Before the United States of America Federal Energy Regulatory Commission ROOSEVELT ISLAND TIDAL ENERGY PROJECT FERC No. 12611 Final Kinetic Hydropower Volume 1 of 4 Pilot License Application December 2010 Verdant Power, LLC New York, NY PILOT LICENSE APPLICATION ROOSEVELT ISLAND TIDAL ENERGY PROJECT FERC NO. 12611 VOLUME 1 OF 4 December 2010 Submitted by: INITIAL STATEMENT BEFORE THE UNITED STATES OF AMERICA FEDERAL ENERGY REGULATORY COMMISSION Verdant Power, LLC Project No. 12611-003 APPLICATION FOR AN ORIGINAL LICENSE FOR A KINETIC HYDROPOWER PILOT LICENSE FOR THE ROOSEVELT ISLAND TIDAL ENERGY PROJECT EAST CHANNEL PILOT INITIAL STATEMENT 1. Verdant Power, LLC (“Verdant Power” or “Company”) applies to the Federal Energy Regulatory Commission (“FERC”) for a hydrokinetic pilot project license, under the guidance of FERC’s Licensing Hydrokinetic Pilot Projects whitepaper, for the Roosevelt Island Tidal Energy (RITE) Project, East Channel Pilot (“RITE East Channel Pilot” or “pilot project”) water power project, as described hereinafter. Previous FERC project number designation for the RITE Project includes FERC Preliminary Permit No. 12611. 2. The location of the project is: State or territory: New York County: New York County Township or nearby town: New York City Stream or other body of water: East River 3. The exact name, address, and telephone number of the applicant are: Verdant Power, LLC The Octagon 888 Main Street New York, NY 10044 (212) 888-8887 - 1 - 4. The exact name, address, and telephone number of each person authorized to act as agent for the applicant in this application, if applicable, are: Ronald F. Smith Chief Executive Officer (212) 888-8887 ext. 601 William H. “Trey” Taylor President (212) 888-8887 ext. 602 Address (for both agents listed above): Verdant Power, LLC The Octagon 888 Main Street New York, NY 10044 5. The applicant is a domestic corporation and is not claiming preference under section 7(a) of the Federal Power Act. See 16 U.S.C. 796. 6. (i) The statutory or regulatory requirements of the state(s) in which the project would be located that affect the project as proposed with respect to bed and banks and the appropriation, diversion, and use of water for power purposes, and with respect to the right to engage in the business of developing, transmitting, and distributing power and in any other business necessary to accomplish the purposes of the license under the Federal Power Act, are included below along with, (ii) The steps which the applicant has taken or plans to take to comply with each of the laws cited above: Statute: Public Lands Law, §§ 10, 75 Regulation: 9 NYCRR 270 The State of New York is sovereign owner of the beds of numerous bodies of water within the State. Various activities relating to the use of land underwater, such as construction of commercial docks, wharves, moorings and permanent structures require - 2 - permission from the State, and an application must be made to the NYSOGS. Intake and discharge pipes, pipelines, cables and conduit lines for commercial purposes are required to be issued easements for the use and occupation of land underwater. Pending issuance of any other required State and Federal permits, NYSOGS will issue an easement for these uses through application, normally for a twenty-five year term. Verdant Power applied for and received a permit for the use of state-owned property from the NYSOGS for the RITE Demonstration and that permit has been extended to September 2010. A renewal is currently pending approval. As it proceeds through the license period, Verdant Power intends to consult with the NYSOGS and renew its agreement as necessary for the underwater land required for operation of the pilot project. Chapter 899 of the New York State Unconsolidated Laws of 1984 (RIOC Act) The Roosevelt Island Operating Corporation (RIOC) was created by the New York State legislature in 1984 as a public benefit corporation to plan, develop, operate, maintain, and manage Roosevelt Island. RIOC assumed the role of the New York State Urban Development Corporation as lessee under a 99-year Master Lease (running until 2068) from the City of New York. Part of RIOC’s mission is to ensure the corporation is in compliance with its enabling legislation, corporate By-laws and guidelines, the Public Authority laws, and applicable Federal, State, and City laws and rules, by evaluating and implementing efficient and effective policy and procedures. Verdant Power obtained a RIOC Standard Permit for Field and Park Use for its existing Control Room used in the RITE Demonstration (same facility will be used for the pilot project, with the addition of a small storage unit). On November 18, 2008, Verdant Power consulted with RIOC to determine the requirements for expanded land use required by the pilot project (i.e., to include five shoreline switchgear vaults). A summary of this consultation is located in Appendix B of Volume 1. A renewal of the - 3 - RIOC