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

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:

1. 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.
2. DOI announced grant funding availability, totaling $50 million, for three offshore wind research projects over five years.
3. 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.