US government to cut offshore energy red tape

The Interior Department has announced that it and the Federal Energy Regulatory Commission will now cooperate in resolving an outstanding dispute about which agency monitors alternative energy offshore projects.

Ken Salazar, Secretary of the Interior told the Senate’s Energy and Natural Resources Committee that the two agencies have signed an MOU which will permit progress in locating renewable energy systems on the outer continental shelf.

Salazar said that there is no argument about offshore wind energy, and added that the two departments will work jointly to fix regulations for every offshore alternative energy unit, both tide and current powered.

Officials of both agencies have been ordered to create a wider MOU that states how permits and licences for renewable offshore energy projects will be granted.

Salazar said they may complete the offshore rules in two months, after four regional meetings open to public comments.

He warned that if the rules from the end of the Bush administration are changed dramatically several more months may be needed.

He said the agreement will have major effects and improve cooperation between the agencies to avoid disputes over offshore projects.

He sees a lot of projects in the Atlantic Ocean four years hence.

Philip Moeller, FERC Commissioner, told a Senate Energy Committee that FERC is now getting requests for provisional permits for hydrokinetic projects.

These produce electricity from tidal flows, wave motion, or ocean currents.

FERC has given about 170 permits for offshore energy production, a total of 10,000 megawatts.

For a project off the coast of Oregon a permit has been given to Ocean Power Technologies for a 1.5 megawatt power facility for electricity to approximately 2,500 homes.

A submarine cable would carry the power the power from 10 buoys with piston cylinders moving up and down driven by the waves.

The California Public Utilities Commission approved provisionally $2 million to be used by PG&E Corp on a demonstration of ConnectWave project, which may finally generate 40 megawatts.

Salazar said the department would soon decide if it will finally approve the contentious Cape Wind project off Massachusetts, which could supply electricity to 400,000 homes.

President Barack Obama regards the development of alternative power sources as a major keystone of his new administration, but cooperation among many agencies is needed to reach the target of doubling up renewable energy during the coming three years.