Great Lakes Offshore Wind Agreement May Have Minimal Impact

An agreement between five states and the federal government on expediting offshore wind permitting in the Great Lakes received wide press attention last week, with news sources hailing the agreement as a significant step toward developing wind farms in the lakes. But much of that enthusiasm may be premature.

While the Memorandum of Understanding could eventually prove beneficial for offshore wind, Illinois residents shouldn't presume that towers and blades will soon be rising over the waters of Lake Michigan. As this blog has noted for years, offshore wind in Lake Michigan is much more expensive than onshore wind, and private wind developers have not expressed much interest in developing in the lake off the coast of Chicago.

Still, intergovernmental agreements of this type are useful in speeding complex permitting regimes. The folks over at Changing Gears described what the MOU does and doesn't do:

The MOU includes nine federal agencies, and the states of Minnesota, Illinois, Michigan, New York and Pennsylvania. Not included are Indiana, Ohio and Wisconsin, though they can sign on later.

But what’s actually in the memorandum of understanding? Very little, but what’s there could still make a difference.

The entire agreement is 12 pages long. It spells out each agency that has a say in regulating offshore wind projects. All the MOU really requires is that these agencies make a reasonable attempt to work together with the states.

The MOU is just as clear about what it doesn’t do, for example, from the agreement:

Nothing in this MOU may be construed to obligate the Participants to any current or
future expenditure of resources.

The MOU also doesn’t create any new agencies or laws:

This MOU is intended only to enhance and strengthen the working relationships of the Participants in connection to offshore wind energy proposals in the Great Lakes region and is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States or any State, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

Nonetheless, the MOU does include certain requirements of the participants, “including attendance at periodic meetings,” though this is only “to the extent resources allow.” So, basically, you don’t really have to show up at the meetings if you’re short on staff, or your travel budget is tight.

The one concrete, and possibly very useful provision of the agreement, is that the agencies and states agree to create a regulatory roadmap.

… a document that describes the regulatory review process and identifies current and anticipated data needed to inform efficient review of proposed offshore wind energy facilities in the Great Lakes.

The roadmap must be completed and published 15 months from now. It might not sound like a lot. But the truth is, offshore wind is incredibly confusing from a regulatory standpoint. Nine federal agencies have jurisdiction, plus each state has its own agencies, and in many areas there are tribal jurisdictions. Regulatory uncertainty is one of the things that’s held offshore wind back in the Great Lakes.

And while the ultimate impact of the agreement may be limited, it didn't stop public officials from hailing the agreement as a positive development. From a Lake County News-Sun article:

Waukegan Mayor Robert Sabonjian, who has been participating in Gov. Pat Quinn’s Lake Michigan Offshore Wind Energy Advisory Council to study turbine concepts along Illinois shoreline, said Friday the panel is making progress on addressing such matters as environmental impacts from offshore turbines and legal rights to the lake bed.

“Right now, we’re in a phase where the (Illinois) Department of Natural Resources is looking at things like how to protect migratory birds and bats, and how to preserve the lake bottom,” said Sabonjian, adding the council’s fourth meeting is scheduled for April 5 in Chicago.

Sabonjian added that other matters to be discussed before a formal recommendation is sent to the governor include what harbor or harbors will be used as points of assembly, and what roles public and private interests would have in offshore turbine development.

Evanston Mayor Elizabeth Tisdahl also praised the news in this Trib Local story:

“I think it’s terrific news, because I was told when I first started exploring wind turbines in the lake that no one would put them in the lake because there were no rules governing how to do it,” Evanston Mayor Elizabeth Tisdahl said. “So I’m delighted that five states made this pact and are looking at it. It’s exactly what they should be doing.”

Meanwhile, the Illinois Offshore Wind Energy Advisory Council holds its final meeting this Thursday, and officials are expected to release a draft version of their report detailing a state-level permitting structure for offshore projects. What impact the MOU will have on that report is unclear.

