FERC relicenses Waterbury hydro project

More than 16 years after Green Mountain Power Corporation applied to the Federal Energy Regulatory Commission for a new license to continue operation and maintenance of its Waterbury Hydroelectric Project on the Little River in Vermont, the Commission has issued a new license for the project.

Waterbury dam and reservoir were built by the United States in 1938 to reduce flooding in the Winooski Valley, but are owned by the State of Vermont and operated by Green Mountain Power.  The Commission issued the original license for the project in 1954, effective September 1, 1951, for a period of 50 years.

That original license expired on August 31, 2001.  Two years before that date, Green Mountain Power applied for a new license to continue operation and maintenance of the project.  But relicensing a FERC-licensed hydropower project can be an involved process.  Environmental, conservation, and recreation-oriented groups intervened in the application case.  As the relicensing case progressed, the original license expired, after which Green Mountain Power operated the project under annual licenses pending the disposition of its license application.

Over time, the applicant revised its proposal, in part to propose a change to run-of-river operation as contemplated by the project's Vermont Department of Environmental Conservation water quality certification. Ultimately, on February 19, 2016, the Commission issued an order issuing a new license for the Waterbury Project for a period of 40 years.

In setting the 40-year license term for the Waterbury project's new license, the Commission noted its discretion under Section 15(e) of the Federal Power Act to issue new licenses for a term that the Commission determines to be in the public interest, but not less than 30 years or more than 50 years.  The order also notes the Commission's general policy "to establish 30-year terms for projects with little or no redevelopment, new construction, new capacity, or environmental mitigation and enhancement measures; 40-year terms for projects with a moderate amount of such activities; and 50-year terms for projects with extensive measures."

The Waterbury project relicensing case illustrates one potential path for what happens when a license expires for an existing FERC-licensed hydropower project.  According to the Commission, as of February 11, 2016, over 50 projects were pending relicensing, with an increase expected in applications for new licenses over the coming years.

North Carolina offshore wind advances

Federal efforts to lease ocean sites off the North Carolina coast for offshore wind development advanced last week, when the Bureau of Ocean Energy Management issued a report finding that there would be no significant environmental or socioeconomic impacts from issuing wind energy leases in three specific areas.  The determination brings BOEM one step closer to auctioning off leasing rights off North Carolina for offshore wind development.

The Bureau of Ocean Energy Management is part of the U.S. Department of the Interior.  BOEM performs key duties under the Outer Continental Shelf Lands Act, including resource evaluation, planning, and site leasing.  In furtherance of President Obama’s Climate Action Plan, BOEM has auctioned off the rights to lease sites in federal waters for offshore wind development off states including Massachusetts, Maryland, Virginia, and Rhode Island.  Altogether, BOEM has awarded nine commercial wind leases.  Seven of these were awarded through its competitive lease sale process, generating over $14.5 million in high bids for over 700,000 acres in federal waters. 

Federal law prescribes the process BOEM must undertake to lease sites for offshore wind development.  Under the National Environmental Policy Act (NEPA), BOEM must evaluate the environmental and socioeconomic impacts of proposed actions.

For the proposed leasing off North Carolina, in January 2015 BOEM published its Environmental Assessment (EA) of the impacts of granting commercial wind leases and allowing of site characterization and assessment activities on the Atlantic Outer Continental Shelf.  On September 17, BOEM issued a revised Environmental Assessment.  That EA found there would be no significant environmental or socioeconomic impacts from issuing wind energy leases and allowing site characterization activities.  This "Finding of No Significant Impact", or FONSI, enables BOEM to proceed to the next step in the leasing process.

That next step will occur in October, when BOEM will convene a public meeting of the North Carolina Renewable Energy Task Force.  After considering the input from the Task Force, BOEM will publish a “Proposed Sale Notice” in the Federal Register, which will include a 60-day public comment period. That notice would be followed by a lease auction, likely similar to those held for sites off other states.

In addition to its proposed North Carolina activity, BOEM expects to hold a competitive lease sale for sites offshore New Jersey later this year.

North Carolina offshore wind environmental assessment

The U.S. Department of the Interior's Bureau of Ocean Energy Management has released an environmental assessment of the impacts of leasing sites off the North Carolina coast for offshore wind projects.  This milestone supports the Obama administration's plan to offer site leases on the outer continental shelf for renewable energy projects.

