U.S. Rep. Jay Inslee (WA) and the recently formed Ocean Renewable Energy
Coalition called the energy bill provisions monumental and expect them to
spur the industry. While Inslee ultimately voted against the overall
energy legislation due to its significant subsidies for the oil, gas and
coal industries, he was able to improve parts of the bill such as
including ocean energy as one of the government's priorities. The
President is expected to soon sign the energy bill into law.
"With over seventy percent of the Earth's surface covered by oceans, we
need to explore their clean energy potential as one solution to break us
from our addiction to fossil fuels," Inslee said. "In the process of
developing ocean energy, we might be able to minimize the harmful effects
of greenhouse gas-induced global warming on ocean life and our planet."
Given the considerable potential for ocean energy projects in Washington
State, Inslee hopes the ocean incentives in the bill will encourage
companies to expand exploration of ocean power projects in the region.
Mercer Island-based AquaEnergy is currently in the process of developing
ocean wave energy projects in Makah Bay in a partnership with the Makah
Indian Nation and the Clallam County PUD. Among other companies that could
explore ocean energy in Washington State are Ocean Power Technologies and
British Columbia-based Blue Energy. Washington State has 157 miles of
coastline and over 3,000 miles of interior shoreline, including Puget
Sound and the Strait of Juan de Fuca.
"America should be the world leader in developing and deploying ocean
energy technology," Inslee said. "Puget Sound's human and natural
resources make our area an obvious candidate to benefit from an investment
in ocean energy."
One such example of how ocean energy could work in Washington State is
that of Verdant Power. Verdant has deployed, on an experimental basis, six
36 kW tidal power turbine units that will temporarily supply power to two
customers on New York City's Roosevelt Island, at no cost. Puget Sound
would be an attractive location for companies to deploy clean ocean energy
projects. Clean energy groups have suggested that the Tacoma Narrows might
have considerable potential as a tidal energy resource if the energy can
be harnessed in a way that is not disruptive to the environment or marine
animals.
One of Inslee's ocean power amendments will extend the renewable energy
production tax credit to include ocean power produced from tidal, wave,
current and thermal sources. Another Inslee amendment will expand the
federal purchase requirement to ocean power produced from the sources
mentioned above.
A summary of the provisions in the energy bill that promote ocean energy:
- A provision including ocean energy among the eligible sources in a
section requiring that 60 percent of the funds in the Renewable Energy
Production Incentive (REPI) program be used to pay utilities for renewable
projects. This means that electric utilities can apply to the Department
of Energy (DOE) for direct payments for electricity using ocean energy
devices.
- A section that makes ocean energy projects eligible to receive tax
credits under renewable energy projects that employ new or significantly
improved technologies as compared to commercial technologies in service at
the time. The Energy Secretary may consult with the Treasury Secretary to
offer loan guarantees for up to 80 percent of facility project costs. The
bill authorizes the appropriation of funds necessary to provide loan
guarantees for innovative technologies.
- Research and development programs under the Secretary of Energy that
will be based on increasing the conversion efficiency of all forms of
renewable energy, decreasing the cost of renewable energy generation,
promoting the diversity of the energy supply, decreasing the dependence of
the United States on foreign energy supplies, improving energy security
and decreasing the environmental impact of energy-related activities.
Ocean energy is listed under potential projects.
- A section mandating that the federal government receives 7.5 percent of
total power consumption from renewable energy, which includes ocean
energy, by 2013.
- A section authorizing local governments to apply for grants to use
renewable energy sources, including wave power but not other ocean energy
sources, to increase energy efficiency.
* A section that requires the Secretary of the Interior to enter into a
contract with the National Academy of Sciences under which the National
Academy will study the potential of developing wind, solar and ocean
energy resources on available federal land.
- A section directing the Secretary of Energy to annually review the
available assessments of renewable energy resources within the United
States, including solar, wind, biomass, ocean (tidal, wave, current, an
thermal), geothermal and hydroelectric energy resources.
- A section under which the Secretary of Energy will identify and evaluate
strategies or projects with the greatest potential for reducing the
dependence on imported fossil fuels, including the increased use of
renewable energy sources such as wave energy, but not other ocean energy
sources.
Separately, Congressman Inslee is promoting clean energy legislation for
the 21st Century called the New Apollo Energy Act. Among other items, New
Apollo provides $49 billion in government loan guarantees for the
construction of clean-energy generation facilities that will produce power
from ocean, wind, solar, geothermal, biomass, coal with
carbon-sequestration technology, and other sources. Inslee's legislation
will use new tax incentives and market-based assistance, along with energy
performance standards to address three challenges to America: creating
clean energy manufacturing jobs, decreasing dependence on foreign oil, and
reducing greenhouse gas emissions.
For more information on Rep. Inslee's New Apollo Energy Act, see the
following link.