HomeMy WebLinkAboutApprove projects to receive the highest level of focus for f Council/Agency Meeting Held: 0
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Approved ❑ Conditionally Approved ❑ Denied OCit erk's ignat r
Council Meeting Date: 01/20/2009 Department Number: AD 09-01
CITY OF HUNTINGTON BEACH
REQUEST FOR COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Jill Hardy, Council Member, Chair on behalf of Intergovernmental Relations
Committee Members Mayor Keith Bohr, and Councilman Don Hansen y/
PREPARED BY: Patricia Dapkus, Department Analyst, Senior
SUBJECT: Approval of Projects to Receive the Highest Level of Focus for
Funding Efforts by the City's Federal Lobbyists during the 2009
Legislative Session, and Approval of Support for Mayor Newsom's
Advancement of Renewable Ocean Power.
F
atement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s)
Statement of Issue: The City Council Intergovernmental Relation Committee is recommending
approval of projects to receive the highest level of focus for funding efforts by the city's federal
lobbyist during the 2009 legislative session, and approval of support for Mayor Newsom's
advancement of Renewable Ocean Power.
Funding Source: N/A
Recommended Action: Motion to:
1. APPROVE as submitted the 2010 Federal Funding Agenda
2. APPROVE Signing a letter in SUPPORT of Mayor Newsom's Efforts to Advance Renewable
Ocean Power
Alternative Action(s):
Do not take the recommended action on one or both of the above and provide direction to staff on
a possible city position.
REQUEST FOR COUNCIL ACTION
MEETING DATE: 01/20/2009 DEPARTMENT ID NUMBER: AD 09-01
Analysis:
1. Approve as submitted the 2010 Federal Funding Agenda
Each year the city departments meet with the representative from the city's federal lobbying firm, the
Ferguson Group, to discuss potential projects for which they would like to seek federal financial
support. From these discussions, the Ferguson Group representative develops a list of those projects
which are most likely to receive funding during the coming year's federal budget process. Attached as
Attachment 1 is the list of projects our federal lobbyist is recommending for our federal funding efforts
during the 2009 legislative session.
The Intergovernmental Relations Committee has reviewed this list and is recommending that the City
Council support the list as submitted.
It should be noted that the city has also submitted to the United States Conference of Mayors a list of
shelf-ready projects for funding consideration under the proposed federal economic stimulus. That list
is attached as Attachment 2 the "Main Street Economic Recovery Survey on Infrastructure Job
Potential." While there may be some overlap between these lists, many of the projects in the Federal
Funding Agenda would most likely not be qualified for funding under the economic stimulus package
because they cannot meet the requirement of starting within the next 90 days. Nonetheless, because
they are on-going priorities for the city, they are included in our Federal Funding agenda. Our federal
lobbyists have assured us that they will be working with our legislators to secure funding for both types
of projects.
2. Approve Signing a Letter in Support of Efforts to Advance Renewable Ocean Power
San Francisco Mayor Gavin Newsom is asking that the Mayors of America's coastal cities support
ocean renewable energy and that they send him a letter indicating their support for these efforts.
Mayor Newsom's letter and a whitepaper on Ocean Renewable Energy are attached as Attachments
3 and 4.
The Intergovernmental Relations Committee is recommending that the City Council authorize the
Mayor to send a letter to Mayor Newsom in support of advancing renewable ocean power.
Strategic Goal:
Action on this legislation meets the strategic goal under City Services of providing quality public
services with the highest professional standards to meet community expectations and needs, assuring
that the city is sufficiently staffed and equipped overall.
Environmental Status: NA
Attachment(s):
® a
1. 2010 Federal Funding Agenda
2. Main Street Economic Recovery Survey
3. Letter from Mayor Newsom dated Dec. 10, 2008
4. Whitepaper dated Nov. 20, 2008 on Ocean Renewable Energy
-2- 1/6/2009 5:57 PM
ATTACHMENT ,# 1
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To: Pat Dapkus, City of Huntington Beach, CA
From: Charmayne Macon
RE: Draft FY 2010 Federal Agenda
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Provided below is a draft outline of key project priorities brought to my attention during my meetings
in the City. I have made recommendations based on a tiered system to show more favorable Federal
funding possibilities during the FY 2010 appropriations cycle in the 111`h Congress. Please have the
Intergovernmental Committee/Mayor and Council review and determine what the priorities will be so
that I can work with City staff on the project details. Additionally, if there are other priorities that the
City has an interest in please bring to my attention so they can be included in the City's final FY 2010
Federal Agenda.
