Progression Hawaii Offshore Wind, Inc. Unsolicited Application for a Section 585 Commercial Wind Lease on the Outer Continental Shelf Offshore of the South Coast of Oahu Progression Hawaii Offshore Wind, Inc. 1110 Nu‘uanu Avenue Honolulu, HI 96813 1300 NW Northrup ST Portland, OR 97209 October 8, 2015 Progression Hawaii Offshore Wind, Inc. October 8, 2015 Mr. Douglas Boren Chief, Renewable Energy Section Bureau of Ocean Energy Management 760 Paseo Camarillo, Ste. 102 Camarillo, CA 93010 Dear Mr. Boren: Progression Hawaii Offshore Wind, Inc., is pleased to provide you with the enclosed Unsolicited Application for a Section 585 Commercial Wind Lease on the Outer Continental Shelf Offshore of the South Coast of Oahu. Progression would like to lease the area described herein (the “Lease Area”) for the purpose of developing an up to 400MW floating offshore wind farm to be interconnected via undersea 138 kV High Voltage Alternating Current cables into the Hawaiian Electric Oahu electricity grid (the “Project”). Some of the highlights of the Project include: Project Site vetted over 3 years with >100 stakeholder meetings to ensure highest likelihood of success of the Project. Hawai‘i-based development team with a proven track record of completing renewable energy projects in the State of Hawai‘i. As presently planned, the Project provides approximately 25% of Oahu’s electricity while impacting less than 5 acres of land. Helps Hawai‘i take a major step in meeting its 100% Renewable Portfolio Standard objectives, reducing the cost and volatility of its energy supply, and utilizing a domestic energy resource. The Project’s Levelized Cost of Energy is similar to solar with the added benefits of a grid- friendly generation profile and ancillary services that Oahu’s electricity grid needs. This grid friendliness translates into real cost savings, especially as renewable energy penetration increases on Oahu’s grid. Provides economic and educational development opportunities through utilization of the local supply chain, direct employment, educational and research programs, and taxes and community benefit payments. Please feel free to contact me if you have any questions or need additional information. Sincerely, Chris Swartley Chief Executive Officer Progression Hawaii Offshore Wind, Inc. Company #: 15054 Progression Hawaii Offshore Wind, Inc. 1110 Nu‘uanu Street Honolulu, HI 96813 South of Oahu Offshore Wind Project Contents Contents i Definition of Key Terms .............................................................................................................................. iv Introduction ................................................................................................................................................... 1 1 Lease Area for Commercial Development ............................................................................................. 4 2 Objectives & Facilities ......................................................................................................................... 11 2.1 Economic Development Objectives ..................................................................................................... 11 2.1.1 Local Supply Chain ....................................................................................................... 11 2.1.2 Direct Jobs ..................................................................................................................... 12 2.1.3 Training, Educational, and Research Opportunities ...................................................... 12 2.1.4 Taxes and Community Benefit Payments...................................................................... 13 2.2 Facilities ............................................................................................................................................... 13 2.2.1 WindFloat Floating Foundation ..................................................................................... 13 2.2.2 Turbines ......................................................................................................................... 17 2.2.3 Collection System and Interconnection Facilities ......................................................... 17 2.2.4 Vessels ........................................................................................................................... 18 2.2.5 Construction Port ........................................................................................................... 19 2.2.6 Operations and Maintenance Port .................................................................................. 19 3 General Schedule of Proposed Activities ............................................................................................. 20 3.1 Phase I: Proof of Concept and Stakeholder Outreach ......................................................................... 20 3.2 Phase II: BOEM Lease ......................................................................................................................... 22 3.3 Phase III: Later-Stage Development and Construction of the Project .................................................. 22 3.4 Decommissioning ................................................................................................................................. 22 4 Lease Area Characterization and Critical Environmental Issues ......................................................... 25 4.1 Introduction .......................................................................................................................................... 25 4.2 Critical Issues ....................................................................................................................................... 28 4.2.1 Benthic Habitat: Geomorphology, Geology, Biology, and Bathymetry ........................ 28 4.2.2 Offshore Fishing and Essential Fish Habitat ................................................................. 31 4.2.3 Marine Mammals ........................................................................................................... 33 4.2.4 Avian ............................................................................................................................. 36 4.2.5 Native Hawaiian Ocean Uses and Practices .................................................................. 36 4.2.6 Coastal Resources: Coastal Fishing, Recreation, and Tourism ..................................... 36 4.2.7 Visual Planes ................................................................................................................. 41 4.2.8 Marine Transportation and Commerce .......................................................................... 41 4.2.9 Ocean Infrastructure ...................................................................................................... 43 4.2.10 Hazards .......................................................................................................................... 45 4.2.11 Submarine Cable Landfall and Interconnection ............................................................ 47 4.2.12 Aviation and Airspace ................................................................................................... 47 4.2.13 Department of the Navy and Department of Defense.................................................... 47 October 2015 i South of Oahu Offshore Wind Project 5 Legal, Technical and Financial Qualifications ..................................................................................... 53 5.1 Legal Qualification ............................................................................................................................... 53 5.2 Technical Capability ............................................................................................................................. 53 5.2.1 Progression’s Technical Capability ............................................................................... 53 5.2.2 Third-Party Support ....................................................................................................... 53 5.3 Financial Capability ............................................................................................................................. 54 5.4 About Progression Hawaii Offshore Wind, Inc.................................................................................... 54 5.4.1 About Progression ......................................................................................................... 54 5.4.2 Not filed for Bankruptcy and No Adverse Financial Proceedings ................................ 55 5.4.3 No Legal or Regulatory Actions .................................................................................... 55 Appendices Appendix I Guide To Renewable Energy Facility Permits In The State Of Hawai‘i Appendix II Hawai‘i Endangered Species Tables Table 1. OCS Lease Area Blocks ....................................................................................................... 10 Table 2. Stakeholder Types and Examples ........................................................................................ 21 Figures Figure 1. Wind Rose ............................................................................................................................... 2 Figure 2. Lease Area ............................................................................................................................... 3 Figure 3. Progression’s Five Original Sites ...........................................................................................