DEFINING ENVIRONMENTAL SOLUTIONS

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SITING CONSIDERATIONS

Wind Wildlife Research Meeting VII

Pre-Conference Session

Introduction to Wind and Wildlife Issues

October 27th, 2008

Milwaukee, Wisconsin

DEFINING ENVIRONMENTAL SOLUTIONS

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AgendaPurpose: walk through the basic considerations addressed when siting a utility-scale wind farm, to set the stage for discussing wildlife impacts at these projects

Site Selection: Fundamental Opportunities & ConstraintsConsidering the Wind ResourceTransmission & SitingLand ControlFinancing & Project EconomicsNon-Wildlife Environmental Siting IssuesPermits & GuidelinesProject Schedule: Pulling it All Together

DEFINING ENVIRONMENTAL SOLUTIONS

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How is a Site Selected?

Siting Industry: General Rules & Case Studies

Where there’s a resource

Where there’s a way to get the resource to the user

Siting Utility-Scale Wind FarmsSame issues (opportunities)

Same constraints

DEFINING ENVIRONMENTAL SOLUTIONS

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WHERE DO WE NEED POWER?

DEFINING ENVIRONMENTAL SOLUTIONS

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WHERE DO WE HAVE (WIND) POWER?

DEFINING ENVIRONMENTAL SOLUTIONS

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Siting Utility-Scale Wind: Opportunities & Constraints

Compare wind resource to populated areas (need)Northwest mountains and northern plainsCentral plains – T Boone Picken’s “Saudi Arabia of wind”Chicago – strong wind resources in the lake but (a) haven’t engineered deep water WTGs yet, and (b) Chicago’s got plenty of power

West Virginia – good resources, reasonably proximate to demand, but there are other issues there, like coal and wildlifeHigh demand in Georgia and Florida, but little windHigh demand in the eastern seaboard,

• and lots of offshore wind, • but public controversy is high

How much wind is needed to build a utility-scale wind farm?

That depends: it’s a function of how much energy you can get from the wind, and what you can sell it for

How much energy do you need to run turbines?

Wind speed 11-13 mph (power increases exponentially with speed)

Capacity factor (how much power is produced over time rel. to how much power would be produced if the plant ran at full capacity) ca. 27%

DEFINING ENVIRONMENTAL SOLUTIONS

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Transmission & Siting: Getting Utility-Scale Wind Energy to Market

Proximity to existing lines that can accept the load, so you don’t have to build infrastructure

Proximity to the user

T-Line and substation siting subject to environmental permitting and engineering requirements

Consider queue time

DEFINING ENVIRONMENTAL SOLUTIONS

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Transmission & SitingMISO Queue Reform

Backlog of interconnection queue requests – April 08 – MISO had 348 active requests (80 GW of generated power) – would take 42 years under current process

Proposed reform: Consider cost & schedule implications (which may apply even if you’re already in the queue)

Established New Rules (FERC approved August 2008)

DEFINING ENVIRONMENTAL SOLUTIONS

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Transmission & SitingMISO Queue Reform : New Rules

Pre-Queue Phase: information/preparation, established milestones

Queue Position: assigns your place in line (with responsibilities)

Feasibility Study now qualitative & defines your next step (shorter Fast Track to Definitive Planning Phase, or longer System Planning and Analysis Phase)

Deposits rated to size of energy generation

Must provide financial security so those behind you in the queue don’t get harmed if you suspend your position

DEFINING ENVIRONMENTAL SOLUTIONS

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Land Control

Community involvement (approval)

Royalty, ownership, or lease agreements with landowners

Consider parcel footprint – turbine layout, roads, transmission lines & substation, maintenance facilities

Sensitive information & competition (when in the process are land rights acquired?)

DEFINING ENVIRONMENTAL SOLUTIONS

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Financing

AWEA Fact Sheet: $1 M per MW of installed generating capacity

Economies of scale apply, but project has to meet other siting constraints

How are Projects Financed?

Corporate structure (Corporations, LLCs, JVs)

Investment funds/equity partners

Partnership flips

DEFINING ENVIRONMENTAL SOLUTIONS

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Financing, cont.

Where do the costs go (approximately)?

Equipment procurement (turbines + towers + transport): 62%

Construction & financing: 26%

Interconnection & substation: 4%

Development, design engineering, legal, financing: 8%

Selling the generated power: Power Purchase Agreements (PPA)

DEFINING ENVIRONMENTAL SOLUTIONS

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Financing & EconomicsTax Incentives (credits, depreciation deductions)

Renewable portfolio standards

Grants

Financing strategies

Economies of scale

DEFINING ENVIRONMENTAL SOLUTIONS

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Revenue Components

Power Sales

Depreciation

PTC

While wind power costs have dropped substantially over the

years, wind power has been a less productive source of

energy than traditional fossil fuels

DEFINING ENVIRONMENTAL SOLUTIONS

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Overview of Non-Wildlife Environmental Siting Issues

