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Archive for the ‘FERC’ Category

MendoCoastCurrent, March 14, 2011

Dear President Obama,

Continuing to hear comments that you, your administration and your cabinet members consider nuclear power as a clean, renewable solution is most alarming.

Mr. President, let’s consider the nuclear event occurring in Japan right now and learn the simple truth that any safe renewable energy portfolio DOES NOT include nuclear energy.

The ramifications of the current Japanese nuclear trauma will be felt worldwide as will the fall-out, for months and possibly years to come.

Mr. President, I strongly encourage your team to change course, hit the ground running in alternative, renewable and sustainable energy r&d right now.

Here’s a solution that may be started TODAY ~ http://bit.ly/t7ov1

I call it Mendocino Energy and am not attached to the name, yet very passionate about this important safe, renewable energy development concept. Time has come for us to get rolling!

Mendocino Energy ~ At this core energy technology incubator, energy policy is created as renewable energy technologies and science move swiftly from white boards and white papers to testing, refinement and implementation.

The Vision

Mendocino Energy is located on the Mendocino coast, three plus hours north of San Francisco, Silicon Valley. On the waterfront of Fort Bragg, utilizing a portion of the now-defunct Georgia-Pacific Mill Site to innovate in best practices, cost-efficient, safe renewable and sustainable energy development – wind, wave, solar, bioremediation, green-ag/algae, smart grid and grid technologies, et al.

The process is collaborative in creating, identifying and engineering optimum, commercial-scale, sustainable, renewable energy solutions with acumen.

Start-ups, utility companies, universities (e.g. Precourt Institute for Energy at Stanford), EPRI, the federal government (FERC, DOE, DOI) and the world’s greatest minds gathering at this fast-tracked, unique coming-together of a green work force and the U.S. government, creating responsible, safe renewable energy technologies to quickly identify best commercialization candidates and build-outs.

The campus is quickly constructed on healthy areas of the Mill Site as in the past, this waterfront, 400+ acre industry created contaminated areas where mushroom bioremediation is underway.

Determining best sitings for projects in solar thermal, wind turbines and mills, algae farming, bioremediation; taking the important first steps towards establishing U.S. leadership in renewable energy and the global green economy.

With deep concern & hope,

Laurel Krause

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MendoCoastCurrent, June 25, 2010

The Federal Energy Regulatory Commission (FERC) today proposed to build on its Order No. 890 open access transmission reforms by establishing a closer link between regional electric transmission planning and cost allocation to help ensure that needed transmission facilities actually are built.

The Notice of Proposed Rulemaking (NOPR) is based on an extensive record: three years of monitoring implementation of Order No. 890, three regional technical conferences and examination of more than 150 sets of comments filed in response to an October 2009 request for comment on transmission planning and cost allocation. It proposes and seeks comment on requiring:

  • Transmission providers to establish a closer link between cost allocation and regional transmission planning by identifying and establishing cost allocation methods for beneficiaries of new transmission facilities;
  • Transmission planning to take into account needs driven by public policy requirements established by state or federal laws or regulations;
  • Neighboring transmission planning regions to improve their coordination with respect to facilities that are proposed to be constructed in two adjacent regions and could address transmission needs more efficiently than separate intraregional facilities; and
  • The removal from Commission-approved tariffs or agreements provisions that provide an undue advantage to an incumbent developer so that sponsors of transmission projects have the right, consistent with state or local laws or regulations, to build and own facilities selected for inclusion in regional transmission plans.

“Our nation needs a transmission grid that can accommodate rising consumer demand for a more diverse mix of power generators and the sophisticated technology of the smart grid,” FERC Chairman Jon Wellinghoff said. “To do that, we must make sure FERC transmission policies are open and fair to all.”

A significant aspect of the proposal is the requirement that transmission planning take into account public policy requirements, such as state-mandated renewable portfolio standards. Doing so during the transmission planning process will help ensure these legal requirements are met in a way that is fair and efficient to transmission customers.

The proposal also ties cost allocation to the regional transmission planning processes to facilitate the transition from planning to implementation. This ensures that only those consumers benefiting from transmission facilities are charged for associated costs, and gives each region the first opportunity to develop cost allocation mechanisms and identify how the benefits of transmission facilities will be determined. Comments are due 60 days after publication in the Federal Register.

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MendoCoastCurrent, June 24, 2010

Public institutions and private sector organizations from across the country should form a coalition to help states, localities and regions develop and deploy successful and cost-effective electric demand response programs, a new Federal Energy Regulatory Commission (FERC) staff report says.

The coalition effort is the centerpiece of the National Action Plan on Demand Response Report , issued today, that identifies strategies and activities to achieve the objectives of the Energy Independence and Security Act of 2007.

