[Congressional Record Volume 153, Number 17 (Monday, January 29, 2007)]
[Senate]
[Page S1292]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. SMITH (for himself and Mr. Wyden):
  S. 425. A bill to amend the Internal Revenue Code of 1986 to expand 
the resources eligible for the renewable energy credit to kinetic 
hydropower, and for other purposes; to the Committee on Finance.
  Mr. SMITH. Mr. President, I rise to introduce a bill that will 
further our Nation's energy independence, and provide for sustainable 
electricity generation. This bill, which is cosponsored by my colleague 
from Oregon Senator Wyden, will make facilities that generate 
electricity using kinetic hydropower eligible for the production tax 
credit under Section 45 of the Internal Revenue Code.
  As with many emerging renewable technologies, wave and tidal energy 
are more costly than traditional generation using fossil fuels. Yet, 
for our environment and our energy security, we must provide incentives 
that will encourage the development and commercialization of these 
resources.
  Under this bill, kinetic hydropower is defined as: ocean free flowing 
water derived from flows from tidal currents, ocean currents, waves, or 
estuary currents; ocean thermal energy; or free flowing water in 
rivers, lakes, man-made channels, or streams.
  These innovative technologies are renewable, non-polluting resources 
that can help meet our Nation's growing demand for electricity. In 
Oregon, it would be possible to produce and transmit over two hundred 
megawatts of wave energy without any upgrades to the existing 
transmission system. Already numerous preliminary permits have been 
filed at the Federal Energy Regulatory Commission for wave energy 
facilities off the Oregon coast. Due to the increasing interest in this 
form of energy, the Federal Energy Regulatory Commission even held a 
conference in December 2006 to assess the types of wave and tidal 
technologies that developers are pursuing.
  These facilities would be virtually invisible from shore, and could 
provide predictable generation that could be easily integrated with 
other electricity resources. In addition, according to a January 2005 
report issued by the Electric Power Research Institute, ``with proper 
siting, converting ocean wave energy to electricity is believed to be 
one of the most environmentally benign ways to generate electricity.''
  I urge my colleagues to support this important legislation, and to 
provide this production tax credit.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 425

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. EXPANSION OF RESOURCES ELIGIBLE FOR RENEWABLE 
                   ENERGY CREDIT TO KINETIC HYDROPOWER.

       (a) In General.--Section 45(c)(1) of the Internal Revenue 
     Code of 1986 (defining qualified energy resources) is amended 
     by striking ``and'' at the end of subparagraph (G), by 
     striking the period at the end of subparagraph (H) and 
     inserting ``, and'', and by adding at the end the following 
     new subparagraph:
       ``(I) kinetic hydropower.''.
       (b) Definition of Resources.--Section 45(c) of the Internal 
     Revenue Code of 1986 is amended by adding at the end the 
     following new paragraph:
       ``(10) Kinetic hydropower.--The term `kinetic hydropower' 
     means any of the following:
       ``(A) Ocean free flowing water derived from flows from 
     tidal currents, ocean currents, waves, or estuary currents.
       ``(B) Ocean thermal energy.
       ``(C) Free flowing water in rivers, lakes, man made 
     channels, or streams.''.
       (c) Facilities.--Section 45(d) of the Internal Revenue Code 
     of 1986 (relating to qualified facilities) is amended by 
     adding at the end the following new paragraph:
       ``(11) Kinetic hydropower facility.--In the case of a 
     facility using kinetic hydropower to produce electricity, the 
     term `qualified facility' means any facility owned by the 
     taxpayer which is originally placed in service after the date 
     of the enactment of this paragraph and before January 1, 
     2011. Such term shall not include a facility which includes 
     impoundment structures.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years ending after the date of the 
     enactment of this Act.
                                 ______