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2011 Renewable Energy Markets Conference

2011-11-21T18:14:24Z

Brandi Colander, Attorney, Air & Energy - New York City

The 2011 Renewable Energy Markets (“REM”) conference in San Francisco, hosted by the Center for Resource Solutions (“CRS”), highlighted some of the most cutting edge issues and stakeholders in the renewable energy space thus far. With 26 sessions and over 80 presenters, there was truly something for everyone. NRDC participated in several session, my colleague Max Baumhefner moderated a panel on the Nexus between Electric Vehicles and Renewable Energy and I had the pleasure of moderating a panel on Green Marketing and Social Media. Max’s panel came on the heels of an impressive EV demo that announced a partnership with CityShare.org and the Nissan Leaf to scale up electric vehicle use in San Francisco. The panel on green marketing and social media sparked quite a bit of interest as many grapple with the emerging role of social media in energy management and literacy. NRDC is exploring this head on with the recent launch of our initiative with Facebook and Opower, for more information click here and here.

One of the most anticipated events of this annual conference is the Greenpower Leadership Awards hosted by the EPA, DOE and CRS. These awards are designed to recognize leading purchasers and suppliers of green energy as well as leading organizations and individuals for advancing markets of green power. Of particular note is Intel Corporation, for hosting 12 solar systems on multiple locations in Oregon, New Mexico, Arizona, California, India and Israel totaling more than 3MW, with several additional sites due to be completed in 2011. Intel has also launched a social networking platform called “Planet Blue” designed to engage their 97,000 employees worldwide on the opportunities to collaborate on sustainability projects. Staples was acknowledged for their commitment to use green power nearly a decade ago. This year, Staples purchased green power equal to nearly 53% of its total electricity consumption and was selected for the seventh consecutive year as a component of the Dow Jones Sustainability Indexes. Finally, New York’s Empire State Building was a recipient of the Green Power Partner of the Year award recognizing a two-year commitment to purchase nearly 55 million kilowatt-hours of green power annually in January 2011. Many others, including Google, Kohl’s, Clean Energy Collective and Washington Gas and Energy Services were recognized this year. This ceremony reinforces the successful clean energy examples happening everyday throughout our nation.

Kudos to CRS for another year well done, where REM tackles hard issues and praises impressive efforts to move renewable energy forward in America!

Plugging in the Power of Social Networking

2011-10-14T20:46:25Z

Brandi Colander, Attorney, Air & Energy - New York City

Today, NRDC joined forces with Facebook and Opower to launch a landmark initiative designed to kick energy efficiency up a notch. Seizing upon the potential for social networking to influence people’s energy use and behavior, our organizations are working together to launch an application designed to empower people to consume energy more efficiently – in other words enjoy same level of comfort at lower costs.

The application will be available early next year. The initial set of features will allow consumers to:

• Compare Energy Use to Similar Homes: People will be able to benchmark their home energy use against a national database of millions of homes. All benchmarking will be done on an aggregate level, ensuring complete data privacy.

• Compare Energy Use Among Friends: People will be able to invite friends to compare their energy use against their own, show how energy efficient they are, and share tips on how to improve.

• Publish Conversations About Energy to the Facebook Newsfeed: People will be able to share information about their energy use, rank, group participation, and tips they've completed.

• Group Development – Cooperation and Competition: Communities of people will be able to form teams to help each other achieve collective goals, as well as compete against other groups. Teams will be rewarded and incentivized by their utility or other network partners.

• Automatically Import Energy Data: Customers of participating utilities will be able to import their energy data into the application automatically. (Customers from utilities that are not participating will also have the option to input their energy usage into the app manually.)

We expect today’s announcement will be one of many collaborations we undertake with Facebook in order to help the company meet its sustainability goals. As a first step, we’re turning to Facebook’s greatest resource, its platform, by empowering people on Facebook to take charge of and improve the way they use energy in their daily lives. One of our primary goals is to move this nation – our utilities, our businesses and everyday citizens – to cleaner, more efficient energy. That’s an aim we have for everyone we engage with, including Facebook.

And it’s a goal our nation is working toward too.

In 2010, the federal government dedicated $5 billion to weatherization in an effort to take advantage of our nation’s energy efficiency potential and create jobs. Never before has our government invested billions of dollars in energy efficiency as we have in recent years. This initiative is focused on enhancing energy efficiency because it is the first and most cost effective tool necessary in creating a clean energy economy. And when you enhance efficiency and the transparency around energy consumption and behavior, you empower people to take control of their own energy use and make smart choices about how they utilize it.

NRDC has worked for more than thirty years in partnership with utilities, regulators and their customers to improve energy efficiency and reduce environmental damage from all forms of electricity use. Progressive utilities realize that their role is changing in an era that offers tools like social networking as well as smart grid and metering technologies to enhance the transparency of energy consumption. Opower has also established itself as a leader in providing software to over 60 utility companies designed to analyze customer energy usage and offer recommendations on how they can save money by making small changes to reduce their consumption. We are pleased that thus far ComEd, City of Palo Alto Utilities and Glendale Water and Power, have committed to working together to engage their customers more directly in this venture, and we anticipate that others will join us. This will help people cut monthly electric bills while being part of a collective effort to cut pollution at the same time. We hope the 800 million people on Facebook agree.

For more information please visit the following:

- NRDC Facebook Page
- Facebook Green Tab
- Opower Facebook Page

Federal Offshore Wind Legislation -- Missing the Mark?

2011-06-22T23:12:03Z

Brandi Colander, Attorney, Air & Energy - New York City

Offshore wind has tremendous potential to generate clean energy to meet our needs, generate jobs, and reduce global warming pollution. To get off the ground, this budding industry needs political support and there are some improvements that can be made to address delays in the regulatory process. However, we must carefully avoid “Trojan Horse” legislation – such as two bills recently introduced by Representatives Wittman and Hastings -- that mask attacks on a cornerstone environmental law with the guise of promoting offshore renewable energy.

