Recognizing Maine’s “vast, untapped renewable ocean energy resources, including tidal power resources” and the state’s potential to become “an international proving ground for testing promising new technologies in state waters”, FERC Chairman Jon Wellinghoff today signed a Memorandum of Understanding (MOU (pdf)) with the State of Maine, providing that the federal and state regulators will coordinate – and streamline – the permitting process for tidal energy projects.
The MOU is the first of its kind on the East Coast (Washington signed a similar MOU (pdf) in June, 2009; Oregon signed one (pdf) in March, 2008); and was recommended (pdf) by the tidal power subcommittee of Maine’s Ocean Energy Task Force (OETF) earlier this year, which noted that a lack of coordination between the state and FERC permitting processes can limit the ability to move projects forward.
The MOU agreement will reinforce the close working relationship between federal and state regulators needed to ensure timely consideration of pilot project license and commercial project license applications. Under the agreement, for instance, FERC and Maine agree that:
- Each will notify the other when they become aware of a potential applicant seeking a preliminary permit, project pilot license, or other license to develop a hydrokinetic tidal energy project;
- Maine will take action on a demonstration hydrokinetic tidal energy project’s application for a state permit and water quality certification within 60 days of the state’s acceptance of the application; and
- Both will designate management contacts to work through any procedural issues that arise in the review of a particular proposed tidal energy project.
In addition to these provisions designed to streamline the permit review process, the MOU also seeks to coordinate the substantive review of pilot projects and support the development of tidal energy by sharing critical data gathered from these innovative projects. Maine commits to support FERC’s establishment of a permit process to allow short-term hydrokinetic tidal energy projects and FERC agrees to review permits with a view to ensure projects are compatible with Maine comprehensive plans and offshore wind energy test areas, as defined by new Maine law (pdf), which creates a streamlined DEP permit process for tidal energy demonstration projects. Recognizing that gathering information regarding the economic and technical feasibility of new ocean technologies can be a stumbling block for their development, Maine and FERC also agree that any required pre- and post-licensing studies for pilot projects should be reasonable in scope and that any data gathered on pilot projects should be shared.
The MOU will promote the close working relationship between federal and state regulators needed to ensure timely consideration of pilot project license and commercial project license applications. This is good news for the tidal power development community, and addresses concerns like those raised by the OETF, that an uncoordinated approach to permitting can lead to the failure of projects - like Finavera Renewables' (pdf) proposed tidal project in Makah Bay, WA - to make it past the planning stage. The new framework will provide an efficient and predictable permitting process that will better enable the United States – and specifically the State of Maine – to compete effectively in the global race to develop tidal power technology and power projects.
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