110 HR 7142 IH: Offshore Renewable Energy Development U.S. House of Representatives 2008-09-26 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I 110th CONGRESS 2d Session H. R. 7142 IN THE HOUSE OF REPRESENTATIVES September 26, 2008 Mr. Delahunt (for himself, Mr. Michaud, and Mr. McGovern) introduced the following bill; which was referred to the Committee on Energy and Commerce, and in addition to the Committees on Natural Resources and Science and Technology, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To provide for assessment and identification of sites as appropriate for the location of offshore renewable electric energy generation facilities, to provide funding for offshore renewable electric energy generation projects, and for other purposes.

1.

Short title

This Act may be cited as the Offshore Renewable Energy Development Act.

2.

Findings

The Congress finds the following: (1)The United States needs additional sources of renewable energy in order to address the problems of climate change, meet renewable energy portfolio standards, diversify our energy mix, and become more energy independent. The development of a diverse supply of energy and additional alternatives to foreign fuels is important for our national security. (2)The coastal waters of the United States possess significant offshore wave, tidal, and wind energy resources. The National Renewable Energy Laboratory has stated that these wind, wave and tide, and ocean-based sources of energy possess over 50 percent of America’s total renewable energy potential. (3)The Department of Energy estimates that more than 900,000 megawatts (MW) of potential renewable energy exists off the coasts of the United States. This amount of energy is roughly the total current United States-installed electrical capacity of the entire country, and most of this energy is located near major population centers, where energy costs are high. 900,000 megawatts of offshore wind generation capacity would produce about 3,547,800,000 megawatt hours of electricity each year. This is the same amount of energy as is contained in 1,927,042,446 barrels of oil, or about 25 percent of total oil consumption in the United States each year. (4)Offshore wind energy alone has the potential to produce about 3,548 billion kilowatt-hours of electricity per year, which is 87 percent of the electricity generated in the United States in 2006. Slightly more than half of the country’s identified offshore renewable energy is located off the New England and Mid-Atlantic Coasts. (5)Approximately 90 percent of the 900,000 MW of potential offshore wind energy is located in Federal waters, beyond 5 nautical miles from shore. Approximately 10 percent (98,000 MW) is estimated to be near shore in waters less than 30 meters deep. (6)In Europe, governments have recognized the enormous potential for offshore renewable energy, have identified sites for offshore energy, and have developed ambitious policy goals based on harnessing this resource. Germany and the other States of the European Union have been working towards a target of 12 percent renewable energy by 2010. Because this target was surpassed in 2007. On April 26, 2008, Germany announced that this target would rise to 27 percent by 2020. (7)With regard to wind energy, most of these European sites are in deeper waters where cutting-edge technology is being developed to harness these offshore wind energy resources. The current depth of existing technology is 120 feet, but newer technologies are being pilot tested for even deeper waters. (8)Offshore ocean energy development can generate hundreds of thousands of jobs. According to the Renewable Energy Policy Project, 74,000 MW of renewables, primarily from wind energy in the United States would require 380,000 new manufacturing jobs for component parts; 36,000 U.S. firms already produce similar products that could serve the growing market (9)The United States also possesses the scientific and technical capacity to generate renewable energy from the ocean, including from wave, wind, and tidal sources. Scientists and other industry experts believe that, at a minimum, the United States Government should provide a policy framework to guide the appropriate development of these resources. Such a framework is imperative for the identification of offshore sites and the rapid development of these resources in general.

3.

Identification of offshore sites for alternative energy facilities

(a)

In general

The Secretary of Energy, in consultation with the Secretary of Commerce and State coastal zone management agencies administering coastal zone management programs approved under the Coastal Zone Management Act of 1972 (16 U.S.C. 1451 et seq.), shall enter into agreements with persons described in subsection (b) providing for assessment and identification by such persons of sites in the coastal zone (as that term is defined in that Act) and in the exclusive economic zone of the United States that are appropriate for the location of facilities to generate renewable electric energy. (b)

Eligibility To perform assessments and identification

The Secretary of Energy shall enter into agreements under subsection (a) only with persons who do not and will not have any direct financial interest in any offshore renewable electric energy generation project, including State agencies referred to in subsection (a), local and regional governments, and universities and other academic institutions. (c)

Consistency with coastal zone management programs

For purposes of section 307 of the Coastal Zone Management Act of 1972 (16 U.S.C. 1456), any activity for the construction, operation, or maintenance of a facility for offshore renewable electric energy generation in a location that is identified under this section as appropriate for that type of facility is deemed to be consistent with the enforceable policies of any approved State coastal zone management program of any affected coastal State.

4.

