[Congressional Record Volume 153, Number 86 (Thursday, May 24, 2007)]
[Senate]
[Pages S6873-S6875]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. AKAKA (for himself, Ms. Murkowski, and Ms. Snowe):
  S. 1511. A bill to promote the development and use of marine and 
hydrokinetic renewable energy technologies, and for other purposes; to 
the Committee on Finance.
  Mr. AKAKA. Mr. President, today I introduce legislation that will 
create opportunities in the development and use of marine and 
hydrokinetic renewable energy technologies. I want to thank my 
colleagues Senator Murkowski and Senator Snowe for cosponsoring this 
measure.
  We must work to encourage the production of clean, nongreenhouse gas 
emitting renewable energy. Ocean energy has the potential to be one of 
the largest sources of low-cost renewable energy in the United States 
by utilizing the power generated by waves in our oceans and major 
rivers, as well as tidal, current, and thermal power to generate 
turbine-powered electricity. As we look at ways to increase our 
renewable energy portfolio as a Nation, and decrease our dependence on 
oil, we would be remiss if we did not fully research and utilize the 
power that could be harnessed through water resources. I am acutely 
aware of this need in Hawaii, as we are an island State with finite 
natural resources, and who understand the necessity of environmentally 
friendly solutions to our energy problems. The ocean sits at our 
doorstep, providing us with sustenance in many different forms. To 
ignore the potential it can offer as a major source of renewable clean 
energy, not only in Hawaii, but for our entire country, would be a 
waste.
  While the Energy Policy Act of 2005 qualified ocean energy for 
research assistance, grants and the federal purchase credit, various 
forms of ocean energy projects have yet to receive equitable funding.
  According to the Electric Power Research Institute, ocean energy has 
the potential to generate 252 million megawatt hours of electricity. 
This represents 6.5 percent of today's entire energy portfolio. 
European nations, such as Portugal and Scotland, have successfully 
implemented commercial wave farms that are consistently producing clean 
power for consumer use. While the technology is not developed to the 
fullest, there is great potential.
  However, ocean energy projects do not enjoy a production tax credit, 
an investment tax credit, or any other financial incentive currently 
being utilized by wind, solar, geothermal, biomass and other renewable 
energy resources.
  This bill levels the playing field allowing ocean energy projects to 
be eligible for the financial and tax incentives that other renewable 
technologies receive. This will allow ocean energy projects to compete 
equitably in the future with other forms of renewable energy.
  In order to work toward reducing greenhouse gas emissions and our 
dependence on fossil fuels, we must do all that we can to encourage the 
development and production of many different renewable energy 
technologies, such as ocean, wind, geothermal, biomass, ethanol, and 
others. Achieving our goals will only be possible if we approach the 
problem from many angles, and together, we will make an impact. I 
encourage my colleagues to support this measure.
  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. 1511

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Marine and Hydrokinetic 
     Renewable Energy Promotion Act of 2007''.

     SEC. 2. DEFINITION.

       For purposes of this Act, the term ``marine and 
     hydrokinetic renewable energy'' means electrical energy 
     from--
       (1) waves, tides, and currents in oceans, estuaries, and 
     tidal areas;
       (2) free flowing water in rivers, lakes, and streams;
       (3) free flowing water in man-made channels, including 
     projects that utilize nonmechanical structures to accelerate 
     the flow of water for electric power production purposes; and
       (4) differentials in ocean temperature (ocean thermal 
     energy conversion).

     The term shall not include energy from any source that 
     utilizes a dam, diversionary structure, or impoundment for 
     electric power purposes, except as provided in paragraph (3).

     SEC. 3. RESEARCH AND DEVELOPMENT.

       (a) Program.--The Secretary of Energy, in consultation with 
     the Secretary of Commerce and the Secretary of the Interior, 
     shall establish a program of marine and hydrokinetic 
     renewable energy research focused on--
       (1) developing and demonstrating marine and hydrokinetic 
     renewable energy technologies;
       (2) reducing the manufacturing and operation costs of 
     marine and hydrokinetic renewable energy technologies;
       (3) increasing the reliability and survivability of marine 
     and hydrokinetic renewable energy facilities;
       (4) integrating marine and hydrokinetic renewable energy 
     into electric grids;
       (5) identifying opportunities for cross fertilization and 
     development of economies of scale between offshore wind and 
     marine and hydrokinetic renewable energy sources;
       (6) identifying, in consultation with the Secretary of 
     Commerce and the Secretary of the Interior, the environmental 
     impacts of marine and hydrokinetic renewable energy 
     technologies and ways to address adverse impacts, and 
     providing public information concerning technologies and 
     other means available for monitoring and determining 
     environmental impacts; and
       (7) standards development, demonstration, and technology 
     transfer for advanced systems engineering and system 
     integration methods to identify critical interfaces.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Energy for carrying 
     out this section $50,000,000 for each of the fiscal years 
     2008 through 2017.

     SEC. 4. ADAPTIVE MANAGEMENT AND ENVIRONMENTAL FUND.

