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The Evolution of Offshore Wind Energy in the U . S .⎯. Virginia’s Role in Achieving Energy Independence. “All of the Above” Energy Policy. Dirty/Fossil Fuels. : 85% of total energy production. Coal. Natural Gas. Oil. Clean/Renewable Energy. Biofuels. Solar. Wind. Onshore. Offshore.
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TheEvolutionofOffshoreWindEnergyintheU.S.⎯ Virginia’sRoleinAchievingEnergyIndependence
“All of the Above” Energy Policy Dirty/Fossil Fuels : 85% of total energy production Coal Natural Gas Oil Clean/Renewable Energy Biofuels Solar Wind Onshore Offshore
“All of the Above” Energy Policy Dirty/Fossil Fuels : hidden costs Coal economic environmental Natural Gas social Oil Clean/Renewable Energy Biofuels Solar Wind Onshore Offshore
Hidden Costs of Dirty/Fossil Fuels economic National/Energy Security: $1B/Day to Import Crude Oil $67-83B/yr on Overseas Oil Security MissionsX XThe Pew Project on National Security, Energy and climate Federal Coal Subsidies & Benefit Payments Estimated at $3.2-$5.4B/YR+ + Mining Coal, Mounting Costs: The Life CycleConsequences of Coal KY: $115MM/yr Coal Subsidies+ VA: $44.5MM/yr Coalfield Employment Enhancement Tax Credit* *Commonwealth Institute
Hidden Costs of Dirty/Fossil Fuels environmental Climate Change Contributor: Methane & Carbon due to Mining-Related Land Disturbance: $2.2B/yr MTR 500 Appalachian Summits Removed Transforming 1.4mm Acres of Forest and Burying 2000 Miles of Streams; 2500 miles of Polluted Streams in KY alone Gulf Oil Spill Air Pollution Sludge, Slurry, and “Fly Ash” Ponds 1300 Coal Combustion Waste (“Fly Ash”) impoundments are adjacent to Coal-Fired Plants, receiving 130 Million Tons of Waste/YR
Hidden Costs of Dirty/Fossil Fuels Social 100,000 U. S. Miner Deaths since 1900 + 200,000 More from Black Lung Disease COAL: $345B/yr Health & Environmental Costs* * harvard medical school survey released 2/17/11
“All of the Above” Energy Policy Dirty/Fossil Fuels Coal : The Last Mountain Natural Gas : Gasland Oil : FUEL Clean/Renewable Fuels Biofuels : FUEL Solar Wind : Gasland Onshore The Last Mountain Offshore Biomass
SCALE Distributed Generation ROOFTOP SOLAR MICROTURBINES Community-Scale BIOMASS WIND: ONSHORE Klickitat County, WA “Wind Power is an Economic Engine for a Rural American Community” (YouTube) U. S. Currently has 35GW of Onshore Wind in Place and More on the Way Sherman County, OR “Wind Blows in to a Patch of Oregon Known for Its Unrelenting Winds” (NYT, 5/30/11) Biomass
SCALE Distributed Generation ROOFTOP SOLAR MICROTURBINES Community-Scale BIOMASS WIND: ONSHORE 2/23/10 BrightSource Energy $1.4B Loan Guarantee to Build Some of the World’s Largest Solar Plants Utility-Scale SOLAR 6/17/11 Blythe Solar Plant “Construction Begins on World’s Largest Solar Power Plant” Biomass
SCALE Distributed Generation ROOFTOP SOLAR MICROTURBINES Community-Scale BIOMASS WIND: ONSHORE Utility-Scale SOLAR Offshore Winds Are Stronger and Steadier than Onshore Winds Offshore Wind Loads are Closer to Customers Offshore Wind Energy has Existed commercially in europe for nearly 20 Years Wind: Offshore U. S. Could Have 20GW of Offshore by 2020 If It Made the Commitment To Do So Biomass
OFFSHORE WIND DOES NOT EMIT HARMFUL AIR POLLUTANTS, LIKE GREENHOUSE GASES AND MERCURY WOULD REDUCE THE FINANCIAL RISKS ASSOCIATED WITH FOSSIL FUEL ENERGY PRODUCTION NEVER BEEN A WIND BLOWOUT NO WIND MELTDOWNS NOT A SINGLE WIND-MINING DISASTER NO GROUND WATER CONTAMINATION FROM WIND FRACKING NO CLEAN UP NEEDED FROM A WIND SPILL
U. S. Renewable Resources SOURCE: DEPARTMENT OF ENERGY, NATIONAL RENEWABLE ENERGY LABORATORY
1953: Outer Continental Shelf Lands Act (OCSLA) enacted 1969: National Environmental Policy Act (NEPA) 1970: The Clean Air Act 1972: The Clean Water Act 1981: Congress enacts a moratorium banning offshore drilling for oil and natural gas in the majority of the Outer Continental Shelf (OCS) 1990: President George H. W. Bush issues Presidential Directive supporting the 1981 offshore drilling ban 1998: President Bill Clinton extends the Presidential Directive against offshore drilling through 2012
