In 2008, DOE released a report stating that 20 percent of America’s energy supply could be produced from wind generation by 2030, and offshore wind could produce as much as 54,000 MW by 2030.  The MOU will first target projects on the Atlantic coast.

Under the MOU, DOI’s Bureau of Ocean Energy, Management, Regulation, and Enforcement (“BOERME”) and DOE’s Office of Energy Efficiency and Renewable Energy (“EERE”) will work together to exchange information, conduct stakeholder meetings, and collaborate on research needed to prioritize wind projects along with marine and hydrokinetic (“MHK”) energy technology projects.  Interestingly, the Federal Energy Regulatory Commission (“FERC” or the “Commission”) is not part of the MOU.   Thus, it is unclear what jurisdictional issues will arise between FERC and the other agencies since the MOU specifically includes siting and permitting of the offshore wind projects.

Within 30 days of signing the MOU, the agencies must create an interagency Action Plan that will, among other things:

1. Identify potential sites for commercial scale projects; 
2. Develop attainable goals for offshore wind and MHK;
3. Develop a plan for measuring and predicting wind resources; 
4. Work to streamline Federal and State project authorization processes for permitting and siting;  
5. Create technical standards for offshore renewable technologies;
6. Develop environmental protection protocols;
7. Coordinate studies in support of research leases for OCS wind and MHK activities;
8. Coordinate with parties to ascertain models for wind, wave, tidal, and ocean currents;
9. Gather and disseminate data, baseline agency assessments of projects, and additional resources related to the projects.

The MOU is available on DOE’s webpage and here.

In April 2009, Secretary of the Interior, Ken Salazar, and President Obama announced the framework for developing renewable energy projects for the Outer Continental Shelf (see May 1, 2009 edition of the WER).  The new program is administered by the Minerals Management Service (“MMS”), which grants leases, easements, and rights-of-way for renewable energy development. 

The offshore leasing process also requires involvement from the National Ocean and Atmospheric Administration, the Environmental Protection Agency, the Fish and Wildlife Service, the Army Corps of Engineers, the Coast Guard, MMS, and other intergovernmental agencies, tribes, and state officials as part of the Delaware Outer Continental Shelf Renewable Energy Task Force.   The task force selected the land to be included in the Request for Interest which is 7.5 miles east of Rehoboth Beach in Delaware.  In addition to state task forces, MMS has also developed alternative wind energy consortiums with East Coast states interested in creating more offshore wind farms. 

The Request for Interest is the first step toward leasing federal land on the Outer Continental Shelf for energy development.  It is open to developers and all interested and affected parties, and DOI requested comments that will aid in identifying issues related to commercial wind leases, including environmental concerns. 

The state of Delaware has already approved Bluewater Wind Delaware, LLC’s proposal to build a new 200 MW plant to serve Delmarva, the state’s largest utility.  However, Bluewater Wind Delaware, LLC is still required to apply with MMS for an offshore lease.  This may force Bluewater Wind Delaware, LLC to compete with other companies if there is enough interest generated.  However, if other companies do not show interest, then a non-competitive leasing process will be used.

Additional information is available at: http://www.doi.gov/news/pressreleases/Interior-Initiates-Leasing-Process-for-Commercial-Wind-Development-on-US-Outer-Continental-Shelf-off-Delaware.cfm.

March 29, 2010

The U.S. Department of Energy (DOE), Department of the Interior (DOI) through the Bureau of Reclamation (Reclamation), and Department of the Army (DOA) through the U.S. Army Corps of Engineers (USACE), announced on March 24, 2010 the signing of a Memorandum of Understanding (MOU) between the federal agencies to promote the development of hydropower.  Pursuant to the MOU, studies will be conducted over the next few years that may help industry determine which Federal dams and reservoirs would be best suited for non-Federal hydropower development.  The process will hopefully determine which sites will have the fewest roadblocks from stakeholders, including the federal dam owners themselves.  These studies may also lead to a determination of which projects can be most efficiently integrated into the grid. 

Under the MOU, the agencies will work together to identify federal facilities and United States- controlled lands that are well-suited for sustainable hydropower development.  The agencies will promote increasing generation, including pumped storage,  at existing facilities and dams, and the agencies will work together to study the effects of adding capacity to unpowered federal dams or constructed waterways.  The MOU states that the agencies shall also prioritize and balance the environmental impacts of any new power facilities at such existing dams.  The MOU also commits the agencies to help facilitate federal authorizations to build new electric generation facilities at existing sites.  In addition, the agencies will share information on renewable energy research and development, including hydropower.  The MOU also notes that hydropower may be developed to help integrate other renewable energy into the grid. 

The USACE and DOI are the two largest hydropower dam owners in the United States, and their combined hydro generation facilities represent about half of the country’s hydropower capacity — approximately 34,000 megawatts.  Thus, the synergy in collaborating on hydropower with DOE seems logical.  However, the MOU does not mention the Federal Energy Regulatory Commission (FERC).  ERC is responsible for licensing non-federally authorized hydropower projects, even if constructed on federal land. It is unclear how the MOU will fully impact non-federal hydropower growth.  Since two of the listed MOU goals are to coordinate research and expedite the permitting process on federal lands, FERC’s role is crucial to any efforts to make hydropower project development more efficient.  Even though DOI seems to be working through the Bureau of Reclamation, DOI has other subordinate agencies that are responsible for federal review of significant environmental resources such as the Fish and Wildlife Service.  If DOI’s role in this MOU will consider all its subordinate agencies’ interests in a coordinated way, this could help non-federal hydropower get licensed or other renewables acted on expeditiously.  The named federal agencies will also work with a variety of other agencies and stakeholders in their studies.