The National Environmental Policy Act, NEPA, of 1969 is a hallmark law, written with the goal of establishing a national framework for environmental protection measures. When used correctly, environmental organizations view NEPA as a critical tool for enabling good offshore wind projects to be permitted and developed by exploring the full consideration of the impacts to the natural and human environment. NEPA additionally requires that all federal agencies disclose these impacts to interested parties and the general public, a level of transparency highly valued by all parties involved.

Two legislators, presumably of course, seeking to advance a clean energy agenda to create jobs here in America and curb our dependence on foreign fuels, Representative Wittman and Hastings have set forth legislation that allegedly seeks to advance offshore wind, unfortunately, the wrong way. What the offshore wind industry needs most is clarity in the regulatory process, federal funding to fill data gaps on potential natural resource impacts, and consistent federal investments in critical financial incentive programs – similar to what is provided for other forms of generation. These bills seriously compromise the scope and application of NEPA; directly diluting the robust evaluation of environmental impacts that these projects may impose.

As an example, the Wittman legislation seeks to exempt NEPA’s application to the meteorological site testing and monitoring projects. The Hastings legislation significantly narrows the application of the comment process afforded by NEPA, “a Federal agency shall only consider public comments that specifically address the proposed action or the no action alternative (or both) and are filed within 30 days after publication of a draft environmental assessment or draft environmental impact statement.” Offshore wind projects require adequate public engagement and limiting comment periods can lead to unnecessary litigation for parties who do not believe that their concerns have had an appropriate period to be heard and reviewed.

NRDC is a staunch supporter of offshore wind, we support the Cape Wind project, have weighed in on BOEMRE’s Smart from the Start Initiative, and work with other developers, stakeholders and the Administration. We have helped to evaluate the best way forward in advancing offshore renewable energy technology – in a way that protects the environment and prevents conflicts with other ocean uses. Moreover, the offshore wind industry understands the importance of NEPA as a precautionary measure that can curb future litigation for poorly sited projects that would otherwise add undue costs to their development timeline and damage the reputation of an otherwise promising and plentiful domestic renewable energy technology. Ironically, industry did not seek this legislation out. Many of them have worked diligently to engage environmental stakeholders and understand the high costs of chipping away at tools like NEPA that provide environmental safeguards that could cost more in the long-run; they understand that there are no short cuts to proper siting as we understand that continuing to ignore the benefits of this local energy resource is costly.

Good projects can be permitted and developed within the existing NEPA framework which provides options for expedited action. Legislative exemptions from NEPA do not serve industry or our natural resources and confuse the national energy debate in a larger context. This legislation, if passed as drafted, is ill supported and the result could set detrimental precedent. Tomorrow, the House Energy and Mineral Resources Subcommittee will hold a hearing on these proposed bills. NRDC opposes the recently proposed “Cutting Federal Red Tape to Facilitate Renewable Energy Act” (H.R. 2170) and “Advancing Offshore Wind Production Act” (H.R. 2173). While we look forward to continuing to work with stakeholders to advance offshore wind, we hope that these considerations are incorporated in the current language so that we can advance offshore wind legislation that won’t miss the mark.

Can Clean Energy Drive America's Economic Recovery?

2011-03-08T22:01:17Z

Brandi Colander, Attorney, Air & Energy - New York City

Tonight, a debate is being held in New York City to answer this very question. Can the investment of billions into the clean energy sector trigger the creation of millions of jobs and innovation? Or are we simply pumping dollars into the myth of a green economy? Bill Ritter and Kassia Yanosek are for the motion with Robert Bryce and Steven Hayward arguing against, and John Donovan, of ABC Nightline News, is moderating. This event is being hosted by the Intelligence Squared U.S. Foundation at the NYU Skirball Center.

Fortunately, the environmental community has already given some thought to how clean energy investments can reap dividends in economic development for the United States. Today, the 2012 Green Budget was released. This document outlines our vision for exactly how these investments can make good on their promise. My contribution to the Green Budget was in the Department of Energy’s wind power section, with a particular focus on offshore wind.

This section highlights the National Renewable Energy Laboratory’s report last summer that each megawatt of offshore wind capacity built can generate up to potentially 20 jobs, and that the United States has over 4,000,000 MW of offshore wind energy potential. It also notes DOE’s new offshore wind program, the Offshore Wind Innovation and Development Initiative. As the Department of Interior’s Bureau of Ocean Energy Management, Regulation and Enforcement continues to streamline the offshore wind permitting and leasing process by identifying Wind Energy Areas and working with stakeholders to ensure environmentally sustainable siting, we can anticipate more movement in this industry.

With a recent Harvard Medical School study revealing that health and environmental damage can triple the cost of coal power and cost the economy an additional $345 billion in hidden expenses, clean, healthy and stably priced energy like wind is sounding more appealing than ever. We are starting to see more state activity supporting this notion. One example is Maryland, where Governor O’Malley recently announced legislation, the Offshore Wind Energy Act, designed to ramp up offshore wind. Under this Act, state utilities would provide their customers with energy produced at wind farms slated for development off the state’s coast, by entering into long-term contracts with the facilities. This is particularly relevant in Maryland where the number of unemployed Marylanders now tops 219,000, and the state is suffering disproportionately high health impacts because of its reliance on dirty fuels.

Another example can be found in Virginia where offshore wind jobs are already getting off the ground and companies are investing because they believe in the return. Last month, Gamesa Technology Corp. and the shipbuilding operations of Northrop Grumman launched an Offshore Wind Technology Center in Chesapeake. The companies are seeking to develop America’s first offshore wind turbines by late next year and they’ve already hired 50 engineers to start. This is tangible proof that clean energy can absolutely put Americans to work. Furthermore, we can do so while merging the technologies of the future with those we’ve depended on for generations.

While the Green Budget provides a template, this debate provides the dialogue that is happening all around the nation. I look forward to what will assuredly be an engaging exchange tonight. I think that it is pretty clear that I’ve shown my hand given my commitment personally and professionally to these issues. However, I encourage healthy pushback and hope that any looming questions about how our country can again “aim for the moon” to stimulate America’s economic recovery will be answered not by waiting light-years or looking light-years away, but by investing in clean energy right here in the United States of America.

