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Power & Pipes

FERC, CFTC, and State Energy Law Developments

Today, the Federal Energy Regulatory Commission (FERC) and the Minerals Management Service (MMS) jointly issued a guidance document addressing many issues relating to the development and implementation of hydrokinetic and hybrid energy projects located on the Outer Continental Shelf (OCS). The issuance of the guidance document serves as an outline for entities seeking to develop hydrokinetic projects on the OCS, building on the Memorandum of Understanding issued By FERC and MMS on April 9, 2009.

The guidance document provides a succinct roadmap for nonfederal entities seeking to develop and implement hydrokinetic energy projects on the OCS. Such entities must obtain a lease from MMS authorizing access to the potential project site. After receiving a lease from MMS, entities are then required to obtain a license from FERC authorizing the construction and operation of the proposed project. As described By the guidance document, hydrokinetic projects are projects that generate electricity from the motion of waves or the unimpounded flow of tides, ocean currents, or inland waterways. The OCS encompasses all submerged lands, subsoil, and seabed lying between approximately three nautical miles and 200 nautical miles from a state shore.  Read more…