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Presentation on regulatory issues from Global Marine Renewable Energy Conference 2009
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Overview of Marine Renewables Regulatory Trends and Challenges
Carolyn Elefant, OREC Legislative & Regulatory Counsel
Law Offices of Carolyn Elefantwww.oceanrenewable.com
www.renewablesoffshore.com2nd Annual Global Marine Renewable Energy
ConferenceCarnegie Institute, Washington D.C.
April 15, 2009
• Overview of regulatory developments and OREC activity at FERC and MMS (primary regulatory bodies)
• What’s working, what’s not
• Regulatory challenges for 2009 and beyond
FERC
• Regulatory system fairly well developed with several options - last year, OREC filed comments on many initiatives
• OREC continues to monitor FERC policies on integrating renewables into the grid
FERC• Pilot License (1 yr. process, 5 yr. license)
– Verdant, RITE Project (11/08)– ORPC, Cooks Inlet, AK (4/09)
• Traditional License Process– OPT, Reedsport Oregon (2.1 MW, 07-pres)– Free Flow Power - 44 traditional license, 4 ILP
(multi unit development on Mississippi)
• Amendment to Existing License– HydroGreen - Amendment to City of Hastings
license on Mississippi 2 35 kw turbines
• Alternative License– Finavera License (affirmed, 3/08; surrender
2/09)
MMS• Initiated Interim Lease Program
– Florida• FP&L, VisionEnergy, Oceana (current data
collection)– California
• PG&E Humboldt and Mendo (wave center and data collection)
• NOPR on Leases on OCS– OREC files 50 pages comments on multiple
NEPA, royalties, need to coordinate with other processes
– Awaiting final rule
FERC/MMS MOU
• OREC sought to let agencies address issues
• Remaining questions:– Multiple levels of NEPA review?– How should developers coordinate lease and
license?– Treatment of straddle projects and hybrids
still unaddressed
What is our regulatory system doing right…and where is there room for improvement?
FERC Pilot Project RegulationsWhat’s missing: Deadlines, limits, cost, coordination, commercial.
MMS NOPR- What’s missing: Adaptive management, deadlines, costs, schedule, coordination.
What regulatory challenges lie ahead for the marine renewables industry?
Down economy may bring cut backs to state agency staffing
Tug between developer driven first generation siting to gain data and confirm feasibility and broader spatial planning initiatives.
Biggest Challenge: Opportunity for significant money to industry but we must show that regulatory system is workable to qualify