Statements On Introduced Bills And Joint Resolutions

Floor Speech

By Ms. MURKOWSKI:

S. 922. A bill to amend the Internal Revenue Code of 1986 to modify the term ``5-year property''; to the Committee on Finance.

Ms. MURKOWSKI. Mr. President, I rise today to introduce two pieces of legislation S. 922 and S. 923, that I hope will be the next major step that this Congress takes to help an exciting form of renewable energy to become more established as a viable energy technology. I am referring to helping the expansion of the ocean hydrokinetic energy industry.

Today I am introducing the Marine Renewable Energy Promotion Act of 2009 and a companion tax provision. They are companion measures to one that has been introduced in the House of Representatives by Rep. JAY INSLEE of Washington.

For a number of years this Nation has been providing help with research and other assistance to promote the development of energy from our oceans and rivers, using the tides, currents, waves and even the thermal properties of our oceans to generate electricity. With 70 percent of our planet covered with water, and the energy that the sun produces--each day oceans absorb the energy equivalent of 250 billion barrels of oil--and the energy that winds produce and impart to that water, marine hydrokinetic energy has the potential to be a major source of the world's clean, non-carbon emitting power in the future.

The Electric Power Research Institute has estimated that ocean resources in the U.S. could generate 252 million megawatt hours of electricity--6.5 percent of America's entire electricity generation--if ocean energy gained the same financial and research incentives currently enjoyed by other forms of renewable energy.

In 2005 in the Energy Policy Act we started the process of leveling the playing field. Besides authorizing a greater Federal research preference, we granted ocean energy the federal purchase requirement and the federal production incentive. In 2007's Energy Independence and Security Act, we furthered energy research and authorized the funding of research and ocean energy demonstration centers. In 2008, ocean energy finally was qualified to receive a renewable energy Production Tax Credit--unfortunately at a lower rate than some other renewables receive. But the PTC establishes the principle that ocean energy is a valuable future technology to meet electricity generation needs.

Now we are proposing that additional Federal aid be granted to all potential forms of Marine Renewable Energy to allow the industry's growth to advance more rapidly. The bill authorizes the Department of Energy to increase its research and development effort, working to develop new technologies, reduce manufacturing and operating costs of the devices, improve the reliability and survivability of marine energy facilities and make sure that such power can be integrated into the national electricity grid. The bill also encourages efforts to allow marine energy to work in conjunction with other forms of energy, such as offshore wind, and authorizes more federal aid to assess and deal with any environmental impacts. The bill also authorizes establishment of project standards and provides for incentives to help the industry comply with any standards developed.

Allows for the creation of a Federal Marine-Based Energy Device Verification program, so the Government tests and certifies the performance of new marine technologies to reduce market risks for utilities to purchase power from such projects.

Authorizes the Federal Government to set up an adaptive management program, and a fund to help pay for the regulatory permitting and development of new marine technologies.

A separate bill, likely to be referred to the Senate Finance Committee for consideration, authorizes that marine projects benefit from being able to accelerate the depreciation of their project costs over five years--like some other renewable energy technologies currently can do. That should enhance project economic returns for private developers.

The legislation in total authorizes up to $250 million a year of Federal funding for research. It is in keeping with the goals of the Obama administration to markedly increase funding for prospective renewable energy technologies that can help reduce U.S. and global carbon emissions and reduce our dependence on fossil fuels for energy production.

The technology this bill could foster could be of immense benefit to coastal regions and the U.S. power grid overall. In my home State of Alaska, for example, there are nearly 150 communities located along the State's 34,000 miles of coastline plus dozens more on the major river systems, which may benefit from the economies that gaining power from the free fuels of nature's currents and waves provides. In a State where rural electricity is currently averaging 65 cents per kilowatt hour when generated from diesel fuels--ocean energy offers the potential to sharply reduce all costs and vastly improve the local economy and thus the economy of the entire Nation.

There are a number of difficult challenges ahead to realize the potential of marine renewable energy from building reliable devices at economical costs. But these bills are another step toward getting on with the task of identifying and meeting those challenges. The potential is well worth the cost.

I hope this body will quickly include these provisions in comprehensive energy legislation and help this new industry to advance for the benefit of all Americans.

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