Off-Shore Renewable Energy Development in NE: Massachusetts’s New Ocean Management Plan

Off-Shore Renewable Energy Development in NE: Massachusetts’s New Ocean Management Plan Susan Tierney Chair, Ocean Advisory Commission New England Electricity Restructuring Roundtable September 18, 2009 BOSTON CHICAGO DALLAS DENVER LOS ANGELES MENLO PARK MONTREAL NEW YORK SAN FRANCISCO WASHINGTON

Overview • Caveats and starting points • Background on Ocean Management Planning in Massachusetts • The Draft Plan (June 2009) • Spotlight on Renewable Energy • Next steps

Caveats for today’s remarks Skjdf ;slkldjf; Lkjs Kjsdfa • The Plan is the responsibility of the Massachusetts Secretary of Energy & Environmental Affairs • The Ocean Advisory Commission is a group of 17 persons (some public officials), established by the Oceans Act of 2008 to advise the Secretary in preparing the Plan. • I serve as chair of the OAC • Today’s remarks are my own – not made on behalf of either the OAC or the Secretary of EOEEA. Massachusetts Ocean Management Plan Volume 1 D R A F T June 2009

Some important starting points….. • The state’s ocean – the water, the surface, the seabed – are held in public trust for the citizens of Massachusetts. • The sea is no one’s private property. • The ocean is a commons that belongs to all the people. • The people of each coastal state own the ocean of their respective coastal states – for an area of ocean extending three (nautical) miles from the shore. • The state has a stewardship responsibility over this public trust resource.

Boundaries of “town waters” and “Ocean Sanctuaries” State waters of Massachusetts

Some other starting points….. • Massachusetts’s history is inextricably tied to our relationship with the ocean. • Although few activities are truly visible, the ocean has abundant and varied uses today – • Some are natural, some are related to human activities. • Some for “private use,” others for “public use.” • Some need to be “exclusive,” other s are compatible. • Some are “consumptive,” others not.

A few coastal uses we can see…. Massachusetts Ocean Management Task Force Technical Report, March 2004.

Some with a less visible footprint: Recreational fishing Commercial fishing Draft Massachusetts Ocean Management Plan, June 2009.

Shipping and boating Cables & pipelines Draft Massachusetts Ocean Management Plan, June 2009.

Right whale (sightings) Note: On certain maps, areas in the Federal waters are shown in a lighter color scheme Draft Massachusetts Ocean Management Plan, June 2009.

High ecological value Draft Massachusetts Ocean Management Plan, June 2009.

Background: • Ocean Management Task Force • In 2003, 23-member TF established to examine evolving ocean uses and develop a comprehensive approach to managing ocean resources. • In March 2004: Waves of Change report, with recommendations for: • Enacting a new law to establish comprehensive ocean management planning; • Establishing an ecosystem-based protocol to improve management of federal waters.

