The proposed rule reform sets out specific processes for the Bureau of Indian Affairs (“BIA”) review of leases and subleases, and for the first time, includes enforceable deadlines.  For commercial and industrial development projects, the BIA has sixty days to review leases and subleases.  If the BIA does not complete review within sixty days, the agreement will automatically be allowed.  Further, under the new rule the BIA will be required to approve the leases unless it finds a compelling reason to disapprove.

For a copy of the proposed rule, click here.

The Cape Wind Energy Project will be 130 3.6+ MW generator turbines placed offshore in a grid pattern in the Nantucket Sound, Cape Cod, Martha’s Vineyard, and Nantucket Island.  In October 2010, Salazar fist signed the lease for the Cape Wind Energy Project (see October 8, 2010 edition of the WER), and as part of preparing the COP, an Environmental Assessment (“EA”) was conducted pursuant to the National Environmental Policy Act.  BOEMRE analyzed the EA and determined that there were no additional environmental impacts in addition to those identified in a 2009 Final Environmental Impact Statement. 

 A link to the Interior’s press release is available here.

The strategic plan will focus on accelerating the timeline for deploying offshore wind by focusing on resource planning, siting and permitting, and complementary infrastructure (which will encompass domestic manufacturing, supply chain, transmission, interconnection, installation, operations, and maintenance).  In order to reduce the cost of deployment, DOE will help with technology development to reduce capital spending, increase research and development to cut the cost of installations and maintenance, decrease financing costs, and invest more in turbine development.

The new strategic plan will divide the $50.5 million into three categories:

1. Technology Development will solicit up to $25 million over the next five years to develop new wind turbine designs and hardware;
2. Removing Market Barriers will cost up to $18 million over three years, and this category will include DOE studies and research to identify hurdles to the deployment of offshore wind; and
3. Next-Generation Drivetrain will spend up to $7.5 million to fund the development of new designs for wind turbine drivetrains.

The Interior’s Secretary Ken Salazar announced the four Wind Energy Areas as part of the Interior’s ‘Smart from the Start’ plan.  The plan will allow the four mid-Atlanta areas on the Outer Continental Shelf of Delaware, Maryland, New Jersey, and Virginia to receive an expedited process for environmental reviews, siting, and leasing.  The Interior’s Bureau of Ocean Energy Management, Regulation and Enforcement (“BOEMRE”) will prepare the initial environmental assessments, and if no impacts are found, BOEMRE may begin leasing in the four areas by the end of 2011.  NEPA reviews will still be conducted before construction may begin on any facilities, but BOEMRE is tasked with maintaining an expedited schedule.

A copy of the DOE press release on the new initiative which includes a full copy of the strategic plan is available here.

Secretary Salazar stated that the Department of the Interior expects to identify high priority areas for wind development by the end of 2010 and then work to develop a transmission system in the Atlantic Ocean.  Also, Secretary Salazar praised Cape Wind for being a “pioneer for offshore wind development in the U.S.” and stated that the lessons learned from this approval process would help the U.S. move forward with off-shore wind development.  Secretary Salazar also stated that permitting time for offshore wind projects could be cut down, and to help shorten the permitting process he created the Atlantic Offshore Wind Energy Consortium earlier this year.  The new consortium will coordinate with the Department of Energy, and it will also include eleven governors and eight state task forces.

A copy of Secretary Salazar’s remarks is available here.

In 2008, DOE released a report stating that 20 percent of America’s energy supply could be produced from wind generation by 2030, and offshore wind could produce as much as 54,000 MW by 2030.  The MOU will first target projects on the Atlantic coast.

Under the MOU, DOI’s Bureau of Ocean Energy, Management, Regulation, and Enforcement (“BOERME”) and DOE’s Office of Energy Efficiency and Renewable Energy (“EERE”) will work together to exchange information, conduct stakeholder meetings, and collaborate on research needed to prioritize wind projects along with marine and hydrokinetic (“MHK”) energy technology projects.  Interestingly, the Federal Energy Regulatory Commission (“FERC” or the “Commission”) is not part of the MOU.   Thus, it is unclear what jurisdictional issues will arise between FERC and the other agencies since the MOU specifically includes siting and permitting of the offshore wind projects.

Within 30 days of signing the MOU, the agencies must create an interagency Action Plan that will, among other things:

1. Identify potential sites for commercial scale projects; 
2. Develop attainable goals for offshore wind and MHK;
3. Develop a plan for measuring and predicting wind resources; 
4. Work to streamline Federal and State project authorization processes for permitting and siting;  
5. Create technical standards for offshore renewable technologies;
6. Develop environmental protection protocols;
7. Coordinate studies in support of research leases for OCS wind and MHK activities;
8. Coordinate with parties to ascertain models for wind, wave, tidal, and ocean currents;
9. Gather and disseminate data, baseline agency assessments of projects, and additional resources related to the projects.

The MOU is available on DOE’s webpage and here.