FERC Issues Updated Pilot Projects Guidance and Conditioned License FAQ for New Hydro Technologies

Posted on May 9, 2008 by Adam Walters

On Monday, April 14, 2008, FERC issued a 33 page white paper that updates its August 31, 2007 Pilot Project Policy, describing in further detail the Commission's process for obtaining short-term licenses for pilot ocean, tidal and other new hydro technologies (click here to read the FERC white paper).

While the Commission intends most new technologies to follow the Pilot Project process as a way of addressing inherent uncertainties, the guidance does not prevent applicants from seeking long term licenses should they identify other methods of addressing those uncertainties.

In addtion, FERC issued a Frequently Asked Questions document responding to comments on its November 30, 2007 Conditioned License Policy. The FAQ comes on the heals of the Commission's March 20, 2008 order on rehearing for Finavera's Makah Bay Project. In that order, the Commission reasserted its authority to issue original licenses for new technologies that are conditioned on a licensee obtaining any outstanding agency approvals. See Stoel Rives' April 10, 2008 Client Alert:  FERC Authorizes Construction of First Hydrokinetic Project. The FAQ does not clarify whether licensees must seek rehearing upon issuance of the conditioned license to avoid waiving rights to appeal the additional approvals.

For more information on hydrokinetic project licensing, see Stoel Rives' Law of Ocean and Tidal Energy publication and the FERC website.

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