Chad Marriott
Chad Marriott practices in the Energy Development group, where he concentrates his practice on wind, solar, hydro, marine and hydrokinetic (e.g., wave and tidal power), and other forms of renewable energy. Chad currently serves as a vice chair for the Hydro Power Committee of the American Bar Association's Section on Environment, Energy, and Resources; and he is also a board member of the Ocean Renewable Energy Coalition. His practice includes advising clients on the retirement of renewable energy certificates (RECs) with the Western Renewable Energy Generation Information System (WREGIS); advising irrigation districts on Federal Energy Regulatory Commission (FERC) permitting and licensing requirements for new hydro, hydrokinetic and conduit facilities; drafting and reviewing leases and easements for the development of energy projects, assisting with mergers and restructuring of foreign renewable energy companies' domestic project entities, and drafting and reviewing power purchase agreements for renewable energy developers.
New DOE Resource Assessments Nudge Wave and Tidal Energy Forward
The U.S. Department of Energy (“DOE”) recently released two new nationwide resource assessments for wave and tidal energy projects in the U.S. The reports, funded by the DOE and prepared by the Electric Power Research Institute ("EPRI") and the Georgia Tech Research Corporation, present the most rigorous and comprehensive analysis to date on the magnitude of the resources available for electricity generation and where those resources are located.
Wave Energy: The wave energy report, “Mapping and Assessment of the United States Ocean Wave Energy Resource” states (as most expected) that the best resources are on the West Coast, including Alaska and Hawai’i. EPRI calculated the resource’s potential to be 400 gigawatts nationally.
Tidal Energy: The tidal energy report, “Assessment of Energy Production Potential from Tidal Streams in the United States” follows on the heels of the DOE’s release of its interactive national tidal resource database in July 2011. For more on the database and relevant links, see my blog on the topic.
Ocean Current, Ocean Thermal Gradients, and New Hydropower: In addition to these two new reports, the DOE anticipates releasing additional resource assessments for developers of ocean current, ocean thermal gradient, and new hydropower projects.
Based on our experience assisting clients to develop wave, current, and tidal energy projects across the country, we are encouraged by both the results of the resource assessments and the DOE's encouraging perspective on the role that new hydropower and hydrokinetic projects should have in expanding the nation's renewable energy resource mix.
For detailed information on all aspects of marine and hydrokinetic project development, download a PDF of our recently updated Law of Marine and Hydrokinetic Energy.
Verdant Power Receives First FERC Pilot Project License
Today, the Federal Energy Regulatory Commission ("FERC") issued its first pilot project license for a tidal energy project to Verdant Power, LLC for its Roosevelt Island Tidal Energy ("RITE") Project in New York's East River (pictured at right). As a first-of-its-kind license, this is a significant step for the burgeoning tidal energy industry in the United States.
According to the license, the project will be construted in three phases over a five year period. When complete, the project will consist of thirty 35-kW, 5-meter-diameter axial flow Kinetic Hydropower System ("KHPS") turbines with a total installed nameplate capacity of 1.05 MW. Verdant must begin construction on Phase 1 within the next two years and must complete Phase 3 within six years. The license was issued for the full 10 years requested in Verdant's license application.
Although the levelized cost of energy for the RITE project is high relative to other energy sources, the Commission stated clearly that "[t]his project's value . . . lies in its successful testing and demonstration of Verdant's KHPS turbine technology, and the project's ability to raise the profile of, and advance, the emergent tidal energy industry."
The license can be found on FERC's website under Docket No. P-12611-005.
For more detailed information on the FERC pilot project licensing process, see Chapter 3 of our recently updated Law of Marine and Hydrokinetic Energy.