Since 2012, BOEM has solicited public comment on the prospect of leasing about 307,590 acres off North Carolina for potential offshore wind development.  BOEM has identified three Wind Energy Areas offshore North Carolina:

• the Kitty Hawk Wind Energy Area (about 122,405 acres), beginning about 24 nautical miles (nm) from shore and extends approximately 25.7 nm in a general southeast direction;
• the Wilmington West Wind Energy Area (about 51,595 acres), beginning about 10 nm from shore and extends approximately 12.3 nm in an east-west direction at its widest point; and
• the Wilmington East Wind Energy Area (about 133,590 acres), beginning about 15 nm from Bald Head Island at its closest point and extends approximately 18 nm in the southeast direction at its widest point.

BOEM's map of North Carolina Wind Energy Areas.

On January 22, 2015, BOEM announced the availability of an environmental assessment for public review and comment.  Under the National Environmental Policy Act or NEPA, an environmental assessment or EA considers the potential impacts of proposed federal action and analyzes reasonable alternatives to the proposed action.  In this case, the action proposed is BOEM's issuance of commercial wind leases and allowing of site characterization and assessment activities on the Atlantic Outer Continental Shelf offshore North Carolina.

BOEM's environmental assessment for North Carolina offshore wind leasing provides the framework for potential federal lease auctions for North Carolina offshore wind sites.  The environmental assessment is available for public comment through February 23, 2015. 

Rhode Island offshore transmission line

Federal regulators have granted a right-of-way in federal waters for an electric transmission line connecting to the proposed Block Island offshore wind farm off Rhode Island.  The Bureau of Ocean Energy Management describes the grant as the first right-of-way grant offered in federal waters for renewable energy transmission.

Proposed by Deepwater Wind, the Block Island Wind Farm is a 30-megawatt offshore wind farm to be located approximately three miles southeast of Block Island.  Located entirely in Rhode Island state waters, the 5-turbine project is expected to generate over 125,000 megawatt hours annually.  The project received its final required permit in September 2014, and in 2010 secured a 20-year power purchase agreement with Narragansett Electric Co.

Block Island is about 13 miles off the mainland coast, and is not connected to the mainland by a power cable or road.  While the island's population does consume some electricity, most of the wind farm's power will be exported to the mainland electric grid via a newly built 21-mile submarine cable.  Because the proposed Block Island Transmission System is bi-directional, it would also transmit power from the existing onshore transmission grid on the mainland to Block Island, stabilizing supplies of electricity available to islanders.

The Block Island Transmission System is proposed to make landfall in Narragansett, Rhode Island.  Rhode Island's territorial waters extend 3 miles seaward from shore.  To reach the mainland, the submerged transmission line must cross about 8 nautical miles of federal waters.

The Bureau of Ocean Energy Management regulates the use of federally controlled Outer Continental Shelf sites for energy production.  In 2012, Deepwater Wind applied to the BOEM for a right-of-way about eight nautical miles long and 200 feet wide.  Before reviewing this application, BOEM was required to determine whether there are other developers interested in constructing transmission facilities in the same area.  Therefore, BOEM published a Commercial Renewable Energy Transmission on the Outer Continental Shelf (OCS) Offshore Rhode Island, Notice of Proposed Grant Area and Request for Competitive Interest (RFCI) in the Area of the Deepwater Wind Block Island Transmission System Proposal in the Federal Register on May 23, 2012 under Docket ID BOEM-2012-0009.  BOEM also solicited public comment on site conditions and multiple uses within the right-of-way grant area. 

Following the public comment period, BOEM determined there was no overlapping competitive interest in the proposed right-of-way grant area off Rhode Island and published a "Notice of Determination of No Competitive Interest" in the Federal Register on August 7, 2012 under Docket ID: BOEM-2012-0068.

Because most of the activities and permanent structures related to the entire wind farm project will be sited in state waters and on state lands, the U.S. Army Corps of Engineers is the lead federal agency for analyzing the potential environmental effects of the project under the National Environmental Policy Act.   In September 2014, the Corps completed its Environmental Assessment (EA) for the wind farm and transmission system, and issued a Finding of No Significant Impact (FONSI).   BOEM subsequently adopted the Corps EA after conducting an independent review that found no reasonably foreseeable significant impacts are expected to occur as the result of the preferred alternative, or any of the alternatives contemplated by the EA.  On October 27, 2014, BOEM issued a FONSI for the issuance of a ROW grant, and approval of the General Activities Plan (GAP), with modifications.

