I 

110TH CONGRESS 

1ST SESSION H. R. 2036 

To promote the development and use of marine and hydrokinetic renewable 

energy technologies, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 25, 2007 

Mr. INSLEE (for himself, Mr. HOLT, Mr. HALL of New York, Ms. BORDALLO, 

Mr. DELAHUNT, and Mr. BLUMENAUER) introduced the following bill; 

which was referred to the Committee on Energy and Commerce, and in 

addition to the Committees on Science and Technology, Ways and Means, 

and Natural Resources, for a period to be subsequently determined by the 

Speaker, in each case for consideration of such provisions as fall within 

the jurisdiction of the committee concerned 

A BILL 

To promote the development and use of marine and 

hydrokinetic renewable energy technologies, and for other 

purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Marine and 

5 Hydrokinetic Renewable Energy Promotion Act’’. 


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1 SEC. 2. DEFINITION. 

2 For purposes of this Act, the term ‘‘marine and 

3 hydrokinetic renewable energy’’ means electrical energy 

4 from— 

5 (1) waves, tides, and currents in oceans, estu6 aries, and tidal areas; 

7 (2) free flowing water in rivers, lakes, and 

8 streams; 

9 (3) free flowing water in man-made channels, 

10 including projects that utilize nonmechanical struc11 tures to accelerate the flow of water for electric 

12 power production purposes; and 

13 (4) differentials in ocean temperature (ocean 

14 thermal energy conversion). 

15 The term shall not include energy from any source that 

16 utilizes a dam, diversionary structure, or impoundment for 

17 electric power production purposes, except as provided in 

18 paragraph (3). 

19 SEC. 3. RESEARCH AND DEVELOPMENT. 

20 (a) PROGRAM.—The Secretary of Energy, in con21 sultation with the Secretary of Commerce and the Sec22 retary of the Interior, shall establish a program of marine 

23 and hydrokinetic renewable energy research focused on— 

24 (1) developing and demonstrating marine and 

25 hydrokinetic renewable energy technologies; 


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1 (2) reducing the manufacturing and operation 

2 costs of marine and hydrokinetic renewable energy 

3 technologies; 

4 (3) increasing the reliability and survivability of 

5 marine and hydrokinetic renewable energy facilities; 

6 (4) integrating marine and hydrokinetic renew7 able energy into electric grids; 

8 (5) identifying opportunities for cross fertiliza9 tion and development of economies of scale between 

10 offshore wind and marine and hydrokinetic renew11 able energy sources; 

12 (6) identifying, in consultation with the Sec13 retary of Commerce and the Secretary of the Inte14 rior, the environmental impacts of marine and 

15 hydrokinetic renewable energy technologies and ways 

16 to address adverse impacts, and providing public in17 formation concerning technologies and other means 

18 available for monitoring and determining environ19 mental impacts; and 

20 (7) standards development, demonstration, and 

21 technology transfer for advanced systems engineer22 ing and system integration methods to identify crit23 ical interfaces. 

24 (b) AUTHORIZATION OF APPROPRIATIONS.—There 

25 are authorized to be appropriated to the Secretary of EnVerDate Aug 31 2005 06:54 Apr 26, 2007 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2036.IH H2036

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1 ergy for carrying out this section $50,000,000 for each 

2 of the fiscal years 2008 through 2017. 

3 SEC. 4. ADAPTIVE MANAGEMENT AND ENVIRONMENTAL 

4 FUND. 

5 (a) FINDINGS.—The Congress finds that— 

6 (1) the use of marine and hydrokinetic renew7 able energy technologies can avoid contributions to 

8 global warming gases, and such technologies can be 

9 produced domestically; 

10 (2) marine and hydrokinetic renewable energy 

11 is a nascent industry; and 

12 (3) the United States must work to promote 

13 new renewable energy technologies that reduce con14 tributions to global warming gases and improve our 

15 country’s domestic energy production in a manner 

16 that is consistent with environmental protection, 

17 recreation, and other public values. 

18 (b) ESTABLISHMENT.—The Secretary of Energy 

19 shall establish an Adaptive Management and Environ20 mental Fund, and shall lend amounts from that fund to 

21 entities described in subsection (f) to cover the costs of 

22 projects that produce marine and hydrokinetic renewable 

23 energy. Such costs include design, fabrication, deploy24 ment, operation, monitoring, and decommissioning costs. 

25 Loans under this section may be subordinate to projectVerDate Aug 31 2005 06:54 Apr 26, 2007 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H2036.IH H2036

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1 related loans provided by commercial lending institutions 

2 to the extent the Secretary of Energy considers appro3 priate. 

