great Lakes ecosystems and resources, enhances the sustainability of ocean and coastal economies.”

It must also, he wrote, “preserve our maritime heritage, provides for adaptive management to enhance our understanding of and capacity to respond to climate change, and is coordinated with our national security and foreign policy interests.”

“It’s the first time the federal government has put out a decent paper that proposes what a national policy and attitude toward our oceans should be,” says Christopher Mann, senior officer Pew Environment Group, the environmental arm of the Pew Charitable Trust.

In one of the more telling passages buried down in its interim report, the task force called for decisions guided by “best available science” as well as a “precautionary approach” that reflects the Rio Declaration of 1992, which states: “where there are threats of serious or irreversible damage, lack of full scientific certainty shall not be used as a reason for postponing cost-effective measures to prevent environment degradation.”

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Excerpts of FRANK HARTZELL’s article, Mendocino Beacon, May 7, 2009

gweclogo1GreenWave Energy Solutions, an “alternative energy startup has been granted a three-year preliminary permit to study wave energy off Mendocino.

It’s locals’ first look at action by a newly recast Federal Energy Regulatory Commission (FERC), which is tasked by the Obama Administration to make a greater push to develop alternative energy.

On May 1, FERC issued an exclusive preliminary permit to GreenWave Energy Solutions LLC. The permit’s area stretches from just north of Albion to off Point Cabrillo, about a half-mile from shore to three miles offshore.

Five men from the Thousand Oaks area of Southern California, including Tony Strickland, a Republican state senator, formed GreenWave Energy Solutions about two years ago.

Strickland, one of the state’s most ardent deregulators and anti-tax advocates, won the state Legislature’s closest race last November by a handful of votes. He made his involvement in alternative energy a key part of his campaign.

Green Wave Energy Solutions is composed of president Wayne Burkamp, Strickland, engineer Bill Bustamante, developer Dean Kunicki and developer Gary Gorian. Kunicki and Gorian are major real estate developers in Southern California.

The preliminary permit reserves that area solely for GreenWave and also gives the company first rights to apply for a long-term power license in state waters.”

“The GreenWave proposal envisions eventual construction of a power plant with more than twice the capacity of that planned by PG&E. GreenWave’s Burkamp said the firm is not a shell corporation or a subsidiary of any other company.

GreenWave hopes to someday install 10 to 100 Pelamis or OPT hydrokinetic devices capable of producing 100 megawatts, with a 2- to 3-mile long powerline running to shore, the permit application states.

FERC’s permit conditions for GreenWave don’t vary much from those imposed by FERC under the former Bush Administration.

But locals made this preliminary permit one of the longest ever. And the application has more interveners and more people commenting than any other “hydrokinetic” project in the nation. FERC has issued and is considering hydrokinetic permits from the Yukon River to the Florida Keys for wave, tidal, ocean current and river flow power.

While issuing the permit, FERC briefly responds to each point raised by locals.

“As for the concerns raised by Mendocino County and Laurel Krause regarding the financial capability and experience of the applicant, it has been the Commission’s policy for some time that, at least where there is no competition for a permit, the Commission will not base grant of the permit on proof of an applicant’s ability to finance or perform studies under the permit,” FERC wrote. “However, as discussed below, application of the Commission’s strict scrutiny policy may include cancellation of the permit if the applicant is unable to demonstrate, for financial or other reasons, adequate progress toward the possible development of a license application.”

Although FERC is an independent agency, President Obama appointed Jon Wellinghoff as chairman of the five-member commission after the chairman under President Bush resigned and left FERC. With the commission now split 2-2 between Republicans and Democrats, Obama now has the opportunity to change its direction with his appointment of a new fifth member.

FERC also recently accepted three preliminary permit applications from Sonoma County to study wave energy off its shores, a nod to local government that signals a change of direction for the independent federal commission.

That change began when Mendocino County and the City of Fort Bragg protested exclusion from the process and a lawsuit was threatened.

The permit is the first wave energy permit since the Obama Administration released new standards for the process of generating alternative energy on the outer continental shelf.

Under that plan, FERC has complete control of the wave energy process inside three miles. For projects like PG&E’s wave energy proposal, which extends on both sides of the three-mile line, a Minerals Management Service lease is required past state waters. PG&E withdrew from its efforts to get a MMS lease last year.

GreenWave’s permit area appears to extend just beyond the three-mile limit. John Romero of MMS said neither PG&E or GreenWave has sought a lease from MMS.

GreenWave’s application says the initial phase will involve spending between $1 million and $2 million and will be financed entirely through private equity.

“The estimated cost of the second phase (the actual installation of wave energy devices in the water and the generation of power from these devices) will be $20 million to $40 million,” the application states.

Burkamp told the newspaper that GreenWave’s application is different from PG&E’s in that GreenWave will focus on solving environmental issues, while PG&E Wave Connect is set up to test rival technologies.

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Cherry Creek News Staff, March 17, 2009

WASHINGTON, DC – In a joint statement issued today Secretary of the Interior (DOI), Ken Salazar and Acting Chairman of the Federal Energy Regulatory Commission (FERC) Jon Wellinghoff announced that the two agencies have confirmed their intent to work together to facilitate the permitting of renewable energy in offshore waters.

