Minerals Management Services Moves Forward On Offshore Leasing For Renewable Energy Projects
In November 2007, the federal Minerals Management Service (MMS) announced an interim policy to lease offshore areas on the Outer Continental Shelf for information-gathering on the potential for wind, wave and tidal renewable energy development. Sixteen specific lease areas were identified, each inviting proposals to enter into five-year leases.
In July 2008, MMS announced that leasing would proceed on twelve of the sixteen sites off the coasts of New Jersey, Delaware, Georgia, Florida and California. The four other sites received competing bids, but due to budgetary and time constraints at MMS, further action on those leases will be delayed. Now, MMS will proceed with environmental review under NEPA and consultation with federal agencies for issuance of the leases.
In related news, the MMS formed a new Office of Offshore Alternative Energy Programs to handle alternative energy issues within MMS's jurisdiction.
These actions by MMS are hopeful signals, as MMS has previously been viewed as an extraction-oriented agency with little appetite or enthusiasm for renewable project development of areas under its jurisdiction. Further, confusion and tension has long reigned as to the demarcation of authority for offshore energy development between MMS and the Federal Energy Regulatory Commission (FERC), which has been viewed as much more receptive to alternative energy development offshore. Perhaps the logjam is clearing and these important agencies are moving toward an era of cooperation and mutual advancement of offshore renewable energy development.
For more information on MMS's interim policy click here. For more information on MMS's announcement, see its press release here.
Posted by David J. Petersen, partner practicing in the Sustainability and Real Estate & Land Use Practice Groups.
