The URL can be used to link to this page

Home My WebLink AboutTEC AEA REF 15008 Response to AEA Questions 02232023February 23, 2023 Karin St. Clair Grants Manager Alaska Energy Authority 813 W. Northern Lights Blvd. Anchorage, AK 99503 Subject: February 21, 2023 Request for Additional Information - REF Application 15008, Turnagain Arm Tidal Energy Corp. Dear Ms. St. Clair, Thank you for the AEA Request for Additional Information. Below is Turnagain Arm Tidal Energy Corp, d/b/a Tidal Energy Corp’s response to these requests: AEA Request for information: Per section 1.2.1 of the application, the applicant type is stated as an “independent power producer (IPP) in accordance with 3 AAC 107.695(a)(1).” As per 3 AAC 107.695(a)(1), an IPP is defined as “a corporation, person, agency, authority, or other legal entity or instrumentality, that is not an electric utility and that owns or operates a facility for the generation or production of energy entirely for use by the residents of one or more municipalities or unincorporated communities recognized by the Department of Commerce, Community, and Economic Development for community revenue sharing under AS 29.60.850 - 29.60.879 and 3 AAC 180;” Owing to the above definition, does Turnagain Arm Tidal Energy Corporation (TATEC) currently own or operate such a facility? If yes, would TATEC be able to provide documentation in support of this? If TATEC is not presently an operating IPP, is it TATEC’s intent to become an IPP and establish a power purchase agreement (PPA) with one or more Railbelt utilities? If TATEC’s application were recommended and awarded, all or a portion of awarded grant monies, may be preconditioned on TATEC becoming an IPP as per 3 AAC 107.695(a)(1) and/or TATEC establishing a necessary PPA; would TATEC agree to such terms? TATEC RESPONSE: TATEC d/b/a Tidal Energy Corp is NOT an independent power producer (IPP) but intends to become an IPP and establish a power purchase agreement (PPA) with 821 N St., Suite 207 Anchorage, AK, 99501 lee@tidalenergycorp.com Cell: (504) 875-8223 Office: (907) 274-7571 one or more Railbelt utilities. If TATEC’s application were recommended and awarded, and was preconditioned on becoming an IPP and establishing a necessary PPA, TATEC would agree to these terms to establish this PPA(s). AEA Request for information: Additionally, it is requested that TATEC provide documentation providing proof of site ownership so as to satisfy the requirements of regulation 3 AAC 107.610(a)(2)(B-C). The response to Section 5.2 of the application states that the project site is effectively under Tidal Energy Corp.’s control for eight years via its FERC pre-application permit #15109. What is the expiration date for this permit? Please provide a copy of this permit. TATEC RESPONSE: To be clear, TATEC has no ownership of the Turnagain Arm site. Instead, TATEC has first priority in applying for a license to extract energy from the site. If warranted by our reconnaissance phase, TATEC will still have sign a lease(s) for the site with the appropriate State and Federal entities. The award date for FERC pre-application permit #15109 is July 23, 2021, and the expiration date is July 22, 2025 (attached). Through discussions with our FERC representatives, it is TATEC’s understanding that as long as the site is being investigated in good faith, a second, forty eight (48) month permit will be issued if required. That said, it is TATEC’s intent to finish it’s investigation of the Turnagain Arm site before this July 2025 time frame and move the project forward by applying instead for a Notice of Intent - Pre-Application Document (NOI-PAD), which would begin FERC’s Integrated Licensing Process (ILP). This process leads to a commercial license, lease of sub sea lands, etc., for effective control of the site until the end of the Integrated License. The length of this license is TBD but they are typically measured in decades. A third, and more likely pathway for this project is the development of a Pilot phase of the project. Under the “Verdant Rule,” a pilot stage of five megawatts (5MW) or less of marine energy devices can be deployed for up to eighteen months. This is an intermediary step between the pre-application permit and the NOI-PAD, and leads to a NOI-PAD after successful completion of the pilot project. In any of these cases, a pre-application permit extension of 48 months, or a NOI- PAD, TATEC would retain first priority to extract energy from the site for at least eight years 821 N St., Suite 207 Anchorage, AK, 99501 lee@tidalenergycorp.com Cell: (504) 875-8223 Office: (907) 274-7571 See pertinent sections within the attached FERC “Order Issuing Preliminary Permit And Granting Priority To File License Application” below. IV. Permit Information Section 4(f) of the FPA authorizes the Commission to issue preliminary permits for the purpose of enabling prospective applicants for a hydropower license to secure the data and perform the acts required by section 9 of the FPA,11 which in turn sets forth the material that must accompany an application for license. The purpose of a preliminary permit is to preserve the right of the permit holder to have the ﬁrst priority in applying for a license for the project that is being studied.12 Because a permit is issued only to allow the permit holder to investigate the feasibility of a project while the permittee conducts investigations and secures necessary data to determine the feasibility of the proposed project and to prepare a license application, it grants no land-disturbing or other property rights.13 Further, permit conditions have been framed to ensure that the permittee does not tie up a site without pursuing in good faith a study of the project’s feasibility.14 9 See, e.g., Continental Lands Inc., 90 FERC ¶ 61,355, at 62,177 (2000). 10 18 C.F.R. § 4.38 (2020). 11 16 U.S.C. § 802. 12 See, e.g., Mt. Hope Waterpower Project LLP, 116 FERC ¶ 61,232, at P 4 (2006) (“The purpose of a preliminary permit is to encourage hydroelectric development by affording its holder priority of application (i.e., guaranteed ﬁrst-to-ﬁle status) with respect to the ﬁling of development applications for the affected site.”). 12. During the course of the permit, the Commission expects that the permittee will carry out preﬁling consultation and study development leading to the possible development of a license application. The preﬁling process begins with preparation of a Notice of Intent (NOI) and Pre-Application Document (PAD) pursuant to sections 5.5 and 5.6 of the Commission’s regulations.15 The permittee must use the Integrated Licensing Process unless the Commission grants a request to use an alternative process (Alternative or Traditional Licensing Process). Such a request must accompany the NOI and PAD and set forth speciﬁc information justifying the request.16 If the permittee ﬁles a development application, notice of the application will be published, and those interested may intervene and comment on the project and the effects of its construction and operation. 821 N St., Suite 207 Anchorage, AK, 99501 lee@tidalenergycorp.com Cell: (504) 875-8223 Office: (907) 274-7571 Thanks again for your consideration of TEC’s application for funding for Bathymetry studies and Regulatory and Permitting Consulting work for this project. Please feel free to reach out for any further information or clarification. Sincerely, Chris Lee 821 N St., Suite 207 Anchorage, AK, 99501 lee@tidalenergycorp.com Cell: (504) 875-8223 Office: (907) 274-7571