Hydropower Regulatory Efficiency Act of 2011 Introduced in the House of Representatives
Today, Reps. Cathy McMorris Rodgers (R-WA) and Diana DeGette (D-CO) introduced H.R.3680, the "Hydropower Regulatory Efficiency Act of 2011", in the U.S. House of Representatives. Here is a summary of the bill's major provisions:
- Would exempt small hydroelectric facilities of 10 MW or less from the Federal Energy Regulatory Commission ("FERC") licensing process (currently, the exemption applies to facilities of 5 MW or less);
- Would remove conduit hydroelectric facilities of 5 MW or less from FERC jurisdiction (such facilities would not be required to file for a license or an exemption from licensing);
- Would exempt all conduit hydroelectric facilities of 40 MW or less from the FERC licensing process (currently, the exemption applies to facilities of 15 MW or less, or 40 MW or less in the case of municipal water supply projects);
- Would permit the development of conduit hydroelectric facilities on Federal land;
- Would provide FERC the ability to extend preliminary permits for up to an additional 2 years in certain circumstances;
- Would require FERC to investigate the feasibility of a 2-year licensing process for the development of (1) hydroelectric facilities at nonpowered dams and (2) closed-loop pumped storage facilities;
- Would require the Department of Energy to study the potential for conduit hydropower development and potential sites for pumped-storage facilities located near existing or potential sites of intermittent renewable energy projects (e.g., solar, wind); and
- Would require the President to submit a report to Congress on actions taken by the DOE and other Federal agencies pursuant to the memorandum of understanding on hydropower that was signed on March 24, 2010.
Many of these provisions are similar to those contained in S.629, the "Hydropower Improvement Act of 2011", which was introduced in the Senate on March 17, 2011 by Sen. Lisa Murkowski (R-AK). Notably, however, approximately $100 million in research and development funding included in S.629 was not included in the House bill.
The National Hydropower Association ("NHA") and Stoel Rives partner Cherise Oram, a member of the NHA's Legislative Committee, have worked closely with Members on both sides of the aisle over the past several months to develop the language of H.R.3680. NHA supports the bill and is pleased with both the bipartisan support of its original co-sponsors and the additional interest that has been shown by democrats and republicans in different regions of the country.
PIRP Changes Off the Agenda for December CAISO Board Meeting
On November 30, the California Independent System Operator Corporation ("CAISO") announced that it would not push for changes to the Participating Intermittent Resources Program ("PIRP") at the December 15-16 Board of Governors meeting. The announcement came as welcome news to intermittent renewables advocates as the CAISO and stakholders have spent the past year negotiating issues set out in one Straw Proposal, five Revised Straw Proposals, and a Draft Final Proposal on changes to PIRP eligibility requirements and cost allocation, bid cost recovery ("BCR"), and a lowering of the energy bid floor. Instead of making changes to PIRP now, the CAISO will revisit the discussions in the second quarter of 2012- when it is scheduled to begin a stakeholder process to review decremental bidding options for participating intermittent resources in the Renewable Integration- Market and Product Review, Phase 2 initiative. Changes to the BCR netting methodology and the incremental lowering of the energy bid floor are still scheduled for review by the CAISO Board this month.
What's Happening in Small Hydro and Hydrokinetics?
Some very noteworthy things have happened this month in the world(s) of small hydro and hydrokinetics in the United States. Here’s a quick summary:
1. U.S. Departments of Energy and the Interior Award ~$17 Million for Advanced Hydropower R&D. On September 6, 2011, Secretaries Chu and Salazar announced that the two agencies will provide nearly $17 million in funding over three years for research and development projects to advance hydropower technology. The money was awarded to 16 projects in 11 states through a competitive grant process first announced at the National Hydropower Association conference in April 2011. Congratulations to the winners:
· Sustainable Small Hydro Projects: Earth by Design, Hydro Green Energy (2 awards), Percheron Power, Sacramento Municipal Utility District, Near Space Systems, Natel Energy, New Mexico State University, Walker Wellington, and Weisenberger Mills.
· Sustainable Pumped Storage Hydropower: Sacramento Municipal Utility District, Argonne National Laboratory.
