1. FERC & Hydrokinetic Projects Ocean Energy for New England Conference Hosted by the Marine Renewable Energy Center at the Advanced Technology and Manufacturing Center Fall River, MA October 6, 2008

2. Topics Flexibility at FERC: Approach to New Technologies Flexibility at FERC: Approach to New Technologies Hydrokinetic Project Proposals Hydrokinetic Project Proposals Next steps & information Next steps & information

3. Hydrokinetic Projects Conventional hydropower projects Hydrokinetic projects: generate electricity from waves or directly from the flow of water in ocean currents, tides, or inland waterways

4. Regulatory Approach The Commission: The Commission: –supports the development of hydrokinetic projects –recognizes the conundrum of need for real-world testing, yet limited information to prepare application Tailored existing program: Tailored existing program: –Preliminary permits –Test projects –Pilot project license

5. Types of Issuances Preliminary permits Preliminary permits –Maintains priority of application for three years –Conduct feasibility studies and prefiling activities –Doesn’t authorize construction Licenses Licenses –Authorizes construction and operation and operation –Original up to 50 years –Relicense 30-50 years

6. Preliminary Permit Review Strict Scrutiny – February 15, 2007 Applications Applications –Appropriately sized area –Details of proposed technology technology Post-issuance administration Post-issuance administration –Schedule of activities –Progress reports –Cancel permit if no progress

7. Hydrokinetic Project Permits (as of September 23, 2008) Issued, existing preliminary permits Issued, existing preliminary permits – 34 tidal, 9 wave, 0 ocean current, 68 inland Pending preliminary permits Pending preliminary permits –20 tidal, 4 wave, 3 ocean current, 66 inland

8. FERC-Issued Hydrokinetic License and Preliminary Permits

9. FERC-Issued Hydrokinetic Preliminary Permits

10. Pending Preliminary Permits

11. Test Projects (no FERC license needed) Verdant Declaratory Order- April 2005, July 2005 Verdant Declaratory Order- April 2005, July 2005 No license required if: No license required if: -Experimental technology -Short term installation for conducting studies -Test project does not transmit into, or displace power from, the national electric energy grid

12. Pilot Project License Whitepaper – updated April 14, 2008 Test technologies, evaluate sites, monitor effects, and generate electricity Test technologies, evaluate sites, monitor effects, and generate electricity Agency and public input, with FERC oversight Agency and public input, with FERC oversight Complete licensing in as few as 6 months Complete licensing in as few as 6 months Guard against environmental harm Guard against environmental harm –Short license term, small footprint, removable –Careful monitoring –Project shutdown or removal if harm

13. Pilot Project Licensing Procedures Available for projects that are: small, short term small, short term not in sensitive areas not in sensitive areas removable & able to be shut down removable & able to be shut down removed, with site restored removed, with site restored initiated by draft application in a form sufficient to support environmental analysis initiated by draft application in a form sufficient to support environmental analysis ***On case-by-case basis*** ***On case-by-case basis***

14. Hydrokinetic Project Proposals (as of June 4, 2008) Pre-filing license applications Pre-filing license applications –Reedsport (OR) –Coos Bay (OR) –Douglas County (OR) –Roosevelt Island (NY) License issued License issued –Makah Bay (WA)

15. Typical Statutes Federal Power Act Federal Power Act National Environmental Policy Act National Environmental Policy Act Endangered Species Act Endangered Species Act Marine Mammal Protection Act Marine Mammal Protection Act Magnuson-Stevens Fisheries Act Magnuson-Stevens Fisheries Act Fish and Wildlife Coordination Act Fish and Wildlife Coordination Act Coastal Zone Management Act Coastal Zone Management Act Clean Water Act Clean Water Act National Historic Preservation Act National Historic Preservation Act

16. Give equal consideration to power and environmental values Licensing Standard Federal Power Act

17. Standard Licensing Processes Integrated Licensing Process (ILP)-default –Traditional Licensing Process (TLP) –Alternative Licensing Process (ALP) Prefiling: Consult with interested parties on issues and studies Public meeting(s) Conduct studies Prepare license application Postfiling: Seek comments from interested parties Prepare EA or EIS and seek comments Weigh all information in record before Commission decision

18. Process guidance Process guidance Issued and pending permits and licenses Issued and pending permits and licenses Timeline of Commission actions Timeline of Commission actions Hydrokinetic Website www.ferc.gov

19. Next Steps Project specific Project specific –Participate in prefiling and process applications Programmatic Programmatic –Coordinate with states and agencies to establish agreements (MOUs, etc) –Continue outreach –Consider additional strategies as projects progress, i.e., how best to build out from a pilot project

20. Questions www.ferc.gov Kristen Murphy 202.502.6236 Kristen.murphy@ferc.gov