Click here for more info on the Green Budget: http://ww1.prweb.com/prfiles/2011/03/07/2792384/GreenBudget.pdf

Click here for more info on tonight’s debate: http://intelligencesquaredus.org/index.php/debates/americas-house-divided-renewable-energy/

Click here for my colleague Cai Steger’s blog with additional Green Budget Highlights: http://switchboard.nrdc.org/blogs/csteger/ive_written_several_posts_in.html

A National Offshore Wind Strategy: Is Virginia the 'Offshore Wind Energy Capital of the East Coast'?

2011-02-07T17:24:45Z

Brandi Colander, Attorney, Air & Energy - New York City

Today, the Department of Interior and the Department of Energy jointly announced updates to the Administration’s “Smart from the Start” offshore wind initiative in the form of a new plan- A National Offshore Wind Strategy: Creating an Offshore Wind Industry in the United States. This plan is very encouraging for renewable energy in America. Here are three highlights from this announcement made in my native state, Virginia:

DOE and DOI are releasing a joint national offshore wind plan designed to harness the resources of both agencies and integrate their respective research and development and permitting processes responsibilities respectively, in a more streamlined manner. This plan goes beyond partisanship and is designed to help meet President Obama’s goal of generating 80% of the Nation’s electricity from clean energy resources by 2035.
DOI announced grant funding availability, totaling $50 million, for three offshore wind research projects over five years.
Based on feedback from state task forces, DOI is initiating a regional Environmental Assessment of offshore wind in the Mid-Atlantic region (Virginia, Delaware, Maryland, and New Jersey), to be posted shortly in the Federal Register. A similar plan will be created for Massachusetts, Rhode Island, North Carolina and perhaps New York and Maine in upcoming months. These assessments will assist with offshore wind development and WEAs (wind energy areas) that are designed to identify ideal areas for siting these projects. DOI plans to identify WEAs off of North Atlantic states in March.

NRDC is glad to see that there is continued movement forward on clarifying the regulatory process for this technology. Both Secretary Salazar and Chu emphasized the need to diversify our energy supply and stimulate economic revitalization through offshore wind. We are also encouraged to hear leadership speak directly to the need for our country to take the lead on clean energy and create manufacturing bases to enable these technological advancements here at home. Furthermore, the Administration’s announcement and tone today indicates their acute awareness of the costs associated with ensuring the viability of this renewable resource. There also appears to be a sincere interest in ensuring that offshore wind is a cost effective resource, that does not require long-term subsidies but a technology that is able to compete with alternatives. This is particularly important when the cost of energy options are adequately compared and all externalities are accounted for, it is only then that we start to see how the cost of renewable energy technologies like offshore wind can offer more predictable costs without the impacts to our health and environment caused by traditional fuels.

The location of this announcement is of course deliberate and well timed. Norfolk, Virginia is the home of our Navy with vast oceans that can harness ideal wind resources and creates an opportunity to demonstrate strategic collaborations to advance this industry as clear resource conflicts in this region are anticipated. In addition, Virginia is the second largest importer of electricity, second to California and the state has robustly explored the potential for offshore wind development. Of particular note:

Virginia political and environmental leadership has demonstrated longstanding support of offshore wind development and posturing Hampton Roads as a prime site for developing the industry.
Last year, Virginia’s General Assembly created the Virginia Offshore Wind Development Authority, identifying the Chesapeake Light Tower 13 miles from Virginia Beach, as a probable site for locating a weather tower to collect wind data.
Governor Bob McDonnell has consistently placed energy issues at the helm of his Republican Administration in an effort to stimulate economic development and create jobs in Virginia: “The cornerstone of the McDonnell administration will be to create new jobs and opportunities for all Virginians. We cannot do this without a reliable and self-reliant energy system through the use of both traditional and renewable forms of energy.”
Virginia hopes to host an offshore energy lab. Republican Senator Frank Wagner of Virginia Beach submitted a budget amendment allowing the governor to use up to $6 million of discretionary funding to match necessary funds for establishing a lab of this nature in collaboration with the federal government.
Two Virginia based green energy companies, Apex Wind Energy Corp. and Seawind Renewable Energy Corp. submitted unsolicited proposals to federal officials seeking lease space off Virginia Beach for offshore wind.
Virginia’s ports with direct access to the ocean and few conflicts with bridges makes it an ideal candidate for factories to accommodate larger scaled transmission projects, like the recently announced Atlantic Wind Connection seeking to serve as a transmission backbone to enable offshore wind energy at scale.
Virginia was selected as home for a renewable energy office in June of 2010.

At an offshore wind conference in Boston last week, I sat on a panel with Director of the Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE), Michael Bromwich, where he spoke at length about the Administration’s intent and BOEMRE’s plans to streamline the permitting process for offshore wind in order to foster responsible development and minimize conflicts. On NRDC’s behalf, I discussed the importance of marine spatial planning, regulatory clarity and proper financial incentives for nurturing this nascent technology. A technology that has demonstrated tremendous renewable energy benefits in other parts of the world, and America is well poised to become competitive in this industry. I was encouraged to hear Director Bromwich speak directly to the need to make decisions based on “scientific integrity” by empowering agency staff and collaborating with other federal agencies. It is affirming to see his words in action only days later.

Whether Hampton Roads will become the Silicon Valley of offshore wind remains to be seen, however today’s announcement undoubtedly provides investors with additional assurances about the domestic future of this industry. What we do know is that smartly sited offshore wind projects that have properly accounted for conflicts and environmental impacts, can usher our economy into the next era of energy. This next era will rely on energy that is renewable, reduces greenhouse gases and provides meaningful employment to American citizens without compromising their health. NRDC looks forward to continuing to work with all parties to advance these goals as we remain steadfast in doing our part to realize America’s clean energy future.

Deepwater Wind Submits Plans to DOI for America's Largest Offshore Wind Farm

2010-12-09T00:48:25Z

Brandi Colander, Attorney, Air & Energy - New York City

Today, Deepwater Wind announced plans to build two offshore wind projects in the US. The first plan proposed is a 5-8 turbine demonstration offshore wind project close to Block Island, as a replacement to a previously announced 100 turbine, 350 MW project. The second, named the Deepwater Wind Energy Center (DWEC) would constitute a 200 turbine, 1000 MW project in Rhode Island; estimated to begin construction in 2014. This effort is going to take place in four phases and cost between $4-5 billion. The first phase is slated to begin operation in 2015. In addition, the DWEC proposal includes an undersea transmission network that could serve Massachusetts, New York, Rhode Island and Connecticut; costing an additional $500 million to $1 billion. The DWEC is expected to produce electricity to serve roughly 350,000 homes and displace 1.7 million of carbon dioxide emissions annually.

