FERC, BOEM marine hydrokinetic guidelines

Two key federal regulators of marine renewable energy production have issued an updated set of guidelines for regulatory aspects of marine and hydrokinetic energy projects.

The document, BOEM / FERC Guidelines on Regulation of Marine and Hydrokinetic Energy Projects on the OCS, is designed to to clarify jurisdictional responsibilities for marine and hydrokinetic projects on the Outer Continental Shelf (OCS) and to foster a cohesive, streamlined process that will help accelerate the development of MHK (i.e., wave, tidal, and ocean current) energy projects.

U.S. Coast Guard icebreaking tug THUNDER BAY at its home berth in Rockland, Maine.

The OCS includes all submerged lands, subsoil, and seabed lying between the seaward extent of the states' jurisdiction (approximately 3 nautical miles from shore, or 3 marine leagues for Texas and the Gulf coast of Florida) and the seaward extent of federal jurisdiction (approximately 200 nautical miles or more from shore).

As described in the guidelines, an MHK project generates electricity from the motion of waves or the unimpounded flow of tides, ocean currents, or inland waterways. (While ocean thermal energy conversion or OTEC projects also fall under the MHK umbrella, the new guidelines focus on ocean wave and ocean current technologies.)

The guidelines cover only MHK projects on the OCS. The guidelines therefore cover neither nearshore MHK projects in state-jurisdictional waters, nor offshore wind projects in federal or state waters. 
 
The guidelines published yesterday fit within the larger context of agreements between previously-sparring federal agencies.  BOEM regulates site leasing, while FERC regulates hydropower.  As marine hydrokinetic technologies improved to the point where developers began proposing commercial projects, tensions and inconsistency developed between how the two agencies regulated and interacted.

This situation led the U.S. Department of the Interior and FERC to execute a Memorandum of Understanding (MOU) in April 2009, recognizing each agency’s respective jurisdiction.  Under the agreement, BOEM has jurisdiction to issue leases on the OCS for MHK projects, while FERC has jurisdiction to issue licenses for these same projects. The agencies felt that the agreement established a cohesive, streamlined process to lease, license and regulate all renewable energy development activities on the OCS, including marine hydrokinetic sources.

FERC and BOEMs’ predecessor Minerals Management Service (MMS) issued the first set of joint guidelines in 2009. As part of MMS’s Guidelines for the Minerals Management Service Renewable Energy Framework, the agencies included an appendix presenting MMS / FERC Guidance on Regulation of Hydrokinetic Energy Projects on the OCS. That document covered procedures for obtaining leases and licenses, municipal preferences, fee structures, and procedures for pursuing hybrid projects (more than one form of renewable energy) or straddle projects (straddling the boundary dividing state waters and the OCS).

Yesterday’s announcement presents a refreshed version of these guidelines. The revised guidelines offer guidance on a number of key regulatory aspects of MHK development process. Since 2009, both FERC and BOEM have changed some of their processes in significant ways – for example, BOEM now allows research leases, and FERC has expedited its pilot project licensure process. The guidelines thus help developers and others in the marine community to understand the legal process for exploration and development of hydrokinetic ocean energy sites.

February 4, 2011 - Hawaii's Big Wind project

Islands hold a special place in our hearts.  The same facts of geography that lead to islands' charm can also play a role in making island energy a challenging issue.  Islands around the world face similar challenges; whether it's Martha's Vineyard energy strategy or offshore wind near the Maine islands of Damariscove or Monhegan, islanders face questions of how to power society and whether or how to interconnect with the mainland.

Due to its geographic isolation, the Hawaiian islands' energy strategy is especially interesting.  This week, hearings are being held in Hawaii on a major wind energy project and its associated undersea transmission development.  Hawaii's renewable portfolio standard requires utilities selling power to source an increasing amount of energy from renewable resources.  The renewable mandate starts from 10% of net electricity sales effective December 31, 2010, and increases to 40% by December 31, 2030.

One option under consideration involves 400 megawatts of wind energy to be sited in Maui County, particularly on or near the islands of Lana`i and Moloka`i.  Connecting that generation to the consumers on Oahu, Hawaii's most populous island, will require underwater transmission cables.  Currently, the state of Hawaii and federal agencies are collaborating on a programmatic environmental impact statement (or EIS).  Under the federal National Environmental Policy Act (NEPA), before the government can undertake or approve actions "significantly affecting the quality of the human environment", involved agencies must draft an assessment of the positive and negative environmental effects of the proposed action.  This information is then used for multiple purposes, including helping the agency evaluate specific proposed projects, as well as helping project developers understand the impacts of their project and what they can do to address any negative impacts.

Hawaii is home to some other renewable generation, including an innovative ocean thermal energy conversion facility.  OTEC has great potential, but the cost of producing power on a commercial scale is not yet cost-competitive with other resources - not even with oil, the fuel behind about 90% of Hawaii's energy needs.  Hawaiian energy thus has been relatively expensive.  Wind has the potential to be more cost-effective, but due to visual and other impacts is facing some opposition in the islands.  Will the Hawaiian wind effort take off?

December 22, 2010 - Ocean thermal energy conversion

As any sailor knows, the Earth's oceans are enormous and powerful. About seventy percent of the Earth’s surface is covered by its oceans. These oceans contain vast amounts of energy - many times more than is consumed by mankind. Through the confluence of water's physical properties and natural energy dynamics, combined with a considerable amount of technology, much of this energy can be harnessed. Whether or not it is cost-effective is dependent on the specifics of each project and its technology, as well as whether any governmental incentives or subsidies exist.

A summer view from the dock at Great Cranberry
Island across to Mount Desert Island.

When we think of the potential of ocean energy, offshore wind development often comes to mind. Offshore wind may rely on oceanic siting and conditions, but its primary energy source is the wind. The waters of the ocean itself are understood to contain even more energy, in the form of moving water like currents, tides, and waves, as well as in subtler embodiments such as gradients of temperature and salinity.