       (a) Findings.--The Congress finds that--
       (1) the use of marine and hydrokinetic renewable energy 
     technologies can avoid contributions to global warming gases, 
     and such technologies can be produced domestically;
       (2) marine and hydrokinetic renewable energy is a nascent 
     industry; and
       (3) the United States must work to promote new renewable 
     energy technologies that reduce contributions to global 
     warming gases and improve our country's domestic energy 
     production in a manner that is consistent with environmental 
     protection, recreation, and other public values.
       (b) Establishment.--The Secretary of Energy shall establish 
     an Adaptive Management and Environmental Fund, and shall

[[Page S6874]]

     lend amounts from that fund to entities described in 
     subsection (f) to cover the costs of projects that produce 
     marine and hydrokinetic renewable energy. Such costs include 
     design, fabrication, deployment, operation, monitoring, and 
     decommissioning costs. Loans under this section may be 
     subordinate to project-related loans provided by commercial 
     lending institutions to the extent the Secretary of Energy 
     considers appropriate.
       (c) Reasonable Access.--As a condition of receiving a loan 
     under this section, a recipient shall provide reasonable 
     access, to Federal or State agencies and other research 
     institutions as the Secretary considers appropriate, to the 
     project area and facilities for the purposes of independent 
     environmental research.
       (d) Public Availability.--The results of any assessment or 
     demonstration paid for, in whole or in part, with funds 
     provided under this section shall be made available to the 
     public, except to the extent that they contain information 
     that is protected from disclosure under section 552(b) of 
     title 5, United States Code.
       (e) Repayment of Loans.--
       (1) In general.--The Secretary of Energy shall require a 
     recipient of a loan under this section to repay the loan, 
     plus interest at a rate of 2.1 percent per year, over a 
     period not to exceed 20 years, beginning after the commercial 
     generation of electric power from the project commences. Such 
     repayment shall be required at a rate that takes into account 
     the economic viability of the loan recipient and ensures 
     regular and timely repayment of the loan.
       (2) Beginning of repayment period.--No repayments shall be 
     required under this subsection until after the project 
     generates net proceeds. For purposes of this paragraph, the 
     term ``net proceeds'' means proceeds from the commercial sale 
     of electricity after payment of project-related costs, 
     including taxes and regulatory fees that have not been paid 
     using funds from a loan provided for the project under this 
     section.
       (3) Termination.--Repayment of a loan made under this 
     section shall terminate as of the date that the project for 
     which the loan was provided ceases commercial generation of 
     electricity if a governmental permitting authority has 
     ordered the closure of the facility because of a finding that 
     the project has unacceptable adverse environmental impacts, 
     except that the Secretary shall require a loan recipient to 
     continue making loan repayments for the cost of equipment, 
     obtained using funds from the loan that have not otherwise 
     been repaid under rules established by the Secretary, that is 
     utilized in a subsequent project for the commercial 
     generation of electricity.
       (f) Adaptive Management Plan.--In order to receive a loan 
     under this section, an applicant for a Federal license or 
     permit to construct, operate, or maintain a marine or 
     hydrokinetic renewable energy project shall provide to the 
     Federal agency with primary jurisdiction to issue such 
     license or permit an adaptive management plan for the 
     proposed project. Such plan shall--
       (1) be prepared in consultation with other parties to the 
     permitting or licensing proceeding, including all Federal, 
     State, municipal, and tribal agencies with authority under 
     applicable Federal law to require or recommend design or 
     operating conditions, for protection, mitigation, and 
     enhancement of fish and wildlife resources, water quality, 
     navigation, public safety, land reservations, or recreation, 
     for incorporation into the permit or license;
       (2) set forth specific and measurable objectives for the 
     protection, mitigation, and enhancement of fish and wildlife 
     resources, water quality, navigation, public safety, land 
     reservations, or recreation, as required or recommended by 
     governmental agencies described in paragraph (1), and shall 
     require monitoring to ensure that these objectives are met;
       (3) provide specifically for the modification or, if 
     necessary, removal of the marine or hydrokinetic renewable 
     energy project based on findings by the licensing or 
     permitting agency that the marine or hydrokinetic renewable 
     energy project has not attained or will not attain the 
     specific and measurable objectives set forth in paragraph 
     (2); and
       (4) be approved and incorporated in the Federal license or 
     permit.
       (g) Sunset.--The Secretary of Energy shall transmit a 
     report to the Congress when the Secretary of Energy 
     determines that the technologies supported under this Act 
     have achieved a level of maturity sufficient to enable the 
     expiration of the programs under this Act. The Secretary of 
     Energy shall not make any new loans under this section after 
     the report is transmitted under this subsection.

     SEC. 5. PROGRAMMATIC ENVIRONMENTAL IMPACT STATEMENT.

