Regulation of Marine Renewable Energy Development in the United States A 15 Minute Encapsulation _____________________ Carolyn Elefant, Esq. Ocean Renewable Energy Coalition 202-297-6100 [email_address] Global Marine Renewable Energy Conference, New York City April 17, 2008

Regulation of Marine Renewable Energy Development in the United States

A 15 Minute Encapsulation

_____________________

Carolyn Elefant, Esq.

Ocean Renewable Energy Coalition

202-297-6100

[email_address]

Global Marine Renewable Energy Conference, New York City

April 17, 2008

Welcome to the United States!

For marine renewables, the U.S. is a land of enormous opportunity…

… and enormously complicated regulation!

This talk gives a snapshot of regulation of marine renewables in the U.S.

My challenge is to cover the topic within fifteen minutes.

One reason that regulation is so complicated is because of dual state and national interests.

O OTEC NOAA has license authority under OTEC Act of 1980. NOAA withdrew regulations in 1996 since no company ever filed an application.

NOAA has license authority under OTEC Act of 1980.

NOAA withdrew regulations in 1996 since no company ever filed an application.

O Offshore Wind MMS empowered to issue wind leases on OCS per EPAct 2005. States approve projects on state submerged lands and portions of OCS projects that cross state lands.

MMS empowered to issue wind leases on OCS per EPAct 2005.

States approve projects on state submerged lands and portions of OCS projects that cross state lands.

O Wave/Tidal 0-3 miles - FERC, under Part I, FPA 3-12 miles - MMS and FERC? Or MMS or FERC? 12-200 miles - MMS

0-3 miles - FERC, under Part I, FPA

3-12 miles - MMS and FERC? Or MMS or FERC?

12-200 miles - MMS

O FERC/MMS: Key Differences FERC Authority over entire project, state and federal pieces License does not confer property interests Rules adapted from hydro Permit gives priority Developer selects sites MMS Authority stops at OCS limits Lease confers property interest Developer can nominate sites but MMS may open for bid Still developing rules No priority rights in proposed test lease rules Programmatic approach

FERC

Authority over entire project, state and federal pieces

License does not confer property interests

Rules adapted from hydro

Permit gives priority

Developer selects sites

MMS

Authority stops at OCS limits

Lease confers property interest

Developer can nominate sites but MMS may open for bid

Still developing rules

No priority rights in proposed test lease rules

Programmatic approach

Different FERC Approvals Preliminary Permit 3 years, site study only, priority for license Verdant Exemption 18 month exempt to test facility Pilot Project License 5 year, <5 MW, 1 year app. process, must decommission Conditional License License but no construction until all permits received License 30-50 year term Exemption Minimal FERC oversight after issuance

Preliminary Permit

3 years, site study only, priority for license

Verdant Exemption

18 month exempt to test facility

Pilot Project License

5 year, <5 MW, 1 year app. process, must decommission

Conditional License

License but no construction until all permits received

License

30-50 year term

Exemption

Minimal FERC oversight after issuance

Different Types of MMS Leases Interim/Test Lease For data collection or testing facilities for alternative energy technologies on OCS As proposed, no priority rights As proposed, competitive process NOPR, request for nominations and draft proposed lease issued, awaiting final rule Longer Term Lease ANOPR in Feb. 06, policy under development Programmatic EIS prepared and issued

Interim/Test Lease

For data collection or testing facilities for alternative energy technologies on OCS

As proposed, no priority rights

As proposed, competitive process

NOPR, request for nominations and draft proposed lease issued, awaiting final rule

Longer Term Lease

ANOPR in Feb. 06, policy under development

Programmatic EIS prepared and issued

Summary Chart of State & Fed. Regulations Applicable To FERC and MMS Author- izations

The puzzle for the U.S. is to regulate in a way that helps wave/tidal to “commercialize without compromise.”

What are the regulatory options for marine renewables?

One stop shopping centralizes the process, but won’t work unless agencies will cede control.

Streamlining speeds demos into the water, but developers may not use them without funding or option for build out.

Programmatic plan/zoning can give certainty…but do we have enough data now to draw “lines in the sand?”

Adaptive management allows for data gathering and staged growth…but what to do if impacts can’t be addressed?

Let’s use these next few days to create regulatory options that point marine renewables in the direction of success.

It is time for Marine Renewables to “seas” the day! For additional information, visit www.oceanrenewable.com

It is time for Marine Renewables to “seas” the day!

For additional information, visit

www.oceanrenewable.com