The document discusses the idea of creating an Inland Seas Energy Authority (ISEA) to manage offshore wind energy development in the Great Lakes. The ISEA would identify the most suitable 2,000 square miles for offshore wind farms and set production goals. It would provide guidelines for site assessment, construction and decommissioning. The ISEA would partner with states, issue bonds, and sell assets after 20-25 years. Its creation would provide regulatory certainty and help attract investors to develop offshore wind at a large enough scale to be economically viable. Next steps proposed include convening stakeholder leaders to further discuss and begin planning the formation of an ISEA organization.

1. Offshore Wind: Balancing efficiency and accountability Crystal BallroomThursday, October 1311:15-12:15

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

3. What’s the Big Idea? GL community should find 2,000 square miles (2%) to be used for offshore energy

4. How Will the Best 2,000 Miles Be Identified for Energy? We’ll Have To Talk About It! GL community should discuss creating ~The Inland Seas Energy Compact OR ~The Inland Seas Energy Authority (ISEA)

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? Wind resources classified as “excellent” to “superb” by the U.S. Department of Energy

9. 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

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

11. 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)

12. 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 Sells assets after 20 to 25 years

13. Michigan Plows New Ground Governor’s Offshore Wind Council 2009 Identified 24 criteria for policy-making Used GIS mapping to find the “best” & “worst” The “Most Favorable” Five Hundred Miles Wind Resource Areas to be studied further by industry, agencies and academics Provides guidance to resource managers Helps focus limited research dollars

14. Application of Criteria Using GIS Mapping Tool

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

16. Sanilac County WRA

17. Sanilac County WRA

18. In a Nutshell Great Lakes needs an offshore energy management authority Similar to the St Lawrence Seaway – with a triple bottom line mandate

19. Where is the goalpost? ISEA action plan agreement 2011 Formation of ISEA Alliance Policymaker’s retreat 2012 Leader’s summit and visioning Identify 2000 Sq. Miles Most Favorable Focus research and development in these most favorable areas, begin leasing 2013

20. 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

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

22. Spread the word! Wireless password: HOW11 Conference website: Conference.healthylakes.org Email us photos, comments, tweets or video & we will post online: healthylakes@gmail.com On Twitter? Use the hashtag:#healthylakes