U.S. OFFSHORE NEW ENERGY TO GO FORWARD

Offshore Energy Regulation to Be Shared by Agencies
Juliet Eilperin, March 17, 2009 (Washington Post)
and
US Govt cuts red tape on offshore renewable energy
Tom Doggett (w/Ayesha Rascoe, Russell Blinch and Marguerita Choy), March 17, 2009 (Reuters)

SUMMARY
The Federal Energy Regulatory Commission (FERC) and the Minerals Management Service (MMS) of the Department of Interior (DOI) announced a Memorandum of Understanding (MOU) on the regulation of wind, solar, wave, current and tide energies in U.S. coastal waters of the outer continental shelf.

The MOU represents the resolution of a more than 1-year-old dispute. MMS has jurisdiction over offshore wind and solar installations but has also claimed jurisdiction over wave, tide and ocean current energies as well. In the memorandum, it accedes to FERC’s claim over those technologies.

The outer continental shelf. (click to enlarge)

In the MOU, DOI is designated as responsible for wind and solar projects on the outer continental shelf outside the states’ waters. FERC is granted responsibility under the Federal Power Act to oversee hydrokinetic projects, or “…new technologies that seek to convert wave, tidal and ocean current energy to electricity…" on the outer continental shelf.

The MOU allots DOI and other concerned federal agencies the right to participate in the licensing of projects but defines FERC as the agency of primary responsibility for hydrokinetic installation licensing.

Ocean energy projects reportedly near ready include: (1) Ocean Power Technologies' (OPT) 1.5- megawatt, 10-buoy installation off the Oregon coast and (2) PG&E's California Public Utilities Commission-approved WaveConnect demonstration for a 40-megawatt project.

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The one offshore wind project reportedly near ready: The controversial 130-turbine, $1 billion Cape Wind installation in Nantucket Sound off Cape Cod (See FAT CATS ON CAPE STILL CAN’T STOP WIND)

COMMENTARY
- The U.S. has no offshore wind or solar installations and no ocean energy installations. There is a slate of regulatory requirements for such projects. Without clear agency jurisdictions, the gauntlet through which a project must pass to win approval has been impossible to negotiate, effectively stopping the development of offshore New Energy.

Europe alredy has offshore wind installations. (click to enlarge)

- Although onshore wind, solar and geothermal energies are more technologically advanced and cost competitive, most authorities see demand growing so much in the next 2 decades that meeting it will likely take all the domestic energy generation the U.S. can muster.
- There are 20-to-25 offshore wind installations in Europe where the advanced, bigger and more powerful 3.5- and 5-megawatt turbines have been proven.

Solar at sea. (click to enlarge)

- Various hydrokinetic energy technologies are still competing for dominance.
- There are no ocean-based solar power plant installations but solar-powered data collection buoys are common and concentrating solar technologies in the power plant field could theoretically be adapted to ocean circumstances. (See Technology White Paper on Solar Energy Potential on the Outer Continental Shelf)
- The potentials of offshore wind, solar and ocean energies are considered huge. Streamlining the regulatory process will have a significant impact on achieving President Obama’s goal of doubling U.S. New Energy capacity in the next 3 years.
- FERC has already issued some 170 preliminary permits for 10,000 megawatts of potential power generation from hydrokinetic projects but only now, with the MOU, will final licensing be possible.

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QUOTES
- Ken Salazar, Secretary, Department of Interior, March 16: "If we don't resolve the jurisdictional issues between FERC and the Department of Interior…we are not going to be able to move forward in the development of our offshore renewable energy resources."

Many proposed offshore wind projects can now go ahead. (click to enlarge)

- Ken Salazar, Secretary, Department of Interior, March 17: " This agreement will help sweep aside red tape ... Our renewable energy is too important for bureaucratic turf battles to slow down our progress…I am proud that we have reached an agreement with the Federal Energy Regulatory Commission regarding our respective roles in approving offshore renewable energy projects. This agreement will help sweep aside red tape so that our country can capture the great power of wave, tidal, wind and solar power off our coasts."
- Jon Wellinghoff, Acting Chairman, FERC: "[The MOU] will help get renewable energy projects off the drawing board and onto the Outer Continental Shelf."
- Denise Bode, Executive Director, American Wind Energy Association (AWEA): "[The MOU] is a welcome sign that some of the bureaucratic obstacles to offshore wind will soon be removed…[and that the Obama administration] is ready to back up its commitment…"