On April 29, 2009 the U.S Department of the Interior, Minerals Management Service (now renamed Bureau of Offshore Energy Management, Regulation, and Enforcement --BOEMRE) published comprehensive new regulations in the Federal Register applicable to renewable energy and alternate use of facilities on the United States (U.S.) Outer Continental Shelf (OCS). The final rule (Title 30, Code of Federal Regulations (CFR), Parts 250, 285, and 290) defines a new process for offshore renewable energy facilities to apply for and obtain U.S. Government authorization to build and operate offshore renewable energy facilities on the U.S. OCS. These new regulations apply to offshore renewable energy projects such as proposed wind farms, wave farms, or ocean current energy extraction devices located in federal waters of the OCS. The new regulations also describe a complementary role for the Federal Energy Regulatory Commission (FERC) regarding licensing of hydrokinetic energy devices on the OCS. This paper describes how this new regulatory process has evolved and what it means to developers of offshore renewable energy projects on the OCS. This paper will discuss the progress that has been made in defining the regulatory framework and some of the regulatory issues that continue to present challenges in obtaining timely permitting decisions from U.S. federal regulatory authorities. In particular, a number of specific issues related to the potential environmental impact of offshore renewable energy projects will be explored. A well defined, efficient, and predictable regulatory process is critical to successful development of offshore renewable energy projects on the U.S. OCS.
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