FERC proposes to streamline ocean energy licence process

24 July 2007


As part of the proposal, FERC will convene a public hearing on licensing pilot projects in Portland, Oregon on 2 October 2007. To be led by Commissioner Philip Moeller, the conference is the latest in a series of measures FERC has undertaken since 2006 to address growing interest in the development of ocean, wave and tidal technologies.

The new process would be available for projects 5MW or less, removable or able to shut down on relatively short notice, located in water that have no sensitive designations, and for the purpose of testing new hydro technologies or determining appropriate sites for hydrokinetic energy. The goal of the proposal is to complete the full project licensing process in as few as six months, provide for FERC oversight and input from affected states and other federal agencies, and allow developers to generate electricity while conducting the requisite testing.

'This new generation of technologies will bring hydro power to the forefront of the renewable energy debate,' said Commissioner Moeller. 'It is generating a lot of enthusiasm throughout the country, particularly in coastal states like Washington. FERC wants to harness this enthusiasm by exploring ways to reduce the regulatory barriers to realise the amazing potential of this domestic renewable power source - one that can help meet renewable portfolio standards established by states.'

In response to FERC's February 2007 Notice of Inquiry on preliminary permits for the new technologies, at least 14 entities addressed the need for a pilot program licensing process. Comments included recommendations that FERC address the unique characteristics of pilot projects by: permitting connection to the national grid both for study purposes and to generate revenue; implementing a simpler, faster review process; requiring site restoration following experimental deployments; and requiring a licence period of five years rather than 30-50 years.

'Br proposing to reduce barriers in the permitting process for trial projects, the Commission is providing a framework for projects that fall within its jurisdiction, and for state-led initiatives as well,' commented Jason Bak, CEO of ocean energy developer Finavera Renewables, 'FERC is providing a significant boost for the industry.'




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