DRAFT—fiscal year (FY) 2010 FEDERAL AGENDA
TIER I
PROJECT FEDERAL SOURCE
Water infrastructure improvement projects Army Corps of Engineers and EPA
Senior Center"green" elements HUD—Economic Development Initiative
Gun Range clean up EPA - Brownfields
City-wide energy efficiency projects Energy Efficiency and Conservation Block
Grant
Local Roadway Project SAFETEA-LU Reauthorization
TIER 11
PROJECT FEDERAL, SOURCE
Huntington Central Park— Pending research on Federal source of funds
Five (5) acre development for raptor habitat area
Handheld MDT's for police officers Dept. of Justice—COPS Technology
1
TIER III
PROJECT FEDERAL SOURCE
Arts Education Dept. of Education
Harbour Dredging Army Corps of Engineers
Fire Station construction FEMA
Installation of Hydraulic Balusters FEMA- Predisaster Mitigation Program
2
ATTAC H M E NT #2
Main Street Economic Recovery Survey on Infrastructure Job Potential.
CITY OF HUNTINGTON BEACH, STATE OF CALIFORNIA
..................................................
Number of
Funding Jobs Created
Project Description Required by Project
................................................ .............** ......................................................... ...................... ...............................
CDBG
............ ............***..,***,*".::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::........................... ........................ ......................
Street and alley maintenance: pavement replacement residential streets
4,000,000
40
and alleys in CDBG areas
............ ...................................................................
................................ .................. ................. ...................................................................................................................
Oakview Community Center Improvements: permanent modular facility
for YMCA office to offer outside and inside recreations programs at the 250,000 10
center
........... ................................. ............................. ..................................................................................................................
.................................................................. ..................................................................................................
ADA Improvements: citywide ADA compliant modifications to public
facilities such as senior center, community centers, clubhouses, libraries, 3,800,000 H 40
park and playground facilities
..................................... .................................... ..................................... .............
Energy
...................................... ...........................................................
.............................
City &SCE owned Street &pole light& purchased utility meter inventory,
150,000 4
audit and Geographical Information System (GIS) input.
......................................... .....................:.................. .................. ............... ............
................................ .......... ]
............
Huntington Beach Large Scale Photovoltaic purchase. Install 2.5 MW of
15,200,000 65
photovoltaic systems across selected appropriate sites in the city.
........... ...........................................................*****� ..........................................I
........................... ......................................................- .................
Retrofit City Facilities to allow participation in next generation Demand
Response Programs. (create A/B circuits on lighting circuits, install 1,000,000 25
timeclock &controls on fountain pumps, oil pumps, etc.)
....................................... ............ ........................... .................... ............................................. .....................
..........:....................................................................::.................................................................................l
Replace high voltage downtown streetlight system with energy efficient
3,500,000 35
lighting
.................*.*.*..*.......................... :::::::::::::::::::::::::::::::: .."...,.I...............................-................... ..........................
................. .................................................................
Huntington Bea ch/Gol den west College training center of excellence for
energy efficiency & renewable energy, providing trained and re-trained 500,000 30
green collar workers (30 qualified/re-trained employees annually)
.......... .............. .......... ................... ......................................................................
....................
.............................
Phase 2 energy projects-retrofit all city owned and operated facilities to
achieve best in class energy efficiency performance. Lighting systems
4,000,000 50
redesign & retrofit, HVAC systems, controls, outdoor security lighting,
utility infrastructure.
............. .....
City Streets/Metro Roads .
.....................................* ................................. ....
........ .................................................. ...........................................................................
Arterial street and alley rehabilitation- improve local arterial and
8,000,000 80
residential roads
.................. ........................................... .................... ...............................
............*...........*..***'****
Replace 15 miles of arterial block walls 10,000,000 H 50
............. ................................ ................................
............ ... ...........................
..................* ............ ....................
Bridge rehabilitation-make infrastructure repairs to 8 local bridges that
cross harbor water and flood control channels 2,500,000 30
.............. ........................... ........d.......... ...........*...........................
Public Safety
...................................... ..........- ..........
.........................