“There is strength in numbers. Coalitions harness the combined energy of individual organizations, producing results that can go far beyond what can be accomplished on an individual basis,” FERC Chairman Jon Wellinghoff said. “The success of this National Action Plan depends on all interested public and private supporters working to implement it.”

The public-private coalition outlined in the National Action Plan would coordinate and combine the efforts of state and local officials, utilities and demand response providers, regional wholesale power market operators, electricity consumers, the federal government and other interest groups. Demand response refers to the ability of customers to adjust their electricity use by responding to price signals, reliability concerns or signals from the grid operator. Demand response is a valuable resource for meeting the nation’s energy needs.

The 2007 law required FERC to identify the requirements for technical assistance to states so they can maximize the amount of demand response that can be developed and deployed; design and identify requirements for a national communications program that includes broad-based customer education and support; and develop or identify analytical tools, information, model regulations and contracts and other materials for use by customers, states, utilities and demand response providers.

The National Action Plan applies to the entire country, yet recognizes Congress’ intent that state and local governments play an important role in developing demand response. It is the result of more than two years of open, transparent consultation with all interested groups to help states, localities and regions develop demand response resources.

The National Action Plan on Demand Response is available at here.

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FRANK HARTZELL, Mendocino Beacon, June 24, 2010

The Federal Energy Regulatory Commission (FERC) told the Southern California partnership planning to develop wave energy off Mendocino that the firm’s permit will probably be canceled

Kenneth Hogan of FERC wrote that GreenWave Energy Solutions had failed to file both a required notice of intent and a pre-application document (PAD), in a letter sent Monday.

Both documents were due in early May for GreenWave’s two proposed wave energy farms off San Luis Obispo and Mendocino. Both documents are intended to determine the scale of the projects now being considered and the “probable revocation” applies to both projects.

Earlier this year, GreenWave announced they had entered into an agreement with Ocean Power Technologies (OPT) of New Jersey, one of the world’s top companies in the field to get the two projects going.

GreenWave has so far pushed the biggest wave energy project idea of all, one that would generate a whopping 100 megawatts of power off Mendocino.

GreenWave was granted a preliminary permit in May 2009, after FERC had sent the permit back for more details and deliberated for nearly a year. A preliminary permit is an exclusive right to study an area of the ocean.

At the end of a successful preliminary permit process, that developer gets first right to install wave energy devices, by virtue of being the first to file for the preliminary permit.

The area now claimed by GreenWave had previously been claimed by Chevron.

But GreenWave is now told they will probably lose their claim to that area.

“The failure to timely file a [Notice of Intent] and PAD warrants the cancellation of a preliminary permit,” Hogan wrote. “This letter constitutes notice under section 5 of the Federal Power Act of the probable cancellation of both preliminary permits no less than 30 days from the date of this letter.”

The cancellation would be bad news for Tony Strickland, a Southern California Republican who made his work as one of the four GreenWave Partners a key plank in the campaign with which won his state Senate seat by the narrowest of margins two years ago. He lists “alternative energy executive” as his occupation.

Now, Strickland is using his status as a green energy businessman in his campaign to be state controller. He won the Republican nomination last month by a wide margin.

“Tony serves as Vice President of GreenWave Energy Solutions LLC, a company that seeks to harness the power of ocean waves to provide energy to Californians,” his campaign website states.

GreenWave has never held a single local meeting to introduce or explain its claim of the waters off Mendocino village. Some locals are amazed at how much Strickland makes of a project that exists only on paper.

“GreenWave Energy Solutions was the recipient of the United Chamber of Commerce Small Business Award for 2008 and Tony has been featured on CNBC for his work with the company,” the Controller 2010 campaign website states.

On the other hand, the permit termination would be good news for the Marine Life Protection Act Initiative. According to a California Attorney General opinion, the MLPAI is banned from putting any new marine parks (of any of the three kinds) in areas where there are pre-existing ocean leases, which includes the GreenWave lease off Mendocino and the PG&E lease off Eureka. Thus, a big area of ocean real estate is currently off limits to creation of new protected areas by the MLPAI.

Earlier this year, GreenWave promised FERC several rounds of local meetings for March and April, which failed to materialize. And the company has filed other documents late during its FERC process.

But FERC’s revocation threats may be premature. A review of the FERC lease documents shows GreenWave may have a valid reason why they didn’t file the documents that resulted in this week’s letter from Hogan.

The FERC lease gives GreenWave the option of filing a Notice of Intent and Draft License in two years, instead of the one-year filing requirement for the NOI and PAD. However, to further complicate matters, GreenWave actually promised the NOI and PAD would be done in June 2010. That promise was made in GreenWave’s 45-day filing in June 2009.