According to Deepwater Wind, this project is “the equivalent of taking 4 million cars off the road or 40 million barrels of foreign oil imports”. A 200 turbine offshore wind farm would indeed constitute the largest offshore wind farm proposed in the country. The proposed location is currently in federal waters and considered an “area of mutual interest” for Massachusetts and Rhode Island.

Neptune Wind, a Massachusetts company, has also submitted a proposal to DOI to build a 120 turbine offshore wind farm with 360 MW of capacity in this same area of mutual interest. Recently announced DOI permitting challenges provide an opportunity for the Administration to clarify this process as developers seek to identify viable areas for siting offshore wind farms. DOI's Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE) is currently proposing a revision to current regulations in situations where there is only one qualified interested developer and the process for issuing noncompetitive leases. BOEMRE is exploring ways to simplify the leasing process and improve the efficiacy of the current 7-9 year permitting process; an effort critical to the vitality of this nascent industry.

Rhode Island recently approved an extensive marine spatial planning effort, the Rhode Island Special Area Management Plan (SAMP), designed to serve as a federally recognized coastal management and regulatory tool. The effort, led by the state’s Coastal Resources Management Council (CRMC), is one of the most extensive ocean management planning evaluations undertaken by any state in the US to date. According to Deepwater management, the DWEC is shaped irregularly in an effort to avoid fishing grounds, shipping lanes and glacial rock formations. Deepwater believes that the site corresponds with the SAMP and development of this project would incorporate sustainable environmental practices in order to protect ocean-based resources.

Deepwater attributes the “doubling” of this DWEC capacity, after ending plans to develop a previous 100 turbine project, to technological developments like next-generation turbines that can produce more power which are now being built in Europe resulting in improved economies of scale for developers. The company plans to capitalize on these advancements in technology by tripling DWEC’s capacity by doubling the number of turbines. DWEC is expected to generate up to 800 jobs, the same amount of jobs expected to come with a 100 turbine project however the construction cycle would last longer with this larger effort creating more opportunities for construction and assembly employment.

While it remains to be seen whether or not a larger project will translate into lower costs when spread among ratepayers, the filing of Deepwater’s applications to the Department of Interior for these projects offers another potential opportunity for renewable energy generation by offshore wind to take place here in America. Continued coordination with industry, government and environmental stakeholders is critical to properly bringing these technologies to scale. Incorporating the SAMP and marine spatial planning as these projects are developed ensures sustainable renewable energy generation.

Obama Administration Paves Way for Offshore Wind Power to Take Flight Off Atlantic Coast

2010-11-23T21:15:48Z

Brandi Colander, Attorney, Air & Energy - New York City

On the heels of yesterday’s good news about progress for offshore wind energy in Massachusetts, today the Obama Administration announced a major new initiative to accelerate the development of clean, offshore wind power along the Atlantic Coast.

The Interior Department, (DOI), Governor O’Malley of Maryland and the President of the Offshore Wind Development Coalition, Jim Lanard, made this encouraging announcement for renewable energy in America today.

The primary announcement - over the next 60 days the administration will identify wind energy areas, (WEA), that are most promising for potential offshore wind development. They have been working with many eastern states, state-based task forces and stakeholders to determine these areas and identify what they believe will be the best places for siting this renewable energy source. In the following six months, DOI will reach out to “sister agencies” with information about ocean based renewable energy development to gain additional information on specific areas to confirm the previously identified locations. They will work with NOAA, DOD, EPA, the Coastguard and other relevant agencies to move this process forward. As a result of this new initiative, when lease sales are reviewed, investors and others will have more solid information to proceed with a full environmental impact statement prior to approving any project. Additionally, more attention will be given to any transmission applications which may assist in making sound decisions from a business and permitting perspective on advancing offshore wind in America.

The second portion of the announcement included the Bureau of Ocean Energy Management’s current review of a final rule change designed to streamline a lack of competition provision, granting a green light to candidates and collapsing the current rule into a single opportunity to identify whether there is in fact competition for a proposed site. This rule is in final stages of review and the administration will provide additional details but hopes that this change will clarify the existing offshore wind permitting process.

The federal government’s announcement today is an acknowledgement and step forward for this promising source of clean, renewable energy to grow and compete with other sources of fuel. Furthermore, this initiative provides the United States with an opportunity to begin to compete with other nations that have eagerly pursued offshore wind. The first offshore wind farm was installed in 1991 in Denmark and, although small in scale, their current 2000 MW, and growing, of offshore wind confirms that this is a reliable source of renewable energy and the U.S. is getting closer to reaping those benefits firsthand.

Currently, the process for getting offshore wind power off the ground in this country is far too long, with a projected timeline of 7-9 years for domestic wind leasing, which is far longer than the typical siting process for a coal-fired power plant. The focus of yesterday’s announcement – Cape Wind in Nantucket Sound, heavily anticipated as the country’s first utility-scale offshore wind farm – is a perfect example. Already a decade in the making, just yesterday Massachusetts approved its agreement to sell half of its power to the National Grid, once its turbines are built and spinning. While this is a tremendous feat for offshore wind in America, we must expedite the timeline for similar projects in the future if we want to get serious about advancing this promising source of renewable technology in America.

We can – and should – significantly accelerate the timeline for these projects while still building them in a way which always protects the environment, including oceans ecosystems..a responsible manner. By careful environmental review and by planning where and how to build these projects ahead of time – using a process called “marine spatial planning” that President Obama endorsed this summer when he announced a landmark National Ocean Policy – we can build the clean energy sources in an environmentally sound way. That means carefully locating sites for offshore wind projects based on where wind resources are strong, where conflicts with important ocean habitats are minimized, and where they can connect to the electric grid so that we can benefit from the power generated. The marine spatial planning process helps us to do this in a way that will help us get offshore wind off the ground safer and sooner than in the past.