· Environmental Mitigation Technologies for Conventional Hydropower: Electric Power Research Institute (EPRI), Pacific Northwest National Laboratory, Regents of the University of Minnesota.
· System Testing at Bureau of Reclamation Facility: Natel Energy.
For more on the announcement and the categories considered under the Funding Opportunity Announcement (DE-FOA-0000486), see my blog covering the announcement from April 2011.
2. FERC Approves First Small Hydro Project Under MOU with Colorado. In August of 2010, the Federal Energy Regulatory Commission (“FERC”) and the State of Colorado signed a Memorandum of Understanding (“MOU”) which has finally borne fruit. On September 14, 2011, FERC granted a license exemption for the 23 kW Meeker Wenschhof hydroelectric project (FERC Docket No. P-14230), to be located on an existing irrigation pipeline near the town of Meeker in Rio Blanco County. This is the first project approved by FERC under the new simplified procedures adopted under the MOU. The approval took a mere 2 months. The announcement can be found here. For FERC’s press release, click here. To read more about the MOU, see my blog from last year which includes a summary and a link to the MOU.
3. The Marine and Hydrokinetic Renewable Energy Promotion Act of 2011 Introduced in the U.S. House of Representatives. On September 21, 2011, Congressman Jay Inslee (D-WA), together with Congressman Ted Deutch (D-FL) and Congressman Don Young (R-AK), introduced H.R. 2994, legislation that would boost research grants, loans and tax incentives available for scientists, engineers, and entrepreneurs working to develop and deploy ocean-generated energy in the United States. Mr. Deutch’s district (Florida 19) is home to the Southeast Marine Renewable Energy Center located at Florida Atlantic University. The bill has been referred to the House Science, Space, and Technology Committee as well as the House Energy and Commerce Committee. For the full text of the bill, click here.
PNWER Annual Summit Hosts First Ocean Energy Panel and Moderated Forum
Last week, the Pacific Northwest Economic Region (“PNWER”) Annual Summit here in Portland, Oregon played host to its first-ever ocean energy panel and moderated forum. The four-hour session was organized by Oregon state Representative Deborah “Debbie” Boone (D.- Cannon Beach) and Richard “Rick” Williams of Science Applications International Corporation. The five initial panelists [1] were joined by members of the Alaska and Washington legislature, industry representatives, environmental and project development consultants, and others in a frank discussion about the potential for developing an offshore wave and tidal energy industry in the Pacific Northwest.
The conversation was a good one, with a handful of topics taking up the majority of the air time:
Continue Reading...FERC Issues Order No. 1000 on Transmission Planning and Cost Allocation by Transmission Owning and Operating Public Utilities
Yesterday, the Federal Energy Regulatory Commission ("FERC" or "the Commission") issued Order No. 1000 in Docket No. RM10-23-000, a rulemaking proceeding initiated by the Commission on June 17, 2010. Order No. 1000 is a Final Rule that weighs in at a whopping 620 pages and reforms the Commission's electric transmission planning and cost allocation requirements for public utility transmission providers.
The order takes effect 60 days from its publication in the Federal Register and public utility transmission providers are required to make a compliance filing within 12 months of the effective date of the Final Rule. Compliance filings for interregional transmission coordination and cost allocation mandated by the Final Rule must be submitted within 18 months of the effective date.
Attorneys here at Stoel Rives are reviewing the order and its implications for our clients now, but given the size and scope of the order, this blog will rely on summary information published by the Commission concurrently with the order to provide readers a general idea of its contents.
Continue Reading...Recent RFPs for Renewable Energy
Several requests for proposals ("RFPs") have been issued recently with July deadlines. Here's a brief summary of each:
- Progress Energy Carolinas is seeking proposals for energy and renewable energy certificates from newly constructed or existing wind projects of at least 5 MW to comply with North Carolina's renewable energy portfolio standard. Projects do not have to be located in North Carolina. The deadline for proposals is currently set at 5:00 p.m. EST, July 25. The utility anticipates shortlisting in August and executing final contracts in late October. More information can be found here.