Gov. Quinn Signs Bills to Promote Offshore & Community Wind

Governor Pat Quinn signed two bipartisan pieces of legislation this weekend intended to expand wind development in Illinois, one to study the concept of offshore wind in Lake Michigan and one to boost community-owned renewable energy development.

Though neither bill has much impact on large, commercial-scale wind development that has seen major growth in recent years, both bills are laudable in their goal of increasing new kinds of renewable energy in the state.

From a press release from the Governor's office:

House Bill 1558, sponsored by Rep. Robyn Gabel (D-Evanston) and Sen. Jeff Schoenberg (D-Evanston), creates the Lake Michigan Offshore Wind Energy Advisory Council within the Department of Natural Resources (IDNR). The council will review the potential for wind energy projects in the waters of Lake Michigan. It will be chaired by the director of the IDNR and will be made up of representatives from state agencies and organizations that include environmental, tourism, education and energy entities.

"Offshore wind power provides our communities an incredible opportunity for clean and efficient energy, and helps our state achieve its energy independence goals,” Gabel said. “With this unique opportunity, however, comes new challenges, and it is important that we undertake this process to set the right guidelines from the start. I would like to thank Governor Quinn for signing this into law."

After examining wildlife impact, protected habitats and recreational uses of Lake Michigan, the council will identify locations that would be appropriate for offshore wind development. The council will present its recommendations to the Governor and General Assembly by June 30, 2012. The law goes into effect immediately.

The concept of building an offshore wind project in Lake Michigan was first floated by a community group in Evanston a few years back, but the idea was stymied because the proper permitting authority for such a project is unclear, as are many other aspects offshore development in Illinois. Further, the commercial wind industry expressed little to no interest in responding to Evanston's formal Request for Information last year, and many in the industry have balked at offshore wind, saying it would be too expensive when compared to much cheaper on-shore wind opportunities.

Nonetheles, studying the concept is the correct step for the state to take at this time, as a formal analysis will seek to answer many of the questions that exist about the project. Kudos to Rep. Gabel and Sen. Schoenberg of Evanston on the passage of the bill.

HB 1487

The other bill the Governor signed this weekend seeks to promote a completely different kind of wind project. HB 1487 was sponsored by Sen. Mike Frerichs (D) and Rep. Chad Hays (R), both of the Champaign-area, and the goal of the legislation is to promote farmer-owned or community owned wind farms. Though this concept was possible under existing law, the new statute is intended to make it easier for landowners and communities to do so.

Under the new law, counties place voter referendums on the ballot to create "Renewable Energy Production Districts." Those new districts would then have the power to contract with developers and landowners to build wind and other renewable projects within that area.

Support for the law came from a group of citizens in Champaign County. It is not expected to impact commercial-scale development, though it should be interesting to see what develops under the new law.

Evanston Votes to Continue Studying Offshore Wind Farm

Despite a lack of interest from major wind developers and skepticism from many on the board, the Evanston Village Board voted Monday to at least continue studying the concept of offshore wind in Lake Michigan, says an article on EvanstonNow.com:

The proposal, approved on a 5-2 vote with two aldermen absent, authorizes the mayor to seek to have an Evanston resident appointed to a state offshore wind energy panel that would be established if Gov. Pat Quinn signs a bill now on his desk.

It also authorizes city staff to seek grant funding for a possible floating meteorological station in the lake that could determine the strength and consistency of offshore winds.

And it authorizes formation of a new windfarm committee composed of citizen volunteers, or continued life for an existing committee, to continue researching the windfarm concept.

Alderman Don Wilson, 4th Ward, said the city should drop the windfarm idea.

"The city has no authority to authorize any windfarm project in the lake," Wilson said. That decision, he added, is going to be made in Springfield. "We might as well be talking about building a windfarm in Canada. We don't have that power."

