FERC to Issue Conditional Licenses for Ocean Energy Projects

December 12, 2007

The Federal Energy Regulatory Commission (FERC) announced in late November that it will issue conditional licenses for projects that draw power from waves, tides, and currents. Such "hydrokinetic" projects, as FERC refers to them, can receive conditional licenses if FERC has completed a favorable review of the project, but authorizations from other federal entities have not yet been received. The conditional licenses could help developers to obtain financing for the project. Under the conditional license, construction can only begin once all appropriate authorizations are obtained under federal laws such as the Clean Water Act, the Coastal Zone Management Act, and the Endangered Species Act. Although the FERC policy statement was effective immediately, the commission will accept public comments on the policy through December 14th. See the FERC press release and the full policy statement (PDF 44 KB). Download Adobe Reader.