On November 17, 2014, BOEM announced the agency offered the ROW grant to Deepwater Wind for the Block Island Transmission System.

Yellowstone park proposes utility upgrades

The U.S. National Park Service manages over 84 million acres of land for both conservation and visitor use.  For wilderness parks, these joint objectives lead to the challenge of providing park facilities with electricity despite their remote location.  The Park Service has launched energy efficiency and sustainability programs, but many visitor and administrative facilities still need electricity for safety and comfort.  How should the Park Service balance conservation and development?

Old Faithful geyser erupts in Yellowstone National Park.

Yellowstone National Park, the nation's first park, highlights the difficulty.  Most facilities in the park receive electricity from transmission and distribution lines owned by utility NorthWestern Energy, but the park's rugged environment, challenging climate, and relatively old electrical infrastrucutre lead to frequent power outages - over 250 in 2012.  Unlike much of the electric grid outside the park, facilities in Yellowstone lack modern communication infrastructure - a Supervisory Control and Data Acquisition or SCADA system - that would let the utility diagnose and correct the cause of power outages from the utility's central offices in Montana.

As a result, Yellowstone and NorthWestern Energy have proposed to update the park's electrical distribution system.  Proposed upgrades include an automated, remote monitoring and control system, the installation of equipment buildings, back-up power generators and propane fuel tanks.  The proposed communication system would require the construction of seven towers for radio equipment within the park, generally located at existing electrical substation sites.

Under the National Environmental Policy Act, the Park Service cannot approve the plan without conducting an environmental assessment of the impacts of the proposed development.  The Park Service has released its Environmental Assessment (10.5 megabyte PDF), which is open for public comment until December 6.

The use of national park lands for energy infrastructure can be controversial due to differing philosophies on the level of development desirable in parks.  At the same time, the Park Service notes that the Yellowstone outages have had negative effects on park operations and visitor experience, creating health and safety concerns and lost revenue for concessioners.  How will this balance play out in Yellowstone?

Maine may streamline tidal power permitting

The Maine legislature is considering a proposal to streamline the permitting process for some tidal energy projects. The bill, "An Act To Streamline the General Permit Process for Tidal Power", would relieve a perceived conflict between state and federal law over the permitting process.

Tidal energy has been harvested along the Maine coast for hundreds of years. While tide mills' heyday predated modern regulation of energy projects and their environmental impacts, anyone developing a modern tidal power project must navigate multiple layers of rules and requirements. The recent resurgence of interest in tidal energy has led to an often overlapping patchwork of regulations.

These rules can be hard to interpret, and occasionally lead to chicken-or-the-egg conundrums. For example, a 2009 Maine law created an expedited general permit process for certain small tidal power projects. Under that process, projects capable of generating up to 5 megawatts of power can qualify for an easier permitting path if their primary purpose is demonstrating or testing tidal technology. (By way of comparison, 5 megawatts is roughly equivalent to 6,705 horsepower - imagine what a tide miller could have done with that!)

Prior to filing a permit application with the Maine Department of Environmental Protection under the 2009 law, an applicant must first obtain a finding from the Federal Energy Regulatory Commission that the project will have no significant adverse impact on environmental quality. Unfortunately, before issuing that finding federal regulators want applicants to show that they are already seeking state approval. This regulatory conflict makes it hard for people who want to develop or redevelop a tidal resource to move forward.

To fix this problem, the DEP, Senator Mike Thibodeau of Waldo County, and Representative Joyce Maker of Calais proposed an amendment to Maine law. Their bill, known as LD 437, would enable the DEP to start processing an application without needing to wait for the federal environmental assessment. After a public hearing earlier this month, the legislature's Joint Standing Committee on Environment and Natural Resources voted to recommend that the bill ought to pass as amended.

Next steps for the tidal streamlining bill include consideration by the full Senate and House. Given the committee's vote, the bill seems likely to find further support in the two chambers. While its enactment may not launch a tide of new tidal power developments in Maine, relieving this piece of the regulatory tangle should help people test and demonstrate tidal power technologies old and new.

