MMS Alternative Energy Program November 28, 2007.

MMS MMS Alternative Alternative

Energy Energy ProgramProgram

November 28, 2007November 28, 2007

MMS MMS Alternative Alternative

Energy Energy ProgramProgram

November 28, 2007November 28, 2007

MMS MissionMMS Mission

• Manage the ocean energy and Manage the ocean energy and mineral resources on the Outer mineral resources on the Outer Continental Shelf and Federal and Continental Shelf and Federal and Indian mineral revenues to enhance Indian mineral revenues to enhance public and trust benefits, promote public and trust benefits, promote responsible use, and realize fair responsible use, and realize fair value.value.

Novel Opportunities and Novel Opportunities and Unique ChallengesUnique Challenges

Novel Opportunities and Novel Opportunities and Unique ChallengesUnique Challenges

Regulating a broad spectrumRegulating a broad spectrumof activities:of activities:

•Alternative energyAlternative energy (e.g., (e.g., wind, ocean wave, ocean wind, ocean wave, ocean current, and solar)current, and solar)

•Alternate use of existing Alternate use of existing facilitiesfacilities (e.g., research and (e.g., research and offshore support stations, offshore support stations, recreation opportunities)recreation opportunities)

Regulating a broad spectrumRegulating a broad spectrumof activities:of activities:

•Alternative energyAlternative energy (e.g., (e.g., wind, ocean wave, ocean wind, ocean wave, ocean current, and solar)current, and solar)

•Alternate use of existing Alternate use of existing facilitiesfacilities (e.g., research and (e.g., research and offshore support stations, offshore support stations, recreation opportunities)recreation opportunities)

•Energy Policy Act of 2005 Energy Policy Act of 2005 amended the Outer amended the Outer Continental Shelf Lands Continental Shelf Lands ActAct

•Gave DOI comprehensive Gave DOI comprehensive authority to manage authority to manage development of promising development of promising new ocean energy new ocean energy sources in the OCS (wind, sources in the OCS (wind, wave, ocean current) and wave, ocean current) and responsible alternate use responsible alternate use of OCS facilities of OCS facilities

•Energy Policy Act of 2005 Energy Policy Act of 2005 amended the Outer amended the Outer Continental Shelf Lands Continental Shelf Lands ActAct

•Gave DOI comprehensive Gave DOI comprehensive authority to manage authority to manage development of promising development of promising new ocean energy new ocean energy sources in the OCS (wind, sources in the OCS (wind, wave, ocean current) and wave, ocean current) and responsible alternate use responsible alternate use of OCS facilities of OCS facilities

Received New Statutory AuthorityReceived New Statutory AuthorityReceived New Statutory AuthorityReceived New Statutory Authority

Key Statutory MandatesKey Statutory MandatesKey Statutory MandatesKey Statutory Mandates

• SafetySafety

• Protection of the environmentProtection of the environment• Coordination with affected State & Local Coordination with affected State & Local

Governments and Federal AgenciesGovernments and Federal Agencies• Prevent interference with reasonable Prevent interference with reasonable

uses of the OCSuses of the OCS

• Fair return for use of OCS landsFair return for use of OCS lands

• Revenue sharingRevenue sharing

• CompetitionCompetition

• Does not apply to marine sanctuaries, Does not apply to marine sanctuaries, national parks & monuments, wildlife national parks & monuments, wildlife refugesrefuges

• SafetySafety

• Protection of the environmentProtection of the environment• Coordination with affected State & Local Coordination with affected State & Local

Governments and Federal AgenciesGovernments and Federal Agencies• Prevent interference with reasonable Prevent interference with reasonable

uses of the OCSuses of the OCS

• Fair return for use of OCS landsFair return for use of OCS lands

• Revenue sharingRevenue sharing

• CompetitionCompetition

• Does not apply to marine sanctuaries, Does not apply to marine sanctuaries, national parks & monuments, wildlife national parks & monuments, wildlife refugesrefuges

Actively sought public inputActively sought public input

•RegionallyRegionally through stakeholder through stakeholder meetings meetings

•NationallyNationally through ANPR and through ANPR and Programmatic Environmental Programmatic Environmental Impact Statement ProcessImpact Statement Process

Building Regulatory FrameworkBuilding Regulatory FrameworkBuilding Regulatory FrameworkBuilding Regulatory Framework

New Regulatory FrameworkNew Regulatory FrameworkNew Regulatory FrameworkNew Regulatory Framework

Major Regulatory Elements:Major Regulatory Elements:

• CoordinationCoordination• Competitive & Noncompetitive Competitive & Noncompetitive

LeasingLeasing Commercial Production Lease Commercial Production Lease (conveying (conveying rights for long-term power generation)rights for long-term power generation)

Limited lease Limited lease (conveying rights for short-term (conveying rights for short-term research and technology testing)research and technology testing)

• Lease AdministrationLease AdministrationBonding (Financial Assurance)Bonding (Financial Assurance)

Payments (Bonuses, Operating Fees, Payments (Bonuses, Operating Fees, Rents)Rents)

Major Regulatory Elements:Major Regulatory Elements:

• CoordinationCoordination• Competitive & Noncompetitive Competitive & Noncompetitive

LeasingLeasing Commercial Production Lease Commercial Production Lease (conveying (conveying rights for long-term power generation)rights for long-term power generation)

Limited lease Limited lease (conveying rights for short-term (conveying rights for short-term research and technology testing)research and technology testing)

• Lease AdministrationLease AdministrationBonding (Financial Assurance)Bonding (Financial Assurance)