Install hydraulic balusters at downtown intersections for crowd protection
during special events 500,000 15
............................... ............................... ..........................
.............................. .......................................
Purchase Handheld MDT's/Ticket Writers for the foot beat officer 170,000 5
...........................................................................-................................................................................................................................................................. ......................................
.................................. ...................................... ..................................................
CITY OF HUNTINGTON BEACH, STATE OF CALIFORNIA
.......................................................
Number of
Funding Jobs Created
Project Description Required by Project
............................................................................................................................................................................................................................................................................................................................................:....................................................................::....................................................................
.............
Water
..................................................... ...............................................................................
Upgrade 20 flood station pumps and engines to improve reliability and 40
energy savings.
10,000,000
............-....................................................................................................................................................................................................................................................................................................................................................................................... .............................................................................
Sewer Lift Station reconstruction replace 2 40 + year old sewer lift
stations with higher capacity, more energy efficient facility which will help 5,000,000 50
avoid potential sewer discharges into wetlands or ocean
.................................................................... ...............................................................................
Storm drain pump station construction- construct a higher capacity storm
water pump station to replace the existing undersized 40 + year old 4,500,000 45
station.
... ...................................................................:.................................................................................
... ..................
Divert dry .......
weather urban runoff from County Channel through treatment
2,500,0 00 50
pools to Talbert Lake.
....................................................................................................................................................
Install Automated Meter Reading capabilities (citywide approximately 10,000,000 50
50,000 meters) to reduce emissions from meter reading vehicles "
........................................................................................................................................................................................................................................................................................................:_..................................................................;,..............................................................................
Install security systems at water pumping and storage facilities, 2,500,000
' 25
wastewater pumping facilities, &flood control pump stations
Upgrade water pumping equipment by installing 2 pumps and engines: 2,000,000 1 20
Result will improve reliability and save energy.
The United States Con ference of Mayors
TREET
'A
ECONOMIC
ERY
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When the I I Vh Congress convenes next week it will focus immediately on an economic recovery
package to revive the U.S. economy. Congressional leaders are working with representatives of
President-elect Obama to craft a package that can be quickly passed by the Congress and signed by the
new President shortly after he takes office.
A key component of that package is expected to be an infrastructure jobs program. The U.S.
Conference of Mayors will continue to press its case for direct funding to cities through 10 existing
programs by showing that thousands of projects which will create jobs and meet economic and
community needs are "ready to go."
Our third update of projects,,released December 19, showed that in 641 cities of all sizes in all
regions of the country, a total of 15,221 local infrastructure projects are "ready to go," and that these
projects represent an infrastructure investment of$96,638,419,313 that would be capable of producing an
estimated 1,221,677 jobs in 2009 and 2010.
This report makes a strong case for direct funding,thanks to the hundreds of mayors who
have responded to our requests for information on their ready-to-go projects. Today we are again
asking for your help in strengthening our case with Congress and President-elect®bama.
The fourth in our series of reports on ready-to-go projects will be released on Monday, January
12. We are inviting cities that have not yet submitted information on their projects to do so now, and we
are inviting cities that are already in the report to submit information on additional projects. This is also
an opportunity for cities that previously were unable to estimate project costs or jobs to be created to add
that information if it is now available.
In order to meet our January 12 publication deadline we must receive information on your
projects—a title or very brief description, estimated cost,and estimated number of jobs to be
created—by Tuesday,January 6, at 8:00 p.m. EST. Your submission must be limited to projects that
can be started within 90 days of receipt of funding and completed by the end of 2010. Note that this time
frame is consistent with the President-elect's stated goal of creating three million jobs by 2011.
Information on your projects must be submitted online at www.usmayors.org/stimulussurve
You will find there detailed instructions for entering your project information. If you have questions or
need additional information please contact Laura DeKoven Waxman or Mike Brown at(202)291-7124 or
lwaxman&usmayors.org.
Thank you again for your willingness to contribute to our effort. With you help,we will make it
clear in Washington that direct funding of metro projects is the most effective approach to restoring
America's infrastructure and economy.
ATTAC H ME N T #3
9 couNZ4o
Office of the Mayor W Gavin Newsom
City&County of San Francisco
December 10, 2008
Dear Mayor,
I write to ask you to join me in helping to advance renewable ocean power as part of a new national
energy agenda.