Environmental Resources & Issues

Permitting Requirements

Siting Guidelines

DEFINING ENVIRONMENTAL SOLUTIONS

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Water Resources

Surface Waters & Wetlands

Water Quality

DEFINING ENVIRONMENTAL SOLUTIONS

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Cultural Resources

Historic Properties (Viewshed)

Archeological Resources

Recreation

Aesthetics

Cultural/Community Values

DEFINING ENVIRONMENTAL SOLUTIONS

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Visual Impacts

Purpose

Evaluate the visibility of the proposed project

Compare landscape with and without the project

Provide information to decision makers & public

understand potential visual impacts

make an informed judgment about aesthetic impacts

DEFINING ENVIRONMENTAL SOLUTIONS

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Visual Impacts

Aesthetics/Viewshed

Flicker

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Visual Impact Assessment

No specific Federal rules, regulations, or policies govern evaluation of visual resources

Uses standards & procedures from:

National Forest Service

Bureau of Land Management

Federal Highway Administration

State agencies

Visual Impact Assessment

Quantitative (how much is seen, from what locations = visual impact)

Qualitative (how it will be perceived = aesthetic impact)

Steps:

1. Define existing landscape

2. Conduct visibility analysis

3. Identify sensitive aesthetic resources

4. Select key receptors

5. Depict the appearance of the completed facility

6. Evaluate aesthetic effects of the visual change from project construction & operation

7. Identify opportunities for mitigation

Visual Impact AssessmentViewshed, example site layout with selected environmental features

Viewshed withsensitive aestheticresources

Visual Impact AssessmentViewshed, Terrain only Viewshed, leaf-on

Photosimulation

DEFINING ENVIRONMENTAL SOLUTIONS

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Shadow Flicker

Shadow hours per year

Shadow HPY

Shadow HPY

Shadow HPY

Shadow HPY

Shadow HPY

Shadow HPY

Shadow HPY

Shadow HPY

Shadow HPY

Shadow HPY

Shadow HPY

Noise

DEFINING ENVIRONMENTAL SOLUTIONS

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Dept. of Transportation

Roads

Traffic

Airspace

DEFINING ENVIRONMENTAL SOLUTIONS

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Other Siting Issues

FAA

Military Radar

Communications & Microwave (EMF)

RECs (Phase I ASTM)

Air Quality

DEFINING ENVIRONMENTAL SOLUTIONS

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Permitting & Guidelines:the Changing Landscape

Current Regulations

Federal/State/Local/”Home Rule”

What to Expect

New Directions

What’s the Difference Between a Permit and a Guideline?

DEFINING ENVIRONMENTAL SOLUTIONS

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Federal, State, and Local “Umbrella” Permits

NEPA/Federal regulatory compliance

State “NEPA”

Regional, e.g. WAPA

State Siting Certificates (e.g. PUC, PSB, PSC)

Local/State Permitting Zoning, Siting Restrictions, Ordinances

DEFINING ENVIRONMENTAL SOLUTIONS

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Overview of Siting and Environmental Permits for Windpower (Wildlife)

Endangered Species Act

Migratory Bird Treaty Act

Bald Eagle and Golden Eagle Protection Act

State endangered species and wildlife laws

DEFINING ENVIRONMENTAL SOLUTIONS

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Overview of Siting and Environmental Permits for Windpower (Water)

CWA 404 Waters of the US (Nationwide & individual permits)

CWA 401 Water Quality Certification (NPDES, SWPPP)

DEFINING ENVIRONMENTAL SOLUTIONS

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Overview of Siting and Environmental Permits for Windpower (Cultural Resources)

National Historic Preservation Act (NHPA)

NAGPRA, Tribal Laws

DEFINING ENVIRONMENTAL SOLUTIONS

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Overview of Siting and Environmental Permits for Windpower (Construction)

Zoning

Local Traffic

Building Permits

Decommissioning standards & Requirements

DEFINING ENVIRONMENTAL SOLUTIONS

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Overview of Siting and Environmental Permits for Windpower (Others)

FAA & Military Radar

Transmission

Decommissioning standards & Requirements

DEFINING ENVIRONMENTAL SOLUTIONS

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Federal, State, and Local GuidelinesEcological

State Wildlife

Other State or Designated Lands

Sensitive Habitats (e.g. native grasslands, caves)

DEFINING ENVIRONMENTAL SOLUTIONS

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Federal, State, and Local Guidelines

Cultural Resources (e.g. Historic Properties, Archeological Resources)

Health & SafetyIceBlade dropFireLightningEMFVoltage

Set Backs

Decommissioning Plan

Project Steps & Schedule

DEFINING ENVIRONMENTAL SOLUTIONS

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Siting Considerations and Successful Project Initiation

Early Project Scoping

Critical Issues Analyses (red flags, fatal flaws)

Don’t underestimate the time it will take to meet environmental requirements

Remember that issues are interrelated

Have a plan & use tools to manage critical issues

DEFINING ENVIRONMENTAL SOLUTIONS

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QUESTIONS?

Karen Tyrell, PhD

Senior Vice President

865.922.4305

ktyrell@bheenvironmental.com

BHEEnvironmental.com