Just two weeks after overcoming a major state regulatory hurdle, a federal judge in the District of Columbia levied yet another setback for a plan by the Lake Erie Energy Development Corp. (LEEDCo) to build the region's first offshore wind farm on Lake Erie.
A U.S. District Judge on Tuesday, Oct. 20, ruled in favor of opponents of LEEDCo's Icebreaker project, granting a stay that prohibits the U.S. Department of Energy from dispersing more than $40 million for the construction of six turbines about 8 miles off the coastline of downtown Cleveland.
The ruling by Judge Timothy Kelly, who was appointed by President Donald Trump, stems from two bird conservancy organizations claiming "alleged harms from the presence and operation of the wind turbines," which, according to the court filings, "could harm birds, which, in turn, will allegedly impact the recreational interests of Plaintiffs' members."
American Bird Conservancy (ABC) and Black Swamp Bird Observatory (BSBO) filed suit last year in federal court against the DOE, not LEEDCo, arguing the government has not properly regulated the environmental impacts associated with what the groups said is "a precedent-setting wind energy facility."
The Icebreaker project, the court documents claim, needs more stringent environmental assessment because it's the first project of its kind and will set the standard for wind energy development in the Great Lakes.
The $126 million project, proposed in 2009 as the first offshore wind facility in the Great Lakes and the first freshwater wind farm in North America, already has undergone a nearly three-year process of environmental assessment by the U.S. Environmental Protection Agency, according to David Karpinski, vice president of operations for LEEDCo.
"We have a vision, but we do not have any other projects planned right now," Karpinski said.
Last week's ruling, which holds up federal funds at least until Jan. 13, 2021, does not have an immediate impact on the project but is part of a pattern of delays that have stretched out the original timeline, he said.
"It is an issue that has to be resolved. The challenge process has to play out," Karpinski said.
The Oct. 20 ruling comes on the heels of a dispute that began in May between LEEDCo and the Ohio Power Siting Board (OPSB) over a proposed "feathering condition" that would only allow regulatory permitting if the project's turbines were shut down from sunset to sunrise, in a period from March 1 to Nov. 1, to protect migratory birds and bats.
OPSB's initial feathering decision, Karpinski said, was a huge blow to the project momentum and is one of the latest in series of "regulatory" setbacks that supporters say is designed to delay and ultimately halt the project altogether.
"This has to be the most contested generation project I have ever seen," state Sen. Sandra Williams, D-Cleveland, said of the project, which OPSB has been reviewing over the past five years. "In all my time working with this board, there has never been this much controversy over a generation project."
Williams is a nonvoting member of the 11-person board charged with regulating major utility facilities in the state.
After the feathering amendment was added to the Icebreaker project agreement, Williams and 31 other state and local politicians wrote a letter to OPSB chairman Sam Randazzo, who also chairs the Public Utilities Commission of Ohio (PUCO), pushing back on "the poison pill" regulation.
In the letter, Williams claims Randazzo, an attorney who has litigated against renewable energy standards, "knew full well that keeping Project Icebreaker's turbines motionless for a third of each year would rob it of revenue to repay its construction loan and render it financially unfeasible. From where I sit, the inclusion of this shutdown order had less to do with killing birds and more to do with killing this project."
After intense pressure from wind farm supporters, the OPSB on Oct. 8 voted to accept a motion by board member and Ohio Department of Natural Resources (ODNR) director Mary Mertz to eliminate the feathering provision.
The move allows the project to go forward, pending an appeal by local opponents, but the delay and continued uncertainty is consequential, Karpinski said.
"You do not just flip the switch and get it back up and running," he said of the project.
In addition to the ongoing federal court matter, opponents, including two Bratenahl residents who had been represented by attorneys bankrolled by Ohio coal producer Murray Energy Corp., have until the beginning of November to appeal the OPSB ruling. Then, depending on that outcome, those same opponents would have a right to take up the issue directly with the Ohio Supreme Court within 60 days.
Even if everything goes LEEDCo's way, that translates into a delay of 12 to 18 months before a case would be heard, Karpinski said.