We’ll be carefully reviewing the details of DOI’s new proposal moving forward and sharing our specific thoughts on it. We’re optimistic that we can move more quickly and nimbly toward development of our offshore wind resources while engaging in thorough environmental review.

Atlantic wind provides the resource and opportunity enabling us to move to a clean energy economy in a major way. Today’s announcement confirms this opportunity and illustrates the need to be “smart from the start” in shaping offshore renewables policies here in America. NRDC looks forward to continuing to play a role in ensuring the responsible development of offshore wind in America.

Cape Wind in Massachusetts Gets Green Light to Plug Clean Energy into National Grid

2010-11-22T19:10:07Z

Brandi Colander, Attorney, Air & Energy - New York City

Today, Massachusetts decided that it is cost-effective for National Grid to purchase power from Cape Wind, once construction is complete on what is anticipated to be the first utility-scale offshore wind farm in America. This decision is a green light from the state Department of Public Utilities to allow American homes and businesses to plug into the clean energy that will be generated by Cape Wind.

After a decade-long effort, Cape Wind won federal approval in March, allowing 130 wind turbines to operate in Nantucket Sound, generating domestic clean renewable energy. Offshore wind has experienced many hurdles in the United States. All projects must conduct a proper assessment of the resource, environmental impacts, site assessment, endure the permitting process and of course connect to the grid, this all builds up to providing the power harnessed on our coasts and distributing it to our homes. Massachusetts’ approval of Cape Wind’s power purchase agreement (PPA) with National Grid today is a tremendous step forward for offshore wind in the United States!

Today’s decision helps ensure Cape Wind can create clean American energy in the near future, reducing our dependence on foreign fuel and greenhouse gas emissions, as well as preventing black outs and enhancing electricity system reliability and promoting fuel diversity. When it’s complete, this offshore wind farm will start spinning renewable, pollution-free energy for thousands of Massachusetts homes and businesses.

NRDC has been a strong supporter of the Cape Wind project since the beginning, and intervened with the Conservation Law Foundation, Union of Concerned Scientists and Clean Power Now in the legal contract review process for the National Grid purchase, filing briefs in favor of the agreement. Securing this long-term agreement calls for National Grid to purchase Cape Wind’s power for 2 cents less per kilowatt-hour than originally proposed. The wind farm is expected to sell the remaining power and secure additional financing at the beginning of 2011.

Construction for Cape Wind is anticipated late 2011 or early 2012, nearly 10 years since its creation was initiated. Careful siting for offshore wind projects like this is critical—but we must enhance the efficiency of the process so that it is no longer easier to get approval for traditional, dirty power plants than the necessary clean, renewable energy sources this country needs -- and can provide – now more than ever.

Massachusetts made history today: Cape Wind is one step closer to providing this country with a real clean energy alternative. Click here to view the 374 page final order from the Massachusetts Department of Public Utilities.

Offshore Wind Moving Forward in the US

2010-11-09T16:54:14Z

Brandi Colander, Attorney, Air & Energy - New York City

This week, Maryland moved closer to advancing their offshore wind plans. Governor Martin O'Malley's administration announced the federal government's acceptance of planning recommendations to advance this renewable technology. The western edge of the proposed project is an estimated 10 nautical miles from Ocean City's coast and 27 nautical miles from the eastern edge's coast.

As the nation awaits a final decision on the docket before the Massachusetts Department of Public Utilities regarding the cost effectiveness of the power purchase agreements for Cape Wind with National Grid, Maryland and Delaware are moving forward with the federal government in the offshore wind process.

Meanwhile, it is clear that the industry at large continues to expand. Siemens announced this week plans to increase their offshore wind services by providing maintenance for grid connections HelWin1 and BorWin2 in the North Sea for five years, as an initial pilot. Having received orders totally roughly 4800 MW for connecting offshore wind farms, the company is positioning themselves to sharpen their maintenance expertise. While this increase in the immediate future will only accommodate non-domestic offshore wind, it is clear that Siemens is well poised to service future domestic offshore wind projects.

Forbes has also taken note of the trend, acknowledging the success that the US has had in leading the globe in land based wind, but failing to currently have any offshore wind in operation. Things are changing. The federal government is engaged and appetites have peaked. This technology has been demonstrated to add immediate value abroad. Ensuring that these projects are properly sited taking into consideration the strength of the resource and the ecological and marine impact is critical to doing this well.

Greenbuild and USGBC's Affordable Housing Summit

2010-11-02T21:37:54Z

Brandi Colander, Attorney, Air & Energy - New York City

This month, Greenbuild is convening for their Annual International Conference and Expo in Chicago, Illinois; during this time, the United States Green Building Council (USGBC) will hold an Affordable Housing Summit (AHS). General Colin L. Powell will keynote the Greenbuild Opening Plenary. The AHS, on November 16th, will focus on international models and trends, retrofit financing, investor considerations and hold affordable housing charettes. AHS attendees will have access to salons, off-site education sessions and the Greenbuild Film Festival. This is an excellent opportunity to explore recent affordable housing developments, best practices and opportunities to leverage the nation’s vast investment in energy efficiency and weatherization.

The United Nations estimates that half of the world’s population now lives in urban areas, with projected growth to break 70% by 2025. With over 125 million existing housing units in the United States and less than 1 million units built annually, a heavy emphasis must be placed on retrofitting existing infrastructure. Exploring attractive financing tools, audit protocol and data to support these necessary upgrades are critical in moving forward and best practices will be shared during this summit.

A focus on affordable “green” housing is often undervalued and when viewed closely, provokes unique business and regulatory opportunities. Low-income families spend roughly 17% of their income on energy bills every year. This population is particularly vulnerable to the fluctuating costs associated with housing and energy; expenses that are necessities not luxuries. These fluctuations are compounded by constant upticks in customer rates and bills from their utility providers. In addition to extensive weatherization, retrofitting and financing efforts, utilities should set aggressive long-term energy savings and targets and explore decoupling options without compromising the financial health of low income customers, to truly enhance affordable housing for these constituents.