GreenWave Energy Solutions is described as a limited liability company with five members, President Wayne Burkamp, Strickland, engineer Bill Bustamante and prominent Southern California housing developers Dean Kunicki and Gary Gorian.

Attempts to reach GreenWave president Burkamp or FERC’s Hogan weren’t successful by press time.

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MARSHA WALTON, MNN.com, June 8, 2010

The last thing that supporters of a promising renewable energy source want is a technology that harms wildlife.

So before wave energy buoys are deployed off the Oregon coast, scientists and developers want to make sure that 18,000 migrating gray whales are not put in jeopardy.

These whales, weighing 30 to 40 tons each, make a twice-yearly journey, heading south to breed off Baja, Mexico, in winter, and back up to the Pacific Northwest in spring.

Biologist Bruce Mate wants to find out if a low power underwater noise can be used effectively to nudge the whales away from wave energy devices.

“We want them to turn their headlights on,” says Mate, director of Oregon State’s Marine Mammal Institute.

Mate says the “whoop-whoop-whoop” sound being tested “is designed to be something unnatural. We don’t want them to think of it as background noise, as a wave, or as another animal. We want it to be something that is disconcerting,” he says.

Disconcerting enough so that the animals would move a few hundred yards away from the energy-capturing buoys, expected to weigh about 200 tons.

The underwater cables on these wave buoys are solid, 4 to 6 inches in diameter. Mate says a gray whale swimming 3 to 4 mph could be seriously hurt if it collided with a cable.

Mate has a grant from the Department of Energy to test whether the acoustic device is the right strategy to keep whales and buoys away from each other. Tests will begin in late December, and end before mothers and calves migrate north in May.

The noise-making device, about the size of a cantaloupe, will be located about 75 feet below the ocean surface, moored in about 140 feet of water. During the testing, it will make noise for three seconds a minute, six hours a day.

Gray whales stick close to shore, about 2.5 to 3 miles away. Swimming farther out, they can become lunch for killer whales.

During the tests, researchers will use theodolites, surveying instruments that measure horizontal and vertical angles. Mate says the animals’ actions should be fairly easy to observe as they encounter the noise.

“These animals track very straight lines during migration. They are motivated to get to the other end,” he says.

The Federal Energy Regulatory Commission (FERC) licenses wave energy technologies, and dozens of agencies oversee how this technology will affect ocean life.

“Wave energy developers are required to undergo a rigorous permitting process to install both commercial-scale and pilot projects,” says Thomas Welch of the Department of Energy (DOE).

Ocean Power Technologies is set to deploy the first of 10 energy-generating buoys off Reedsport, Ore., later this year.

Wave energy developers say they have worked with conservation groups from the start, dealing with everything from whales to erosion.

“As an untapped renewable resource there is tremendous potential,” says Justin Klure, a partner at Pacific Energy Ventures, a company that advances the ocean energy industry.

A believer in clean energy, Klure says it is imperative that the technology be the least disruptive.

“Nobody knows if a large buoy or any other technology is going to have an impact on an ecosystem. A misstep early could set back the industry. This is hard work, it’s expensive, if you don’t have a solid foundation, we feel, that is going to cost you later,” he says.

Klure says the industry has studied how other energy development, including wind and solar, have dealt with environmental challenges.

“I think the lesson here is how critical project siting is. It’s the same concept as land use planning for the ocean. Where are the most sensitive ecosystems? Where are areas that need to be preserved for recreation, or commercial fishing?” Klure says.

It will likely be five to 10 years before wave energy provides significant electricity production. But the acoustics research by Mate could provide help to animals, reaching beyond the Pacific coast.

“We certainly hope it has broader uses,” Mate says. If the sounds do move animals to safety, similar devices could be used to lure whales back from shallow waters if they are in danger of stranding — or even help whales or other marine mammals skirt the poisons of a large oil spill.

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May 22, 2010

The Federal Energy Regulatory Commission (FERC) and the State of California have signed a Memorandum of Understanding (MOU) to coordinate procedures and schedules for review of hydrokinetic energy projects off the California coast.

This marks the fourth hydrokinetics MOU that FERC has signed with other states, following agreements signed last year with Washington and Maine, and with Oregon in 2008. Today’s agreement ensures that FERC and California will undertake all permitting and licensing efforts in an environmentally sensitive manner, taking into account economic and cultural concerns.

“This agreement with California shows FERC’s continuing commitment to work with the states to ensure American consumers can enjoy the environmental and financial benefits of clean, renewable hydrokinetic energy,” FERC Chairman Jon Wellinghoff said.

