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

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Show Me the Money: Benefits for Marine Renewables

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

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