New legislation is about to be debated on the house floor for offshore wind farm development guidelines in Michigan, and the process is going to work something like this:

 

(Note: DNRE = Department of Natural Resources and Environment)

 

1. State designates lake bottom land for development ---->

 

2. Contrators offer competing bids to gain rights to develop the lake bottom for wind power ----->

3. The DNRE and the Army Corps of Engieers awards the contract to the strongest bid.

 

 

Or if a developer wants to develop lake bottoms not designated...

 

   

1. A developer nominates undesignated lake bottom for development ----->

2. The DNRE and Army Corps of Engineers gives hearings to local concerns about wind farm impact - environmental, economic, cultural.

 

They approve or decline the nomination based on that information ----->

3. If a nominated parcel is approved, any contrator can offer a competing bid to gain rights to develop the lake bottom for wind power ----->

4. The DNRE and the Army Corps of Engieers awards the contract to the strongest bid.


What happens when a company wins its bid?

After a company wins its bid, it must perform three years of environmental, economic, and cultural impact studies. It needs to present the Deparmtent of Natural Resources and Environment (DNRE) with detailed information about the stuides it will be conducting, how it will conduct them, and how it will pay for them.  The DNRE and Army Corps of Engieers will review the final results of the studies and may request more studies, terminate the project, or allow construction to begin.

 

More basic facts about the new legislation

  • Bottomland leases would be “sold” in an auction format by the State
  • Offshore wind farm area will be determined by the State or a developer could nominate an off shore area.  There would be a public comment and review process and there are about two pages of criteria that must be met.
  • The County Boards of Commissioners only have a voice under the public comment process
  • The setbacks recommended by the Glow Council (see link below) may not make it into the new legislation
  • Background and history of the developers will be included in the new legislation
  • A $300,000 bond will be required to get into the auction.  If one is successful, the $300,000 will be kept and used for decommission
  • Other costs will include site application fee ($5,000), construction application fee ($10,000) and decommission application fee ($5,000)