1. MMS Alternative Energy Program November 28, 2007

2. MMS Mission 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. 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.

3. Novel Opportunities and Unique Challenges Regulating a broad spectrum of activities: Alternative energy (e.g., wind, ocean wave, ocean current, and solar)Alternative energy (e.g., wind, ocean wave, ocean current, and solar) Alternate use of existing facilities (e.g., research and offshore support stations, recreation opportunities)Alternate use of existing facilities (e.g., research and offshore support stations, recreation opportunities) Regulating a broad spectrum of activities: Alternative energy (e.g., wind, ocean wave, ocean current, and solar)Alternative energy (e.g., wind, ocean wave, ocean current, and solar) Alternate use of existing facilities (e.g., research and offshore support stations, recreation opportunities)Alternate use of existing facilities (e.g., research and offshore support stations, recreation opportunities)

4. Energy Policy Act of 2005 amended the Outer Continental Shelf Lands ActEnergy Policy Act of 2005 amended the Outer Continental Shelf Lands Act Gave DOI comprehensive authority to manage development of promising new ocean energy sources in the OCS (wind, wave, ocean current) and responsible alternate use of OCS facilitiesGave DOI comprehensive authority to manage development of promising new ocean energy sources in the OCS (wind, wave, ocean current) and responsible alternate use of OCS facilities Energy Policy Act of 2005 amended the Outer Continental Shelf Lands ActEnergy Policy Act of 2005 amended the Outer Continental Shelf Lands Act Gave DOI comprehensive authority to manage development of promising new ocean energy sources in the OCS (wind, wave, ocean current) and responsible alternate use of OCS facilitiesGave DOI comprehensive authority to manage development of promising new ocean energy sources in the OCS (wind, wave, ocean current) and responsible alternate use of OCS facilities Received New Statutory Authority

5. Key Statutory Mandates SafetySafety Protection of the environmentProtection of the environment Coordination with affected State & Local Governments and Federal AgenciesCoordination with affected State & Local Governments and Federal Agencies Prevent interference with reasonable uses of the OCSPrevent interference with reasonable uses of the OCS Fair return for use of OCS landsFair return for use of OCS lands Revenue sharingRevenue sharing CompetitionCompetition Does not apply to marine sanctuaries, national parks & monuments, wildlife refugesDoes not apply to marine sanctuaries, national parks & monuments, wildlife refuges SafetySafety Protection of the environmentProtection of the environment Coordination with affected State & Local Governments and Federal AgenciesCoordination with affected State & Local Governments and Federal Agencies Prevent interference with reasonable uses of the OCSPrevent interference with reasonable uses of the OCS Fair return for use of OCS landsFair return for use of OCS lands Revenue sharingRevenue sharing CompetitionCompetition Does not apply to marine sanctuaries, national parks & monuments, wildlife refugesDoes not apply to marine sanctuaries, national parks & monuments, wildlife refuges

6. Actively sought public input Regionally through stakeholder meetingsRegionally through stakeholder meetings Nationally through ANPR and Programmatic Environmental Impact Statement ProcessNationally through ANPR and Programmatic Environmental Impact Statement Process Building Regulatory Framework

7. New Regulatory Framework Major Regulatory Elements: CoordinationCoordination Competitive & Noncompetitive LeasingCompetitive & Noncompetitive Leasing Commercial Production Lease (conveying rights for long-term power generation) Limited lease (conveying rights for short-term research and technology testing) Lease AdministrationLease Administration Bonding (Financial Assurance) Payments (Bonuses, Operating Fees, Rents) Major Regulatory Elements: CoordinationCoordination Competitive & Noncompetitive LeasingCompetitive & Noncompetitive Leasing Commercial Production Lease (conveying rights for long-term power generation) Limited lease (conveying rights for short-term research and technology testing) Lease AdministrationLease Administration Bonding (Financial Assurance) Payments (Bonuses, Operating Fees, Rents)