As you know, the climate crisis requires a far different approach to how energy is produced. We must
pioneer new forms of green energy that grow the economy, create new jobs, and protect the environment.
As Mayors of America's coastal cities,we are in a unique position to lead efforts to include renewable
ocean power in this new energy agenda.
Ocean power, coming from waves, tides and currents,is one of the most exciting new sources of
renewable energy. Estimates suggest that renewable ocean power could supply over ten percent of US
demand in the future. Recognizing this potential,we have promoted wave and tidal energy in San
Francisco and I am committed to establishing pilot ocean power projects while I am in office. To date,
much of the potential for ocean energy on our country's coast has gone unrealized due to regulatory
bottlenecks and limited federal investment. The election of President-Elect Obama provides promise that
these constraints can be overcome to advance a new energy future.
A group of experts was recently convened by the Environmental Defense Fund,representing a broad
array of stakeholders,to identify necessary next steps to advance ocean power. This group has produced
Ocean Renewable Energy:A Shared Vision and Call to Action,which outlines necessary steps to advance ocean
power in the federal government. It is attached to this letter. The common conviction of this group,and
one I strongly share,is that ocean power technologies represent a potentially valuable addition to the
nation's energy portfolio. We believe that to fully explore this potential, bureaucratic and regulatory
bottlenecks must be removed. We also believe that expanded federal assistance should help to finance
emerging ocean energy demonstration projects.
As Mayors of America's coastal cities,we are well positioned to support this effort to advance ocean
power. With this in mind, I ask you to join me by adding your name the attached letter. This Letter of
Support from Coastal Mayors calls for the inclusion of ocean power of national renewable energy agenda
and it will be used by the coalition to further this goal. Please let us know if we can add your name to this
letter by contacting my staff member Wade Crowfoot at 415-554-6640 (wade.crowfoot@sfgov.org).
I thank you in advance for your consideration.
Sincerely,
Gavin Newsom
MAYOR
1 Dr. Carlton B. Goodlett Place,Room 200, San Francisco, California 94102-4641
gavin.newsomAsfgov.org • (415)554-6141
LETTER OF SUPPORT FROM COASTAL MAYORS
FOR ADVANCEMENT OF RENEWABLE OCEAN POWER
As mayors of America's coastal cities, we are on the frontlines of the climate crisis and know that
our cities face enormous challenges if we do not dramatically change how we use and produce
energy. We recognize that our communities will be particularly affected by climate change
through rising sea levels, intensified storm cycles and other impacts. Along with Mayors from
across our country, we strongly support a national agenda to fight climate change by growing
domestic renewable energy sources. Development of renewable energy sources will decrease
our reliance on fossil fuels while building our national economy.
As coastal Mayors, we recognize a promising new type of clean energy that comes from the
ocean. Ocean renewable energy is produced by waves, tides and ocean currents, and could
meet according to some estimates at least ten percent of US energy demand in the future. The
technologies to harness this power are in a rapid stage of development but would greatly benefit
from an improved regulatory system and increased federal support.
Recently, a coalition of ocean power stakeholders has been organized by the Environmental
Defense Fund to advocate for the inclusion of ocean energy in a new federal energy agenda.
This group is comprised of diverse stakeholders including environmental organizations, academic
institutions, state organizations, and ocean renewable energy companies. This coalition has
come together to provide a road map to advance ocean power, called Ocean Renewable Energy.
A Shared Vision and Call to Action. This document outlines that ocean power technologies
represent a potentially valuable addition to the nation's clean energy portfolio but that to realize
this potential, bureaucratic and regulatory bottlenecks must be removed.
As coastal Mayors, we support this coalition's effort to increase federal support for responsible
development of renewable ocean power, as well as all initiatives to advance the potential of ocean
power in a new national energy agenda.
Gavin Newsom
MAYOR OF SAN FRANCISCO, CALIFORNIA
(Additional Mayors'Names & Titles)
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Ocean Renewable Energy:
A Shared Vision and Call for Action
Ocean waves, currents and tides carry immense amounts of energy. Because moving water is at
least 700 times denser than wind blowing at the same speed, the power of the oceans is
concentrated much more than the more diffuse power of the wind and the sun. New technologies
to capture that force hold great promise for reducing worldwide fossil fuel use, an essential step in
defending the oceans from climate change-driven environmental damage. It is an elegant
symmetry that power drawn from waves and tides could actually help ensure the health of the
oceans themselves.