2005: Energy Policy Act of 2005 authorizes the Minerals Management Service (MMS) to regulate alternative energy on the OCS including wind, wave, current, tidal, and hydrogen generation sources. 2006: “An Inconvenient Truth” premieres 2006: Virginia Energy Plan creates the Virginia Coastal Energy Research Consortium (VCERC) to serve as an interdisciplinary study, research, and information resource for the Commonwealth on coastal energy issues with an initial focus on offshore winds, waves, and marine biomass 2008: President George W. Bush lifts a presidential moratorium on drilling for oil and natural gas on the OCS 2009: 2009 Virginia General Assembly streamlines regulatory process for small renewable energy policy through passage of Permit by Rule (PBR)
2010: March 31: President Obama proposes to open vast expanses of American coastlines that would open up the eastern Gulf and parts of the Atlantic, including off the coast of Virginia, to offshore oil and gas exploration ending a longstanding moratorium on oil exploration along the East Coast from the northern tip of Delaware to the central coast of Florida, covering 167 million acres of ocean
2010: • April 8: My 10-year-old son Louie, a Jack Russell Terrier, loses a 4-month battle with lymphoma, heightening my awareness of carcinogens in our environment • April 20: Deepwater Horizon Oil Rig explodes and sinks off the Louisiana coast • June 8: U. S. Secretary of the Interior Ken Salazar and the governors of 10 East Coast states (ME, NH, MA, RI, NY, NJ, DE, MD, VA, and NC) sign a Memorandum of Understanding that formally establishes an Atlantic Offshore Wind Energy Consortium to promote the efficient, orderly, and responsible development of wind resources on the OCS. Salazar quoted as saying “By one estimate, if our nation fully pursues its potential for wind energy on land and offshore, wind can generate as much as 20% of our electricity by 2030 and create a quarter-million jobs in the process.” • June 18: Salazar renames MMS the Bureau of Ocean Energy Management, Regulation, and Enforcement (BOEMRE) • June 19: EPA Administrator Lisa Jackson reports: "Three out of four city officials expect that their use of clean energy technologies will increase in the next five years, according to a survey from the U.S. Conference of Mayors. It's great to hear that local leaders recognize that despite tough economic times, an investment in clean energy technology is also an investment in job growth, in healthy communities and families and in the future of our country."
2010: • October 6: Salazar signs the nation’s first lease for commercial wind energy on the Outer Continental Shelf (OCS) 4.7 miles off the shore of Cape Cod, MA, with Cape Wind Associates, LLCpotential to meet 75% demand for Cape Cod, Martha’s Vineyard, and Nantucket Island • October 12: Google (37.5% Equity Share “ES”), renewable energy investment firm Good Energies (37.5% ES), Japanese trading company Marubeni Corporation (15% ES), and Trans-Elect Development Company (10% ES), LLC, partner to create the Atlantic Wind Connection (AWC) project an underwater transmission “backbone” that will connect more than 6,000 MW of offshore wind to the transmission grid • 350 miles of high voltage direct current (“HVDC”) lines • New York City to Virginia • $5B over 10 years in 5 phases to power 1.9mm HH • Estimated construction start: 2013 • First phase operational: 2016 • November 23: Salazar launches a “Smart from the Start” wind energy initiative for the Atlantic OCS to facilitate siting, leasing, and construction of new projects
SMART FROM THE START 17-20 Agencies/Acts 8 years from application to permit AGENCIES Department of the Interior (DOI) National Parks & Recreation Fish & Wildlife Department of Defense (DOD) U. S. Coast Guard Environmental Protection Agency (EPA) U. S. Army Corps of Engineers National Oceanic and Atmospheric Administration (NOAA) Department of Energy (DOE) Federal Aviation Administration (FAA) ACTS The Rivers and Harbors Act of 1899 Section 401, Clean Water Act Endangered Species Act Coastal Zone Management Act NEPA Fish & Wildlife Coordination Act National Historic Preservation Act (Sunken Historic Vessels)