4 (c) REASONABLE ACCESS.—As a condition of receiv5 ing a loan under this section, a recipient shall provide rea6 sonable access, to Federal or State agencies and other re7 search institutions as the Secretary considers appropriate, 

8 to the project area and facilities for the purposes of inde9 pendent environmental research. 

10 (d) PUBLIC AVAILABILITY.—The results of any as11 sessment or demonstration paid for, in whole or in part, 

12 with funds provided under this section shall be made avail13 able to the public, except to the extent that they contain 

14 information that is protected from disclosure under sec15 tion 552(b) of title 5, United States Code. 

16 (e) REPAYMENT OF LOANS.— 

17 (1) IN GENERAL.—The Secretary of Energy 

18 shall require a recipient of a loan under this section 

19 to repay the loan, plus interest at a rate of 2.1 per20 cent per year, over a period not to exceed 20 years, 

21 beginning after the commercial generation of electric 

22 power from the project commences. Such repayment 

23 shall be required at a rate that takes into account 

24 the economic viability of the loan recipient and en25 sures regular and timely repayment of the loan. 


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1 (2) BEGINNING OF REPAYMENT REQUIRED.— 

2 No repayments shall be required under this sub3 section until after the project generates net pro4 ceeds. For purposes of this paragraph, the term ‘‘net 

5 proceeds’’ means proceeds from the commercial sale 

6 of electricity after payment of project-related costs, 

7 including taxes and regulatory fees that have not 

8 been paid using funds from a loan provided for the 

9 project under this section. 

10 (3) TERMINATION.—Repayment of a loan made 

11 under this section shall terminate as of the date that 

12 the project for which the loan was provided ceases 

13 commercial generation of electricity if a govern14 mental permitting authority has ordered the closure 

15 of the facility because of a finding that the project 

16 has unacceptable adverse environmental impacts, ex17 cept that the Secretary shall require a loan recipient 

18 to continue making loan repayments for the cost of 

19 equipment, obtained using funds from the loan that 

20 have not otherwise been repaid under rules estab21 lished by the Secretary, that is utilized in a subse22 quent project for the commercial generation of elec23 tricity. 

24 (f) ADAPTIVE MANAGEMENT PLAN.—In order to re25 ceive a loan under this section, an applicant for a Federal 


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1 license or permit to construct, operate, or maintain a ma2 rine or hydrokinetic renewable energy project shall provide 

3 to the Federal agency with primary jurisdiction to issue 

4 such license or permit an adaptive management plan for 

5 the proposed project. Such plan shall— 

6 (1) be prepared in consultation with other par7 ties to the permitting or licensing proceeding, includ8 ing all Federal, State, municipal, and tribal agencies 

9 with authority under applicable Federal law to re10 quire or recommend design or operating conditions, 

11 for protection, mitigation, and enhancement of fish 

12 and wildlife resources, water quality, navigation, 

13 public safety, land reservations, or recreation, for in14 corporation into the permit or license; 

15 (2) set forth specific and measurable objectives 

16 for the protection, mitigation, and enhancement of 

17 fish and wildlife resources, water quality, navigation, 

18 public safety, land reservations, or recreation, as re19 quired or recommended by governmental agencies 

20 described in paragraph (1), and shall require moni21 toring to ensure that these objectives are met; 

22 (3) provide specifically for the modification or, 

23 if necessary, removal of the marine or hydrokinetic 

24 renewable energy project based on findings by the li25 censing or permitting agency that the marine or 


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1 hydrokinetic renewable energy project has not at2 tained or will not attain the specific and measurable 

3 objectives set forth in paragraph (2); and 

4 (4) be approved and incorporated in the Fed5 eral license or permit. 

6 (g) SUNSET.—The Secretary of Energy shall trans7 mit a report to the Congress when the Secretary of Energy 

8 determines that the technologies supported under this Act 

9 have achieved a level of maturity sufficient to enable the 

10 expiration of the programs under this Act. The Secretary 

11 of Energy shall not make any new loans under this section 

12 after the report is transmitted under this subsection. 

13 SEC. 5. PROGRAMMATIC ENVIRONMENTAL IMPACT STATE14 MENT. 

15 The Secretary of Commerce and the Secretary of the 

16 Interior shall, in cooperation with the Federal Energy 

17 Regulatory Commission and the Secretary of Energy, and 

18 in consultation with appropriate State agencies, jointly 

19 prepare programmatic environmental impact statements 

20 which contain all the elements of an environmental impact 

21 statement under section 102 of the National Environ22 mental Policy Act of 1969 (42 U.S.C. 4332), regarding 

23 the impacts of the deployment of marine and hydrokinetic 

24 renewable energy technologies in the navigable waters of 

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1 pact statement shall be prepared under this section for 

2 each of the Environmental Protection Agency regions of 

3 the United States. The agencies shall issue the pro4 grammatic environmental impact statements under this 

5 section not later than 18 months after the date of enact6 ment of this Act. The programmatic environmental impact 

7 statements shall evaluate among other things the potential 

8 impacts of site selection on fish and wildlife and related 

9 habitat. Nothing in this section shall operate to delay con10 sideration of any application for a license or permit for 

11 a marine and hydrokinetic renewable energy technology 

12 project. 