A few factoids on the importance of affordable green building:

42% of all LEED-certified homes qualify as low-income housing.
Inhabitants of low-income housing have disproportionately higher rates of asthma and upper respiratory diseases. Green building inhabitants have 40-60% fewer incidents of colds, flu and asthma due to access to fresh air, better ventilation systems and non-toxic paints and furniture.
Affordable green homes result in significant cost savings for low-income renters and owners, reducing their operational expenses over the long-term by investing in enhancing their energy efficiency and relying on alternative energy sources.

Green infrastructure has literally taken the world by storm. Given the economic benefits of investing in green building, this investment is eternally in vogue. Spreading the wealth among all classes is not only good for low-income individuals, but also for the businesses that build them and the environment. These affordable green homes reduce the environmental impact of residential units through sustainable designs and construction practices that increase energy and resource efficiency while reducing sprawl.

During the AHS, the USGBC plans to further illustrate the benefits of affordable green housing by teaming up with Habitat for Humanity Lake County and Bank of America to build two affordable green homes in Lake County, Ill. Both homes are targeted to achieve LEED for Homes Platinum certification, the highest residential buildings certification!

For details and information on how to participate in Greenbuild and USGBC’s AHS click here:

http://www.greenbuildexpo.org/education/Affordable-Housing.aspx

Offshore Wind: Britain's 300 Million Pound Investment and America's New Marine Terminal

2010-10-25T16:20:09Z

Brandi Colander, Attorney, Air & Energy - New York City

Britain’s plan to build 32 GW of offshore wind capacity received tremendous support today. This morning, Gamesa, GE and Siemens announced their investment of over 300 million pounds in the UK offshore wind industry. This investment would include: the creation of over 4,000 direct and supply chain jobs, a Siemens factory opening in 2014, and 60 million pounds in port funding. United Kingdom's Prime Minister David Cameron explained that his coalition government will maintain a 60 million pound budget for offshore wind infrastructure adaptation. This commitment was further bolstered by a letter of intent promising support of this new infrastructure signed by the government with the UK’s Crown Estate, Britain’s coastal region governing body. Additionally, Gamesa plans to base their offshore division global headquarters in London.

The US is continuing to advance their offshore wind agenda. On October 20th, Governor Deval Patrick announced a new addition to the New Bedford, Massachusetts community: a multi-purpose marine commerce terminal designed to support the assembly, delivery, and installation of offshore wind turbines. This new terminal would further support shipping and other commercial activities of Cape Wind Associates in an effort to facilitate America’s offshore wind industry.

As noted by Governor Patrick’s press release: “The federal government is commencing a leasing process for federal waters farther from the coast of Massachusetts and all along the Atlantic Coast. That will lead to dozens offshore wind projects, many of which could make use of this terminal. The National Renewable Energy Laboratory predicts that full development of U.S. offshore wind potential could create 43,000 permanent jobs and generate $200 billion in economic activity. At least four other East Coast states are pursuing the development of wind energy projects off their coasts.”

Amidst the news of this new commerce terminal, regulatory proceedings to confirm the future of domestic offshore wind remain underway. The Department of Public Utilities in Massachusetts is under final review of the Cape Wind PPA with National Grid. NRDC, intervenors in this proceeding, participated in the proceedings and filed initial and reply briefs in support of the project.

As America moves closer to making offshore wind a reality, creating the environment to nurture this new industry is critical. Britain illustrates the importance of tempering this industry with supportive infrastructure to stimulate economic development and create jobs. America has a great deal to gain, and fortunately, examples to learn from.

Offshore Wind Gets a Boost from Google and Good Energies: Introducing the Atlantic Wind Connection

2010-10-12T19:50:03Z

Brandi Colander, Attorney, Air & Energy - New York City

Today, Google and Good Energies, a renewable energy investment firm, announced that they are investing an estimated $200 million apiece in the first phase of construction for a transmission backbone for future offshore wind farms along the Atlantic Seaboard called the Atlantic Wind Connection (AWC). This is indeed an exciting development for offshore wind, transmission and renewable energy policy in the United States. NRDC is a strong supporter of properly-sited off-shore wind projects and it is great to see such strong investor confidence by Google and Good Energies in this technology.

This offshore wind transmission effort is funded with cash and debt by Google Inc. (37.5%), renewable energy investment firm Good Energies (37.5%), a Japanese industrial conglomerate Marubeni (15%) and Maryland transmission company Trans-Elect (10%). Google touted in a blog on Monday that “[w]hen built out, the Atlantic Wind Connection (AWC) backbone will stretch 350 miles off the coast from New Jersey to Virginia and will be able to connect 6,000MW of offshore wind turbines. That’s equivalent to 60% of the wind energy that was installed in the entire country last year and enough to serve approximately 1.9 million households.” This project, expected to cost $5 billion in total over the next decade, with its 350-mile underwater spine, will unquestionably transform the region’s electrical map.

The first phase will run 150 miles in federal waters and is expected to be completed by 2016, the remainder to be completed at the earliest in 2021. Although several undersea electrical cables currently exist off the Atlantic Coast, this project is unique in its scope and size and would be the first to pick up power from generators along the way. The initial transmission lines would run from Virginia to New Jersey and deliver approximately 2000MW of wind energy. This output could serve 500,000 homes and tie into PJM’s electrical grid, which currently serves 13 states and the District of Columbia.

The Atlantic Ocean is particularly attractive for siting this project given its shallow waters and wind resource. While the AWC is undoubtedly ambitious and potentially incredibly rewarding for renewable industry as a whole, the regulatory hurdles that offshore wind projects like Cape Wind have endured for a decade must not be ignored. The permitting process formerly under the control of the Department of Interior’s Minerals Management Service (MMS), now the Bureau of Ocean and Energy Management, Regulation and Enforcement (BOEMRE) must not slow down or delay currently proposed projects. Furthermore, BOEMRE must continue to refine its permitting process to enhance regulatory certainty by increasing clarity and transparency in the process and clearly define coordination with other federal and state entities.

