[Congressional Record Volume 159, Number 113 (Thursday, August 1, 2013)]
[Senate]
[Pages S6211-S6214]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. WYDEN (for himself and Ms. Murkowski):
  S. 1419. A bill to promote research, development, and demonstration 
of marine and hydrokinetic renewable energy technologies, and for other 
purposes; to the Committee on Energy and Natural Resources.
  Mr. WYDEN. Mr. President, today Senator Murkowski and I are 
introducing legislation to promote a new form of hydropower, marine 
hydrokinetic renewable energy, or MHK. An MHK project generates energy 
from waves, currents, and tides in the ocean, an estuary or a tidal 
area as well as from the free-flowing water in a river, lake, or 
stream.
  Our bill will help commercialize MHK technologies through research 
and development and a more efficient and timely regulatory process for 
the siting of pilot projects intended to demonstrate the viability of 
these technologies. It is an ideal follow-up to a pair of bills, H.R. 
267 and H.R. 678, to streamline the regulatory process for low-impact 
conventional hydropower that were reported by the Committee on Energy 
and Natural Resources by unanimous bipartisan votes a few months ago. 
Considered together, the two conventional hydropower bills approved by 
the Committee along with this MHK legislation are a major step forward 
in advancing carbon-free hydropower technologies.
  MHK has tremendous potential to generate a substantial amount of 
clean renewable energy in the United States and across the globe. It is 
poised to be a key participant in the transition to a low carbon 
economy.
  What distinguishes MHK from conventional hydropower is that it 
generates energy without the use of a dam or other impoundment. This 
gets MHK off on the right foot in terms of minimizing any adverse 
environmental impact. Investments to capture our nation's rich domestic 
marine energy resources can also play a major role in the creation of 
essential domestic engineering and manufacturing jobs.
  The energy contained in predictable waves, tidal flows and currents 
is the basis for worldwide investments in this emerging industry. Water 
is approximately 800 times denser than air, providing great potential 
power density along with predictability. These characteristics mean 
that MHK technologies could provide predictable

[[Page S6212]]

