Frequently Asked Questions (FAQs): Hydrokinetic Projects - Conditioned License - General

A conditioned license authorizes the construction, operation, and maintenance of an original (i.e., unconstructed) hydrokinetic project with the proviso that the licensee may not begin on-site construction or installation until further Commission order after the licensee has received all other authorizations required by federal law.

A pilot project license authorizes the construction, operation, and maintenance of an original (i.e., unconstructed) hydrokinetic project that is:

1. Small (5 megawatts or less).
2. Easily removed or shut down quickly.
3. Located in a non-sensitive area.
4. Has the primary purpose of testing new technologies or locating suitable generation sites.

Commission staff envisions that because the primary purpose of a pilot hydrokinetic project would be to test new technologies or locate suitable generation sites, a pilot project license would have a term of no more than 5 years.

A conditioned license is different from a pilot project license in that a conditioned license could be issued for either a pilot or non-pilot hydrokinetic project, and a conditioned license contains the proviso that the licensee may not begin on-site construction or installation until further Commission action after the licensee has received all other authorizations required by federal law. Once the authorizations have been received, the formerly conditioned license will be just like any other license.

The purpose of a preliminary permit is to maintain priority of application for a license during the term of the permit while the permittee conducts investigations and gathers data necessary for it to determine the feasibility of the proposed project, and if the project is found to be feasible, while the permittee prepares an acceptable license application. The permit does not allow construction, operation, or maintenance of a project.

A conditioned license, issued only after the Commission has developed a complete record regarding a license application, authorizes the construction, operation, and maintenance of a hydrokinetic project, thereby giving a licensee the exclusive right to develop the site for purposes of hydrokinetic generation in accordance with the terms of the license.

A conditioned license could apply to any license application for a proposed hydrokinetic project using any of the Commission's licensing processes.

The Commission will determine whether it is appropriate to issue a conditioned license in a given case. In doing so, the Commission would consider any filed comments on the issue.

Under Commission staff's proposal, staff would expedite processing of license applications for hydrokinetic pilot projects that would meet the four criteria. A license issued for a hydrokinetic pilot project processed under the expedited procedures would be called a pilot project license.

Commission staff interprets the use of the word "appropriate" in the Policy Statement to mean that the decision to issue a conditioned license will be made on a case-by-case basis after considering the specific circumstances of the case.

The decision to issue a conditioned license will be made on a case-by-case basis after considering the circumstances of the case. Project financing could be one of the factors that the Commission considers.

Yes. A license applicant may propose that the Commission issue a non-conditioned license; however, the final decision whether to issue a conditioned license would rest with the Commission after considering the circumstances of the case.