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In recent weeks, Congressional legislation to encourage development of renewable ocean energy has been introduced in the Senate and House. Sen. Lisa Murkowski, R-Alaska, and Rep. Jay Inslee, D-Wash., have introduced companion legislation that would authorize as much as $250 million annually for ocean research.
The Marine Renewable Energy Promotion Act of 2009, along with a tax provision for accelerated depreciation, would expand federal research of marine energy to $250 million annually. The Act also provides for the takeover of cost verification of new wave, current, tidal and thermal ocean energy devices, and create an adaptive management fund to help pay for the demonstration and deployment of such electric projects.
Other goals of the proposed legislation include: develop new marine technologies; reduce manufacturing and operations costs; increase reliability; integrate marine renewable into the national electric grid; identify opportunities for integration with offshore wind facilities, including developing economies of scale; identify environmental impacts; and establish project standards and provide for incentives.
There was some consideration given to getting this proposal included in the comprehensive energy bill now before the Senate Energy and Natural Resources Committee, of which Murkowski is the ranking Republican member, but it is not included in the massive bill that was supposed to be ready by the Memorial Day recess.
Marine renewable also has potential benefits from the renewable energy provisions of the economic stimulus package of tax credits and grants. But questions remain if many projects could become viable in time to take advantage of its provisions.
The American Recovery and Reinvestment Act -- the stimulus package -- provides for a four-year extension of the production tax credit for geothermal, biomass, hydropower, landfill gas, waste-to-energy and marine facilities through December 31, 2013.
The Act also has $1.6 billion of new clean energy renewable bonds to finance publicly owned renewable energy projects, including and marine renewables.
Also, the Department of the Interior last month finalized a long-awaited framework for renewable energy production on the Outer Continental Shelf, ending months of uncertainty over jurisdiction by two federal agencies over renewable energy development. The Department's Minerals Management Service (MMS) essentially keeps jurisdiction over offshore wind development while the Federal Energy Regulatory Commission will oversee marine renewable development.
Under the agreement, the MMS has exclusive jurisdiction over the production, transportation, or transmission of energy from non-marine renewable energy projects, including wind and solar. FERC will have exclusive jurisdiction to issue licenses for the construction and operation of marine projects, including wave and current, but companies must obtain a lease through MMS.
The agreement sets a program to grant leases, easements, and rights-of-way for environmentally responsible renewable energy developments on the outer continental shelf, including the siting and construction of offshore wind farms. It establishes ways for sharing revenues generated from OCS renewable energy projects with adjacent coastal states. The framework will seek to enhance partnerships with federal, state, and local agencies and tribal governments to assist in maximizing the economic and ecological benefits of OCS renewable energy development.
The Energy Policy Act of 2005 granted the MMS the authority to regulate renewable energy development on the OCS, but no action had been taken under that authority until recently.