Entrepreneurs and inventors in the United States and Europe have refined a variety of devices that
may efficiently convert waves, tides, and currents (collectively "ocean energy") into electrical
power. Several devices have been tested in the ocean. Others are on the verge of being test-ready.
The rapid maturation of these ocean power technologies depends upon deployment of substantial
demonstration and commercial projects in nearshore areas in the United States.
Development of the industry in this country is hampered by a number of challenges, not the least
of which is a regulatory system that is not designed to encourage pilot and demonstration projects,
as well as insufficient investment in basic research and development.
The compelling appeal of ocean renewable energy must, at this point,be tempered by frank
acknowledgment that deployment of devices to capture and convey that energy is likely to have
some impacts on the environment and coastal communities. The nature of those impacts and their
significance, especially from large-scale deployments, are essentially unknown at this point.
While we believe sufficient information exists to allow demonstration projects, there may not be
enough information to weigh any tradeoffs of large-scale deployments. Unless corrected,that
uncertainty will impair the ability of regulatory agencies, developers, and other stakeholders to
timely make necessary decisions.
This situation urgently needs to change, and it will require strong leadership to change it.
The time is now to begin testing the potential for ocean power to provide a renewable domestic
energy source. Americans are rightly demanding more renewable energy, and we also care deeply
about our oceans and coasts and the economic viability of coastal communities. Use of the oceans .
for renewable energy production will require a new commitment to"blue" energy development
that promotes clean, renewable energy, ensures protection of living marine resources, and takes
into account existing ocean users and the concerns of coastal communities. Such development
must proceed from an understanding that our oceans are held in public trust for all citizens, and
that multiple uses (including energy production) must be reasonable and consistent with the long-
term productivity of these resources.
At the invitation of Environmental Defense Fund, leading participants in the ocean renewable
energy and hydropower industries and the conservation community have come together to
explore the opportunities and challenges presented by ocean renewable energy. These
Ocean Renewable Energy
November 20, 2008
participants agree on the following general principles, and we urge the Obama Administration to
act quickly to implement them.
PRINCIPLES
THE NEED FOR ACTION
America urgently needs new sources of clean energy. While the deployment and evaluation of
ocean energy technologies) represent a unique and important renewable energy opportunity, these
technologies are being hampered and constrained by several factors. The technologies are
generally recognized as not sufficiently mature for commercial-scale development. This makes it
difficult for project developers to attract sufficient capital, due to the perceived risk of these
projects. Another factor, which is the focus of this paper, is an uncertain regulatory system that
results in larger transaction costs than are appropriate for this demonstration phase of these
emerging technologies.
1. As general policy, the United States should substantially increase electrical generation
from renewable sources. Ocean renewable energy has significant potential to contribute
to this increase. The United States government should use its authorities and commit the
resources needed to support a robust evaluation of ocean renewable energy technology
and its potential environmental impacts.
Development of diverse and numerous sources of alternative renewable energy is critical to our
nation's energy security and environmental well-being. According to the Electric Power Research
Institute, ocean renewable energy in U.S. waters has the estimated potential to supply some 400
Terawatt hours of clean power annually, or roughly 10% of today's electrical demand. Yet project
testing and deployment in coastal waters is almost non-existent. The federal role is crucial
because virtually every site where ocean renewable energy technology is likely to be tested or
deployed is subject to federal jurisdiction. Unlike conventional wind and solar, ocean renewable
energy technology cannot be tested or deployed on private land. The industry will emerge and
mature in the United States only if the federal government uses its considerable resources and
authorities to answer critical questions and encourage appropriate use of marine areas. The
Obama Administration should urgently pursue more favorable policies that facilitate such
development while ensuring protection of the marine environment and existing uses of it.
ENCOURAGING PILOT PROJECTS and FUNDING R&D
Without increased government action to encourage demonstration projects and to fund research
and development, the promise of ocean renewable energy may never be realized, and the U.S. may
see Europe corner the market on these technologies, in much the same way that it did with wind in
the 1970s.
1 This paper focuses on ocean energy generated from waves,tides,and currents. It does not address other
technologies deployable in the marine environment,including thermal conversion or offshore wind,although
these recommendations may also have relevance to those technologies.