This “transmission backbone” proposal will permit transmission lines to be connected to several offshore wind projects, potentially smoothing output from offshore wind. Connecting these projects, among other things, will reduce the need for additional isolated transmission infrastructure and allow offshore wind to be tremendously scaled up by mitigating the impacts of wind’s variability. These critical efforts will enable investors to make a proper assessment that this technology has domestic potential. Such assurances will provide the United States with the investments necessary to be competitive in offshore wind as our international neighbors continue to execute plans for current and future generations of offshore wind.

In offshore wind, we also have the opportunity to make sure that we choose the right locations for projects. We should ensure that we responsibly develop these offshore energy resources in a manner that is consistent with the protection of coastal habitats and marine resources including fish and wildlife. We have the chance to identify and protect those areas of the ocean that would be particularly sensitive to renewable energy production because they support vulnerable species populations, contain unique habitats, or have other important ecological attributes. We also have the ability to recommend those areas best suited for renewable energy projects because of their high energy yield characteristics, while ensuring that they will have the least impact on the marine environment. Environmental criteria should be developed to protect sensitive areas of the ocean that support vulnerable populations, contain unique habitats, or have other important ecological attributes.

I would further submit that properly accounting for the environmental impact of these large scale projects is a litmus test for longevity. As we anticipate the cost and impact of greenhouse gas emissions, sophisticated businesses and investors are observing the importance of transitioning to investments that support the benefits of sustainability that renewable energy provides. Google has previously demonstrated their interest and willingness to invest in renewable energy by relying heavily on these resources to power its data centers and their May $38.8 million purchase of a stake in two North Dakota wind farms.

Furthermore, since the AWC is a direct current (DC) transmission proposal, wind turbines can be further offshore, thereby reducing their visibility from beaches and backyards while potentially harnessing stronger wind resources. Cape Wind has demonstrated the potential pushback that offshore wind projects can experience because of their aesthetic implications. Additionally, the concept of hubs gathering power from multiple turbines means fewer subsea cables to shore, easing interconnections to the grid and reducing the required infrastructure in our oceans.

NRDC has tracked the developments in offshore wind over the past decade. The institution is intimately familiar with the regulatory, financial, and environmental obstacles that the industry faces. We’ve worked with environmental groups, developers and the government to identify the problems and seek opportunities to determine the best opportunities for our nation to capitalize on the incredible potential of environmentally sustainably built and sited renewable energy projects that offshore wind could provide. We look forward to maintaining our efforts and reviewing this new transformative effort in our nation’s energy infrastructure.

Click here to view the Google blog post with additional details on the AWC:

http://googleblog.blogspot.com/2010/10/wind-cries-transmission.html

Click here to view NRDC’s most recent blog post on offshore wind:

http://switchboard.nrdc.org/blogs/kkennedy/salazar_signs_lease_for_the_fi.html

The 'Balancing Mechanism'-National Grid and Scottish Power Moving Wind Forward in Britain

2010-06-29T16:49:22Z

Brandi Colander, Attorney, Air & Energy - New York City

“Firms paid to shut down wind farms when the wind is blowing,” is the unfortunately misleading headline of a recent article in the UK Telegraph touting how Britain’s biggest wind farm companies are being paid not to produce electricity when the wind blows. The article describes a current effort to fiscally compensate energy firms to turn off their turbine when supply exceeds demand. The author cites the ‘intermittent’ nature of wind as the justification for why onshore wind farms are “unreliable providers of electricity.” Since the excess electricity cannot be stored, National Grid and Scottish Power have worked together to test a solution coined as the ‘balancing mechanism’-switching or reducing the power supplied when supply exceeds demand.

The first successful test shut down of wind farms took place three weeks ago. Scottish Power received £13,000 for closing down two farms for a little over an hour on 30 May at about five in the morning. Whereas coal and gas power stations often pay the National Grid £15 to £20 per megawatt hour they do not supply, Scottish Power was paid £180 per megawatt hour during the test to switch off its turbines.

This arrangement was tested where National Grid could direct a wind farm, here Scottish Power, to turn off turbines in the event of excess generation with the expectation that the wind farm would be compensated by National Grid if this occurred. Creating less when we need less is a good thing-no? In other parts of the world, fossil fuel plants are routinely turned down when, for example, there is an abundance of hydropower available at lower operating costs. Moreover, a tariff was designed to compensate the wind farm if this were to occur.

Fossil fuels and nuclear energy have been subsidized heavily for decades. This pilot was designed to test the viability of a new energy source and address the intermittency concerns. Since the article accurately captured the fact that the balancing mechanism was deployed, the arrangement appears to have been successful. The test gives National Grid the confidence that they can readily balance the grid to accommodate changes in demand and supply, which makes wind an easier source of energy to integrate into their grid.

For the critics of wind farms who have “seized on the revelation as evidence of the unsuitability of turbines to meet the UK’s energy needs in the future,” there are options. Greater ingenuity, specifically, flexible scheduling of industrial operations and other end uses like irrigation, could utilize this excess generation. The Pacific Northwest is also looking at water heat storage as an alternative since they have abundant water heat; in effect, a large quantity of wind generation could be stored in water heater tanks.

The mischaracterizations in this article are damaging to global energy policy. Particularly in the United States when we are on the cusp of moving toward deployment of smarter approaches to our domestic energy policy. In the midst of our nation’s largest environmental catastrophe, as a result of the Deepwater Horizon oil spill, learning from successful initiatives like this is a critical step in evolving our energy independence.

America's First Utility-Scale Offshore Wind Farm Announces Power Purchase Contract

2010-05-07T14:41:17Z

Brandi Colander, Attorney, Air & Energy - New York City

Offshore wind in the United States took another step forward today. Cape Wind has announced the details of their long term power purchase contract with National Grid. During today's news conference call, National Grid President Tom King and Cape Wind President Jim Gordon discussed the significance of this landmark event.

National Grid has agreed to purchase half of the energy that Cape Wind will generate and RECs for 15 years starting in 2013. Cape Wind will provide National Grid with a bundle of attributes in this agreement that aggregate 20.7 cents per kilowatt hour. The energy price set for 2013 is 12.5 cents per kilowatt hour.

What does this mean?