2010: • December 1: The Obama Administration rescinds its decision to expand offshore oil exploration into the eastern Gulf of Mexico and along the Atlantic and Pacific Coasts as part of the next five-year drilling plan, reversing 3/31 policy changes and effectively extending the drilling moratorium in this area through 2017 • 2011: • March 23: SwedishVattenfallGroupannouncestheinstallationofoneoftheworld'slargestoffshorewindturbines,thefirstof30tobeinstalledatitsOrmondeOffshoreWindFarminTheIrishSeathatwillultimatelysupplycleanenergyfor100,000homeseachyear. • March 24: Salazarannouncesplanstoauctionoff758milliontonsofcoalreservesinWyomingthatwilltakesomewherebetween10-20yearstomine
2011: March 30: TheVAMarineResourcesCommissionunanimouslyvotestoallowGamesaEnergytoconductscientificsurveystodetermineifconditionsareripeforconstructionofasingle,prototypewindmillthatwouldgenerateasmuchas5MWelectricityinwatersabout3mileswestofCapeCharlesontheEasternShore. May19: TheFederalEnergyRegulatoryCommission (FERC) unanimouslygranteda12.59%returnonAWC’sequityinvestmentclearingthewayfortheenergytransmissionbackbonetomoveforward
MID-ATLANTIC BIGHT Cape Cod, Ma to Cape Hatteras, NC
Mid-Atlantic Bight Cape Cod, Ma to Cape Hatteras, NC Windy “the Saudi Arabia of offshore wind” Shallow Close to Consumers 81% of the Population (245mm People) Live in 28 Coastal States Consuming 75% of the Country’s Electricity
Developing 127GW (30% more capacity than comparable oil & gas) offshore wind energy over 20 years would provide energy at a cost of about $36B less than the production of economically recoverable new offshore oil and natural gas. Source: Untapped Wealth: Offshore Wind Can Deliver Cleaner, More Affordable Energy and More Jobs Than Offshore Oil
Virginia OffshoreWindPotential CurrentEnergyMix 5.5Million AverageHomesPoweredAnnually 4th LargestOffshoreWindCapacityPotential onEastCoast 83% OfVirginia’s ElectricityGeneration Nearly 58% fromFossilFuel Renewable 3% Nuclear 38% Coal 44% NaturalGas13% Oil 2% Job Creation Estimates of 10,000 to 16,700-26,600 permanent jobs Source: Untapped Wealth: Offshore Wind Can Deliver Cleaner, More Affordable Energy and More Jobs Than Offshore Oil
BARRIERS TO ENTRY OF OFFSHORE WIND ENERGY Former EPA Air Enforcement Division Director Bruce Buckheit is currently working on a comprehensive study Environmental Impact Study (EIS) Adjustment in migratory patterns (Danish 8 year avian study) Prime scalloping dredging fleet Military Radar Interference Shipping Lanes Intermittency
RECOMMENDATIONS Source: Untapped Wealth: Offshore Wind Can Deliver Cleaner, More Affordable Energy and More Jobs Than Offshore Oil Eliminate federal subsidies for fossil fuels and redirect these funds to renewable energies and energy efficiency programs. Stop all new offshore oil and gas drilling to prevent future spills and minimize competition for resources and expertise that will slow the development of offshore wind energy. Require leasing of installation vessels for offshore wind turbine construction be given priority so that it is not impeded by offshore oil and natural gas development. Increase and make permanent the tax credit for investment in advanced energy property outlined in the American Recovery and Reinvestment Tax Act of 2009. This legislation extends the 30% credit for investment in qualified property used in a qualified advanced energy manufacturing project, but ends in 2012. In addition, these tax credits should be extended to manufacturers of offshore wind turbine components and turbine installation vessels.
RECOMMENDATIONS Source: Untapped Wealth: Offshore Wind Can Deliver Cleaner, More Affordable Energy and More Jobs Than Offshore Oil Increase and make permanent the Innovative Technology Loan Guarantee Program for opening, expanding or modernizing facilities to manufacture offshore wind turbine components and extend this program to turbine installation vessel manufacturing. Use policy mechanisms that increase the long-term demand for and supply of renewable energies, such as a robust Renewable Electricity Standard or Feed-In Tariffs, Production and Investment Tax Credits, Loan Guarantee programs for renewable energy products and technology manufacturers and training programs. Accelerate the electrification of the transportation fleet through incentives to automobile manufacturers and purchasers and by building the needed infrastructure such as charging stations to allow maximal use of this new technology. Recognize external costs of fossil fuels to ensure realistic cost comparisons. Set mandatory Renewable Portfolio Standards (RPS) for VA.