base-load renewable power in the future.
  At the present time there are many different types of MHK 
technologies with multiple applications under development that are 
intended to capture the power contained in waves, tides and currents.
  Wave energy devices capture the heave and/or surge power of waves and 
convert them via hydraulic or geared direct drive systems into 
electricity. Some of these devices are moored to the ocean floor, some 
are floating on the surface, while others are attached to breakwaters 
near shore. By last count, there are over 100 wave energy devices under 
development worldwide. Tidal energy technologies capture the ebb and 
flow of tides. It is estimated that 60 different tidal energy 
technologies are under development worldwide. There are other 
technologies that include run-of-river systems and offshore ocean 
current technologies. Most of these technologies under development 
capture uni-directional water flows and look similar to the tidal 
devices.
  The United States has not been a world leader in the development of 
these cutting edge technologies to date. Instead, our country is seen 
as a huge potential market for our international competitors in this 
new industrial sector. The United States has significant wave, tidal, 
current and in-stream energy resources. The Electric Power Research 
Institute has estimated that the commercially available wave energy 
potential off the coast of the United States is roughly 252 million 
megawatt hours--equal to 6.5 percent of today's entire generating 
portfolio. This is approximately the amount of electricity presently 
being produced by the existing fleet of American conventional 
hydroelectric dams.
  The Department of Energy, DOE, has released two nationwide resource 
assessments that indicate the waves, tides, and ocean currents off the 
nation's coasts could contribute significantly to the United States' 
total annual electricity production. DOE is currently developing an 
aggressive strategy to support its vision of producing at least fifteen 
percent of our nation's electricity from water power, including 
conventional hydropower, by 2030.
  Our goal should be the establishment of a commercially viable U.S. 
MHK renewable energy industry, supported by a robust domestic supply 
chain for fabrication, installation, operations and maintenance of MHK 
devices. The development of a substantial marine hydrokinetic industry 
in the U.S. could drive billions of dollars of investment in heavy 
industrial and maritime sectors, as well as in advanced electrical 
systems and materials common to many renewable technologies. Federal 
investments would stimulate private funds and jobs in the construction, 
manufacturing, engineering, and environmental science sectors.
  I am very pleased that my home State of Oregon has made a strategic 
decision to be an international leader in the commercialization of the 
marine renewable energy industry. Led by the Oregon Wave Energy Trust, 
the Northwest National Marine Renewable Energy Center co-located at 
Oregon State University, and several private companies that are part of 
the MHK supply chain, Oregon is positioning itself to be a leading 
force supporting this newly emerging industry.
  Unfortunately, the U.S. is falling behind in the race to capture the 
rich energy potential of our oceans and the jobs that will come with 
this new industry. The United Kingdom, Ireland, Portugal, Scotland, 
Australia, and other countries are committed to producing emission-
free, renewable energy from MHK sources. Scotland has had a grid-
connected, wave energy convertor unit in operation since 2001 and 
maintains a national goal of producing 2 GW of generation capacity from 
MHK renewable energy. The U.K. and Ireland have also set aggressive 
goals for MHK generation by 2020.
  The Ocean Renewable Energy Coalition, the industry's trade group here 
in Washington DC, calculates that more than $782 million has been spent 
by the UK government on wave energy R&D over the past 10 years. That 
total approaches $1 billion over the same period if you add in the 
commitments to ocean energy R&D from France, Portugal, Spain, Norway, 
and Denmark.
  Early funding support, along with development of full-scale device 
testing centers, demonstrates that the significant technological 
advances and the competitive advantages in this industry are trending 
in Europe's direction. As an example of the disparity in investments, 
Europe currently has several wave and tidal energy test facilities, led 
by the European Marine Energy Center in Scotland, that are helping 
technology developers commercialize their wave and tidal energy 
convertors. The United States clearly has a need for such 
infrastructure. I know that Oregon State University has a strong desire 
to compete for funding to help establish a testing center in the 
Pacific Northwest. Unfortunately, recent funding levels have not 
supported development of such offshore testing infrastructure in the 
U.S. to date.
  Given this internationally competitive situation, I believe that 
Congress must make targeted Federal investments to close the gap. 
Commercialization of technologies to harness marine renewable energy 
resources will require Federal funding to augment research and 
development efforts already underway in the private sector. Just as the 
wind and solar industries have received DOE funding support for over 3 
decades, which has resulted in the rapid deployment of these 
technologies in recent years, the nascent marine energy industry seeks 
similar Federal assistance to develop promising technologies that are 
on the verge of commercial viability.
  Unfortunately, in addition to the limited private sector funding 
available to these startup companies, permitting and regulatory 
obstacles are tremendous disincentives to technology developers of 
marine energy projects in the United States. While other countries have 
adopted permitting and regulatory regimes that appear to be more 
efficient, the United States is still struggling with how to permit and 
regulate these technologies. I cannot overstate the seriousness of this 
problem. To give just one example, it took one MHK developer 5 years 
and $2 million to obtain a license from the Federal Energy Regulatory 
Commission for a 1.5 megawatt project.
  The regulatory situation is simply unacceptable and is greatly 
slowing progress in the MHK industry. Until companies get projects in 
the water, Congress and the public will not learn about the 
environmental impacts, engineering challenges or the true costs of 
offshore renewables.
  Capturing the benefits of our vast marine-based renewable resources 
will require a mix of new incentives, updated regulatory regimes and 
general outreach and education. However, the most important actions 
that can be taken by the Federal Government in the short term are to 
provide the necessary resources for research, development and 
demonstration of various marine renewable energy technology platforms 
and a workable and efficient regulatory process. Increased federal 
support will accelerate deployment of these technologies, create 
thousands of high paying jobs, give confidence to investors, and help 
attract private capital.
  The Marine and Hydrokinetic Renewable Energy Act of 2013 helps 
accomplish these goals in a number of ways. It reauthorizes the DOE's 
MHK research, development and demonstration 3 programs, including the 
National Marine Renewable Energy Research, Development, and 
Demonstration Centers.
  Increased resources for the DOE Water Power Program will enable the 
United States to leverage its technological superiority in shipbuilding 
and offshore oil and gas production. This will create jobs and 
diversify these maritime industries. In the absence of such funding, 
however, the United States will have to depend on foreign suppliers for 
ocean energy technologies, and will have missed a significant 
opportunity to expand our economic competiveness in this renewable 
energy sector.
  The regulatory component of the bill makes the regulatory process for 
MHK of not more than 10 MW more efficient and timely. It modifies and 
improves the FERC ``pilot license'' process in many ways. Improvements 
include a goal to complete the pilot license process in 12 months or 
less; a designation of FERC as the ``Lead Agency'' for the purpose of 
coordinating environmental review; a clarification that any shut

[[Page S6213]]

down requirement be ``reasonable,'' and a clarification that an MHK 
project does not need to be removed when it is shut down if FERC deems 
leaving it in place is preferable for environmental and other reasons
  MHK is a clean, home-grown, emissions-free source of electricity that 
can improve the security and reliability of the electric grid. 
Investing in MHK research, development and demonstration today will pay 
great dividends in the future. MHK has tremendous potential to benefit 
the United States and the entire world. Now is the time to move forward 
on MHK and the Marine and Hydrokinetic Renewable Energy Act is the way 
to do it.
  Mr. President, 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. 1419

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Marine and 
     Hydrokinetic Renewable Energy Act of 2013''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.