Wilson said city staff has plenty of other work to do. "If staff is going to be preparing grant applications, I want them doing it for the water plant and other current needs," Wilson argued. "The world should know that we're open to the windfarm concept. But that's it."

But Alderman Jane Grover, 7th Ward, said further research is needed to determine whether a winfarm is appropriate for Evanston.

"I don't know whether I'm for or against a windfarm, because I don't have enough information yet. That makes it our duty to go get more information," Grover added.

Alderman Judy Fiske, 1st Ward, said she was concerned about opening up the lake to private development.

She said the state is getting lots of energy from land-based windfarms in central Illinois and costs for a windfarm in the lake seem to be prohibitively higher.

Alderman Delores Holmes, 5th Ward, said she was concerned about costs -- but that if it was just the time of the city's sustainability coordinator, "who's supposed to be doing that sort of stuff anyway," then she didn't believe that further windfarm research would impose any additional costs.

City Manager Wally Bobkiewicz said most of the cost has been the time of the sustainability coordinator, Catherine Hurley. "We have no additional staff dollars available beyond her salary to do it," Bobkiewicz said, "But there are only so many hours in the day and week. And we do have other projects for her to work on. So it becomes a matter of priorities."

Fiske and Wilson voted against the proposal. Aldermen Melissa Wynne, 3rd Ward, and Mark Tendam, 6th Ward, didn't attend the meeting.

The vote followed a lengthy public comment session in which roughly two dozen people spoke on the windfarm issue. Speakers -- many of whom were members of the windfarm committee -- were divided on the issue but most spoke in favor of continued research on the subject.

Evanston Offshore Wind Committee Delivers Report to City Council

A 21-member committee of Evanston citizens delivered recommendations to the City Council this week that outline a variety of factors that would need to be addressed if the offshore wind concept is going to move forward, but stating that building a wind project off the coast of the Chicago bedroom community was years away at best.

In a comprehensive analysis available here, the committee also assessed the responses the city received to a request-for-information (RFI) issued last year, finding that the two firms that responded "provided at least partial useful information," but stopping short of blessing either firm. Both were small outfits with little or no experience in utility-scale wind development, no less the major offshore wind proposal envisoned by the City. The group also acknowledged that last year's RFI was not a request-for-proposals (RFP), but merely a means to gather information to assess next steps.

The committee then outlines a variety of ways the city and state can appropriately be involved in making the idea a reality. Among the recommendations for the City of Evanston:

• Development of the Lake’s strong wind is likely. If the City doesn’t take an active role, it loses its chance to influence any proposed project.
• The City has limited inherent authority, such as permitting the landing point of the cable from the wind farm.
• The City can and should foster education and transparent discussion on the subject, and assess public opinion.
• Encourage and facilitate establishment of a meteorological station for obtaining data on which a developer can assess its potential energy production and revenue stream on which to finance the installation and its long term operation. This step is essential for project feasibility, now or in the future. Collaboration with other interested partners, such as Northwestern, will minimize or eliminate direct expenses by the City.
• Identify the benefits and negative effects of an offshore wind farm. These should include environmental, social, and financial considerations that impact the City and its residents, its commitment to the Climate Action Plan, the University and local business.
• Encourage, facilitate and follow other key studies that can sufficiently address project feasibility, including avian and other environmental concerns.
• Follow other initiatives that indicate potential models for sharing leasing revenue and the ability to generate tax revenue. The current activities in Ohio may represent one of the possibilities. The City will want to have a leasing agreement, fee or other contractual mechanism for a developer to bring cables onshore and route through City rights-of-way.
• Actively explore and select the City’s role(s) in the project, including whether the City can or should consider itself a potential direct buyer of a portion of the power produced. The role(s) chosen will drive Evanston’s participation in an RFP. An RFP would be necessary only if the City chooses its role as owner, producer or buyer of the electricity.
• Identify master planning concepts and imminent projects that may interfere, limit or find synergy with aspects of such a wind farm installation.
• Promptly designate a committee, board, or commission to work on the above, especially the critical aspect of role determination.
• Explore and collaborate with potential partners in one or more of the above to minimize or eliminate direct expenses by the City. Explore potential partnerships with local governments, institutions, and other entities that may be interested in sharing costs and aggregating roles.