Payments (Bonuses, Operating Fees, Payments (Bonuses, Operating Fees, Rents)Rents)

Major Regulatory Elements:Major Regulatory Elements:• Alternative Energy Plan Review ProcessAlternative Energy Plan Review Process

Environmental and engineering compliance Environmental and engineering compliance Reviews Reviews

• Conduct of Approved Plan ActivitiesConduct of Approved Plan ActivitiesDesign, Fabrication, and Installation ReportingDesign, Fabrication, and Installation Reporting

Environmental and Safety MonitoringEnvironmental and Safety Monitoring

InspectionsInspections

• DecommissioningDecommissioning

Anticipate publishing NPR in Spring Anticipate publishing NPR in Spring 20082008

Major Regulatory Elements:Major Regulatory Elements:• Alternative Energy Plan Review ProcessAlternative Energy Plan Review Process

Environmental and engineering compliance Environmental and engineering compliance Reviews Reviews

• Conduct of Approved Plan ActivitiesConduct of Approved Plan ActivitiesDesign, Fabrication, and Installation ReportingDesign, Fabrication, and Installation Reporting

Environmental and Safety MonitoringEnvironmental and Safety Monitoring

InspectionsInspections

• DecommissioningDecommissioning

Anticipate publishing NPR in Spring Anticipate publishing NPR in Spring 20082008

New Regulatory FrameworkNew Regulatory FrameworkNew Regulatory FrameworkNew Regulatory Framework

Programmatic EISProgrammatic EIS

• Purposes:Purposes:– Support development of new programSupport development of new program– Early public involvementEarly public involvement– Identify issues of concernIdentify issues of concern

• Scope:Scope:– Next 5-7 yearsNext 5-7 years– Wind, wave and currentWind, wave and current– East, West and Gulf coastsEast, West and Gulf coasts

Resources analyzedResources analyzed• Ocean surface and sedimentsOcean surface and sediments• Air qualityAir quality• Ocean currents and movementOcean currents and movement• Water QualityWater Quality• Acoustic environmentAcoustic environment• Hazardous materials and waste managementHazardous materials and waste management• Electromagnetic fieldsElectromagnetic fields• Marine mammalsMarine mammals• Marine and coastal birdsMarine and coastal birds• Terrestrial biotaTerrestrial biota• Fish resources and essential fish habitatFish resources and essential fish habitat• Sea turtlesSea turtles• Coastal habitatsCoastal habitats• Seafloor habitatsSeafloor habitats• Areas of special concernAreas of special concern• Military use areasMilitary use areas• TransportationTransportation• Socioeconomics – economics, sociocultural systems, environmental justiceSocioeconomics – economics, sociocultural systems, environmental justice• Archaeological resourcesArchaeological resources• Land use and existing infrastructureLand use and existing infrastructure• Visual resourcesVisual resources• Tourism and recreationTourism and recreation• Fisheries – commercial and recreationalFisheries – commercial and recreational• Nonroutine conditionsNonroutine conditions

Programmatic EISProgrammatic EIS

• Preferred alternative – establish Preferred alternative – establish AEAU program AEAU program and and evaluate projects evaluate projects on a case-by-case basison a case-by-case basis

• Best Management PracticesBest Management Practices

Programmatic EISProgrammatic EIS

• Available at Available at www.ocsenergy.anl.govwww.ocsenergy.anl.gov

• Worldwide Synthesis and Analysis of Existing Worldwide Synthesis and Analysis of Existing Information Regarding Environmental Effects of Information Regarding Environmental Effects of Alternative Energy on the Outer Continental ShelfAlternative Energy on the Outer Continental Shelf http://www.gomr.mms.gov/PI/PDFImages/ESPIS/4/http://www.gomr.mms.gov/PI/PDFImages/ESPIS/4/4260.pdf4260.pdf

• Next step – Record of DecisionNext step – Record of Decision

Interim PolicyInterim PolicyInterim PolicyInterim Policy

•Request for Information and Request for Information and NominationsNominations– Published November 6Published November 6– Comments by January 7Comments by January 7

•Nominate OCS areas forNominate OCS areas for– meteorological or marine data meteorological or marine data

collection facilities to assess collection facilities to assess alternative energy resources alternative energy resources

– technology testingtechnology testing– notnot for commercial facilities for commercial facilities

•Request for Information and Request for Information and NominationsNominations– Published November 6Published November 6– Comments by January 7Comments by January 7

•Nominate OCS areas forNominate OCS areas for– meteorological or marine data meteorological or marine data

collection facilities to assess collection facilities to assess alternative energy resources alternative energy resources

– technology testingtechnology testing– notnot for commercial facilities for commercial facilities

Interim PolicyInterim Policy

• CompetitionCompetition• Limited lease term – 5 years proposedLimited lease term – 5 years proposed

– No priority right for subsequent No priority right for subsequent developmentdevelopment

• Rentals -- $3.00/acre proposedRentals -- $3.00/acre proposed• Financial assuranceFinancial assurance• Comprehensive lease instrumentComprehensive lease instrument• Consultation with affected states, Consultation with affected states,

Federal agencies, etc.Federal agencies, etc.

Next StepsNext Steps

• Record of Decision for PEISRecord of Decision for PEIS

• Publish proposed rulePublish proposed rule

• Develop lease form for data gathering Develop lease form for data gathering & technology testing – public process& technology testing – public process

• Act on nominations under interim Act on nominations under interim policypolicy

• And …And …

Cape Wind Draft EISCape Wind Draft EIS