This panel will address whether threats from climate change, mercury emissions and other effects of fossil fuel dependence justify development of offshore wind in select areas of the Great Lakes. What state and federal regulatory schemes currently exist and are they adequate to protect the lakes? How are regulators, developers and environmental groups addressing wind development and environmental protection?

1. an ISEA idea...2,000 miles to offshore renewable energy M. Klepinger, October 2011

2. What’s the Big Idea? GL community should find 2,000 square miles (2%) to be used for offshore energy To do this, we should create ~ Inland Seas Energy Compact OR ~ Inland Seas Energy Authority (ISEA)

3. Why So Few Prospects? Wind resources classified as “excellent” to “superb” by the U.S. Department of Energy

4. Questions From All Quarters About Great Lakes Wind Governance questions Environmental questions Engineering questions Price and profitability questions

5. What is the ISEA Idea? Create a new authority for offshore energy management, policy and planning Create a development corporation similar to the St Lawrence Seaway (but with triple bottom line) Convene leaders to identify which areas need preservation & which areas are best for energy

6. Why? Creates certainty - a more stable 20-year policy environment - and will focus public debate Improves our position, gives us a brand, as we seek international investment in clean energy Provides space for the scale of the industry (enough to make billion$ investment worthwhile)

7. ISEA Objectives To capitalize on one of our Great Lakes natural resource advantages - as the community did with shipping in the 1950s (constructing the new St Lawrence Seaway) To build upon the tradition of managing all Great Lakes natural resources for the benefit of future generations... adding offshore energy resources to the mix (along with fisheries, transportation facilities, water quality, etc.) To strengthen the Midwest’s economy and reduce greenhouse gas emissions (without unacceptable risks to area ecosystems)

8. Why So Few Prospects? Where are the serious investors? Existing state statues on Great Lakes bottomland leasing and permitting were not designed to address offshore wind Existing federal Great Lakes management programs are not designed to address offshore wind Effect of impulse to “go it alone” in each state Need to make progress on ice engineering, grids, ports, installation vessels Need to find economies of scale, lower costs by acting together on our mutual interests Need a regional power authority to set prices long term

9. Functions of Energy Authority Sets 5-yr, 10-yr, 20-yr production goals Prioritizes research, detailed field investigations Prepares guidelines for site assessment, construction, operations, decommissioning Provides good public venue for federal agencies (in what is primarily a state leasing decision)

10. Functions of Energy Authority Partners with states to market sites Considers state nominations of the most favorable wind resource areas (WRAs) Issues bonds and distributes revenues Could sell assets after 20 to 25 years

11. How? How do we define “most favorable” areas for offshore wind energy?

12. Michigan’s Approach Governor’s Offshore Wind Council 2009 GLOW identified 24 criteria for policy-making Used GIS mapping to find the “best” & “worst” Drafted legislation for how to lease the state’s “Most Favorable” five hundred square miles

13. Most Favorable Wind Resource Areas (Michigan WRAs) SOURCE: Institute for Fisheries Research, UM/MDNR, GLOW Final Report, October 2010.

14. Sanilac County WRA

15. Sanilac County WRA

16. GLOW Council’s Criteria Aids to navigation Buoyed navigation channels Coastal airports Military operation areas Submerged transmission lines Habitat/biological (5 criteria) Disposal sites Harbors/marinas Large river mouths Shoreline (6-mile viewshed) Shoreline (3-mile productivity) National park lakeshores State parks and wilderness Shipwrecks State bottomland preserves Underwater archeological sites Commercial fishing areas International and state boundaries Shipping lanes

17. In a Nutshell Great Lakes community needs an offshore energy management authority Similar to the St Lawrence Seaway – but with a triple bottom line mandate Regional policymakers need some quality time to decide on the “best” and “worst” places to take advantage of our world-class winds WINGSPREAD has offered to host a group of leaders when we’re ready

18. So, What’s Next? Retreat! Convene leaders of key stakeholder organizations: ~ Council of Great Lakes Governors ~ Great Lakes Commission ~ Great Lakes St. Lawrence Cities Initiative ~ St. Lawrence Seaway Development Corporation ~ International Joint Commission ~Two GL environmental organizations & Native American organizations ~ AWEA Offshore Wind Working Group, Offshore Wind DC ~ Professional staff in the Depts. of Energy, Commerce, State, Interior WINGSPREAD has offered to host a group of leaders when we’re ready

19. Michael Klepinger Inland Seas Energy Alliance mikinetics@gmail.com 517.676.9858