WCA July 2018

From the Americas

Around the time of the Zinke speech, the Department of the Interior’s Bureau of Ocean Energy Management (BOEM) placed three separate notices in the Federal Register that aligned with that strategy. BOEM articulated the factors that the agency will consider to identify which areas along the Atlantic coast are most conducive to wind generation. BOEM noted that the “proposed path” is a part of “the [Trump] administration’s all-of-the-above energy policy.”  Several recent initiatives at the state level are also promoting offshore wind development along the Atlantic coast. In January, several New York State agencies issued a master plan charting a course to meet Governor Andrew Cuomo’s goal of building 2,400 megawatts (MW) of offshore wind energy projects by 2030. The preliminary steps are expected to be taken by the end of this year. Not to be outdone by its neighbour across New York Bay, New Jersey under Governor Phil Murphy announced plans to bring 3,500 MW of offshore wind online by 2030. As noted by the WilmerHale lawyers Raya B Treiser, H David Gold and Nathaniel Custer: “That is the largest goal set by any state in the US, and it appears to signal a change in the cautious approach that New Jersey has taken to offshore wind development to date.” Elsewhere in energy . . .  Florida was recently singled out for criticism by the Center for Biological Diversity for its backward solar-energy policies. As reported by the ecology-centred site Grist (24 th April), the cost of installing panels has been a major impediment to the spread of solar in the state; and, until recently, Floridians could not lease solar equipment. But state regulators in April voted unanimously to authorise San Francisco-based Sunrun, one of the biggest residential solar providers in the USA, to begin leasing equipment in the Sunshine State. As of 20 th April, Florida householders can lease panels for 20 years for a fixed amount instead of buying them outright. Under its arrangement with the Florida Public Service Commission, Sunrun will require no payment up front from customers who rent panels for the first time. Telecom Apparently bowing to the inevitable in the USA, Huawei shifts its attentions to Europe and Asia Huawei is already the world’s biggest supplier of the equipment that powers the wireless age. The Chinese electronics giant now wants to provide the digital backbone for artificial intelligence (AI), the Internet of Things (IoT), and other transformative technologies. “But that future is increasingly looking as if it will not include the United States,” according to Raymond Zhong and Paul Mozur, of the New York Times , reporting from Shenzhen and Shanghai, respectively. A strong indication of Huawei’s new thrust is the recent severance of five key American employees at its Washington office, notably William B Plummer, the executive most closely associated with the

Tariffs,” 18 th April). Messrs Wiseman and Rugaber reported that even companies that buy only made-in-America steel say that rising prices are squeezing their businesses. Qualtek Manufacturing Inc (Colorado Springs) makes precision metal parts for aerospace and medical device companies. CEO Troy Roberts told the AP that rising steel and aluminium prices had already driven up the annual cost of his company’s key products by $300,000, jeopardising plans to add 14 jobs to his 74-employee staff. Shipment delays are a related problem. According to Mr Roberts, his customers can easily divert business to foreign rivals with access to cheaper and more reliable supplies of steel. He said that the president’s decision to impose the tariffs “cuts us off at the knees.”  As to the “baffling bureaucracy”, instead of awarding exemptions for individual steel and aluminium products, Commerce is reviewing the requests on a company-by-company basis. This raises the possibility that one company could receive an exemption from the tariffs while another would be forced to pay on the same product. Companies that want exemptions are also finding the request forms “confusing, complex and full of traps for the unwary,” observed Richard Chriss, president of the American Institute for International Steel, which opposes the tariffs.  Matthew Nicely, a trade lawyer at the firm Hughes Hubbard & Reed, pointed out that companies seeking exemptions are required to publicly reveal confidential information about their products. “Companies don’t like to share that information,” Mr Nicely told the AP . “I’ve had clients [who say], ‘If I provided all this information, I could put myself out of business’ by giving away secrets to competitors.” Offshore the Eastern seaboard of the USA, wind energy is taking a giant step forward According to the New York-based law firm WilmerHale, which monitors issues affecting infrastructure project developers in the United States, this year has offered signs of a renewed federal push to expand the development of offshore wind generation along the US Atlantic coast. Recently the firm issued a report that cited recent announcements from the Department of the Interior, in the broader context of the federal government’s initiatives to streamline project permitting and reduce regulatory burdens, indicating an increased focus on offshore wind. Actions by individual Atlantic states further reflect that policy push. (“Momentum Builds for Offshore Wind Energy Development in the United States,” 23 rd April) At a 6 th April meeting of the International Offshore Wind Partnering Forum, US Secretary of the Interior Ryan Zinke had delivered a speech calling for increased offshore wind development along the Atlantic coast. Stressing the significant growth potential for the US offshore wind industry, Mr Zinke laid out Washington’s plan to offer new offshore wind leases along the coasts of Massachusetts, New Jersey and New York. Energy

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Wire & Cable ASIA – July/August 2018