MMS Issues Final Regulations Governing Renewable Energy Projects On The OCS

On April 22, 2009, the Minerals Management Service (MMS) of the U.S. Department of Interior (DOI) issued its long-awaited final regulations implementing its authority under Section 388 of the Energy Policy Act of 2005 (EPAct 2005) to grant leases, easements, and rights-of-way for renewable energy projects on the Outer Continental Shelf (OCS). The issuance of the final regulations follows the recent Memorandum of Understanding (MOU) entered into by DOI and the Federal Energy Regulatory Commission (FERC) resolving their long-standing jurisdictional dispute over the regulation of hydrokinetic (e.g., wave, tidal, current) projects on the OCS. That MOU clarified that MMS will issue leases, easements, and rights-of-way for renewable energy projects on the OCS, while FERC will continue to have exclusive jurisdiction to issue licenses for hydrokinetic projects under Part I of the Federal Power Act and exemptions from licensing under the Public Utility Regulatory Policies Act of