John F. Stock, an attorney who represented the Bratenahl residents and other anti-wind groups, did not respond to questions from Crain's regarding a possible appeal to the OPSB decision.
"Until we know, we are in a holding pattern," Karpinski said.
David Wondolowski, executive secretary of the Cleveland Building and Construction Trade Council, which is supporting the project and plans to be part of the eventual construction, is concerned the constant pushback of the project's timeline and intense regulation could have a chilling effect on putting together the financing the project needs.
"It makes investors leery about their return on investment," Wondolowski said.
Even as Icebreaker has high-level support (and funding) from backers that include the city of Cleveland, Cuyahoga County, all the regional port authorities, trade unions, the Cleveland Foundation and Case Western Reserve University, the OPSB supersedes local rule.
"One of the questions is how do you build with a shutdown option possibly pending?" Wondolowski said.
The project, if it moves forward, is estimated to produce 20 megawatts of clean power, create more than 500 jobs and provide $250 million in economic benefits for the region. Supporters including William Friedman, Port of Cleveland president and CEO and a LEEDCo board member are concerned about losing the advantage of being the first project of this type in the region.
"It is a very, very long process," Friedman said, referring to the regulatory procedure. "What I do worry about is that the market landscape is changing, and the lead we had will start to erode as other states are moving ahead with renewable energy."
Williams echoed those concerns: "These investors are not going to continue to throw money at this project. They might cut their losses."
More here:
Icebreaker offshore wind project faces more obstacles - Crain's Cleveland Business
- Home | Discover Oil & Gas | Rigzone - December 8th, 2016 [December 8th, 2016]
- Offshore - Wikipedia - December 8th, 2016 [December 8th, 2016]
- EscapeArtist - Live, Work, Travel, Retire & Invest Overseas - December 15th, 2016 [December 15th, 2016]
- Offshore installation manager - Wikipedia - December 30th, 2016 [December 30th, 2016]
- Offshore Energy 17 - January 12th, 2017 [January 12th, 2017]
- Offshore Drilling and Exploration - The New York Times - February 2nd, 2017 [February 2nd, 2017]
- Offshore - novenco-marine.com.php56serv2.webhosting.dk - February 5th, 2017 [February 5th, 2017]
- Further decline in North Sea offshore supply work - BBC News - February 7th, 2017 [February 7th, 2017]
- Japan ignores protests, begins offshore construction work on ... - RT - February 7th, 2017 [February 7th, 2017]
- Offshore Drillers Are Still Seeking Recovery Enjoyed by Shale - Bloomberg - February 7th, 2017 [February 7th, 2017]
- Offshore Profits and US Exports - Council on Foreign Relations (blog) - February 8th, 2017 [February 8th, 2017]
- Diamond Offshore Surprises Everyone With a Fourth Quarter Earnings Gain - Madison.com - February 8th, 2017 [February 8th, 2017]
- Dems: Don't repeal offshore tax rules - The Hill - February 8th, 2017 [February 8th, 2017]
- Offshore Wind Moves Into Energy's Mainstream - New York Times - February 8th, 2017 [February 8th, 2017]
- Trump's Plan to Tap Offshore Profit for Infrastructure Gains an Ally - Bloomberg - February 8th, 2017 [February 8th, 2017]
- China Regulator Urges Insurers to Avoid 'Reckless' Offshore ... - Insurance Journal - February 9th, 2017 [February 9th, 2017]
- Perriello comes out against pipeline and, in a shift, says he is skeptical of offshore drilling - Washington Post - February 9th, 2017 [February 9th, 2017]
- AGL to head offshore amid limited growth options locally - The Sydney Morning Herald - February 9th, 2017 [February 9th, 2017]
- Should Diamond Offshore (DO) Stock Be in Your Portfolio? - Zacks.com - February 9th, 2017 [February 9th, 2017]
