BP oil spill could further delay U.S. offshore permitting process

Two recent developments in the United States could have major impacts on offshore wind developments along the Atlantic coast.

By John R. Johnson, US correspondent

In April, the U.S. government granted the go-ahead for Cape Wind, a 130 turbine wind project off the coast of Massachusetts that is expected to produce enough energy to power more than 200,000 homes on Cape Cod.

While the lessons learned from the lengthy Cape Wind approval could speed up the permitting process for future projects, the tragic BP oil spill, which has dumped millions of gallons of oil into the Gulf of Mexico, will likely slow down immediate efforts to streamline offshore permitting. As currently structured, federal permitting can take up to nine years.

The massive oil spill is requiring all of the resources of the U.S. government, particularly the Minerals Management Service, a branch of the U.S. Department of Interior (DOI) that is responsible for offshore permitting.

Two steps backward?

Prior to the BP incident, Department of Interior Secretary Ken Salazar hosted a summit with governors of Atlantic Coast states to discuss a regional approach to offshore wind development. The meeting resulted in the formation of the Atlantic Offshore Wind Energy Consortium. Through the consortium, the DOI hopes to improve permitting processes, evaluate data issues and challenges, and identify barriers to investment in offshore renewable energy development. 

“The focus of the MMS staff is going to be on the oil spill and the cleanup,” says Jim Lanard, Managing Director of Deepwater Wind, LLC, a firm pursuing offshore wind development in Rhode Island. “In the short term, the resources that might have been focused on offshore wind need to be dedicated to the Gulf.”

The oil crisis, which is spreading to other parts of the Atlantic, could put enhanced focus on projects of all kinds – offshore wind farms included. Granted, a disaster of this magnitude is unlikely at a wind farm, but increased pressure from the public and regulatory bodies could slow permitting as potential wind projects operate under a more watchful eye.

“Some people in the industry are wondering how the scrutiny the [permitting] agencies receive from Congress and the public will play out when it comes to offshore wind,” says Lanard.  “We welcome intense scrutiny of our projects. We just don’t want to see time delays that are unnecessary, where we are dotting our I’s and T’s three times.”

Permitting agencies like the MMS could decide to spend additional time reviewing environmental concerns like the breeding patterns of whales, or how birds and other species will adapt to wind turbines. Lanard says his company and other developers are very aware of wildlife and marine issues and build long delays into their production schedules to plan around the mating season for whales, for example.

Aside from Massachusetts, other wind farm developments are being considered in New Jersey, Delaware, Rhode Island and Maine. The state of Maine has already pre-permitted four offshore sites along its 3,800 miles shoreline. Maine has already won the support of the fishing community, consumers, the environmental community and conservationists, and so pushing for a quicker federal approval process is crucial to further progress.

Macondo blowout gives impetus to renewables 

It is possible that the outcry from the situation in the Gulf of Mexico could serve as a rallying point for offshore wind, potentially accelerating the permitting process.

As it stands now, the new MMS permitting guidelines that were adopted in April 2009 will likely require a seven to nine year permitting time line. Cape Wind was approved under a previously existing set of standards.

Recognizing that the current time frame is unacceptable for wind farm developers, investors and manufacturers who might want to open facilities in the U.S., Salazar is on record as being committed to streamlining the permitting process.

The MMS is working with several states for potential leasing activity along the Atlantic, especially in states where MMS has established intergovernmental task forces. The Delaware Request for Interest (RFI) was published in the Federal Register in April, soliciting submissions describing interest in obtaining one or more commercial leases for the construction of a wind energy project off the coast of Delaware. Offshore wind proposals in New Jersey and Virginia are currently under MMS review.

Leann Bullin, a spokesperson for the MMS, says her agency is most concerned with overall safety, protection of the environment, a fair return to the U.S. for any lease, consideration of other uses of the sea or seabed, and coordination with affected state, local, and tribal governments and Federal agencies.

“Some states have initiated data gathering in areas of the outer continental shelf that will assist MMS with renewable energy lease planning,” says Bullin. “Through our task forces, MMS and the states will be in a better position to leverage these efforts and identify remaining gaps.” 

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