2
Ocean Renewable Energy
November 20, 2008
2. State and federal regulatory policy should explicitly encourage pilot and demonstration
scale projects under permitting conditions that assure protection of ocean resources
(e.g., an obligation to achieve performance standards for such protection, not just
implementation of mitigation measures).
For the most part, wave,tidal and current energy technologies are at least several years from being
ready for full-scale commercial deployment. Getting small-scale projects in the water will speed
the development of technologies, allow their refinement, produce relevant environmental data, and
advance the competitive market. The technologies will continue to mature for years to come, and
there will be a long-term need for ocean resource managers to be able to accommodate pilot or
demonstration projects.
State and federal governments should create licensing/permitting processes that encourage
development of these pilot and demonstration projects while ensuring protection of the marine
environment. State and federal governments should work together to streamline and standardize
the licensing/permitting processes to make it more efficient to obtain regulatory approvals.
Agencies should also award licenses based on clear and trackable performance standards for
protection of the marine environment, wildlife,and existing uses.
Because the environmental impacts of these technologies are largely unknown, it will not be
possible to have perfect information before small-scale projects go in the water. The state and
federal regulatory approach for conventional hydropower should be scaled to reflect the relatively
small impact and potential risk associated with the size of these pilot and demonstration projects.
While allowing small-scale projects to go forward entails some environmental risk, it appears such
risk may be managed adequately through permitting conditions that require modification,
redeployment, or removal of projects as appropriate to achieve the trackable performance
standards. In addition, state and federal governments should cooperate on siting criteria and
engage in marine spatial planning to identify those areas with the best combination of high energy
potential and low risk of environmental harm and interference with existing uses.
Any small-scale demonstration project should be allowed to generate and sell electricity, or
otherwise earn an economic benefit from the project during its demonstration phase, so long as the
project complies with the other operational and environmental conditions of its permits. As these
projects prove themselves, they can be expanded to commercial scale under appropriate permitting
procedures, which should acknowledge and address issues associated with the potentially greater
impact on ecosystems of removing larger amounts of energy from those natural systems.
3. Beginning in 2009, the federal government and the States should increase research and
development funding to study, monitor, and report on common impacts (e.g., by location
or technology type) and the effectiveness of corresponding mitigation measures so that
these issues are not faced from the beginning in individual proceedings. Federal and
state regulatory agencies should also compile existing information under their control
that is relevant to testing and deployment of ocean renewable energy, including
information on baseline resources condition,potential impacts, and potential mitigation
measures, and publish it in a publicly accessible common library within the next year.
3
Ocean Renewable Energy
November 20, 2008
The decision-making environment for development and regulation of ocean renewable energy
suffers from a shortage of relevant, reliable public information. By comparison with conventional
hydropower, where we have more than a century of experience in design and operation, there is
limited experience about the environmental impacts of ocean power. The federal government and
the states should provide leadership with regard to analyses of impacts that are likely to be
common among the various technologies and projects.
Very few pilot projects have been put in the water, and none have been fully tested for extended
periods, so there is very little data on potential environmental impacts from project deployment,
operation, maintenance, or decommissioning. Further, developers are being asked to generate
baseline data on the condition of various ocean resources. The resulting transaction costs are an
effective barrier to development, and privately funded data collection is less likely to be publicly
available to benefit good management and ocean renewable energy as a whole.
The federal government and states could provide very effective assistance by funding research on
environmental baseline conditions and common impacts among these technologies. For instance,
almost all ocean renewable energy technologies must be anchored to the ocean bottom, and may
cause impacts on sedimentation processes and benthic resources. There may be analogs from
other types of development in the ocean, such as oil and gas platforms, that can provide reliable
assessments of the impacts of a wide range of ocean renewable energy technologies. Further, we
recommend that federal and state agencies that monitor the baseline condition of ocean resources
coordinate these programs
A common library of all available data, particularly data about the baseline condition of the ocean
resources, would reduce the transaction costs faced by developers. We believe that a single
federal agency, such as the National Oceanic and Atmospheric Administration, should lead a
coordinated effort to compile public data. The U.S. should also fully participate in and fund
international efforts to compile such information being coordinated by the International Energy
Agency.
Such an organized effort will lead to better projects by building on the collective experience of the
federal and state governments, and will help avoid unnecessary mistakes. In addition,by funding
research on the common impacts of these technologies, the federal government would allow
developers, most of which are start-up companies, to spend more of their resources on refining the
technologies and reducing impacts, rather than on performing baseline research and environmental
analyses.
