1. Alternative Energy on the Outer Continental Shelf Robert P. LaBelle Deputy Associate Director Offshore Energy and Minerals Management Minerals Management Service Marine Renewable Energy Center Ocean Energy for New England Conference October 6, 2008

2. 2 Overview Minerals Management Service Minerals Management Service Mission Statement Mission Statement Activity Highlights Activity Highlights Regulatory Authority and Mandates Regulatory Authority and Mandates Program Development Program Development Major Rule Elements Major Rule Elements Rule Instruments Rule Instruments Lease Process Lease Process Plans under the Rule Plans under the Rule Interim Policy Interim Policy Looking Ahead Looking Ahead

3. 3 MMS Mission To manage the ocean energy and mineral resources on the Outer Continental Shelf and Federal and Indian mineral revenues to enhance public and trust benefits, promote responsible use, and realize fair value. Credit: GE

4. 4 Activity Highlights: Cape Wind Project Published Notice of Availability of Draft EIS on January 18, 2008 (60-day comment period) Published Notice of Availability of Draft EIS on January 18, 2008 (60-day comment period) Held public hearings March 10-13, 2008 Held public hearings March 10-13, 2008 Closed comment period on April 21, 2008 Closed comment period on April 21, 2008 Over 40,000 comments received Over 40,000 comments received Next Steps: Publish Final EIS Publish Final EIS Issue Record of Decision Issue Record of Decision

5. 5 Activity Highlights: Environmental Studies Program Comparative Study of Offshore Wind Turbine Generators Standards Comparative Study of Offshore Wind Turbine Generators Standards Determining Night Time Distribution of Long-Tailed Ducks Using Radio Telemetry Determining Night Time Distribution of Long-Tailed Ducks Using Radio Telemetry Effects of Pile Driving Sounds on Auditory and Non-Auditory Tissues of Fish Effects of Pile Driving Sounds on Auditory and Non-Auditory Tissues of Fish Compendium of Avian Information and Comprehensive GIS Geodatabase Compendium of Avian Information and Comprehensive GIS Geodatabase Energy Market and Infrastructure Information for Evaluating Alternative Energy Projects for OCS Atlantic and Pacific Regions Energy Market and Infrastructure Information for Evaluating Alternative Energy Projects for OCS Atlantic and Pacific Regions Evaluation of Visual Impacts on Historic Properties Evaluation of Visual Impacts on Historic Properties Meteorological and Wave Measurements for Improving Meteorological and Air Quality Modeling Meteorological and Wave Measurements for Improving Meteorological and Air Quality Modeling Potential for Interactions between Endangered and Candidate Bird Species with Wind Facility Operations on the Atlantic OCS Potential for Interactions between Endangered and Candidate Bird Species with Wind Facility Operations on the Atlantic OCS

6. 6 Activity Highlights: Regional Coordination Northeast Regional Ocean Council (NROC) Northeast Regional Ocean Council (NROC) NROC Governors’ Action Plan for 2008-2009 identifies “Ocean Energy Planning and Management” as a major regional ocean management issue for the northeast U.S. NROC Governors’ Action Plan for 2008-2009 identifies “Ocean Energy Planning and Management” as a major regional ocean management issue for the northeast U.S. Committee on Ocean Energy Planning and Management (COEPM) formed to address these issues Committee on Ocean Energy Planning and Management (COEPM) formed to address these issues Ongoing consultation with Federal, State, and Local stakeholders Ongoing consultation with Federal, State, and Local stakeholders

7. 7 Regulatory Authority: EPAct 2005 Section 388 amended Section 8 of OCSLA Section 388 amended Section 8 of OCSLA MMS was granted the authority to regulate a broad spectrum of activities on the OCS: MMS was granted the authority to regulate a broad spectrum of activities on the OCS: Alternative energy (wind, ocean wave, ocean current, solar, hydrogen production) Alternative energy (wind, ocean wave, ocean current, solar, hydrogen production) Alternate use of existing facilities (research and offshore support stations, recreation opportunities) Alternate use of existing facilities (research and offshore support stations, recreation opportunities)

8. 8 Key Regulatory Mandates Coordinate with affected State & local governments and Federal agencies Coordinate with affected State & local governments and Federal agencies Ensure safe operations Ensure safe operations Protect the environment Protect the environment Issue leases competitively Issue leases competitively Ensure fair return for use of OCS lands Ensure fair return for use of OCS lands Share revenue with affected States Share revenue with affected States

