On February 2, 2012, the Bureau of Ocean Energy Management
("BOEM") issued a long-awaited final environmental assessment of offshore wind
energy development off the coasts of New Jersey, Delaware, Maryland
and Virginia. The study, which was conducted pursuant to the
National Environmental Policy Act ("NEPA"), concluded
that there would be no significant environmental impact to these
areas if BOEM issues leases and approves site assessment plans for
offshore wind energy development in these areas. The study was undertaken as part
of Secretary of the Interior Ken Salazar's "Smart from the
Start" initiative to spur wind energy development on the outer
continental shelf of the Atlantic Ocean.
Coinciding with the publication of the environmental assessment,
BOEM announced that it is soliciting statements of interest from
wind energy developers considering the potential lease areas off
the coast of Virginia. Based on the level of
interest, BOEM will determine whether to proceed with a competitive
or non-competitive lease process. BOEM has already determined that
there is sufficient interest in development off Maryland's coast to hold a competitive
lease process. It is seeking public comments about the potential
lease areas off both states.
Being awarded a lease is the first step in constructing a wind
energy conversion system, but it does not automatically permit a
developer to begin construction. It gives the developer the
exclusive right to conduct site assessment studies and to apply for
BOEM approval to begin construction. Once awarded a lease,
developers must first submit a site assessment plan to BOEM. The
plan covers planned activities such as the construction of a
meteorological tower and meteorological buoys at the site. If the
plan is approved, site assessment activities may begin. In addition
to the wind resource evaluation, site assessments must include a
shallow hazards survey, geological survey, geotechnical survey and
archeological survey. Following the site assessment, developers can
formulate and submit construction and operation plans to BOEM for
approval.
There is no guarantee that a lessee's construction and
operation plan will be approved. Each developer's construction
and operation plan must be subjected to NEPA's environmental
impacts review, which entails a lengthy environmental and
socioeconomic review process with public participation. Approvals,
permits, and input will have to be obtained from a number of
agencies, including the National Oceanic and Atmospheric
Administration, Coast Guard, Fish and Wildlife Service, Federal
Energy Regulatory Commission, and relevant state agencies. Even
under the streamlined program envisioned by the Smart from the
Start initiative, individual projects are likely to undergo a
prolonged period of review and permitting prior to
construction.
Concurrently with the assessment, BOEM also issued commercial lease forms for the wind energy areas. These
forms were developed through a process involving public, industry
and governmental entities. The forms should facilitate the issuance
and approval of leases.
These important announcements are significant steps towards
utility-scale wind development of approximately 800 square nautical
miles of the mid-Atlantic. They are, however, only the first step
in the long process of review and permitting before construction
can begin.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.