The group also notes that under SB 1558, passed by the Illinois General Assembly passed this spring, the State will soon convene a coalition of state, local, business and labor interests to formally study the concept of offshore wind in the lake. Because so many factors of siting and permitting in the lake are still unresolved, the study is an essential step in exploring the concept futher.

However, in what they called a "minority report," two members of the committee dissented, concluded that the project was ill-advised at this time, noting that major players in the wind industry expressed little interest in the concept. The minority report was not included in the materials provided to the City Council, but an article in the Evanston Roundtable quoted from the dissenters:

Fred Wittenberg and Joe Jaskulski prepared a minority report, giving their reasons for opposing an offshore wind farm: cost and practicality. Mr. Jaskulski said he had contacted "FPL/NextEra, the largest wind developer in the U.S., Iberdrola, the largest wind developer in the world, and Mainstream Power, the world’s largest developer of offshore wind.

These three qualified non-respondents all said the cost[s] of the contemplated project are prohibitive with no prospect of recovering the investment made. Further, conventional on-shore wind projects can provide power at one-fifth the cost of off-shore developments."

The report also said the community could "offer nothing" toward the project. "Our streets and roads, bridge clearance, load capacities, turning areas, etc., cannot handle the support towers, propeller blades, generators, transmissions, shafting, hubs, nacelles (housings), cranes and all other appurtenances that would be conveyed to a dock for barging out on the Lake. …

Considering Evanston’s fiscal responsibility to its citizens and the limited resources of staff and even volunteer support the City should proceed with environmental projects which are under its control and have a reasonable probability of success."

But despite the content of the report, the Evanston Roundtable story states that at the City Council meeting this week, a Northwestern University representative stated the institution did "not wish to participate further in the study of a wind farm."

However, attorney and committee member Jeff Smith told IWEA today that it was unclear if the Northwestern employee was qualified to speak on behalf of the university, adding that any professor seeking to participate in research involving offshore wind in the lake was free to pursue that interest.

Committee member and architect Nate Kipnis echoed this statement in a comment to the story:

I am not sure who the "Key Player" is that supposedly bowed out of the project. Andrew McConigle, who is a project manager of the construction staff at the University, attended all four of the wind farm committees working meetings. At these meetings, he went to great lengths to express that he was not representing the University but rather only speaking as a citizen of Evanston. However, during the City Council meeting, Mr. McConigle all of a sudden allegedly became Northwestern's spokesman.

Needless to say, the much discussion lies ahead before turbines begin spinning over Lake Michigan.

Q&A with Rep. Robyn Gabel on Offshore Wind Legislation

A citizens group in Evanston has been discussing the idea of building a wind farm in Lake Michigan for a number of years, and a bill introduced by legislators representing the city introduced legislation earlier this year that would allow the state to study the issue.

Though offshore wind in Lake Michigan faces significant hurdles, it's a laudable idea to at least study the concept. The bill's sponsor, Rep. Robyn Gabel, did a Q&A session with Offshore Wind Wire recently about the bill:

Offshore Wind Wire: What is the purpose of the Lake Michigan Offshore Wind Energy Council that you are proposing?

Robyn Gabel: The purpose of the Lake Michigan Offshore Wind Energy Council is to assist the Illinois Department of Natural Resources in the preparation of a report that will include appropriate criteria for the Department to use to review applications for offshore wind development of Lake Michigan lakebed leases; criteria for identifying areas that are favorable, acceptable and unacceptable for offshore wind development; a process for ensuring public engagement in the Department’s process for leasing Lake Michigan lakebed for offshore wind energy projects and recommendations for needed state legislation and regulations governing offshore wind farm development.