permit covering expansion of the project site to include an additional storage container (required for Installs A and B-1), with an option to expand for later-stage installations (i.e. shoreline vaults for Installs B-2 and C) is pending approval. Statute: NYC Charter Chapter 15, Sections 383 & 384 Regulation: NYC Administrative Code Title 4 Authority: New York City Department of City Planning The rights of the city in and to its water front, ferries, wharf property, bridges, land under water, public landings, wharves, docks, streets, avenues, highways, parks, waters, waterways and all other public places are hereby declared to be inalienable; but upon the closing or discontinuance of any street, avenue, park or other public place, the property may be sold or otherwise disposed of as may be provided by law, and leases of land under water... may be made as may be provided by law. No real property of the city may be sold, leased, exchanged or otherwise disposed of except with the approval of the mayor and as may be provided by law unless such power is expressly vested by law in another agency. Verdant Power has initially reviewed this statute and finds that City lands underwater do not seem to extend beyond pierhead/bulkhead line. However, further consultation with the NYS Office of General Services may be necessary to identify any specific areas. Statute: NYC Charter Chapter 8, Section 197-c Regulation: NYC Administrative Code Title 25 Chapter 1 Authority: New York City Department of City Planning - City Planning Commission Uniform land use review procedure: Required for changes to the city map, including disposition of the real property of the city, including the sale or lease of land under water (pursuant to Chapter 15 Section 1602) and for special permits within the jurisdiction of - 4 - the city planning commission under the zoning resolution (pursuant to Section 200 and 201). Pierhead line is outermost seaward boundary of area regulated by Zoning Resolution. Verdant Power conducted initial consultation to confirm needed city approvals and timing for the RITE Demonstration, and will reinitiate contact for the pilot project. Statute: New York City Charter Chapter 26, Section 643 Regulation: NYC Building Code §27-126 Authority: New York City Department of Buildings Building Permit: The NYC building code (and permits required pursuant to) applies to the construction, alteration, repair, demolition, removal, maintenance, occupancy and use of new and existing buildings including the installation, alteration, repair, maintenance and use of service equipment therein. With regard to the regulation, inspection and testing of electric wires and wiring apparatus and other appliances used or to be used for the transmission of electricity for electric light, heat, power, signaling, communication, alarm and data transmission in or on any building or structure in the city, the department's jurisdiction does not extend to waterfront property owned by the city and under the jurisdiction of the department of ports, international trade and commerce, or to the following structures on any such waterfront property; wharves, piers, docks, bulkheads, structures wholly or partly thereon, or to such other structures used in conjunction with or in furtherance of waterfront commerce or navigation, or to bridges, tunnels or subways or structures appurtenant thereto. Verdant Power has reviewed this statute and may need to discuss applicability of this statute with the NYC Department of Buildings. Verdant Power will make a determination on this issue and act as required. - 5 - Statute: NYC Charter Chapter 37, Section 854 Authority: New York City Arts Commission Design Review: No structure shall be erected or placed upon land belonging to the city... and no structure which is the property of any corporation or private individual shall extend over or upon any... park or public place belonging to the city... unless the design thereof, accompanied by an estimate of cost and a plan showing the proposed location, shall have been submitted to the commission and the design, and in the case of a building or other structure its location in relation to existing or projected developments in the vicinity, shall have been approved in writing by it...if an approval of a structure pursuant to subdivision e of this section primarily concerns an action within an historic district and also requires a report or determination by the landmarks preservation commission (pursuant to chapter 3 of title 25 of the administrative code of the city of New York), then the powers and duties of the art commission with respect to such structures shall instead be exercised by the Landmarks Preservation Commission pursuant to its own rules and procedures. Verdant Power has reviewed this statute and may need to discuss applicability and timing of this approval with NYC Arts Commission. Verdant Power will make a determination on this issue and act as required.