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Tidal Power Off Maine Coast Waved Onto Fast Track

August 25, 2009 - AUGUSTA -- Developers of tidal energy projects off the coast of Maine should find it easier to negotiate the complex sea of state and federal regulations, under an agreement reached Wednesday.

The deal, signed in Washington by Maine Gov. John Baldacci and Federal Energy Regulatory Commission Chairman Jon Wellinghoff, is designed to streamline the federal and state licensing process for offshore projects.

The agreement is the latest sign of the state's determination to pursue renewable energy generation, including wind and tidal projects.

The agreement attempts to reduce obstacles that may arise because both FERC and Maine agencies have licensing authority over offshore tidal energy projects.

The so-called memorandum of understanding calls for Maine and the federal government to coordinate procedures and schedules for review of tidal energy projects. Among other stipulations, it allows Maine agencies to accept documents filed with FERC to fulfill state requirements.

Officials in the fledgling tidal energy field say the action clearly signals the importance of tidal power for Maine and federal regulators. It also provides a sense of security for businesses looking to invest resources in the state, they say.

According to a release from Baldacci's office, the agreement is the first such one on the East Coast; FERC has signed similar agreements with Oregon and Washington.

"Maine is committed to developing our abundant renewable energy resources," Baldacci said in the release. The agreement, he added, "will help establish a coordinated and responsible partnership between Maine and FERC."

Wellinghoff said in the release that the agreement was an important step toward developing tidal power technologies on the East Coast.

According to FERC, three tidal energy permits are pending across the country, none in Maine. Thirty-two permits have already been granted, including eight in Maine.

The Maine permits are held by companies such as Maine Tidal Energy Co., Tidewater Associates and Mananook Associates. Permits also have been granted to the Passamaquoddy Tribe at Pleasant Point, Maine Maritime Academy in Castine and the town of Wiscasset.

One of the companies that could benefit from the new agreement is Ocean Renewable Power Co., headquartered in Portland. The company has two preliminary permits from FERC for two tidal energy sites in Eastport, near the mouth of the Bay of Fundy.

The company plans to do more on-site testing this fall, said John Ferland, vice president of project development. Last month, the company filed a preliminary application for a pilot project that would allow demonstration technology to be in place by late 2010. Future permit applications could be easier to file with this agreement, said Ferland.

"This is a very important thing," said Ferland. "What it signals to developers like us is that the state of Maine and the federal government are seeking to work (together) to regulate a new industry."

The original regulatory path didn't envision tidal power, said Ferland. The agreement to create a more modernized permitting path, he said, is a sign of "regulatory innovation."

"FERC knows that this industry is very, very important to Maine," said Ferland.

Under the agreement, federal and state regulators will notify each other when either learns of a potential applicant for a permit or a license, ensuring a coordinated review, according to the governor's office.

Regulators also will process applications as early as possible, setting schedules with specific milestones. And they will "encourage other federal agencies and stakeholders to comply."

By MATT WICKENHEISER, Staff Writer, Portland Pres Herald, August 20, 2009


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