OWW: What challenges does offshore wind development face in Illinois?

Gabel: At this time the challenges are unknown.  Possible challenges may include a high cost for offshore wind development or problems related to its affect on wildlife, protected habitats, navigation, commercial fisheries or recreational uses of Lake Michigan.

OWW: What is the timeline for this legislation?

Gabel: House Bill 1558 has passed the House of Representatives and is now on first reading in the Senate.  Both the Senate sponsor and I plan to have the bill on the Governor’s desk for his signature by May 31, 2011.  The legislation requires that the Illinois Department of Natural Resources submit a report to the General Assembly and the Governor by June 30, 2012.

OWW: Where will this lead?  What is the future for offshore wind in Illinois?

Gabel: The result of this legislation will be a report with information that can be used to develop specific legislation regarding the process for the state to lease Lake Michigan lakebed for the purpose of offshore wind development.  In the fall of 2012, we will be proposing such legislation and hope to have it passed by January 2013.  During this same time period, the Wind Farm Information Review Committee of the city of Evanston, Illinois will be reviewing and evaluating the information proposals submitted by two firms last year regarding offshore wind energy off the coast of Evanston and making recommendations to the Mayor and City Council on potential next steps for the project.

Evanston Committee Begins Exploring Offshore Wind Concept

From the Evanston Review:

Evanston is taking the next steps to determine whether a wind farm is feasible off the city’s shores.

At the first meeting of the 25-member Evanston Wind Farm Committee on Thursday night, Mayor Elizabeth Tisdahl invited Evanston legislator State Rep. Robyn Gabel, D-18th, to discuss legislation Gabel is sponsoring which seeks to create a Lake Michigan Offshore Wind Energy Council.

Under the legislation, the council would be established as a separate entity under the Department of Natural Resources, and would examine topics related to offshore wind energy facilities in Lake Michigan.

The new group would then report its findings to the legislature and governor by the end of the year.

The legislation seeks to address concerns at the state level that any building of wind farms “be done in a very responsible way,” said Gabel, noting that Lake Michigan’s lake bed is the property of the state.

Tisdahl said it is important to get the legislation in place, assuring support locally as the city moves forward on the proposal.

In another move, Tisdahl disclosed that the city is linking up with the city of Waukegan intended to “remove barriers” to creating wind farm energy in the lake.

Tisdahl said the venture grew out of a discussion she had with Waukegan Mayor Robert Sabonjian at a recent conference for mayors representing Great Lake communities. The College of Lake County would also be a partner.

The actions come as a citizens committee, the city’s Wind Farm Committee, held its initial discussion.

Evanston officials began studying a citizens initiative several years ago, proposing Lake Michigan seven miles off Evanston’s shore would be an ideal place for a wind farm.

Evanston Council Votes to Move Offshore Project Forward

The Evanston City Council voted this week to move forward with plans for a proposed off-shore wind project in Lake Michigan, establishing a committee to review the two existing proposals and recommend a course of action.

However, the project is still very much in the concept phase, as significant issues of public acceptance and permitting remain. In addition, it seems unlikely the developers that have expressed interest have the financial and technical expertise to undertake such a massive, pioneering constrution process. According to an article in the Daily Northwestern:

The council received reports from the developers Mercury Wind Energy and Off Grid Technologies, who are interested in building a wind farm four to nine miles into Lake Michigan.

The proposed location is suitable for a wind farm and will have minimal negative effects to the community, said Nate Kipnis, co-chair of the Renewable Energy Resources Task Force at Citizens for a Greener Evanston, a community group hoping to reduce Evanston's carbon footprint.[...]

"Wind is a concept whose time has come," said Luke Townsend, general counsel at Off Grid Technologies.[...]

The wind farm project would benefit the Evanston community and Northwestern, said Lyle Harrison, CEO of Mercury Wind Energy who grew up in Evanston.