     TITLE I--MARINE AND HYDROKINETIC RENEWABLE ENERGY TECHNOLOGIES

Sec. 101. Definition of marine and hydrokinetic renewable energy.
Sec. 102. Marine and hydrokinetic renewable energy research and 
              development.
Sec. 103. National Marine Renewable Energy Research, Development, and 
              Demonstration Centers.
Sec. 104. Authorization of appropriations.

     TITLE II--MARINE AND HYDROKINETIC RENEWABLE ENERGY REGULATORY 
                               EFFICIENCY

Sec. 201. Marine and hydrokinetic renewable energy projects and 
              facilities.

     TITLE I--MARINE AND HYDROKINETIC RENEWABLE ENERGY TECHNOLOGIES

     SEC. 101. DEFINITION OF MARINE AND HYDROKINETIC RENEWABLE 
                   ENERGY.

       Section 632 of the Energy Independence and Security Act of 
     2007 (42 U.S.C. 17211) is amended in the matter preceding 
     paragraph (1) by striking ``electrical''.

     SEC. 102. MARINE AND HYDROKINETIC RENEWABLE ENERGY RESEARCH 
                   AND DEVELOPMENT.

       Section 633 of the Energy Independence and Security Act of 
     2007 (42 U.S.C. 17212) is amended to read as follows:

     ``SEC. 633. MARINE AND HYDROKINETIC RENEWABLE ENERGY RESEARCH 
                   AND DEVELOPMENT.

       ``The Secretary, in consultation with the Secretary of the 
     Interior, the Secretary of Commerce, and the Federal Energy 
     Regulatory Commission, shall carry out a program of research, 
     development, demonstration, and commercial application to 
     expand marine and hydrokinetic renewable energy production, 
     including programs--
       ``(1) to assist technology development to improve the 
     components, processes, and systems used for power generation 
     from marine and hydrokinetic renewable energy resources;
       ``(2) to establish critical testing infrastructure 
     necessary--
       ``(A) to cost effectively and efficiently test and prove 
     marine and hydrokinetic renewable energy devices; and
       ``(B) to accelerate the technological readiness and 
     commercialization of those devices;
       ``(3) to support efforts to increase the efficiency of 
     energy conversion, lower the cost, increase the use, improve 
     the reliability, and demonstrate the applicability of marine 
     and hydrokinetic renewable energy technologies by 
     participating in demonstration projects;
       ``(4) to investigate variability issues and the efficient 
     and reliable integration of marine and hydrokinetic renewable 
     energy with the utility grid;
       ``(5) to identify and study critical short- and long-term 
     needs to create a sustainable marine and hydrokinetic 
     renewable energy supply chain based in the United States;
       ``(6) to increase the reliability and survivability of 
     marine and hydrokinetic renewable energy technologies, 
     including development of corrosion-resistant and anti-fouling 
     materials;
       ``(7) to verify the performance, reliability, 
     maintainability, and cost of new marine and hydrokinetic 
     renewable energy device designs and system components in an 
     operating environment;
       ``(8) to coordinate and avoid duplication of activities 
     across programs of the Department and other applicable 
     Federal agencies, including National Laboratories;
       ``(9) to identify opportunities for joint research and 
     development programs and development of economies of scale 
     between--
       ``(A) marine and hydrokinetic renewable energy 
     technologies; and
       ``(B) other renewable energy and fossil energy programs, 
     offshore oil and gas production activities, and activities of 
     the Department of Defense; and
       ``(10) to support in-water technology development with 
     international partners using existing cooperative procedures 
     (including memoranda of understanding)--
       ``(A) to allow cooperative funding and other support of 
     value to be exchanged and leveraged; and
       ``(B) to encourage the participation of international 
     research centers and companies in the United States and the 
     participation of research centers and companies of the United 
     States in international projects.''.

     SEC. 103. NATIONAL MARINE RENEWABLE ENERGY RESEARCH, 
                   DEVELOPMENT, AND DEMONSTRATION CENTERS.

       Section 634 of the Energy Independence and Security Act of 
     2007 (42 U.S.C. 17213) is amended by striking subsection (b) 
     and inserting the following:
       ``(b) Purposes.--The Centers (in coordination with the 
     Department and National Laboratories) shall--
       ``(1) advance research, development, demonstration, and 
     commercial application of marine and hydrokinetic renewable 
     energy technologies;
       ``(2) support in-water testing and demonstration of marine 
     and hydrokinetic renewable energy technologies, including 
     facilities capable of testing--
       ``(A) marine and hydrokinetic renewable energy systems of 
     various technology readiness levels and scales;
       ``(B) a variety of technologies in multiple test berths at 
     a single location; and
       ``(C) arrays of technology devices; and
       ``(3) serve as information clearinghouses for the marine 
     and hydrokinetic renewable energy industry by collecting and 
     disseminating information on best practices in all areas 
     relating to developing and managing marine and hydrokinetic 
     renewable energy resources and energy systems.''.

