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Posts Tagged ‘Tony Strickland’

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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Excerpts of FRANK HARTZELL’s article, Mendocino Beacon, May 7, 2009

gweclogo1GreenWave Energy Solutions, an “alternative energy startup has been granted a three-year preliminary permit to study wave energy off Mendocino.

It’s locals’ first look at action by a newly recast Federal Energy Regulatory Commission (FERC), which is tasked by the Obama Administration to make a greater push to develop alternative energy.

On May 1, FERC issued an exclusive preliminary permit to GreenWave Energy Solutions LLC. The permit’s area stretches from just north of Albion to off Point Cabrillo, about a half-mile from shore to three miles offshore.

Five men from the Thousand Oaks area of Southern California, including Tony Strickland, a Republican state senator, formed GreenWave Energy Solutions about two years ago.

Strickland, one of the state’s most ardent deregulators and anti-tax advocates, won the state Legislature’s closest race last November by a handful of votes. He made his involvement in alternative energy a key part of his campaign.

Green Wave Energy Solutions is composed of president Wayne Burkamp, Strickland, engineer Bill Bustamante, developer Dean Kunicki and developer Gary Gorian. Kunicki and Gorian are major real estate developers in Southern California.

The preliminary permit reserves that area solely for GreenWave and also gives the company first rights to apply for a long-term power license in state waters.”

“The GreenWave proposal envisions eventual construction of a power plant with more than twice the capacity of that planned by PG&E. GreenWave’s Burkamp said the firm is not a shell corporation or a subsidiary of any other company.

GreenWave hopes to someday install 10 to 100 Pelamis or OPT hydrokinetic devices capable of producing 100 megawatts, with a 2- to 3-mile long powerline running to shore, the permit application states.

FERC’s permit conditions for GreenWave don’t vary much from those imposed by FERC under the former Bush Administration.

But locals made this preliminary permit one of the longest ever. And the application has more interveners and more people commenting than any other “hydrokinetic” project in the nation. FERC has issued and is considering hydrokinetic permits from the Yukon River to the Florida Keys for wave, tidal, ocean current and river flow power.

While issuing the permit, FERC briefly responds to each point raised by locals.

“As for the concerns raised by Mendocino County and Laurel Krause regarding the financial capability and experience of the applicant, it has been the Commission’s policy for some time that, at least where there is no competition for a permit, the Commission will not base grant of the permit on proof of an applicant’s ability to finance or perform studies under the permit,” FERC wrote. “However, as discussed below, application of the Commission’s strict scrutiny policy may include cancellation of the permit if the applicant is unable to demonstrate, for financial or other reasons, adequate progress toward the possible development of a license application.”

Although FERC is an independent agency, President Obama appointed Jon Wellinghoff as chairman of the five-member commission after the chairman under President Bush resigned and left FERC. With the commission now split 2-2 between Republicans and Democrats, Obama now has the opportunity to change its direction with his appointment of a new fifth member.

FERC also recently accepted three preliminary permit applications from Sonoma County to study wave energy off its shores, a nod to local government that signals a change of direction for the independent federal commission.

That change began when Mendocino County and the City of Fort Bragg protested exclusion from the process and a lawsuit was threatened.

The permit is the first wave energy permit since the Obama Administration released new standards for the process of generating alternative energy on the outer continental shelf.

Under that plan, FERC has complete control of the wave energy process inside three miles. For projects like PG&E’s wave energy proposal, which extends on both sides of the three-mile line, a Minerals Management Service lease is required past state waters. PG&E withdrew from its efforts to get a MMS lease last year.

GreenWave’s permit area appears to extend just beyond the three-mile limit. John Romero of MMS said neither PG&E or GreenWave has sought a lease from MMS.

GreenWave’s application says the initial phase will involve spending between $1 million and $2 million and will be financed entirely through private equity.

“The estimated cost of the second phase (the actual installation of wave energy devices in the water and the generation of power from these devices) will be $20 million to $40 million,” the application states.

Burkamp told the newspaper that GreenWave’s application is different from PG&E’s in that GreenWave will focus on solving environmental issues, while PG&E Wave Connect is set up to test rival technologies.

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Excerpts from FRANK HARTZELL’s article at the Mendocino Beacon, December 11, 2008

On December 9, 2008  “the Federal Energy Regulatory Commission (FERC) granted a Southern California development company exclusive rights to 17 square miles off the town of Mendocino for a wave energy study.

GreenWave LLC’s intent is to eventually produce a 100 megawatt wave energy power plant, more than twice as big as the 40 megawatt project Pacific Gas & Electric plans off Fort Bragg.

Due to redefining of the preliminary permit process by FERC, the new preliminary permit does not encourage in-water testing. It does give sole claim and study rights to GreenWave, blocking any local study of the same area.

More valuable, the preliminary permit gives GreenWave exclusive first rights to a license to build a wave energy farm, upon completion of the three-year study.

The preliminary permit came more than a year after GreenWave, of Thousand Oaks, filed for two preliminary permits. FERC had initially rejected the GreenWave application as too sketchy.

GreenWave also was granted a preliminary permit on Tuesday for a nearly identical proposal off San Luis Obispo.

GreenWave is a partnership which consists of five men including Tony Strickland, a leading Republican politician in California, who was recently narrowly elected to the state Assembly. Strickland made his wave energy venture a key point of his campaign. His opponent in a heavily Republican district attacked this as “greening” of one of the most conservative politicians in the state.

That race, one of the closest in California this year, was decided this week in favor of Strickland, who prevailed over Democrat Hannah-Beth Jackson by less than 1,000 votes.

FERC had criticized GreenWave for too few details about who was behind the venture and for not having information about the technology to be used.

GreenWave responded by emphatically stating that they weren’t ready to name any particular technology.

“Given the time-horizon for getting through the permitting process and the uncertainties of what the technologies will actually look like, GreenWave believes that it would be misleading to provide detailed specifications of a technology at this stage of the development process. GreenWave intends to select the most suitable commercially ready technology as part of the process once preliminary permits have been issued by FERC to further study the site,” the Green Wave filing states.

However, FERC’s permit says GreenWave will be using the Pelamis device in the permit issued on Tuesday. The Pelamis, which resembles a series of giant redwood log segments on a string, is the only currently viable commercial technology. The company has said it would use only the most seasoned technology.

The issuance is apparently based on an about face made by GreenWave in documents submitted to FERC but not available on the public Website with the rest of the filings.

The permit says 10 to 100 Pelamis devices will be used, having a total installed capacity of 100 megawatts. Connecting the project to shore will be a 2- to 3-mile-long, 36 kilovolt transmission line,

The project site begins a half mile offshore and extends to 2.6 miles from shore in water depths that range from 120 to 390 feet, the GreenWave application says.

Local governments, groups and even residents now have a chance to file motions of intervention, which allows the intervener to play an official role in the process.

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