13 SEC. 6. PRODUCTION CREDIT FOR ELECTRICITY PRO14 DUCED FROM MARINE RENEWABLES. 

15 (a) IN GENERAL.—Paragraph (1) of section 45(c) of 

16 the Internal Revenue Code of 1986 (relating to resources) 

17 is amended by striking ‘‘and’’ at the end of subparagraph 

18 (G), by striking the period at the end of subparagraph 

19 (H) and inserting ‘‘, and’’, and by adding at the end the 

20 following new subparagraph: 

21 ‘‘(I) marine and hydrokinetic renewable en22 ergy.’’. 

23 (b) MARINE RENEWABLES.—Subsection (c) of sec24 tion 45 of such Code is amended by adding at the end 

25 the following new paragraph: 


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1 ‘‘(10) MARINE AND HYDROKINETIC RENEW2 ABLE ENERGY.— 

3 ‘‘(A) IN GENERAL.—The term ‘marine and 

4 hydrokinetic renewable energy’ means energy 

5 derived from— 

6 ‘‘(i) waves, tides, and currents in 

7 oceans, estuaries, and tidal areas, 

8 ‘‘(ii) free flowing water in rivers, 

9 lakes, and streams, 

10 ‘‘(iii) free flowing water in man-made 

11 channels, including projects that utilize 

12 nonmechanical structures to accelerate the 

13 flow of water for electric power production 

14 purposes, or 

15 ‘‘(iv) differentials in ocean tempera16 ture (ocean thermal energy conversion). 

17 ‘‘(B) EXCEPTIONS.—Such term shall not 

18 include any energy which is— 

19 ‘‘(i) described in subparagraphs (A) 

20 through (H) of paragraph (1), or 

21 ‘‘(ii) derived from any source that uti22 lizes a dam, diversionary structure, or im23 poundment for electric power production 

24 purposes, except as provided in subpara25 graph (A)(iii).’’. 


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1 (c) DEFINITION OF FACILITY.—Subsection (d) of 

2 section 45 of such Code is amended by adding at the end 

3 the following new paragraph: 

4 ‘‘(11) MARINE AND HYDROKINETIC RENEW5 ABLE ENERGY FACILITIES.—In the case of a facility 

6 producing electricity from marine and hydrokinetic 

7 renewable energy, the term ‘qualified facility’ means 

8 any facility owned by the taxpayer which is origi9 nally placed in service after the date of the enact10 ment of this paragraph and before January 1, 

11 2009.’’. 

12 (d) EFFECTIVE DATE.—The amendments made by 

13 this section shall apply to electricity produced and sold 

14 after the date of the enactment of this Act, in taxable 

15 years ending after such date. 

16 SEC. 7. INVESTMENT CREDIT AND 5-YEAR DEPRECIATION 

17 FOR EQUIPMENT WHICH PRODUCES ELEC18 TRICITY FROM MARINE AND HYDROKINETIC 

19 RENEWABLE ENERGY. 

20 (a) IN GENERAL.—Subparagraph (A) of section 

21 48(a)(3) of the Internal Revenue Code of 1986 (relating 

22 to energy property) is amended by striking ‘‘or’’ at the 

23 end of clause (iii), by inserting ‘‘or’’ at the end of clause 

24 (iv), and by adding at the end the following new clause: 


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1 ‘‘(v) equipment which uses marine 

2 and hydrokinetic renewable energy (as de3 fined in section 45(c)(10)) but only with 

4 respect to periods ending before January 

5 1, 2018,’’. 

6 (b) 30 PERCENT CREDIT.—Clause (i) of section 

7 48(a)(2)(A) of such Code is amended by striking ‘‘and’’ 

8 at the end of subclause (II) and by adding at the end the 

9 following new subclause: 

10 ‘‘(IV) energy property described 

11 in paragraph (3)(A)(v), and’’. 

12 (c) CREDITS ALLOWED FOR INVESTMENT AND PRO13 DUCTION.—Paragraph (3) of section 48(a)(3) is amended 

14 by inserting ‘‘(other than property described in subpara15 graph (A)(v))’’ after ‘‘any property’’ in the last sentence 

16 thereof. 

17 (d) EFFECTIVE DATE.—The amendments made by 

18 this section shall apply to property placed in service after 

19 the date of the enactment of this Act, in taxable years 

20 ending after such date. 

Æ 


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