Overview of Minerals Management Service’s Alternative Energy Program

1. Overview of Minerals Management Service’s Alternative Energy Program Ocean Law Conference May 22, 2008 Seattle, WA Walter D. Cruickshank Deputy Director Minerals Management Service 1

2. Key Initiatives • Programmatic EIS • Record of Decision • Rulemaking • Interim Policy for Limited Leasing • Environmental Studies • Mapping Initiative • Review of Cape Wind Proposal 2

3. Energy Policy Act of 2005 • Section 388 amended Section 8 of OCSLA • Authority to regulate a broad spectrum of activities: • Alternative energy (e.g., wind, ocean wave, ocean current, hydrogen production) • Alternate use of existing facilities (e.g., research and offshore support stations) 3

4. Key Mandates • Coordination with affected State & local governments and Federal agencies • Safety • Protection of the environment • Competitive issuance of leases • Fair return for use of OCS lands • Revenue sharing with affected States 4

5. Programmatic EIS and ROD • Published final EIS in November 2007 • www.ocsenergy.anl.gov • Record of Decision issued January 2008 • Adopted 15 policies and 52 Best Management Practices 5

6. MMS Policies • Consult with affected state and local governments early in the planning process • Implement adaptive management strategies that will include monitoring of activities 6

7. Best Management Practices Lessees will: • Contact and consult with affected Federal, state, and local agencies early in the planning process • Evaluate avian use of the project area and design the project to minimize or mitigate the potential for bird strikes and habitat loss • Minimize conflict with commercial fishing activity and gear by advance notification of registered fisherman of the location and timing of activities • Seek public input in evaluating the visual design elements of proposed wind facilities 7

8. Major Elements of AEAU Rule Coordination • State/Federal Task Forces Lease Issuance • Competitive & Noncompetitive Leasing • Commercial & Limited Leases Lease Administration • Bonding & Payments Alternative Energy Plan Reviews • Site Assessment • Construction and Operations Conduct of Approved Plan Activities • Environmental and Safety Monitoring • Inspections Decommissioning Revenue sharing 8

9. Interim Policy for Limited Leasing • MMS announced “interim policy” for limited leasing before final regulations are in place • IP applies to resource data collection and technology testing activities • Interim policy does not apply to wind turbine installation • 5-year authorizations, with no priority right for subsequent commercial development • Primary interest from industry: met towers for wind; technology testing for current and wave energy 9

10. Notice to Determine Competitive Interest in Nominated Areas • Notice issued April 2008 • 30 days to identify competitive interest • 60 days to comment on proposed areas • Areas selected • Wind data collection in the Atlantic • Ocean current data collection and technology testing offshore Florida • Wave data collection and technology testing offshore Northern California 10

11. Lease Form • Issued form for limited leases April 21, 2008 • 30 day comment period for information collection • Lease describes • Lease rights, term, bonding, and rentals • Project plan, reporting requirements • Inspection, compliance and penalties • Removal 11

12. Environmental Studies Efforts • Worldwide Synthesis and Workshop: Environmental Effects of Alternative Energy on the OCS (June 2007) • Attended by subject matter experts, stakeholders, and MMS Scientific Advisory Committee • Identified data gaps and study needs • Suggested priorities for future studies • Workshop on Birds and Offshore Wind Development in the Northeast/Mid-Atlantic (Feb 2008) • MMS hosted a workshop to characterize existing knowledge, highlight research needs, explore partnership opportunities, and most importantly, to review monitoring needs and mitigation approaches for bird impacts. 12

13. FY 2008 Studies • Compendium of Avian Information and Comprehensive GIS Geodatabase • OCS Alternative Energy and Space-Use Conflict Mitigation • Effects ofEMF from Transmission Lines on Elasmobranchs and Other Marine Species • Evaluation of Visual Impacts on Historic Properties • Compilation of GIS Maps of Benthic Habitats and Species Distribution 13

14. Interagency Mapping Initiative • EPAct mandate • Establish an interagency, comprehensive digital mapping initiative • Use to assist in decision making relative to siting alternative energy activities • Prototype marine cadastre under development 14

15. Cape Wind Proposal 15

16. Questions? Image Courtesy of GE 16