- Wind Overtakes Coal Power in Europe as Turbines Head Offshore - Bloomberg - February 9th, 2017 [February 9th, 2017]
- Cuba Eager to Develop Offshore Oil Reserves | OilPrice.com - OilPrice.com - February 10th, 2017 [February 10th, 2017]
- Eni starts production of East Hub Development Project, offshore Angola - Offshore Technology - February 10th, 2017 [February 10th, 2017]
- 'Fifty Shades Darker' Unmasks $22M In Offshore Foreplay International Box Office - Deadline - February 10th, 2017 [February 10th, 2017]
- Statoil looks to Newfoundland offshore after selling off all oilsands assets - Globalnews.ca - February 10th, 2017 [February 10th, 2017]
- Coalition urged to charge 10% royalty on offshore oil and gas projects - The Guardian - February 10th, 2017 [February 10th, 2017]
- Israel Puts Off License Award In First Offshore Oil, Gas Bid Round - OilPrice.com - February 10th, 2017 [February 10th, 2017]
- Cost Impact of Immigration and Visa Reform to US Customers Using Offshore Services - Forbes - February 10th, 2017 [February 10th, 2017]
- These Offshore Drilling Stocks Are Up Big as Earnings Season Starts - Fox Business - February 10th, 2017 [February 10th, 2017]
- Offshore projects help raise profile of wind power in US, Europe - WorkBoat (blog) - February 11th, 2017 [February 11th, 2017]
- Shares of Seadrill Went in the Exact Opposite Direction of Other Offshore Drillers in January - Motley Fool - February 11th, 2017 [February 11th, 2017]
- After selling off all oilsands assets, Statoil looks to Newfoundland offshore - Calgary Herald - February 11th, 2017 [February 11th, 2017]
- Oil and Gas Stock Roundup: The Outlook for Offshore Drilling Continues to Dim - Fox Business - February 11th, 2017 [February 11th, 2017]
- Diamond Offshore Surprises Everyone With a Fourth Quarter ... - Motley Fool - February 12th, 2017 [February 12th, 2017]
- Diamond Offshore Is A Hold - Seeking Alpha - February 12th, 2017 [February 12th, 2017]
- Trudeau: Arctic offshore drilling too dangerous - The Independent Barents Observer - February 12th, 2017 [February 12th, 2017]
- Don't Overlook This Cost-Effective Alternative To Offshore Services - Forbes - February 14th, 2017 [February 14th, 2017]
- Legislation could mean an economic boost in New Bedford offshore wind projects - SouthCoastToday.com - February 14th, 2017 [February 14th, 2017]
- Ontario signals extension on offshore wind project moratorium - BNN - February 14th, 2017 [February 14th, 2017]
- Oil Majors' Plans - No Relief For Offshore Drillers - Seeking Alpha - February 14th, 2017 [February 14th, 2017]
- Director hits back at offshore worker blacklisting claims - BBC News - February 14th, 2017 [February 14th, 2017]
- OPEC Report: Pressure On Offshore Drilling Remains - Seeking Alpha - February 15th, 2017 [February 15th, 2017]
- UK Offshore Wind Construction Had Bumper Year In 2016, Barbour ABI - CleanTechnica - February 16th, 2017 [February 16th, 2017]
- Trump urged to back offshore - Offshore Wind | reNEWS ... - reNews - February 16th, 2017 [February 16th, 2017]
- Russian Spy Ship Spotted Offshore From Connecticut; Congressman Says Goal Is To Test US - CBS Local - February 16th, 2017 [February 16th, 2017]
- Australia Accused Of Committing Crimes Against Humanity In Offshore Detention Centres - BuzzFeed News - February 16th, 2017 [February 16th, 2017]
- US Wind Secures Cabling Partner For MD Offshore Project - North American Windpower - February 16th, 2017 [February 16th, 2017]
- Professional Diversity Network: Offshore Investment Fund, Dropping ... - Seeking Alpha - February 16th, 2017 [February 16th, 2017]
- Vineyard Power vying for offshore wind farm - News - capecodtimes ... - Cape Cod Times (subscription) - February 16th, 2017 [February 16th, 2017]
- Liquidity Warnings Send Hornbeck Offshore Services, Inc.'s Stock Plunging - Motley Fool - February 16th, 2017 [February 16th, 2017]
