Marine Renewables Finally Get PTC (10/08)
January 13, 2009 by Carolyn Elefant
Filed under Blog, Legislative Updates
In September 2008, Congress passed a $700 billion financial bailout package, which included the Energy Improvement and Extension Act of 2008 , (H.R. 1424) signed into law by President Bush on October 3, 2008. Of significance to marine renewables, the legislation included a production tax credit (PTC) of 1.0 cent/kwh for marine renewable projects that come online between the October 3, 2008 and December 31, 2011. The new legislation represents the first time that marine renewables have been eligible for the PTC.
At the same time, marine renewables still lack parity. Other renewables, such as wind, geothermal or closed-loop biomass qualify for a 2.1 cents/kwh PTC, whereas marine renewables are eligible for only half that amount. OREC’s legislative agenda for 2009 includes pressing for equal treatment with other renewables with regard to PTC eligibility.
[...] OREC is attempting to secure a full 2.1 cent/kwh PTC, instead of the half credit (1.0 cents/kwh) included in last year’s financial bailout legislation. In addition, with the economic turmoil on Wall Street, many big banks no longer have an appetite [...]