Oceans Act of 2008 The Oceans Act of 2008 Chapter 114 of the Acts of 2008 AN ACT RELATIVE TO OCEANS. Chapter 114 of the Acts of 2008 AN ACT RELATIVE TO OCEANS. Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same as follows: SECTION 1. Chapter 10 of the General Laws is hereby amended by inserting after section 35GG the following section:-Section 35HH. There shall be established and set up on the books of the commonwealth a separate fund to be administered by the secretary of energy and environmental affairs, as trustee, in consultation with the department of environmental protection, to be known as the Ocean Resources and Waterways Trust Fund. There shall be credited to the fund any revenue from appropriations or other monies authorized by the general court and specifically designated to be credited to the fund, any appropriation or grant explicitly made to the fund and any income derived from the investment of amounts credited to the fund and the proceeds from any ocean development mitigation fees established pursuant to section 18 of chapter 132A. The priority for use of funds derived from compensation or mitigation for ocean development projects shall be to restore or enhance marine habitat and resources impacted by the project for which the compensation or mitigation shall have been received. The funds derived from compensation or mitigation related to public navigational impacts shall be dedicated to public navigational improvements; provided, however, that any funds for the enhancement of fisheries resources shall be directed to conduct fisheries restoration and management programs. Any other amounts credited to the fund shall be used, without further appropriation, only for the purposes of environmental enhancement, restoration and management of ocean resources by the secretary pursuant to section 4C of chapter 21A. No expenditure from the fund shall cause the fund to be in deficiency at the close of a fiscal year. Monies deposited in the fund that are unexpended at the end of the fiscal year shall not revert to the General Fund and shall be available for expenditure in the subsequent fiscal year.SECTION 2. Chapter 21A of the General Laws is hereby amended by inserting after section 4B the following section:-Section 4C. (a) The ocean waters and ocean-based development of the commonwealth, within the ocean management planning area described in this section, shall be under the oversight, coordination and planning authority of the secretary of energy and environmental affairs, hereinafter referred to as the secretary, in accordance with the public trust doctrine. Notwithstanding any general or special law to the contrary, the secretary, in consultation with the ocean advisory commission established pursuant to subparagraph (c) and the ocean science advisory council established pursuant to subparagraph (d), shall develop an integrated ocean management plan, which may include maps, illustrations and other media. The plan shall: (i) set forth the commonwealth’s goals, siting priorities and standards for ensuring effective stewardship of its ocean waters held in trust for the benefit of the public; and (ii) adhere to sound management practices, taking into account the existing natural, social, cultural, historic and economic characteristics of the planning areas; (iii) preserve and protect the public trust; (iv) reflect the importance of the waters of the commonwealth to its citizens who derive livelihoods and recreational benefits from fishing; (v) .value biodiversity and ecosystem health; (vi) identify and protect speci ……. • Enacted and signed in 2008. • Established the requirement that EOEEA Secretary: • undertake an ocean planning process • adopt a comprehensive ocean management plan.

Draft Ocean Management Plan – The “Oceans 15” • 1. Set forth the Commonwealth’s goals, siting priorities, and standards for ensuring effective stewardship of its ocean waters held in trust for the benefit of the public. • 2. Adhere to sound management practices, taking into account the existing natural, social, cultural, historic, and economic characteristics of the planning areas. • 3. Preserve and protect the public trust. • 4. Reflect the importance of the waters of the Commonwealth to its citizens who derive livelihoods and recreational benefits from fishing. • 5. Value biodiversity and ecosystem health. • 6. Identify and protect special, sensitive, or unique estuarine and marine life and habitats. • 7. Address climate change and sea-level rise. • 8. Respect the interdependence of ecosystems. • 9. Coordinate uses that include international, federal, state, and local jurisdictions. • 10. Foster sustainable uses that capitalize on economic opportunity without significant detriment to the ecology or natural beauty of the ocean. • 11. Preserve and enhance public access. • 12. Support the infrastructure necessary to sustain the economy and quality of life for the citizens of the Commonwealth. • 13. Encourage public participation in decision-making. • 14. Adapt to evolving knowledge and understanding of the ocean environment. • 15. Identify appropriate locations and performance standards for activities, uses, and facilities allowed under the Oceans Sanctuaries Act. Public trust & access issues Support fishing Science-based ecological protection Support needed infrastructure and sustainable uses Address climate change issues Development management systems and governance processes

Time line for developing the first Ocean Plan: Today (Sept. 2009)

Plan development included: Massachusetts Ocean Management Plan Volume 1 • Collection of data on various activities and resources • Analysis of especially rich and/or sensitive ecological areas • Analysis of compatibility of various types of uses • Development of standards to guide development towards or away from certain areas. D R A F T June 2009

Spotlight on renewable energy in the Plan: • Application of the concept of “Appropriate Scale” • Oceans Act: allows development of RE facilities “of appropriate scale,” if the facility is otherwise consistent with the ocean plan. • Addressed in the plan by balancing seven factors • Public trust rights are protected • Public safety is protected • Significant incompatibilities with existing uses are avoided • Proximity to shoreline avoids and minimizes conflicts with existing uses & visual impact to the maximum extent feasible • Impacts to environmental resources are avoided, minimized, and mitigated to the maximum extent feasible • For community wind and wave and tidal projects, the host community or communities must formally support the project • The technology and scale of the facility are appropriate to the proposed location as demonstrated by consistency with 1 through 5, above.

Example:Wind power potential Wind speed Theoretical potential for offshore wind energy facilities: 19,000 MW. - Navigant Study Draft Massachusetts Ocean Management Plan, June 2009.

