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Show Me the Money:  Benefits for Marine Renewables
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Show Me the Money: Benefits for Marine Renewables

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A power point describing categories of financial subsidies for marine renewable energy and other renewables

A power point describing categories of financial subsidies for marine renewable energy and other renewables

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  • 1. Show Me the Money: Federal and State Public Funding, Benefits and Subsidy Programs for Ocean Marine Renewables Carolyn Elefant Law Offices of Carolyn Elefant/OceanRenewable Energy Coalition (OREC) Hydrovision Conference, Sacramento California July 18, 2008
  • 2. U.S. Federal and State Public Benefits & Incentives for Wave, Tidal, HydroKinetic: Topics
    • The Color of Money
    • “ Show Me the Money” (Jerry Maquire)
    • “ Follow the Money”
    • (Deep Throat)
  • 3.  
  • 4.  
  • 5. Earmarks
    • Very situation specific, so hard to track
    • Need experienced lobbyists to get real $$s - not a DIY operation
    • Examples of Earmarks:
      • $3.28 million to company for developing wave energy project & improved mooring system (HR 108-622)(Federal)
      • $8.5 million for solar in Florida (state earmark information on ocean energy difficult to find)
  • 6. Funding Programs: Federal
    • Department of Energy
      • SBIR grant programs (ongoing, small amounts for early stage R&D)
      • State Energy Programs (DOE funding to states for renewables)
      • $7.5 Million Funding by RFP
        • Awards announced end of July 2008
        • $3-$5 million for advanced project testing (up to 8 awards, 50% cost share)
        • $1.-$2.5 million for market accelerators (up to 6 awards, no cost share)
          • Resource assessment, transmission integration, and regulatory streamlining
        • $1.5-$2.5 million for National Marine Renewable Centers (up to 3 awards, 50 % cost share)
  • 7. Federal Funding - Appropriations
    • Appropriations Legislation
      • House Bill - $30 million for marine renewables; $10 million for hydro
      • Senate Bill - $30 million for entire water power program
    • No action likely in this Congress
  • 8. State (Taxpayer) Funding Programs
    • Extremely Varied - Examples:
      • NYSERDA - $2.5 Million to bring Verdant RITE Project to commercial
      • OWET - $4.2 million in funding from Oregon to help develop & promote projects, conduct studies to aid commercialization of industry
      • Maine Technology Institute - $200,000 to ORPC to test tidal turbines
  • 9. State Ratepayer Funded Programs
    • See http://www.cleanenergystates.org/ for overview of all state clean energy programs
    • CA Emerging Renewable Resource Program
      • PG&E seeks $30 million, w/$$s for Wave Connect - CPUC approves funds, then allows recovery through rates to bundled customers - PG&E requested $6million but rec’d. only $2 million
    • NJ Renewable Energy & Develop. Fund
      • $500,000 to OPT to deploy wave energy buoy
    • RI Renewable Energy Fund
      • $4 Million + low cost loans to Oceanlinx
  • 10. Loan Programs
    • CREBs (Clean Energy Renewable Bonds)- for public projects, including marine renewables
    • DOE Loan Guarantee Program
      • Just implemented, up to 100% guaranteed, provided that developer usesFederal Financing Bank (otherwise 80%)
    • Many states have loans & loan guarantees
      • See www.dsire.com for state-by-state summary
  • 11.  
  • 12. Tax Credits & Incentives
    • State - see www.dsireusa.org
    • Federal
      • HR 6049 - PTC extender (1.9cents/kwh)
      • Expands PTC to include marine renewables & extends PTC through 2011
      • (only extends wind PTC 1 year)
      • Cost - $7 billion/10 years
      • Status:
        • Won’t pass House Paygo w/out cutbacks elsewhere
  • 13. Renewable Portfolio Standard
    • No federal RPS
    • State RPS
      • Need to meet aggressive RPS drives clean energy programs
      • 42 states have RPS and in most, wave, tidal and hydrokinetic will allow utilities to meet RPS obligations. Source: www.dsireusa.org
  • 14. Feed In Tariff
    • Highlights of Proposed Inslee Legislation (7/08)
      • FERC will set Uniform national Renewable Energy Payment (REP) rates at levels that would provide for a 10% ROR on renewable investment, with rates differentiated by technology type & size
      • Utilities reimbursed for cost of REP purchases and interconnection through pass-through to a privately-run national renewable energy corporation (RenewCorps).
      • RenewCorps would levy systems benefit charge on every electric consumer in the U.S.
      • No double dip - companies that get REP rates don’t get other fed incentives or state RECs
      • Utilities would earn any associated RECs, to meet compliance with state RPS.
  • 15. Feed In Tariffs - States
    • States with feed-in tariffs
      • California, Illinois, Michigan, Minnesota, and Hawaii.
      • In California, feed in tariff ranges from 8 to 30 cents, available for large and small renewable projects
      • Many other states are considering feed-in - trend to follow
  • 16. Renewable Energy Credits
    • Most states with RPS programs have RECs. 1 REC = 1 MW/hr of renewable energy.
    • RECs from projects in RPS states are more valuable than those in non-RPS states
    • REC prices range from .005/kWh to $.056/kWh -http://www.eere.energy.gov/greenpower/markets/certificates.shtml?page=1 (DOE Table)
  • 17. Carbon Offsets - “Wave of the Future”
    • What is an offset - from wikipedia:
      • A carbon offset is a financial instrument representing a reduction in greenhouse gas emissions. Although there are six primary categories of greenhouse gases,[1] carbon offsets are measured in metric tons of carbon dioxide-equivalent (CO2e). One carbon offset represents the reduction of one metric ton of carbon dioxide, or its equivalent in other greenhouse gases.
      • At present, only voluntary markets, can be certified
      • Cheapest offsets in voluntary markets w/no verification
      • W/Cap and trade, offsets will provide another benefit for marine renewables (but may not be able to “double count” REC and offset)
  • 18. Follow the Money: Keeping Track of Programs
    • Cleanenergystates.org
    • Dsireusa.org
    • DOE Website
    • Grants.gov
    • State PUC and utility websites
    • Google newsfeeds on grants, awards, marine renewables
  • 19. Contact Information
    • For additonal information, contact:
      • Carolyn Elefant, Law Offices of Carolyn Elefant, Washington DC
      • 202-297-6100/carolynelefant@fercfights.com
      • Ocean Renewable Energy Coalition
      • 301-869-3790