- Will Offshore Stymie Oil States? - Seeking Alpha - February 16th, 2017 [February 16th, 2017]
- Enbridge Partners with EnBW on 497-MW German Offshore Wind Project - Marketwired (press release) - February 17th, 2017 [February 17th, 2017]
- JDR lands US offshore bounty - reNews - February 17th, 2017 [February 17th, 2017]
- Natural gas leaks from offshore pipeline in Alaska - Press Herald - February 17th, 2017 [February 17th, 2017]
- Halliburton's GRIP delivers rapid response to offshore source-control incidents - WorldOil (subscription) - February 18th, 2017 [February 18th, 2017]
- Model advances analysis of offshore BOP closure during extreme conditions - WorldOil (subscription) - February 18th, 2017 [February 18th, 2017]
- IRS Cracks Down on Offshore Tax Cheats - CPAPracticeAdvisor.com - February 18th, 2017 [February 18th, 2017]
- Vineyard Power vying for offshore wind farm - Cape Cod Times (subscription) - February 18th, 2017 [February 18th, 2017]
- Offshore Yuan Exposed to Onshore Risks as Spread Narrows - DailyFX - February 18th, 2017 [February 18th, 2017]
- Offshore Somalia: East Africa's Oil Frontier - Midnimo Information Center - February 20th, 2017 [February 20th, 2017]
- Emas Offshore refinancing deal delayed - Splash 247 - Splash 247 - February 20th, 2017 [February 20th, 2017]
- The Offshore Markets: 2016 In Review - Hellenic Shipping News Worldwide - February 20th, 2017 [February 20th, 2017]
- Court Declines to Halt Long Island Offshore Wind Lease - RTO Insider - February 20th, 2017 [February 20th, 2017]
- Fuel the American economy with offshore energy - The Detroit News - February 20th, 2017 [February 20th, 2017]
- Congress says won't renew liquor licenses of offshore casinos in Goa - Times of India - February 20th, 2017 [February 20th, 2017]
- An offshore deal for Indigenous people? - Policy Options (registration) - February 20th, 2017 [February 20th, 2017]
- Exclusive: Petronas considers $1 billion stake sale in offshore gas project - sources - Reuters - February 20th, 2017 [February 20th, 2017]
- JDR wins US offshore wind farm work - OE Digital - February 20th, 2017 [February 20th, 2017]
- Offshore Drilling - 2 Floaters Needed In The Verbier Field And In The Partridge Prospect In UK North Sea - Seeking Alpha - February 20th, 2017 [February 20th, 2017]
- Rystad Energy Believes That Offshore Projects Are Becoming Competitive Again - Seeking Alpha - February 20th, 2017 [February 20th, 2017]
- EnBW Hohe See 500 MW Offshore Wind Farm To Proceed With Siemens & Enbridge - CleanTechnica - February 20th, 2017 [February 20th, 2017]
- Offshore catering staff reject offer after phone ballot - BBC News - February 21st, 2017 [February 21st, 2017]
- Child abuse inquiry to hold limited public hearings into offshore ... - The Guardian - February 21st, 2017 [February 21st, 2017]
- Iberdrola Completes Installation Of First Turbine At 350 Megawatt ... - CleanTechnica - February 22nd, 2017 [February 22nd, 2017]
- Offshore drilling opponents re-gear for new round of battles | News ... - Charleston Post Courier - February 22nd, 2017 [February 22nd, 2017]
- Hornbeck Offshore Services: Too Many Problems Will Drag The Stock Further Down - Seeking Alpha - February 22nd, 2017 [February 22nd, 2017]
- US grid can handle more offshore wind power, cutting pollution and power costs - Science Daily - February 22nd, 2017 [February 22nd, 2017]
- Fugro to conduct natural leakage survey in offshore Kenya ... - Offshore Technology - February 23rd, 2017 [February 23rd, 2017]
- Russia inks second Turkish Stream pipe offshore construction contract - New Europe - February 23rd, 2017 [February 23rd, 2017]
- Trump to seek jobs advice from firms that offshore US work - Reuters - February 23rd, 2017 [February 23rd, 2017]
- W&T Offshore Expected to Reduce Net Losses in 4Q16 - Market Realist - February 24th, 2017 [February 24th, 2017]