       The Secretary of Commerce and the Secretary of the Interior 
     shall, in cooperation with the Federal Energy Regulatory 
     Commission and the Secretary of Energy, and in consultation 
     with appropriate State agencies, jointly prepare programmatic 
     environmental impact statements which contain all the 
     elements of an environmental impact statement under section 
     102 of the National Environmental Policy Act of 1969 (42 
     U.S.C. 4332), regarding the impacts of the deployment of 
     marine and hydrokinetic renewable energy technologies in the 
     navigable waters of the United States. One programmatic 
     environmental impact statement shall be prepared under this 
     section for each of the Environmental Protection Agency 
     regions of the United States. The agencies shall issue the 
     programmatic environmental impact statements under this 
     section not later than 18 months after the date of enactment 
     of this Act. The programmatic environmental impact statements 
     shall evaluate among other things the potential impacts of 
     site selection on fish and wildlife and related habitat. 
     Nothing in this section shall operate to delay consideration 
     of any application for a license or permit for a marine and 
     hydrokinetic renewable energy technology project.

     SEC. 6. PRODUCTION CREDIT FOR ELECTRICITY PRODUCED FROM 
                   MARINE RENEWABLES.

       (a) In General.--Subsection (c) of section 45 of the 
     Internal Revenue Code of 1986 (relating to resources) is 
     amended--
       (1) in paragraph (1)--
       (A) by striking ``and'' at the end of subparagraph (G),
       (B) by striking the period at the end of subparagraph (H) 
     and inserting ``, and'', and
       (C) by adding at the end the following new subparagraph:
       ``(I) marine and hydrokinetic renewable energy.'', and
       (2) by adding at the end the following new paragraph:
       ``(10) Marine and hydrokinetic renewable energy.--
       ``(A) In general.--The term `marine and hydrokinetic 
     renewable energy' means energy derived from--
       ``(i) waves, tides, and currents in oceans, estuaries, and 
     tidal areas,
       ``(ii) free flowing water in rivers, lakes, and streams,
       ``(iii) free flowing water in man-made channels, including 
     projects that utilize nonmechanical structures to accelerate 
     the flow of water for electric power production purposes, or
       ``(iv) differentials in ocean temperature (ocean thermal 
     energy conversion).
       ``(B) Exceptions.--Such term shall not include any energy 
     which is--
       ``(i) described in subparagraphs (A) through (H) of 
     paragraph (1), or
       ``(ii) derived from any source that utilizes a dam, 
     diversionary structure, or impoundment for electric power 
     production purposes, except as provided in subparagraph 
     (A)(iii).''.
       (b) Definition of Facility.--Subsection (d) of section 45 
     of such Code (relating to qualified facilities) is amended by 
     adding at the end the following new paragraph:
       ``(11) Marine and hydrokinetic renewable energy 
     facilities.--In the case of a facility producing electricity 
     from marine and hydrokinetic renewable energy, 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, 2009.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to electricity produced and sold after the date 
     of the enactment of this Act, in taxable years ending after 
     such date.

     SEC. 7. INVESTMENT CREDIT AND 5-YEAR DEPRECIATION FOR 
                   EQUIPMENT WHICH PRODUCES ELECTRICITY FROM 
                   MARINE AND HYDROKINETIC RENEWABLE ENERGY.

       (a) In General.--Subparagraph (A) of section 48(a)(3) of 
     the Internal Revenue Code of 1986 (relating to energy 
     property) is amended--
       (1) by striking ``or'' at the end of clause (iii),
       (2) by inserting ``or'' at the end of clause (iv), and
       (3) by adding at the end the following new clause:
       ``(v) equipment which uses marine and hydrokinetic 
     renewable energy (as defined in section 45(c)(10)) but only 
     with respect to periods ending before January 1, 2018,''.
       (b) 30 Percent Credit.--Clause (i) of section 48(a)(2)(A) 
     of such Code (relating to 30 percent credit) is amended--
       (1) by striking ``and'' at the end of subclause (II), and
       (2) by adding at the end the following new subclause:

       ``(IV) energy property described in paragraph (3)(A)(v), 
     and''.

       (c) Credits Allowed for Investment and Production.--
     Paragraph (3) of section 48(a) of such Code (relating to 
     energy property) is amended by inserting ``(other than 
     property described in subparagraph (A)(v))'' after ``any 
     property'' in the last sentence thereof.
       (d) Denial of Dual Benefit.--Paragraph (9) of section 45(e) 
     of such Code (relating to coordination with credit for 
     producing fuel from a nonconventional source) is amended--
       (1) in subparagraph (A), by striking ``shall not include'' 
     and all that follows and inserting ``shall not include--
       ``(i) any facility which produces electricity from gas 
     derived from the biodegradation of municipal solid waste if 
     such biodegradation occurred in a facility (within the 
     meaning of section 45K) the production from which is allowed 
     as a credit under section 45K for the taxable year or any 
     prior taxable year, or
       ``(ii) any marine and hydrokinetic facility for which a 
     credit is claimed by the taxpayer under section 48 for the 
     taxable year.'', and
       (2) in the header--
       (A) by striking ``credit'' and inserting ``credits'', and
       (B) by inserting ``and investment in marine and 
     hydrokinetic renewable energy'' after ``nonconventional 
     source''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after the date of 
     the enactment of this Act, in taxable years ending after such 
     date.

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