Overview of Marine Renewables Regulatory Trends and Challenges

Carolyn Elefant, OREC Legislative & Regulatory Counsel

Law Offices of Carolyn Elefantwww.oceanrenewable.com

www.renewablesoffshore.com2nd Annual Global Marine Renewable Energy

ConferenceCarnegie Institute, Washington D.C.

April 15, 2009

• Overview of regulatory developments and OREC activity at FERC and MMS (primary regulatory bodies)

• What’s working, what’s not

• Regulatory challenges for 2009 and beyond

FERC

• Regulatory system fairly well developed with several options - last year, OREC filed comments on many initiatives

• OREC continues to monitor FERC policies on integrating renewables into the grid

FERC• Pilot License (1 yr. process, 5 yr. license)

– Verdant, RITE Project (11/08)– ORPC, Cooks Inlet, AK (4/09)

• Traditional License Process– OPT, Reedsport Oregon (2.1 MW, 07-pres)– Free Flow Power - 44 traditional license, 4 ILP

(multi unit development on Mississippi)

• Amendment to Existing License– HydroGreen - Amendment to City of Hastings

license on Mississippi 2 35 kw turbines

• Alternative License– Finavera License (affirmed, 3/08; surrender

2/09)

MMS• Initiated Interim Lease Program

– Florida• FP&L, VisionEnergy, Oceana (current data

collection)– California

• PG&E Humboldt and Mendo (wave center and data collection)

• NOPR on Leases on OCS– OREC files 50 pages comments on multiple

NEPA, royalties, need to coordinate with other processes

– Awaiting final rule

FERC/MMS MOU

• OREC sought to let agencies address issues

• Remaining questions:– Multiple levels of NEPA review?– How should developers coordinate lease and

license?– Treatment of straddle projects and hybrids

still unaddressed

What is our regulatory system doing right…and where is there room for improvement?

FERC Pilot Project RegulationsWhat’s missing: Deadlines, limits, cost, coordination, commercial.

MMS NOPR- What’s missing: Adaptive management, deadlines, costs, schedule, coordination.

What regulatory challenges lie ahead for the marine renewables industry?

Down economy may bring cut backs to state agency staffing

Tug between developer driven first generation siting to gain data and confirm feasibility and broader spatial planning initiatives.

Biggest Challenge: Opportunity for significant money to industry but we must show that regulatory system is workable to qualify