In addition to identifying federal facilities for potential projects and coordinating research and development efforts, the MOU states the agencies will seek to identify existing facilities eligible for retrofitting/upgrading existing facilities with new technologies.  The objective is to increase hydropower generation through low-impact and environmentally sustainable approaches.  Also, the MOU specifically lists in-river hydrokinetic projects as a possible option, and those projects will be developed through the newly created Federal Inland Hydropower Working Group that will develop river and streams projects.

The MOU will also create a basin-scale approach to hydropower development.  The basin-scale approach will emphasize sustainable, low impact or small renewable projects that can increase generation while improving biodiversity.  The basin studies will lead to a workshop in May 2010 that will eventually create a feasibility report on the pilot studies.  

Several action items are also enumerated in the MOU for the upcoming year.  One of the first action items in the MOU is for USACE and the Bureau of Reclamation to produce, by October 2010, the list of federal sites best suited for upgrades, or other projects to increase generation.  The agencies must also explore options to jointly fund or solicit projects at both USACE and Reclamation sites, and those final proposals are also due by October 2010.  The agencies will also submit a report to the Congress by April 2011 on the impact of climate change on hydropower.

The MOU also includes initiatives that could enhance renewable energy development generally across the United States.  Several goals address increasing the deliverability of renewable energy and using hydropower to help integrate other renewable energy into the grid.  The scope and statement of work for increasing hydropower transmission and storage, especially pumped storage, is due June 2010, and it will include an assessment of the amount and distribution of energy storage needed to effectively integrate renewables into the transmission grid.  DOE will also champion the certification of sustainable and environmentally friendly hydropower projects, and those projects may then be eligible for state or national renewable portfolio standards or be given some type of credit for producing clean energy.  The certification process meetings and planning must be initiated in fiscal year 2010.  Thus, although the MOU targets hydropower, it will affect all renewable development in the future.  The lists of targeted projects and consolidated research data alone may streamline renewable development nationally.  However, the role of FERC in any new development remains to be seen, especially with regard to licensing new projects.

An announcement of the MOU can be found on the DOE’s website at:  http://www.energy.gov/news/8793.htm. ]]> http://www.troutmansandersenergyreport.com/2010/03/doe-doi-and-army-corps-sign-mou-on-hydropower/feed/ 0 http://www.troutmansandersenergyreport.com/2009/10/nine-agencies-sign-mou-to-expedite-transmission-siting-on-federal-lands/ http://www.troutmansandersenergyreport.com/2009/10/nine-agencies-sign-mou-to-expedite-transmission-siting-on-federal-lands/#comments Fri, 30 Oct 2009 16:24:52 +0000 Troutman Sanders LLP http://www.troutmansandersenergyreport.com/?p=613 On October 28, 2009, the Obama Administration released a Memorandum of Understanding (“MOU”) signed by nine agencies to streamline and expedite the siting and construction of electric transmission lines on federal land.  The MOU was signed by the Federal Energy Regulatory Commission (“FERC”), Department of the Interior, Department of Agriculture, Department of Commerce, Department of Defense, Department of Energy (“DOE”), Environmental Protection Agency, the Council on Environmental Quality, and the Advisory Council on Historic Preservation.

 The goal of the MOU is to expedite the approval of new transmission lines, reduce expense and uncertainty in the process, reduce costs, increase accessibility to renewable energy, and jumpstart job creation.  The MOU does not alter the authority of any participating agencies, and all existing environmental reviews and safeguards remain in place.

 Under the agreement, an applicant will no longer be required to obtain siting approval from multiple agencies.  Instead, the DOE will designate a lead agency for coordinating all required federal authorizations and Federal Agency Reviews for transmission proposals.  The Lead Agency also will establish a consolidated process for the environmental reports and reviews.   The coordinating agencies also must set and meet clear deadlines and create a single record to be posted on line to improve the transparency of the process.

 Because DOE has previously delegated its authority to FERC for transmission projects located within National Interest Electric Transmission Corridors, that designation will not be affected by this MOU.   FERC also will retain authority to license hydro-powered facilities.  Other agencies also have certain delineated duties according to the MOU that falls within their agency scope.

 The MOU is available at: http://www.doi.gov/documents/MOU-TransmissionSitingonFederalLands_001.pdf

Secretary Salazar emphasized the need for a cohesive federal energy siting process and stated a Cabinet-level, cross-agency working group has convened to address national transmission issues.  Some of the groups participating with the DOI are the Council on Environmental Quality, the Office of Energy and Climate Change, the Department of Energy, the Department of Agriculture, and the Federal Energy Regulatory Commission.  Along with establishing a coordinated federal review process for new transmission and fast-tracking transmission projects, Secretary Salazar also said there is a need to establish electric corridors that connect renewable energy sources to metropolitan areas. 

 A complete copy of Salazar’s speech is available at: http://www.doi.gov/secretary/speeches/093009_speech.html.