9. 9 MMS Alternative Energy Program Development The Rule/Regulations ( proposed July 2008 ) The Rule/Regulations ( proposed July 2008 ) Record of Decision ( Jan. 2008 ) Record of Decision ( Jan. 2008 ) Adoption of 52 best Adoption of 52 best management practices Programmatic EIS ( Nov. 2007 ) Programmatic EIS ( Nov. 2007 ) Interim Policy for Leasing ( Nov. 2007 ) Interim Policy for Leasing ( Nov. 2007 ) Over 40 nominations received Over 40 nominations received Lease Form & Information Collection Lease Form & Information Collection Stakeholder meetings with State agencies Stakeholder meetings with State agencies AE Study Program ( Ongoing ) AE Study Program ( Ongoing )

10. 10 The Rule: Comments 280 comments estimated in total in response to Notice of Proposed Rulemaking 280 comments estimated in total in response to Notice of Proposed Rulemaking Most Common Topics: Aquaculture, State and Local Consultation, Bonding, Confidentiality, Alternate Use Liability Transference, Jurisdiction, Revenue Sharing, and Environmental Review Processes Most Common Topics: Aquaculture, State and Local Consultation, Bonding, Confidentiality, Alternate Use Liability Transference, Jurisdiction, Revenue Sharing, and Environmental Review Processes

11. 11 The Rule: Preliminary Comment Estimates Type Number Received State Government 38 NGOs37 Oil and Gas Industry 3 Alternative Energy Industry 27 Local Government 7 Congress4 Tribal Government 1 Federal Government 7 Research Organizations 1 Individuals155 280

12. 12 Coordination (throughout the rule) Coordination (throughout the rule) State/Federal Task Forces State/Federal Task Forces Leasing Process and Issuance (Subpart B) Leasing Process and Issuance (Subpart B) Competitive & Noncompetitive Leasing Competitive & Noncompetitive Leasing Commercial & Limited Leases Commercial & Limited Leases Plans (Subpart F) Plans (Subpart F) Site Assessment & Construction & Operations Site Assessment & Construction & Operations General Activities General Activities Conduct of Approved Plan Activities Conduct of Approved Plan Activities (Subpart H) (Subpart H) Environmental & Safety Monitoring & Inspections Environmental & Safety Monitoring & Inspections Payments (Subpart E) Payments (Subpart E) Bonding & Payments Bonding & Payments Decommissioning (Subpart I) Decommissioning (Subpart I) Alternate Use (Subpart J) Alternate Use (Subpart J) The Rule: Major Elements Credit: GE

13. 13 The Rule: Plans Site Assessment Plan (SAP) – describes assessment and survey activities needed to characterize the site (applies to commercial leases) Site Assessment Plan (SAP) – describes assessment and survey activities needed to characterize the site (applies to commercial leases) Construction & Operations Plan (COP) – describes all activities and facilities to be installed and used to gather, transport, transmit, generate, or distribute energy from the lease (applies to commercial leases) Construction & Operations Plan (COP) – describes all activities and facilities to be installed and used to gather, transport, transmit, generate, or distribute energy from the lease (applies to commercial leases) General Activities Plan (GAP) – describes all activities and operations related to technology testing, including any facility siting and project easement (applies to limited leases, ROWs, and RUEs) General Activities Plan (GAP) – describes all activities and operations related to technology testing, including any facility siting and project easement (applies to limited leases, ROWs, and RUEs)

14. 14 Interim Policy Interim policy currently in effect for limited leasing before final regulations Interim policy currently in effect for limited leasing before final regulations Covers resource data collection and technology testing activities Covers resource data collection and technology testing activities Will authorize 5-year term Will authorize 5-year term Will not give priority right for subsequent commercial development Will not give priority right for subsequent commercial development Initially received over 40 site nominations Initially received over 40 site nominations Currently considering 15 lease areas Currently considering 15 lease areas Anticipate issuing a number of limited leases over the next year Anticipate issuing a number of limited leases over the next year

15. 15 Interim Policy: Lease Areas Under Consideration New Jersey DelawareGeorgia *All wind met towers*

16. 16 Interim Policy: Lease Areas Under Consideration Florida California *Ocean current and wave*

17. 17 On the Horizon Completing the rulemaking Completing the rulemaking Continuing to collaborate with stakeholders Continuing to collaborate with stakeholders Initiating environmental studies under the MMS Studies Program Initiating environmental studies under the MMS Studies Program Issuing Interim Policy leases and reviewing lease plans Issuing Interim Policy leases and reviewing lease plans Preparing environmental compliance documents Preparing environmental compliance documents Monitoring activities Monitoring activities Credit: GE

18. 18 More Information… Robert P. LaBelle Deputy Associate Director Offshore Energy and Minerals Management 703-787-1700 On the Web at: www.mms.gov/offshore/alternativeenergy