Offshore Electric Power Generation Fund

(a)

Establishment of Fund

There is hereby established within the Treasury of the United States a trust fund to be known as the Offshore Electric Power Generation Trust Fund (hereinafter in this section referred to as the Fund), consisting of such amounts as may be transferred to the Fund as provided in this section. Amounts in the Fund may be used only to finance projects approved by the Secretary of Energy under this section. (b)

Transfer of amounts

Subject to annual appropriations, the Secretary of the Treasury shall transfer to the Fund out of the general fund of the Treasury of the United States $100,000,000 for each fiscal year after the enactment of this section. (c)

Investment of fund moneys

(1)

In general

It shall be the duty of the Secretary of the Treasury to invest such portion of the Fund as is not, in the Secretary's judgment, required to meet current withdrawals. Such investments may be made only in interest-bearing obligations of the United States or in obligations guaranteed as to both principal and interest by the United States. For such purpose, such obligations may be acquired on original issue at the issue price or by purchase of outstanding obligations at the market price. Any obligation acquired by the Fund may be sold by the Secretary of the Treasury at the market price. (2)

Interest and proceeds

The interest on, and the proceeds from the sale or redemption of, any obligations held in the Fund shall be credited to and form a part of the Fund. (d)

Availability of amounts from Fund

From amounts available in the Fund (including any amounts not obligated in previous fiscal years), the Secretary of Energy is authorized to provide grants to private and public entities (or public-private partnerships) in the United States to stimulate the development of offshore renewable electric energy generation. The Secretary shall provide such grants only to entities that themselves provide funds on a matching basis. Such grants shall be provided for programs or projects that achieve one or more of the following objectives: (1)Technical research related to offshore energy development. (2)Planning and siting of offshore energy development projects. (3)Demonstration and pilot offshore renewable energy generation projects, particularly those which may subsequently be expanded to a commercial scale. (4)Expansion, to a commercial scale, of demonstration and pilot offshore renewable energy generation projects funded under paragraph (3). (5)Job training and career assistance under section 4. (e)

Designation of sites

The Secretary of Energy, in consultation with the Governors of affected coastal States, and after public notice and opportunity for comment, shall designate sites throughout the coastlines of the United States that the Secretary finds provide the greatest potential for being suitable and appropriate for the development of offshore renewable energy generation. No funds may be made available under this section for the planning, siting, or development of any project that is not located in a site designated by the Secretary under this section.

5.

Offshore Renewable Energy Technology Development Funding

(a)

Offshore site assessment and planning assistance

There is authorized to be appropriated to the Secretary of Energy $25,000,000 to assist coastal States in planning to identify appropriate sites for offshore renewable energy projects, including sites appropriate for demonstration and testing of offshore wind, wave, and tidal energy technologies. (b)

Offshore renewable energy technology development assistance

There is authorized to be appropriated $160,000,000 for offshore renewable energy research and development, and technology development assistance. Funds appropriated under this subsection shall be used to promote advances in technology in collaboration with marine renewable energy centers and technology manufacturers. Such funds may also be used to provide infrastructure assistance for projects at sites that are identified under section 3, that are approved in a State’s coastal zone management plan. (c)

Marine renewable energy centers

There is authorized to be appropriated by the Secretary of Energy and the National Science Foundation a total of $80,000,000 to establish and support marine renewable energy centers. Funds appropriated under this subsection shall be used to facilitate private- and public-sector collaborations in offshore renewable energy. Marine renewable energy centers to which such funds are provided shall use such funds to work with State officials in planning and designation of offshore renewable energy sites, identifying economic development opportunities for affected coastal communities, and coordinating the establishment of test centers. (d)

Marine renewable energy testing

There is authorized to be appropriated to the Secretary of Energy $100,000,000 to establish and support the testing and validation of offshore wave, wind, and tidal energy technologies, including wind energy blades, offshore platforms, and emerging offshore renewable energy technologies. Funds appropriated under this subsection shall be used for the development and operation of test center facilities, including in-water test sites, and for the monitoring of the performance of technologies and of environmental impacts for a period of 3 years. (e)

Streamlined permit projects

There is authorized to be appropriated to the Secretary of Interior $20,000,000 for streamlined permitting for individual and multiple offshore renewable energy technology demonstration sites and projects that promote closer science and technology interaction with the Department of Energy, the National Science Foundation, and other permit issuing agencies. (f)

Education, outreach, strategic planning and collaboration

There is authorized to be appropriated to the Secretary of Energy $40,000,000 for other resources needed to address, through the National Renewable Energy Laboratory, regional strategic planning, public education, and outreach to promote a better public understanding of the benefits of offshore renewable energy and to assess large-scale project siting issues. (g)

Job training and career program

The Secretary of Energy may carry out a program to provide job training and career assistance in the offshore renewable generation industry.