(2) BEGINNING OF REPAYMENT REQUIRED.— 
No repayments shall be required under this sub-
section until after the project generates net pro-
ceeds. For purposes of this paragraph, the term ‘‘net 
proceeds’’ means proceeds from the commercial sale 
of electricity after payment of project-related costs, 
including taxes and regulatory fees that have not 
been paid using funds from a loan provided for the 
project under this section. 
(3) TERMINATION.—Repayment of a loan made 
under this section shall terminate as of the date that 
the project for which the loan was provided ceases 
commercial generation of electricity if a govern-
mental permitting authority has ordered the closure 
of the facility because of a finding that the project 
has unacceptable adverse environmental impacts, ex-
cept that the Secretary shall require a loan recipient 
to continue making loan repayments for the cost of 
equipment, obtained using funds from the loan that 
have not otherwise been repaid under rules estab-
lished by the Secretary, that is utilized in a subse-
quent project for the commercial generation of elec-
tricity. 
(f) ADAPTIVE MANAGEMENT PLAN.—In order to re-
ceive a loan under this section, an applicant for a Federal 
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license or permit to construct, operate, or maintain a ma-
rine or hydrokinetic renewable energy project shall provide 
to the Federal agency with primary jurisdiction to issue 
such license or permit an adaptive management plan for 
the proposed project. Such plan shall— 
(1) be prepared in consultation with other par-
ties to the permitting or licensing proceeding, includ-
ing all Federal, State, municipal, and tribal agencies 
with authority under applicable Federal law to re-
quire or recommend design or operating conditions, 
for protection, mitigation, and enhancement of fish 
and wildlife resources, water quality, navigation, 
public safety, land reservations, or recreation, for in-
corporation into the permit or license; 
(2) set forth specific and measurable objectives 
for the protection, mitigation, and enhancement of 
fish and wildlife resources, water quality, navigation, 
public safety, land reservations, or recreation, as re-
quired or recommended by governmental agencies 
described in paragraph (1), and shall require moni-
toring to ensure that these objectives are met; 
(3) provide specifically for the modification or, 
if necessary, removal of the marine or hydrokinetic 
renewable energy project based on findings by the li-
censing or permitting agency that the marine or 
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hydrokinetic renewable energy project has not at-
tained or will not attain the specific and measurable 
objectives set forth in paragraph (2); and 
(4) be approved and incorporated in the Fed-
eral license or permit. 
(g) SUNSET.—The Secretary of Energy shall trans-
mit a report to the Congress when the Secretary of Energy 
determines that the technologies supported under this Act 
have achieved a level of maturity sufficient to enable the 
expiration of the programs under this Act. The Secretary 
of Energy shall not make any new loans under this section 
after the report is transmitted under this subsection. 
SEC. 5. PROGRAMMATIC ENVIRONMENTAL IMPACT STATE-
MENT. 
The Secretary of Commerce and the Secretary of the 
Interior shall, in cooperation with the Federal Energy 
Regulatory Commission and the Secretary of Energy, and 
in consultation with appropriate State agencies, jointly 
prepare programmatic environmental impact statements 
which contain all the elements of an environmental impact 
statement under section 102 of the National Environ-
mental Policy Act of 1969 (42 U.S.C. 4332), regarding 
the impacts of the deployment of marine and hydrokinetic 
renewable energy technologies in the navigable waters of 
the United States. One programmatic environmental im-
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pact statement shall be prepared under this section for 
each of the Environmental Protection Agency regions of 
the United States. The agencies shall issue the pro-
grammatic environmental impact statements under this 
section not later than 18 months after the date of enact-
ment of this Act. The programmatic environmental impact 
statements shall evaluate among other things the potential 
impacts of site selection on fish and wildlife and related 
habitat. Nothing in this section shall operate to delay con-
sideration of any application for a license or permit for 
a marine and hydrokinetic renewable energy technology 
project. 
SEC. 6. PRODUCTION CREDIT FOR ELECTRICITY PRO-
DUCED FROM MARINE RENEWABLES. 
(a) IN GENERAL.—Paragraph (1) of section 45(c) of 
the Internal Revenue Code of 1986 (relating to resources) 
is amended by striking ‘‘and’’ at the end of subparagraph 
(G), by striking the period at the end of subparagraph 
(H) and inserting ‘‘, and’’, and by adding at the end the 
following new subparagraph: 
‘‘(I) marine and hydrokinetic renewable en-
ergy.’’. 
(b) MARINE RENEWABLES.—Subsection (c) of sec-
tion 45 of such Code is amended by adding at the end 
the following new paragraph: 
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‘‘(10) MARINE
AND
HYDROKINETIC
RENEW-
ABLE ENERGY.— 
‘‘(A) IN GENERAL.—The term ‘marine and 
hydrokinetic renewable energy’ means energy 
derived from— 
‘‘(i) waves, tides, and currents in 
oceans, estuaries, and tidal areas, 
‘‘(ii) free flowing water in rivers, 
lakes, and streams, 
‘‘(iii) free flowing water in man-made 
channels, including projects that utilize 
nonmechanical structures to accelerate the 
flow of water for electric power production 
purposes, or 
‘‘(iv) differentials in ocean tempera-
ture (ocean thermal energy conversion). 
‘‘(B) EXCEPTIONS.—Such term shall not 
include any energy which is— 
‘‘(i) described in subparagraphs (A) 
through (H) of paragraph (1), or 
‘‘(ii) derived from any source that uti-
lizes a dam, diversionary structure, or im-
poundment for electric power production 
purposes, except as provided in subpara-
graph (A)(iii).’’. 
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(c) DEFINITION
OF FACILITY.—Subsection (d) of 
section 45 of such Code is amended by adding at the end 
the following new paragraph: 
‘‘(11) MARINE
AND
HYDROKINETIC
RENEW-
ABLE ENERGY FACILITIES.—In the case of a facility 
producing electricity from marine and hydrokinetic 
renewable energy, the term ‘qualified facility’ means 
any facility owned by the taxpayer which is origi-
nally placed in service after the date of the enact-
ment of this paragraph and before January 1, 
2009.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to electricity produced and sold 
after the date of the enactment of this Act, in taxable 
years ending after such date. 
SEC. 7. INVESTMENT CREDIT AND 5-YEAR DEPRECIATION 
FOR EQUIPMENT WHICH PRODUCES ELEC-
TRICITY FROM MARINE AND HYDROKINETIC 
RENEWABLE ENERGY. 
(a) IN GENERAL.—Subparagraph (A) of section 
48(a)(3) of the Internal Revenue Code of 1986 (relating 
to energy property) is amended by striking ‘‘or’’ at the 
end of clause (iii), by inserting ‘‘or’’ at the end of clause 
(iv), and by adding at the end the following new clause: 
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‘‘(v) equipment which uses marine 
and hydrokinetic renewable energy (as de-
fined in section 45(c)(10)) but only with 
respect to periods ending before January 
1, 2018,’’. 
(b) 30 PERCENT CREDIT.—Clause (i) of section 
48(a)(2)(A) of such Code is amended by striking ‘‘and’’ 
at the end of subclause (II) and by adding at the end the 
following new subclause: 
‘‘(IV) energy property described 
in paragraph (3)(A)(v), and’’. 
(c) CREDITS ALLOWED FOR INVESTMENT AND PRO-
DUCTION.—Paragraph (3) of section 48(a)(3) is amended 
by inserting ‘‘(other than property described in subpara-
graph (A)(v))’’ after ‘‘any property’’ in the last sentence 
thereof. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
the date of the enactment of this Act, in taxable years 
ending after such date. 
Æ 
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