Washington (Platts)--8May2009

Staff of the US Federal Energy Regulatory Commission upheld the
commission's end of a recent agreement with the Department of the Interior's
Minerals Management Service while still approving a preliminary permit for a
wave power project proposed to include part of the Outer Continental Shelf.

In a delegated order Thursday, Mark Robinson, director of FERC's Office
of Energy Projects, issued a preliminary permit for the 100-MW Green Wave San
Luis Obispo project but revised the northwest and southwest boundary markers
so the site would span state waters only. Green Wave Energy Solutions wants to
build the project off the coast of San Luis Obispo County, California.

This arrangement would respect the terms of a memorandum of understanding
that DOI and FERC signed in April to clarify their jurisdiction over renewable
power projects on the OCS. FERC has authority over licensing of hydrokinetic
projects but leasing, rights-of-way and easements for all renewables on the
OCS are in the hands of MMS. Also, MMS has jurisdiction over offshore wind
power projects.

Under the MOU, FERC agreed not to issue preliminary permits for
hydrokinetic projects that would be located on the OCS and developers must
receive an MMS lease before they can obtain a commission license.

There were nine preliminary permit applications for wave power projects
proposed on the OCS when FERC reached the MOU.

Preliminary permits do not grant land-use rights but instead serve as
placeholders in FERC's water power licensing process so a developer has
priority if it later decides to pursue a license.

The commission also has issued a preliminary permit for a traditional
hydropower project. On May 1 it issued to Glacier Fork Hydropower a
preliminary permit for the 75 MW Glacier Fork project proposed in the Glacier
Fork of the Knik River in Alaska.

On the same day FERC accepted for filing a preliminary permit application
from Hydro Energy Technologies for the proposed 250-MW Southerly Waste Water
Treatment Plant to be located on the Cuyahoga River in Ohio.

--Esther Whieldon, esther_whieldon@platts.com