January 2008. When the comment period closed on April 28, 2008, the agency had already received 40,000 public comments. The Cape Wind project is supported by Massachusetts Governor Duval Patrick but is opposed by many Cape Cod constituents and some Members of the Massachusetts Congressional delegation.7 The company, however, remains optimistic that MMS will issue a Record of Decision before the end of this year.8 With approval in place, the company can get financing to begin construction in 2010 and to start producing energy in 2011. What these brief descriptions convey, is the amount of time it takes to bring these projects to fruition unless you have clear political and local support.
Conclusions
The U.S. marine renewable energy industry is a burgeoning industry. There are companies that want to produce renewable energy from the rivers and oceans and supply clean energy to the U.S. As the U.S. sets new goals to reduce carbon emissions, and tries to wean itself off foreign oil, the oceans will look like an even more attractive source of renewable energy. At the same time, the complication of multiple state and federal licensing and leasing regimes, and the failure of Congress and MMS to establish clear ground rules and permanent tax credits have made it very difficult to succeed. Once these rules and credits are enacted, the industry has nowhere to go but up!
Facilitating the Production of Renewable Marine Resources in U.S.
As representatives of financial institutions at the recent conference explained, the U.S. will have to create a steady commitment to the production of renewable energy resources and level the playing field with fossil fuels. The U.S. has a tendency to stop and start when it comes to the subject of renewable energy. However, many Members of Congress, including Congressman Jay Inslee (D-WA) and Senator Lisa Murkowski (R-Alaska), are equally committed to supporting the growth of this industry. Of particular importance to the nascent industry is the continuity of production tax credits (PTC). Presently, Congress is attempting to renew tax credits that expired last year. The Senate approved a one-year extension in April 2008 as part of a housing bill (H.R. 3221), but it is hung up in the House on "pay-go" considerations. To promote the industry, any tax credits will have to be made permanent. It is also possible that the U.S., like European nations have done, will have to adopt a form of "feed-in tariff" to level the playing field between renewable and non-renewable forms of energy. A "feed-in tariff" is a form of financial incentive that requires electric utilities to buy renewable energy at above market rates. Congressman Inslee plans to introduce some form of feed-in tariff legislation next year. Finally, the U.S. may have to establish a one-stop permitting office for marine renewable energy so that companies clearly have one place to go to get approvals and funding assistance. Additional forms of financial assistance, e.g., loan guarantees, may also be needed.
About the Author
Joan M. Bondareff is Of Counsel to Blank Rome LLP where she specializes in maritime and environmental law, and congressional relations. She served as Majority Counsel to the House Committee on Merchant Marine and Fisheries and participated in several LOS negotiations. The views expressed in this article are those of the author and may not necessarily represent the official position of Blank Rome LLP.
FOOTNOTES
1 From Roger Bedard of the Electric Power Research Institute. The Federal Energy Regulatory Commission estimates that up to 20% of our nation's energy supply could
come from renewable marine sources. www.ferc.gov. 2 www.mms.gov. 3 16 U.S.C. 796. 4 www.ferc.gov/industries/hydropower/indus-act/hydrokinetics.asp. 5 The grants should be available on www.grants.gov (CFDA#81.087) and also on the following DoE website: www.eere.energy.gov/financing/business.html. 6 For further information on UK, Ireland, and Portugal initiatives, see www.berr.gov.uk, www.sei.ie, and www.ineti.pt, 7 Members of the MA Delegation introduced legislation two years ago to create a 1.5 mile buffer zone between the wind turbines and shipping and ferry lanes that would have killed the project; however, the provision was narrowed in Conference to a more specific provision granting the Coast Guard or the Governor of Massachusetts authority to stop the project. 8 From an interview with Cape Wind's Vice President of Regulatory Affairs, Dennis Duffy, on E&ETV, April 21, 2008.
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