“Our renewable energy is too important for bureaucratic turf battles to slow down our progress. I am proud that we have reached an agreement with the Federal Energy Regulatory Commission regarding our respective roles in approving offshore renewable energy projects. This agreement will help sweep aside red tape so that our country can capture the great power of wave, tidal, wind and solar power off our coasts,” Secretary Salazar said.

“FERC is pleased to be working with the Department of the Interior and Secretary Salazar on a procedure that will help get renewable energy projects off the drawing board and onto the Outer Continental Shelf,” Acting FERC Chairman Jon Wellinghoff said.

Below is the joint Statement between DOI and FERC signed by Secretary Salazar and Acting Chairmain Wellinghoff:

JOINT STATEMENT BY THE SECRETARY OF THE INTERIOR AND THE ACTING CHAIRMAN OF THE FEDERAL ENERGY REGULATORY COMMISSION ON THE DEVELOPMENT OF RENEWABLE ENERGY RESOURCES ON THE OUTER CONTINENTAL SHELF

The United States has significant renewable energy resources in offshore waters, including wind energy, solar energy, and wave and ocean current energy.

Under the Outer Continental Shelf Lands Act, the Secretary of the Interior, acting through the Minerals Management Service, has the authority to grant leases, easements, and rights-of-way on the outer continental shelf for the development of oil and gas resources. The Energy Policy Act of 2005 amended the Outer Continental Shelf Lands Act to provide the Interior Department with parallel permitting authority with regard to the production, transportation, or transmission of energy from additional sources of energy on the outer continental shelf, including renewable energy sources.

The Interior Department’s responsibility for the permitting and development of renewable energy resources on the outer continental shelf is broad. In particular, the Department of the Interior has permitting and development authority over wind power projects that use offshore resources beyond state waters.

Interior’s authority does not diminish existing responsibilities that other agencies have with regard to the outer continental shelf. In that regard, under the Federal Power Act, the Federal Energy Regulatory Commission has the statutory responsibility to oversee the development of hydropower resources in navigable waters of the United States. “Hydrokinetic” power potentially can be developed offshore through new technologies that seek to convert wave, tidal and ocean current energy to electricity. FERC will have the primary responsibility to manage the licensing of such projects in offshore waters pursuant to the Federal Power Act, using procedures developed for hydropower licenses, and with the active involvement of relevant federal land and resource agencies, including the Department of the Interior.

We have requested our staffs to prepare a short Memorandum of Understanding that sets forth these principles, and which describes the process by which permits and licenses related to renewable energy resources in offshore waters will be developed.

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MendoCoastCurrent, March 17, 2009

Here’s a map indicating the measurement of wave energy flux around the world:  

Average Annual Wave Energy Flux (kW/m)

Average Annual Wave Energy Flux (kW/m)

From March 2009 Greentech Innovations Report.

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MendoCoastCurrent from Platts Energy Podium, February 12, 2009

The recently approved Economic Stimulus Plan includes expanding the US electric transmission grid and this may be the just the start of what will be a costly effort to improve reliability and deliver renewable energy to consumers from remote locations, Federal Energy Regulatory Commission (FERC) Acting Chairman Jon Wellinghoff told the Platts Energy Podium on February 12, 2009.

Wellinghoff defines the Stimulus energy funds as “seed money. But it really isn’t [enough] money to make huge advances in the overall backbone grid that we’re talking about to integrate substantial amounts of wind.”

While details of the plan compromises are unclear, the measure could provide $10 billion or more to transmission upgrades. Wellinghoff said backbone transmission projects could cost more than $200 billion. “And I think we’ll see that money coming from the private sector,” based on proposals already submitted to FERC.

Wellinghoff’s focused on Congress strengthening federal authority to site interstate high-voltage electric transmission lines to carry wind power to metropolitan areas and expects FERC to be heavily involved in formulation of either a comprehensive energy bill or a series of bills meant to address obstacles to increasing renewable wind, solar and geothermal energy, and other matters that fall within FERC’s purview. 

FERC plays a critical role “given the authorities we’ve been given in the 2005 and 2007 acts and our capabilities with respect to policy and implementation of energy infrastructure.”

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Washington Post Editorial, February 12, 2009

Interior Secretary Salazar Keeps his Options Open on Offshore Drilling 

17transition2-6001Here’s the ultimate midnight regulation: On the very last day of the Bush administration, the Interior Department proposed a new five-year plan for oil and gas leasing on the outer continental shelf. All hearings and other meetings on the scope of the plan, which would have opened as much as 300 million acres of seafloor to drilling, were to be completed by March 23, 2009. On Tuesday, Ken Salazar, President Obama’s interior secretary, pushed back the clock 180 days, imposing order on a messy process.

Mr. Bush’s midnight maneuver would have auctioned oil and gas leases without regard to how they fit into a larger strategy for energy independence. More can be done on the shelf than punching for pools of oil to satisfy the inane “drill, baby, drill” mantra that masqueraded as Republican energy policy last summer.