Windy areas with 30-m depth 60-meter contour line Wind speed 30-meter contour line Draft Massachusetts Ocean Management Plan, June 2009.

Areas of relatively high “incompatibility” for commercial scale wind (given sensitivity or other uses) Considering avian and marine mammal habitats, other marine resources, view sheds and shipping routes: Navigant study identified 6,270 MW of technical generation capacity from offshore wind. Good wind potential, but “incompatible” Good wind potential, but “incompatible” Good wind potential, but “incompatible” Draft Massachusetts Ocean Management Plan, June 2009.

Spotlight on renewable energy in the Plan: “Renewable Energy Areas” • Plan is based on current technology (wind, wave, hydrokinetic): • Large-scale wave & tidal facilities appear unlikely within 5 years. • Wind Energy Areas = Commercial wind energy • 11+ turbines = a project that can be reasonably expected to have more environmental impacts than smaller projects. • Needs to go through MEPA and other permitting processes. • Areas presumptively suitable sites. • Two proposed Wind Energy Areas identified based on: • Presence of a suitable wind resource and water depth; • Absence of conflict with other uses or sensitive resources.

Utility-Scale Renewable Energy Areas Including:- “Provisional” Areas - Adjacent Federal Areas

Back to the Overall Plan’s Management Framework:Three types of areas in the Ocean Plan: • Prohibited Areas • Renewable Energy Areas • Multi-Use Areas

Three types of areas in the Ocean Plan: • Prohibited Areas • A specific area where most uses, activities and facilities are expressly prohibited by the Ocean Sanctuaries Act. • Area = Cape Cod Ocean Sanctuary.

Three types of areas in the Ocean Plan: • Renewable Energy Areas • Places specifically designated for commercial wind energy facilities (11+ turbines) • Areas = (1) southwest of Nomans Land, (2) southern end of Elizabeth Islands. • 2% of area, capable of supporting 166 turbines

Three types of areas in the Ocean Plan: • Multi-Use Areas (the rest) • Uses, activities and facilities allowed by the Ocean Sanctuaries Act are managed based on siting and performance standards • These standards direct development away from high value resources and concentrations of existing water-dependent uses.

Three types of areas in the Ocean Plan: • Multi-Use Areas – open to: • Sand and gravel extraction for beach nourishment, • aquaculture, • cables and pipelines, • pilot/community-scale wind energy facilities and wave and tidal energy facilities.

Three types of areas in the Ocean Plan: • Multi-Use Areas • Management in these areas establishes a higher level of protection for special, sensitive or unique resources (“SSU”), with: • Revised MEPA standard: “avoid, or demonstrate that there is no less damaging practicable alternative, or demonstrate that data does not accurately characterize the resource or use.” • Particular area of actions

Spotlight on renewable energy in the Plan • Commercial-scale projects limited to the Wind Energy Areas. • Other ocean renewables may occur in the Multi-Use Areas: • Tidal: 3 locations are currently documented with 3+ knot tidal velocities (near the Cape and Islands) • Wave Energy: limited prospects in the state. • “Community Wind Projects”:Allowed within Wind Energy Areas and in Multi-Use Areas

Community wind • Small in scale – no more than 5 turbines per town, or 10 per coastal region • Between 1-3 miles offshore • Provide local benefits – with needed local support • Avoid sensitive areas designated in the Plan

Spotlight on renewable energy Massachusetts Ocean Management Plan Volume 1 D R A F T The Plan is much more detailed. June 2009

Next steps – short term and longer term • Public Comment period • Written comment deadline: November 23, 2009 • Next steps to implement the final plan: • Guidance, draft regulations (e.g., MEPA), establishment of Trust Fund, etc. • Plan evolution between Plan 1.0 and Plan 2.0 • Process for periodic adoption of minor upgrades to version 1.0 • Process for major revisions to version 1.0 (e.g., demonstration of new information, new technology, new science) • New Plan anticipated in 5 year intervals

Susan TierneyAnalysis Group111 Huntington Avenue, 10th FloorBoston, MA 20199617-425-8114stierney@analysisgroup.com

Off-Shore Renewable Energy Development in NE: Massachusetts’s New Ocean Management Plan