“I am delighted the State of California has signed an MOU with the Commission on developing hydrokinetic projects off the California coast,” Commissioner Philip Moeller said. “This completes a sweep of the West Coast which, along with Maine, is showing its commitment to bringing the benefits of clean hydrokinetic energy to the consumers of the United States.”

FERC and California have agreed to the following with respect to hydrokinetics:

  • Each will notify the other when one becomes aware of a potential applicant for a preliminary permit, pilot project license or license;
  • When considering a license application, each will agree as early as possible on a schedule for processing. The schedule will include milestones, and FERC and California will encourage other federal agencies and stakeholders to comply with the schedules;
  • They will coordinate the environmental reviews of any proposed projects in California state waters. FERC and California also will consult with stakeholders, including project developers, on the design of studies and environmental matters; and
  • They will encourage applicants to seek pilot project licenses prior to a full commercial license, to allow for testing of devices before commercial deployment.

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JEFF ST.  JOHN, Earth2Tech, March 1, 2010

Federal Energy Regulatory Commission Chairman Jon Wellinghoff wants his agency to have a lot more authority over planning cross-state transmission lines, as well as getting states and utilities to share the costs of building them. But on Monday, the utility industry pushed back. The Coalition for Fair Transmission Policy — an industry group made up of 10 big utilities including Southern Co., Consolidated Edison, Alliant, DTE Energy, PPL, Progress Energy and PSEG — says it will lobby to change proposed Senate legislation that it says could unfairly spread the costs of building big new transmission lines across multiple states. Or, to put it another way, “states and regions that get the benefits of new transmission should be the ones to pay for them,” Bruce Edelston, the coalition’s executive director, said Monday.

The coalition has a specific target —Senate Bill 1462, otherwise known as the American Clean Leadership Act. It wants to take out language from the bill that would give FERC more authority over transmission lines, and replace it with language that “precludes the allocation of transmission expansion costs to electric consumers unless there are measurable economic or reliability benefits for those consumers.”

Wellinghoff has said his agency needs more power to force states to agree on new ways to share the costs of massive new transmission lines to carry clean power from the places it’s most cheaply produced to where it’s most needed. Without it, he told a Senate panel in March, “it is unlikely that the Nation will be able to achieve energy security and economic stability.”

But FERC having more power could involve, for example, a transmission line from a North Dakota wind farm to Illinois’ Chicago suburbs, which might cross three states along its route. How should those “middle mile” states, which have to give up land and cover some costs of maintaining those lines, but may not receive power, be given a piece of the action? In Edelston’s view, the costs and benefits of such undertakings should be shared equally among all regions that have to give something up to let them happen. If a project can’t pay for itself while providing some financial benefit to utility customers in each of those states, it shouldn’t get built, he said.

President Barack Obama has called for 3,000 miles of new transmission lines to be built to help the country double its renewable energy use by 2012. Estimates on the costs of this new interstate energy highway system range from $100 billion to $200 billion, Edelston said — and those costs may be underestimated. A consortium of Eastern power grid operators said last year that transmission to carry wind power from the Midwest to the East could cost $80 billion over the next 15 years or so.

Wellinghoff has said that with such scale of the transmission lines needed, it might be hard to move quickly through the complicated, state-by-state siting and permitting mechanisms now in place — and that’s not to mention the universal opposition to having high-voltage power lines running through your backyard or environmentally sensitive region. For a sampling of the barriers to new transmission lines even within one state’s boundaries, look to California, where one big transmission line in the Central Valley was canceled in the face of local landowner and environmental opposition, and another in San Diego and Imperial counties is being challenged in court.

But Edelston pointed out that transmission projects are still moving forward under business-as-usual conditions, and several projects are underway by “Green Power Express” developer ITC for example. Other private efforts are underway, such as the Tres Amigas project that would connect the nation’s three mega-grid systems in the East, West and in Texas. Transmission projects take years to plan, permit and build, however, making long-range financing a challenge.

Not all utilities are against FERC’s sought-after expanded authority. American Electric Power, which serves 11 states, urged a Senate panel in March to expand federal authority over new transmission lines, including more broad cost-sharing, saying the economic benefits will outweigh the costs. FERC has already signed a MOU with EPA and the departments of Agriculture, Commerce, Defense, Energy and the Interior to work together on siting and permitting new transmission lines on federal lands, but that doesn’t necessarily solve the problem of states and their utilities arguing over costs and benefits.

For companies making next-generation transmission equipment such as HVDC and superconducting wire and cable — not to mention developers of utility-scale renewable power projects in hard-to-reach areas — it’s an important controversy to keep an eye on.

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