     SEC. 104. AUTHORIZATION OF APPROPRIATIONS.

       Section 636 of the Energy Independence and Security Act of 
     2007 (42 U.S.C. 17215) is amended by striking ``2008 through 
     2012'' and inserting ``2014 through 2017''.

     TITLE II--MARINE AND HYDROKINETIC RENEWABLE ENERGY REGULATORY 
                               EFFICIENCY

     SEC. 201. MARINE AND HYDROKINETIC RENEWABLE ENERGY PROJECTS 
                   AND FACILITIES.

       Part I of the Federal Power Act (16 U.S.C. 792 et seq.) is 
     amended by adding at the end the following:

     ``SEC. 34. PILOT LICENSE FOR MARINE AND HYDROKINETIC 
                   RENEWABLE ENERGY PROJECTS.

       ``(a) Definition of Hydrokinetic Pilot Project.--
       ``(1) In general.--In this section, the term `hydrokinetic 
     pilot project' means a facility that generates energy from--
       ``(A) waves, tides, or currents in an ocean, estuary, or 
     tidal area; or
       ``(B) free-flowing water in a river, lake, or stream.
       ``(2) Exclusions.--The term `hydrokinetic pilot project' 
     does not include a project that uses a dam or other 
     impoundment for electric power purposes.
       ``(b) Pilot Licenses Authorized.--The Commission may issue 
     a pilot license to construct, operate, and maintain a 
     hydrokinetic pilot project that meets the criteria listed in 
     subsection (c).
       ``(c) License Criteria.--The Commission may issue a pilot 
     license for a hydrokinetic pilot project if the project--
       ``(1) will have an installed capacity of not more than 10 
     megawatts;
       ``(2) is for a term of not more than 10 years;
       ``(3) will not cause a significant adverse environmental 
     impact or interfere with navigation;
       ``(4) is removable and can shut down on reasonable notice 
     in the event of a significant adverse safety, navigation, or 
     environmental impact;
       ``(5) can be removed, and the site can be restored, by the 
     end of the license term, unless the project has obtained a 
     new license or the Commission has determined, based on 
     substantial evidence, that the project should not be removed 
     because it would be preferable for environmental or other 
     reasons not to; and
       ``(6) is primarily for the purpose of--
       ``(A) testing new hydrokinetic technologies;
       ``(B) locating appropriate sites for new hydrokinetic 
     technologies; or
       ``(C) determining the environmental and other effects of a 
     hydrokinetic technology.
       ``(d) Lead Agency.--In carrying out this section, the 
     Commission shall act as the lead agency--
       ``(1) to coordinate all applicable Federal authorizations; 
     and
       ``(2) to comply with the National Environmental Policy Act 
     of 1969 (42 U.S.C. 4321 et seq.).
       ``(e) Schedule Goals.--
       ``(1) In general.--Not later than 30 days after the date on 
     which the Commission receives a completed application, and 
     following consultation with Federal, State, and local 
     agencies with jurisdiction over the hydrokinetic pilot 
     project, the Commission shall develop and issue pilot license 
     approval process scheduling goals that cover all Federal, 
     State, and local permits required by law.
       ``(2) Compliance.--Applicable Federal, State, and local 
     agencies shall comply with the goals established under 
     paragraph (1) to the maximum extent practicable, consistent 
     with applicable law.

[[Page S6214]]

       ``(3) 1-year goal.--It shall be the goal of the Commission 
     and the other applicable agencies to complete the pilot 
     license process by not later than 1 year after the date on 
     which the Commission receives the completed application.
       ``(f) Size Limitations.--
       ``(1) In general.--The Commission may grant a pilot license 
     for a project located in the ocean if the project covers a 
     surface area of not more than 1 square nautical mile.
       ``(2) Exception.--The Commission, at the discretion of the 
     Commission and for good cause, may grant a pilot license for 
     a project that covers a surface area of more than 1 square 
     nautical mile.
       ``(3) Limitation.--For proposed projects located in an 
     estuary, tidal area, river, lake, or stream, the Commission 
     shall determine the size limit on a case-by-case basis, 
     taking into account all relevant factors.
       ``(g) Extensions Authorized.--On application by a project, 
     the Commission may make a 1-time extension of a pilot license 
     for a term not to exceed 5 years.''.
                                 ______