1 Offshore Siting Process / Guidelines – Macro View Offshore Siting Example – VA Offshore Development Example – VA • • Virginia Offshore Wind Technology Advancement Project (VOWTAP) Commercial 2 Macro View State Waters • Within 3-nautical miles of the coast Nautical mile = 6,076 feet Statute mile = 5,280 feet • • State agency lead Site selection at State or Local level Federal Waters • Bureau of Ocean Energy Management (BOEM) lead agency National Environmental Policy Act (NEPA) coordination Site identification/selection Public process Competitive auction 4 Development should be located in areas that are compatible with the wind resources. Early planning & consultation with all appropriate local/state/and federal stakeholders is strongly encouraged. BOEM or Lead State agency should initiate intergovernmental consultation to ensure issues and concerns are identified and adequately addressed. Leverage existing studies and resources to support site / turbine selection. Consider visual/viewshed impacts, water/benthic impacts, avian impacts, marine mammal impacts, construction considerations as well as other issues identified by local stakeholders very early in the process to ensure project development and reduce overall risk. 5 Preliminary Siting and Pre‐Construction Planning Environmental Considerations Fishery Avian Benthic Marine Mammals Geophysical & Geotechnical Considerations Visual (Scenic), Historic and Cultural Resources Transportation, Navigation, and Vessel Considerations 6 Federal Agencies • State Agencies (VA) • DEQ, DMME, DHR, VMRC, DGIF Local Agencies (VA) • BOEM, EPA, DOD, DOE, FAA, USCG, NOAA, USFWS City of Virginia Beach Tribes/First Nations Municipal Interests Ratepayers (VA) Environmental and Conservation Organizations Wind Industry Academia Trade Associations and Nonprofit Organizations 7 Virginia Example Mid-Atlantic 9 RI/MA NJ DE MD VA 10 Virginia: VOWTAP & Commercial VOWTAP Commercial WEA 12 DOE selected 7 projects for initial engineering and environmental surveys • $4 million per project In 2014, DOE will select 3 projects for final design and construction • $47 million per project • Project operations date by 2017 VOWTAP Objectives: • Install innovative offshore wind systems in U.S. waters • Expedite deployment with a credible potential for lowering the cost of energy 13 Two 6 MW Haliade 150 Alstom turbines on innovative foundations Located in federal waters, adjacent to the Commercial WEA • 23.5 nautical miles from the coast of Virginia Beach, no visual impacts expected • Will inform commercial development Focus on innovation and cost of energy reductions • Comprehensive testing and data collection plan 14 Preliminary turbine locations selected 15 • Landstown substation onshore interconnection point. Landstown 16 BOEM auction September 4, 2013. - Dominion won competitive auction - DOJ performed antitrust review ~23.5 nautical miles 112,800 acres Area auctioned as a single block ~13 nautical miles Area supports up to 2,000 MW Lease term of 38 years (5 year development & 33 year operations) 17 Activity Schedule Received Lease September 30, 2013 Paid bid balance October 11, 2013 Provided financial assurance and Dominion signed lease to BOEM Submit first lease payment (6-months of rent) Submit Site Assessment Plan (SAP) Submit Semi-Annual Progress Reports during the 5-year lease assessment term Submit Construction & Operations Plan (COP) - Survey Complete October 15, 2013 (within 10-business days of lease receipt) November 14, 2013 (within 45-calender days of lease receipt) April 2014 (within 6-months of lease issuance) May 1, 2014 (First report due within 6 months of lease effective date) November 1, 2014 (within 12-months of lease effective date) 18 19 Contact Information: robert.p.hare@dom.com 20