Mr. Salazar’s 180-day extension of the comment period is the first of four actions that he says will give him “sound information” on which to base a new offshore plan for the five years starting in 2012. He has directed the Minerals Management Service and the U.S. Geological Survey to round up all the information they have about offshore resources within 45 days. This will help the department determine where seismic tests should be conducted. Some of the data on the Atlantic are more than 30 years old.

The secretary will then conduct four regional meetings within 30 days of receiving that report to hear testimony on how best to proceed. Mr. Salazar has committed to issuing a final rule on offshore renewable energy resources “in the next few months.” Developing plans to harness wind, wave and tidal energy offshore would make for a more balanced approach to energy independence. It would also have the advantage of complying with the law. Mr. Salazar helped to write a 2005 statute mandating that Interior issue regulations within nine months to guide the development of those offshore renewable energy sources [the Energy Policy Act of 2005], a requirement that the Bush administration ignored.

Mr. Salazar’s announcement was also notable for what it didn’t do. Much to the chagrin of some environmental advocates, it didn’t take offshore drilling off the table. Nor did it cut oil and gas interests out of the discussion.

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DANIEL B. WOOD, The Christian Science Monitor, February 11, 2009

Less than a month into his administration, President Obama is making good on campaign promises to move toward a comprehensive approach to US energy and to broaden environmental protections. The administration has moved over the past few weeks to undo many of Bush’s last-minute drilling and environmental decisions, including putting the brakes Tuesday on a plan to open up vast new areas off the Atlantic and Pacific coasts to offshore drilling.

In swift succession, the Obama administration has:

  • Ordered the Environmental Protection Authority to reconsider its decision to deny California permission to set standards controlling greenhouse-gas emissions from motor vehicles – if permitted, this would allow 13 more states to follow suit.
  • Abandoned a Bush administration legal appeal in a major air pollution case – signaling it will allow tougher rules to cut mercury emissions from power plants.
  • Canceled 77 Bush-era oil and gas leases over 100,000 acres of public land near national parks in Utah.
  • Announced an intent to develop an offshore energy plan that includes renewable resources, giving states and the federal government more time to study and assess the future of offshore energy planning.

“There’s clearly a new kid in town. The Obama administration is moving quicker on the environment than anything else,” says Robert Stern, president of the Center for Governmental Studies. “They are concerned that untoward things are going to happen before they can get new policies in place, so they are trying to reverse old ones.”

In the most recent move to stall Bush policy, Interior Secretary Ken Salazar announced Tuesday that the time period for public comment on a draft five-year plan for offshore oil and gas leasing would be extended for another 180 days. He also ordered the US Geological Survey and the Minerals Management Service to develop an extensive profile of the nation’s resources offshore.

The plan, which was proposed by the Bush administration on its last day in office and published the day after President Obama took office, originally allowed 45 days for scoping and comment.

Describing the plan as “a headlong rush of the worst kind,” Mr. Salazar said that “Bush’s “midnight action” accelerated by two years the regular process for creating a new plan for the outer continental shelf.

“It opened up the possibility for oil and gas leasing along the entire Eastern Seaboard, portions of offshore California, and the far eastern Gulf of Mexico, with almost no consideration of state, industry, and community input and … with very limited information about the nature of offshore resources,” he said.

The new administration will look at offshore drilling as part of a comprehensive energy plan, he said. The changes are to “fulfill President Obama’s commitment to a government that is open and inclusive and makes decisions based on sound science and the public interest.”

“I intend to do what the Bush administration refused to do; build a framework for offshore renewable-energy development so that we incorporate the great potential for wind, wave, and ocean current energy into our offshore energy strategy.”

In a similar move last week, the Interior secretary announced that the Bureau of Land Management would withdraw drilling leases that were offered on 77 parcels of US public land near national parks in Utah. The leases, on land totaling 103, 225 acres, are under litigation in district court.

Development of oil and gas supplies was needed to help reduce dependence on foreign oil, but it must be done in a “thoughtful and balanced way that allows us to protect our signature landscapes and culture resources,” said Salazar, adding that the BLM would return $6 million in bids from an auction last December.

Also last week, the Justice Department said it is withdrawing a US Supreme Court appeal filed by the Bush administration against a court ruling governing mercury emissions from coal- and oil-fired power plants.

The Obama administration has also told the EPA to reconsider denying California the power to regulate vehicular pollution. The Bush administration’s EPA in 2007 had denied California the waiver needed to authorize its special status under the Clean Air Act. That law gives California the authority to regulate vehicular pollution because the state began doing so before the federal government did.

Leading environmental groups, which were often at odds with Bush, are breathing a palpable sigh of relief. “We are encouraged by Obama’s announcement that he is going to restore order to a broken system and that is what this is,” says Kristina Johnson, deputy press secretary for the Sierra Club.

“This five-year offshore drilling program that Bush tried to push through wasn’t based on sound science, and there was no public input,” she said. “It’s part of a new way of doing business. [The Obama administration understands] that the answer to America’s energy problems isn’t more drilling and that we need to be investing in clean energy.”

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