LEADERSHIP AND COOPERATION IN REGULATION
Regulation of ocean power should be efficient, organized and transparent. There should be one
federal lead agency, and other federal and state agencies should cooperate with the lead agency
in environmental review and procedures.
4. FERC and MMS should, after further consultation with stakeholders, resolve their
jurisdictional dispute under the 2005 Energy Policy Act and Federal Power Act and
4
Ocean Renewable Energy
November 20,2008
clarify their respective authorities for regulation of ocean hydrokinetic energy. If they
have not done so by February 2009, the new Administration should direct the agencies
to each propose a solution by April 2009, and then resolve the dispute by June 2009.
Existing law permits several different resolutions of this dispute, and it is incumbent on
the Obama Administration to choose promptly among the alternatives.
Responding to the regulatory void exposed by the Cape Wind project controversy, Congress
included a provision in the Energy Policy Act of 2005 that authorized the Department of the
Interior's Minerals Management Service to issue leases for renewable energy projects located in
the federal Outer Continental Shelf area, the zone of federally owned seabed outside of state
waters, typically 3-200 nautical miles (nm) offshore. The new law did not, however, waive any
preexisting federal authority in marine areas. The Federal Energy Regulatory Commission
(FERC) had previously asserted Federal Power Act-based authority to license wave and tidal
energy projects located in U.S. territorial waters, the ocean zone within 12 nm of the shoreline.
The agencies' respective jurisdictional claims overlap in the band of federal(but not state) waters
within 12 nm of the shore, and perhaps beyond.2 The two agencies are well aware that their
jurisdictional claims conflict. Despite considerable discussion, and efforts to negotiate an
interagency MOU, FERC and MMS have been unable to reach a resolution. Both agencies have
acknowledged that they know how to reconcile their competing claims under existing law, but
have not done so. The conflicting claims impact a 9 nm-wide marine zone that is potentially
critical to the development of ocean renewable energy projects. The interagency conflict has
generated considerable uncertainty within the regulated community and among stakeholders. The
conflict, because it creates regulatory uncertainty, is an impediment to financing the development
of the nascent ocean renewable energy industry.
If the leadership of FERC and MMS do not move quickly at the beginning of 2009 to resolve their
dispute, the Administration should issue an Executive Order that clarifies the exercise of existing
federal authorities for regulation of ocean power. Whatever choice the Administration makes
should take into account ecosystem-based management principles and the principles articulated in
this document, while ensuring that the risk and confusion created by the MMS-FERC impasse is
resolved.
5. Federal and State regulatory agencies should cooperate to prepare a unified
environmental document for each application for deployment of demonstration projects,
and should otherwise coordinate their permitting procedures and decisions.
Regulation by multiple jurisdictional agencies, if uncoordinated, is an impediment to investment
in ocean wave, tidal and current technologies. The transaction costs of permitting a given project
increase if these agencies do not collaborate on matters of common regulatory concern,
particularly preparation of the environmental impact reviews that underpin their permitting
decisions. Multiple, overlapping environmental reviews do not necessarily improve
2 FERC recently issued an order asserting jurisdiction over projects beyond 12 nm as well.125 FERC 61,045
(Oct.16,2008).
5
Ocean Renewable Energy
November 20, 2008
environmental protection. Federal and state regulatory agencies with jurisdiction over ocean
wave, tidal and current projects should coordinate their environmental review and permitting
processes, as well as their responsibilities for administration and enforcement of the permit
conditions for approved projects.
Recognizing the difficulties inherent in inter-agency and state-federal coordination,we
recommend that the Obama Administration charge a senior White House office, ideally the
Council on Environmental Quality, with responsibility to lead an interagency, federal-state process
to create a coordinated environmental review and permitting system for pilot and demonstration-
scale ocean renewable energy projects that fulfills the requirements of the National Environmental
Policy Act(NEPA), state environmental review laws, and other applicable mandates.
PLANNING & PARTICIPATION
A public process to consider appropriate locations for ocean renewable energy and that addresses
the concerns of all stakeholders—including all relevant state and federal agencies—is critical to
public acceptance of ocean renewable energy projects.
6. A mechanism is needed to support coordinated federal, state, interstate and interagency
planning for ocean renewable energy development.
