FERC denies tidal pilot license extension

U.S. hydropower regulators have denied a request to extend the term of the country's first hydrokinetic project pilot license, instead holding that the original license's 10-year term should be enough time for the developer to complete testing and to decide whether to apply for a subsequent license.

At issue is Verdant Power, LLC's  Roosevelt Island Tidal Energy Project No. 12611 (RITE Project). The 1,050-kilowatt hydrokinetic tidal project site is located in the East River near New York City. In 2012, the Federal Energy Regulatory Commission issued the project a "pilot project license" under a newly developed process designed to allow entities to test new hydrokinetic technologies, identify appropriate sites, and confirm the technology's environmental or other effects. That pilot license allowed the construction, operation, and maintenance of the RITE Project for a 10-year period, expiring on December 31, 2021.

In 2017, the company described plans to install the pilot project's first phase in the 2019-2020 timeframe. On December 29, 2017, Verdant filed a request to extend the term of its pilot license for the RITE project by five years, to give it more time to acquire operational monitoring data that will inform subsequent phases of the pilot project and the relicense application.

But by order dated May 3, 2018, the Commission denied Verdant's request for a license extension. The Commission noted that the pilot license bore a 10-year term, twice as long Commission staff's original conceptions of hydrokinetic pilot project licenses for up to 5-year terms for testing purposes. The Commission noted, "Barring extraordinary circumstances, 10 years – double the period set forth in the white paper – should be enough time to complete a testing program and to make a decision on whether to file an application for subsequent license. Verdant has not demonstrated such circumstances."

Noting the remaining time left on Verdant's license, as well as the time left to Verdant before any application for a new license, the Commission denied the company's request for a license extension.

Maine tidal pilot project not seeking new license

The holder of a federal pilot license for a Maine tidal energy project has told regulators that it does not intend to relicense the project beyond the pilot license's expiration in 2022, pointing to tidal current velocities at the project site as inadequate to justify pursuing a commercial license.

At issue is the Cobscook Bay Tidal Project.  On February 27, 2012, the Federal Energy Regulatory Commission issued a pilot project license to ORPC Maine, LLC for the project for a period of eight years.  Later that year, it became the first grid-tied commercial tidal power plant in the U.S.

The Commission later granted a subsequent request by ORPC to extend its license term for the Cobscook Bay Tidal Energy Project from eight years to ten years, until January 31, 2022.  In that order extending the pilot license term, the Commission noted "the experimental nature of hydrokinetic devices, the licensee’s dedication to expanding and improving the technology and design of its project, and the insignificant or no impact to the surrounding environment by extending the license term two years."

Because the FERC licensing process can take years to complete, licensees are required to make public filings between 5 and 5-and-a-half years in advance of license expiry.  On March 14, 2017, ORPC made such a filing.  In that March 14 letter, ORPC noted some project successes:

The Cobscook Bay Tidal Energy site has served a pivotal role in the advancement of ORPC’s technology specifically and the domestic marine hydrokinetic industry generally. ORPC anticipates that the project infrastructure in place, the environmental monitoring and data analysis efforts, resource information documentation, and collaborative relationships with existing marine users will continue through the duration of the existing pilot license term. With concurrence of the Project Adaptive Management Team, we will be testing new generations of system components and assembled systems at the project site and will keep FERC informed regarding these efforts.

But then ORPC noted an intent not to seek a commercial license for the project after the pilot license's expiration:

While the project site serves as an excellent testing area, ORPC considers the tidal current velocities at the Project site inadequate to justify pursuing a commercial license. Therefore ORPC does not intend to file a NOI or PAD for the Project at this time.

In a May 25, 2017 letter to the licensee, Commission staff characterized the licensee's March 14 filing as "a notice of intent not to relicense the Cobscook Bay Tidal Project," citing the licensee's position on tidal velocities, and noting the licensee's stated intent to continue operating the project until the pilot license expires on January 31, 2022.

Edgartown's Muskeget tidal project faces questions

A municipal tidal power project proposed for the Massachusetts island of Martha's Vineyard faces federal deadlines if its licensing process is to continue.  The Muskeget Channel Tidal Energy Project, proposed by the Town of Edgartown, is seeking a pilot project license from the Federal Energy Regulatory Commission -- but faces questions from Commission staff.

On February 1, 2011, the Town of Edgartown filed, pursuant to the Commission’s pilot licensing procedures, a draft license application for the proposed Muskeget Channel Tidal Energy Project.  The project would feature an array of 14 marine hydrokinetic tidal turbines, with a commercial generating capacity of 5 megawatts or less.

But that license application remains incomplete.  On April 1, 2011, Commission staff issued a letter requesting that Edgartown provide additional information, including details about the proposed project and multiple plans, drawings, and reports.  Over the ensuing years, Edgartown filed some responsive information, but according to the Commission, Edgartown did not file the remaining information by the deadline or provide a schedule indicating when the information would be filed after the deadline was missed.

Over two years after the deadline, on April 21, 2016, Commission staff issued a letter requiring Edgartown to show cause, within 30 days, why Commission staff should not terminate the prefiling licensing process for the project.  According to the Commission, Edgartown did not respond, but Congressman William Keating asked the Commission to extend the show cause deadline until the Massachusetts Clean Energy Commission decides whether to award the project a grant.

In a June 2 letter, Commission staff directed Edgartown to, within 30 days, provide a schedule specifying when it will file with the Commission each of the outstanding items requested in Commission staff’s April 1, 2011 letter.  The letter says, "Upon receipt of this information, Commission staff will make a determination on how to proceed with the incomplete application for the Muskeget Channel Tidal Energy Project."  For now, the prelicensing process for the Muskeget tidal project remains pending.