8. Major Regulatory Elements: Alternative Energy Plan Review ProcessAlternative Energy Plan Review Process Environmental and engineering compliance Reviews Conduct of Approved Plan ActivitiesConduct of Approved Plan Activities Design, Fabrication, and Installation Reporting Environmental and Safety Monitoring Inspections DecommissioningDecommissioning Anticipate publishing NPR in Spring 2008 Major Regulatory Elements: Alternative Energy Plan Review ProcessAlternative Energy Plan Review Process Environmental and engineering compliance Reviews Conduct of Approved Plan ActivitiesConduct of Approved Plan Activities Design, Fabrication, and Installation Reporting Environmental and Safety Monitoring Inspections DecommissioningDecommissioning Anticipate publishing NPR in Spring 2008 New Regulatory Framework

9. Programmatic EIS Purposes: Purposes: – Support development of new program – Early public involvement – Identify issues of concern Scope: Scope: – Next 5-7 years – Wind, wave and current – East, West and Gulf coasts

10. Resources analyzed Ocean surface and sediments Ocean surface and sediments Air quality Air quality Ocean currents and movement Ocean currents and movement Water Quality Water Quality Acoustic environment Acoustic environment Hazardous materials and waste management Hazardous materials and waste management Electromagnetic fields Electromagnetic fields Marine mammals Marine mammals Marine and coastal birds Marine and coastal birds Terrestrial biota Terrestrial biota Fish resources and essential fish habitat Fish resources and essential fish habitat Sea turtles Sea turtles Coastal habitats Coastal habitats Seafloor habitats Seafloor habitats Areas of special concern Areas of special concern Military use areas Military use areas Transportation Transportation Socioeconomics – economics, sociocultural systems, environmental justice Socioeconomics – economics, sociocultural systems, environmental justice Archaeological resources Archaeological resources Land use and existing infrastructure Land use and existing infrastructure Visual resources Visual resources Tourism and recreation Tourism and recreation Fisheries – commercial and recreational Fisheries – commercial and recreational Nonroutine conditions Nonroutine conditions

11. Programmatic EIS Preferred alternative – establish AEAU program and evaluate projects on a case- by-case basis Preferred alternative – establish AEAU program and evaluate projects on a case- by-case basis Best Management Practices Best Management Practices

12. Programmatic EIS Available at www.ocsenergy.anl.gov Available at www.ocsenergy.anl.govwww.ocsenergy.anl.gov Worldwide Synthesis and Analysis of Existing Information Regarding Environmental Effects of Alternative Energy on the Outer Continental Shelf http://www.gomr.mms.gov/PI/PDFImages/ESPIS/4/4260.pdf Worldwide Synthesis and Analysis of Existing Information Regarding Environmental Effects of Alternative Energy on the Outer Continental Shelf http://www.gomr.mms.gov/PI/PDFImages/ESPIS/4/4260.pdf Next step – Record of Decision Next step – Record of Decision

13. Interim Policy Request for Information and Nominations Request for Information and Nominations –Published November 6 –Comments by January 7 Nominate OCS areas for Nominate OCS areas for –meteorological or marine data collection facilities to assess alternative energy resources –technology testing –not for commercial facilities Request for Information and Nominations Request for Information and Nominations –Published November 6 –Comments by January 7 Nominate OCS areas for Nominate OCS areas for –meteorological or marine data collection facilities to assess alternative energy resources –technology testing –not for commercial facilities

14. Interim Policy Competition Competition Limited lease term – 5 years proposed Limited lease term – 5 years proposed –No priority right for subsequent development Rentals -- $3.00/acre proposed Rentals -- $3.00/acre proposed Financial assurance Financial assurance Comprehensive lease instrument Comprehensive lease instrument Consultation with affected states, Federal agencies, etc. Consultation with affected states, Federal agencies, etc.

15. Next Steps Record of Decision for PEIS Record of Decision for PEIS Publish proposed rule Publish proposed rule Develop lease form for data gathering & technology testing – public process Develop lease form for data gathering & technology testing – public process Act on nominations under interim policy Act on nominations under interim policy And … And …

16. Cape Wind Draft EIS