Feds ok enviro impacts of offshore wind site leasing

Offshore wind development off the mid-Atlantic coast took a step forward today with the release of a federal assessment of the environmental impacts of leasing ocean sites for wind projects.  US Secretary of the Interior Ken Salazar and Maryland Governor Martin O'Malley held a press conference in Baltimore this morning at which the document was unveiled.  The Bureau of Ocean Energy Management's final environmental assessment for mid-Atlantic site leasing (366 page PDF) will allow it to move forward with granting commercial wind leases and allowing site characterization activities on the mid-Atlantic outer continental shelf.  Notably, the document found that leasing sites and allowing developers to study them would not have a significant impact on the human environment. 

Under the National Environmental Policy Act, federal agencies must analyze and document the environmental effects of proposed federal actions such as issuing leases for offshore wind sites.  A final environmental assessment was needed before BOEM could issue more leases, whether for offshore wind generation sites or for offshore transmission facilities.

At the same time, Governor O'Malley is intent on passing legislation that he believes will make Maryland the hub of the mid-Atlantic offshore wind industry.  From the Atlantic Wind Connection offshore transmission network to generation projects in federal waters off Maryland (and Maryland state waters), any offshore wind development will need site leases, and issuing an environmental assessment is needed before issuing site leases. Thus for Governor O'Malley's plan to come to fruition, he needs to show that he (and developers) will have the cooperation of the federal BOEM.  Today's event may have been designed to demonstrate that federal regulators will be cooperative with mid-Atlantic offshore wind projects. This would help the industry by reducing regulatory uncertainty, and would also help Governor O'Malley promote his offshore wind program.

The draft environmental assessment released last summer was generally favorable, if not groundbreaking.  Notably, it did not explicitly make a finding of no significant impact from leasing. Comments on the draft environmental assessment were due in August 2011; these public comments are available through a federal document website.  Today's final environmental assessment was developed partly in response to these public comments.

A final environmental assessment is a key step in developing the offshore wind resource, but it's still one of many steps needed. The environmental assessment in question does not cover any specific projects, nor would it permit the actual construction or operation of any projects. Rather it serves as a blanket assessment to document BOEM's review of the impacts of issuing site leases generally, and of allowing developers to study sites.

Today's finding of no significant impact, or FONSI, allows BOEM to move forward with leasing without preparing a more intensive (and time-consuming) environmental impact statement.  This leasing program is part of BOEM's Smart from the Start initiative. The final assessment will now allow BOEM to award of a non-competitive lease for the wind energy area off Delaware, as well as a competitive process to select developers for sites off Maryland.

Cobscook tidal project environmental review

A tidal energy project proposed in Maine has passed an initial federal environmental review.  Federal regulators have released an environmental assessment of the Cobscook Bay Tidal Energy Project (182-page PDF), finding generally that licensing the hydrokinetic project with appropriate environmental protective measures would not constitute a major federal action that would significantly affect the quality of the human environment.

The Cobscook Bay project is proposed by Ocean Renewable Power Company Maine, LLC.  ORPC proposes to develop a 300 kilowatt hydrokinetic project in Cobscook Bay near the city of Eastport and the town of Lubec, Maine.  The project entails five cross-flow hydrokinetic turbine generator units, each with a rated capacity of 60 kW.  According to FERC, the project's construction will cost an estimated $11.5 million, with operation and maintenance adding $146,000 per year.  Staff's analysis suggests that during its first year of operation, the project would produce power at a cost that is $1.3 million more than the cost of alternative power (or about 1 cent per kWh above alternative power).

ORPC Maine has applied to the Federal Energy Regulatory Commission for an 8-year pilot license for the Cobscook project.  Under the National Environmental Policy Act, federal agencies must evaluate the environmental impacts of agency actions such as issuing licenses for energy projects.  Performing an environmental assessment is one step in the NEPA process.  If the agency concludes that issuing the license would have relatively minor environmental impacts, as the FERC did for the Cobscook project, it can avoid the more stringent review process of preparing an environmental impact statement.

In the Cobscook project's environmental assessment, FERC staff recommended licensing the project with several additional modifications.  FERC invites public comment for 30 days following publication of notice of the environmental assessment.