News 
2007
| Statement: December 20, 2007 | 
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| Docket No: P-12751-000 | |
Chairman Joseph T. Kelliher's statement on
AquaEnergy Group Ltd.
"Today, the Commission issues a license for the Makah Bay Offshore Wave Energy Project.
This action is a landmark - it is represents the issuance of the first hydrokinetic license, and
a major step by the Commission in promoting development of innovative hydroelectric
projects which use the forces of currents, waves, and tides to generate clean, renewable,
domestic energy. The license, as conditioned by the Commission, will provide Finavera the
opportunity to test and demonstrate the economic and environmental benefits of an
operating wave energy conversion power plant with minimal environmental impact.
This license also demonstrates the Commission's commitment to reducing the regulatory
barriers to the successful development of hydrokinetic projects in two important ways.
First, this license possesses many of the characteristics of a hydrokinetic pilot license
discussed in Commission staff's recently-announced, "Proposed Licensing Process for
Hydrokinetic Pilot Projects," including measures for monitoring the effects of the project on
marine and ocean resources, a license term of five years, and a requirement to remove the
project by the end of the license term. Because the pre-filing process for the project had
already taken place and the license application had already been filed by the time that staff
proposed the pilot licensing process, the Makah Bay Project was not processed under the
expedited six-month schedule envisioned for pilot projects, but rather issued in just over
one year from filing of the application.
Second, the Makah Bay Project would be the first hydrokinetic project to receive a
conditioned license from the Commission. Under the terms of the conditioned license,
Finavera may not begin project construction until it has obtained all other authorizations
required under federal law. However, Finavera may move forward with those portions of
the license that do not require construction, such as environmental plans. The result is that
the conditioned license gives Finavera the ability to move quickly with on-site construction
and installation once the pending authorizations are filed with the Commission. At the same
time, the conditioned license does not diminish the authorities of state and federal agencies
acting under federal law.
The Policy Statement on Conditioned Licenses for Hydrokinetic Projects described how our
new approach will shorten the regulatory process and speed development of hydrokinetic
projects. At the same time, our new approach will in no way diminish the authority of
states or other federal agencies. Under a conditioned license, construction of a hydrokinetic
project cannot start without necessary state and federal authorizations. For that reason,
state and federal agencies fully retain their authority to act under relevant federal law."
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