No federal or interstate body has taken on the task of planning for ocean renewable energy
development. For example, FERC permits individual projects, but does not provide planning for
multiple projects along the coast. MMS neither plans nor regulates within state waters, where
many projects, and virtually all grid interconnections, will occur. There also may be conflicts
between FERC and the states over consistency review for projects under the Coastal Zone
Management Act (CZMA). Creative thinking will be required to find ways to coordinate
necessary ocean planning and the permitting processes for energy development. A federal-level
approach may be necessary to coordinate and integrate planning for ocean renewable energy
development and may require new legislative authority. In the short-term, the Obama
Administration might clarify the agencies' roles,providing appropriate deference and support to
states in their mandates under the CZMA, in an Executive Order addressing the FERC-MMS
conflict.
7. The regulatory process for ocean power should permit and encourage effective
participation of all stakeholders affected by a given project. Specifically, it should
include: (A) transparency, including disclosure of documents and communications, and
(B) reasonable opportunities for stakeholders to engage directly with applicants and
agencies to address and resolve any concern, in addition to the ordinary procedure of
filing written comments for the record Such participation should balance the public's
need to have input on decisions affecting public resources with the imperative to move
forward quickly with pilot and demonstration projects.
Because they involve public resources, ocean renewable energy projects bring with them an
inherent need for public participation in decision-making. Numerous stakeholders—including
coastal community members and recreational users such as fishermen, property owners, boaters,
6
Ocean Renewable Energy
November 20, 2008
surfers, and conservationists—want to ensure that their interests are adequately addressed during
decisions on siting and operation of such projects.NEPA provides the fundamental framework for
transparent decision-malting. Stakeholder engagement processes should meet the highest levels of
integrity and effectiveness and support robust NEPA analysis and decision making, which we
believe can be achieved through adoption of a system in line with the recommendations of the
National Environmental Conflict Resolution Advisory Committee.3
CONCLUSION
We believe that these principles can generally be implemented under existing law and rules. We
urge early action on these principles, understanding that the Obama Administration, Congress, and
the States will undertake a much broader discussion how best to advance renewable energy policy
as a whole. With such strong and early action, America can become the leader in the development
of ocean energy resources.
SUPPORTERS
Central Lincoln People's Utility District
Environmental Defense Fund
Florida Power&Light
Free Flow Power
Global Energy Horizons, Inc.
Hydropower Reform Coalition
Independent Natural Resources, Inc.
Natural Heritage Institute
National Hydropower Association
Natural Resources Defense Council
New England Marine Renewable Energy Center
Northwest National Marine Renewable Energy Center
Ocean Champions
Ocean Renewable Power Company LLC
Oceana Energy Company
Oregon State University, Hatfield Marine Science Center
Oregon Wave Energy Trust
Pacific Gas &Electric
Pacific Energy Ventures LLC
Portland General Electric
Renewable Energy Holdings PLC
Sonnenschein, Nath& Rosenthal LLP
Surfrider Foundation
WaveBob LLC
3 Final Report,National Environmental Conflict Resolution Advisory Committee,as submitted to the U.S.
Institute for Environmental Conflict Resolution,httl--)://www.ecr.go Inecrac/reports.htm (April 2005).
7
Ocean Renewable Energy
November 20, 2008
For Further Information—The Principal Authors of this Document Are:
Jack Sterne
Consultant to Environmental Defense Fund&Project Lead
Rising Tide Strategies
P.O. Box 1438
Bend, OR 97709
907-351-4294
iacksternet�.mae.com
Thomas C. Jensen, Partner
Team Leader, Renewable Energy and Natural Resources Practice
Sonnenschein Nath & Rosenthal LLP
1301 K St.,NW, Suite 600 East Tower
Washington, DC 20005
(202) 408-3956
Jensen(t sonnenscheiu.com
Julie Kell
Director, Hydro Licensing and Water Rights
Portland General Electric Company
121 SW Salmon Street
Portland, OR 97204
(503) 464-8864
iulie.keil(�,p�n.com
Richard Roos-Collins
Director, Legal Services,Natural Heritage Institute
General Counsel, Hydropower Reform Coalition
100 Pine Street, Ste. 1550
San Francisco, CA 94111
(415) 683-3000 ext. 103
rrcoi I ins(a.';n-h-i.or
8
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COUNCIL MEETING DATE: Jan. 20, 2009
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