- Tucson Electric Power and UniSource Energy Services are seeking up to 50 MW of Arizona-based wind generation. There will be a bidder teleconference at 1:30 p.m. PST on Monday July 18. Bids are currently due by 4:00 p.m. PPT on August 25 and the utilities expect to make a decision by September 30. Information about the joint request for proposals can be found here.
- The City of Roseville, California, through its electric department, Roseville Electric, seeks to procure eligible renewable energy resources from renewable electrical generation facilities as defined by California's SBX1-2. Targeted procurement is outlined on the request for offer document. The deadline to submit questions is July 22. Responses are currently due July 26 and the City anticipates shortlisting on or about September 30. More information is available here.
- National Grid has issued a second request for proposals for renewable energy in Rhode Island. The Narragansett Electric Company d/b/a National Grid is seeking proposals for capacity, energy, and renewable energy credits under 10-15 year contracts. A bidders conference will be held on July 15 in Rhode Island. Notices of Intent to Bid are currently due by 5:00 p.m. EPT on July 20, and proposals will be due by 5:00 p.m. EPT on August 4. Details can be found here.
U.S. Department of Energy Announces Interactive Tidal Energy Resource Map
Today, Mike Reed, the Water Power Team Lead for the U.S. Department of Energy's ("DOE") Wind & Water Power Program, announced a new resource to help developers assess the quality of the tidal energy resource along the coast of the United States.
Called the "Assessment of Energy Production Potential from Tidal Streams in the United States," the online database was developed at Georgia Tech's Center for Geographic Information Systems, in cooperation with (and with the help of grant funding from) the DOE. The interactive map provides unprecedented visualization, allowing users to zoom and pan over maps of color-coded information on water depth, mean current speed, and the available kinetic power density of tidal streams along the entire coastline. However, developers should note that the assessment does not include (1) any assumptions about technology or (2) any flow field effects from energy extraction. In other words, the tidal stream database provides excellent data for initial, "big picture" site assessment, but developers will still need to conduct their own site-specific studies using acoustic doppler current profilers ("ADCPs") and similar technologies to get the micrositing data necessary to optimize device performance.
As of today, the Federal Energy Regulatory Commission ("FERC") has issued 27 preliminary permits for tidal energy projects and 2 additional preliminary permit applications are pending. In December 2010, Verdant Power submitted a Final License Application to FERC for its Roosevelt Island Tidal Energy ("RITE") project in New York's East River (Docket No. P-12611). If Verdant's pilot license application is approved, it will be the first FERC-licensed tidal energy project in the United States.
The image to the right is of Delhaven Wharf in the Bay of Fundy, Nova Scotia, where the ebb and flow of the world's strongest tides leave fishing boats stranded when the tide runs out.
UPDATE: California Utilities Issue 2011 RFOs for Renewables
Following up on my blog Thursday, all three of California's major investor-owned utilities, Pacific Gas & Electric ("PG&E"), San Diego Gas & Electric ("SDG&E"), and Southern California Edison ("SCE") have issued their 2011 requests for offers ("RFO") and requests for proposals ("RFP") for eligible renewable resources, triggering their timelines for new contract proposals.
Information on PG&E's RFO, issued Wednesday May 11, can be found here. PG&E will hold a bidders conference on May 19. According to the current schedule, offers must be received by noon on June 15.
Information on SDG&E's RFO, issued Thursday May 12, can be found here. SDG&E will hold a pre-bidders conference in San Diego on June 2, and another one in El Centro on June 6. According to the current schedule, offers must be received by noon on July 12.
Information on SCE's RFP, issued Friday May 13, can be found here. SCE will hold a proposal conference on May 26. According to the current schedule, offers must be received by 1:00 p.m. on June 27.