This means that Cape Wind has moved to the next step in the process of providing alternative energy to up to 75 percent of Cape Cod residents. The contract, to be filed on Monday with the Massachusetts Department of Public Utilities (“DPU”), will increase 3.5% over it's term adding $1.59 to the total monthly bill of the average customer. To those who say they can’t afford this, National Grid says that they can’t afford not to act now. “We need to do more and as we do more, we reduce our costs for all of us,” said Tom King.

National Grid’s projection that their purchase of power from Cape Wind will result in an increase three years from now of $1.59 per month for a typical home’s electric bill is essentially an increase of roughly 5 cents a day. For a nickel a day, Cape Wind is striving to offer cleaner air, new jobs and reduced reliance on oil, coal and gas. As America’s first federally approved utility-scale offshore wind farm continues to move forward, it is important to keep in mind that there are other invisible costs that need to be weighed and balanced. This contract offers a diversification in their portfolio by including the hedge value of a large term contract, environmental attributes, transmission and RECs. With that said, the cost of inaction is indeed higher than a nickel a day.

These long term contracts are essential for offshore wind developers as they need to secure the utility's business in order to attract financing for their projects. Cape Wind is estimated to cost roughly $1 billion. Cape Wind is convinced that they will sell the other 50% of the power for the project. Now that they have their "anchor" customer, National Grid, they have begun negotiations with the banking community and equity investors who have expressed interest as they watch the progress of this project; a mere 9 days after receiving federal approval of this historic project.

The economic recession has had a tremendous impact on our energy prices. The global economic recession has reduced the demand for fossil fuels which, on average, lowers electricity prices, temporarily. As global economies recover, we can anticipate the prices of gas, coal and oil to rise again.

As a matter of process, state regulators have to approve this contract. It is anticipated that the DPU proceeding will take place in six months and the Attorney General's Office will weigh in with an advising opinion. There will be ample opportunity to discuss and debate the contract as the DPU undertakes it process of review.

National Grid has stepped up to support the project because they believe that the nation must move towards a cleaner, greener economy. They emphasized the need to have the United States lead on comprehensive legislation for energy and climate as well as renewables. “The American worker and the economy are losing out daily. China invested more than $400 billion in renewables this year whereas the United States only invested $80 billion,” said King.

As the first utility-scale American offshore wind energy facility, this project represents a giant leap forward for our country’s clean energy future. Cape Wind could jumpstart the U.S. offshore wind industry – paving the way for other facilities to get off the ground nationwide and do it quicker and easier than in the past. It’s more important now than ever to make the right decisions about how to develop energy off our coasts, and doing so in an environmentally sustainable and cost-effective manner is important to Americans.

For 24/7 information on Cape Wind’s potential clean energy offerings by MW hours and carbon dioxide offsets visit: http://www.capewind.org/

Cape Wind Marks New Chapter in American Energy: Clean, Homegrown Offshore Power

2010-04-28T21:46:35Z

Brandi Colander, Attorney, Air & Energy - New York City

Today, United States Department of Interior Secretary Ken Salazar jumpstarted the American offshore wind industry by announcing federal approval of the Cape Wind Energy project in Massachusetts’ Nantucket Sound.

This announcement marks the approval of the first utility-scale offshore wind project in the United States to go through the federal review and approval process. Approving Cape Wind demonstrates America’s commitment to renewable energy and allows our country to be competitive globally on offshore wind – joining the likes of Europe and China. Today is historic and symbolizes the beginning of a new chapter in our nation’s energy policy: clean, homegrown offshore wind power.

This process comes after a nearly decade-long project approval process, much longer than a traditional coal power plant is typically reviewed. It never should have taken this long, but as a first-of-its-kind, it is important that we got it right – harnessing wind power while protecting the surrounding sensitive ocean resources.

Fortunately, the long Cape Wind review process paves the way for the others that will come after it – helping to get them up and running more quickly. Their experience will inform the regulatory approval process for other offshore wind developers. As Secretary Salazar said today – nine years simply cannot remain standard practice in deploying offshore wind here in America.

Much of the delay was related to deciding where to put (or site) the turbines – also known as “siting” the project. Siting any energy project is difficult. Historic battles rooted in the principles of NIMBY plague this process. Striking the balance between siting where the resources are rich and the environmental benefits outweigh the impacts will involve continued collaborative efforts on behalf of industry, government and environmental organizations. The federal government is reviewing how to expedite the offshore wind approval process. NRDC and others are working to streamline the process while still protecting the surrounding environment.

Another challenge for Cape Wind was the fact that so many government agencies (at least a handful) were involved in the approval process and it was often unclear who all the regulatory players were, and what role they played. As you can imagine, this can add to the confusion for developers and even stakeholder groups like our own, and makes the process more time consuming. As we ramp up the offshore wind industry, creating more regulatory clarity can improve this process and cut through confusion. It is important that the role of each federal agency with authority in the process is able to perform their duties in cooperation with one another. It is equally critical that these roles are clear and transparent so that stakeholders can engage in an informed and meaningful manner.

Cape Wind has truly endured. Their experience is a testament to how the regulatory framework for offshore wind in the United States has been shaped with the help of industry, government at all levels and environmental organizations. Their collaborative approach can be attributed to their success. Although this decision was a decade in the making, it is only the beginning.

Offshore wind provides long term price stability, in contrast to the volatility of fossil fuel costs that every American knows all too well. Because the fuel that offshore wind farms rely on, the wind, is essentially free, these long term prices are more stable and cost-effective in the long term.

Despite future hurdles, the potential for offshore wind energy in the United States is enormous. This potential was acknowledged today. Approximately 12, 086 NRDC members spoke out in support of Cape Wind in recent weeks. They believe in this potential. Offshore wind energy potential in the Northeast, mid-Atlantic and Great Lakes alone are capable of providing 900,000 MW of renewable electricity. To put this in perspective, this is the same amount America’s electric power plants currently have the ability to provide to our homes and businesses. This is roughly equal to what our nation currently has installed in electric generation capacity.

Last week, on the 40th Anniversary of Earth Day, the world watched as an oil rig caught fire, sank and began spilling oil off coastline of Louisiana. Today, we got a glimpse of a cleaner, safer energy future off our shores – renewable wind power that can’t spill or run out.