1 offshore wind energy: federal funding strategy and advocacy for offshore wind energy development...
TRANSCRIPT
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Offshore Wind Energy:Federal Funding Strategy
and Advocacy for Offshore Wind Energy Development
Presentation to the Cuyahoga County Regional Energy Task Force
Hon. Kelly H. Carnes CEO,TechVision21
April 12, 2007
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ABOUT TECHVISION21• Washington DC-based consulting firm integrating business,
technology and government expertise
• Specializing in federal R&D funding and technology policy
• Former high-ranking state & federal technology officials
• Extensive experience in alternative energy:– Former Assistant Secretary of Commerce for Technology Policy– Former Chief of Staff for White House CEQ; PNGV Executive Director– Developed successful funding strategies for various alternative energy
technologies, including fuel cells, hydrogen, vehicle technologies, power generation– Worked with all key agencies: Energy, DOD, NSF, Commerce, Labor
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Policy Environment
• National Energy Policy Act of 2005:– Orders DOE to develop a “wind roadmap”– DOE to establish 5 projects to demonstrate production of
hydrogen at wind facilities– DOE to support relevant university research
• Advanced Energy Initiative:– Goal: Reduce demand for natural gas and foster alternatives for
power production
– Focus areas: clean coal, nuclear, renewable solar and wind energy
– Wind energy research budget: FY07—$44M; FY08—$40M
• Legislative Initiatives
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Legislative Initiatives
Democrats’ New Direction for America– Goal: Achieve Energy Independence by 2020– Commitment: Investment in bio-fuels, geothermal, clean coal, fuel cells, solar,
wind, hybrid and flex fuel vehicle technology and manufacturing– Create E-DARPA
Clean Energy Act of 2007 (H.R. 6)– Eliminates subsidies for oil & gas industries– Establishes strategic energy efficiency/renewable reserve– Funds offset subsequent energy legislation– New energy legislative package by July 4
National Competitiveness Investment Act (NCIA) (bipartisan)– Authorizes doubling of NSF and DOE Office of Science budgets – Creates Council on Innovation and Competitiveness in White House– Creates Innovation Acceleration Program (8% set-aside)– Creates E-ARPA
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Types of Federal Funding for Wind Energy
• Competitive, Merit-based Grant Programs– Publicly Advertised—Solicitation, Broad Agency
Announcement (BAA), Request for Proposals (RFP)– Fixed Deadlines– Well-defined Program Requirements– Peer Review
• Cooperative Agreements and CRADAS• “Unsolicited” Proposals• Loan Guarantees• Contracts• Special Projects/Appropriations Line Items
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Federal Wind Energy Priorities
• Program Goals:– By 2010, facilitate installation of at least 100 MWH in 30 states—up
from 8 states in 2002– By 2012, reduce cost of electricity from large land-based systems from
base cost of $.055 to $.036 per KWH– By 2014, reduce cost of electricity from shallow-water offshore
systems (up to 30 meters) from $.095 to $.07 per KWH– By 2015, expand by 5 the number of distributed wind turbines
deployed in US (from 2007 baseline)
• Focus Areas: – Distributed and community-owned technology local power– R&D for land-based systems; “balanced” exploration of
offshore wind and other emerging markets
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Federal Wind Energy Priorities
• 2007—2008 Program Milestones:– Complete sea-based concept study to examine system design
tradeoffs across ranges of size, configuration and available technology innovations. “SeaCon” studies will help DOE narrow the technology options it supports
– Work with industry partners to assess potential of the offshore wind industry
– Determine technology development strategy for offshore wind– FY08 solicitation for component technology development
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Key Elements of Cleveland’s Federal Strategy for Wind Energy
• Participate aggressively in competitive merit-based grant and loan guarantee programs
• Seek Congressionally-directed appropriations during FY09 budget cycle—begins October 2007
• Leverage Federal tax credits and incentives (and seek new ones)
• Recruit Federal agency champions for Cleveland• Engage with industry associations• Advocacy for increased wind energy funding
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Key Elements of Cleveland’s Federal Strategy for Wind Energy
• Competitive Funding/Loan Guarantee Opportunities– Potential for CRADA for shallow water offshore large LWST
– Facilities construction/expansion: $9B FY 08 DOE loan guarantees; $1B for new technologies for electric transmission facilities or renewable power generation systems
– FY 08 solicitation planned for LWST component technology development (turbines)
– USDA renewable energy systems grants and loans for rural small business/agricultural producers/some electric utilities providing services to rural communities
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Key Elements of Cleveland’s Federal Strategy for Wind Energy
• Directed appropriations:– Develop pilot project not covered by competitive programs
– Work with partners/appropriators
– Focus on FY 09 budget cycle—begins October 2007
– $12.8 million in FY 06 wind line items at DOE
• Leverage tax credits and financial incentives: – current credit for electricity generated by wind—1.9 cents per
kilowatt-hour; first 10 years of operation
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Key Elements of Cleveland’s Federal Strategy for Wind Energy
• Recruit Federal agency champions for Cleveland:
– Build relationships with key executive branch officials to drive R&D agenda and create discretionary funding opportunities
– Studies underway in FY 08 will define offshore program direction beginning in FY 09
– Program funds shifting to distributed wind technology
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Key Elements of Cleveland’s Federal Strategy for Wind Energy
• Engage with Industry Associations – New wind action plan due June 2007– Joint effort of American Wind Industry
Association/Department of Energy (NREL)– Could play major role in shaping Federal wind energy
investment
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Key Elements of Federal Strategyfor Wind Energy
• Advocacy for offshore wind funding:
• Goal: positioning the Cleveland project with Federal agencies as representative of offshore wind’s potential for successful commercialization
• Key Activities: – Preparing appropriate educational materials
– Briefing Members of Congress, staff, and executive branch officials
– Technology demonstrations
– Congressional testimony
– Participate/speak at conferences and events
– Positioning in speeches by public officials, reports, etc.
– Opinion pieces and advertising
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Kelly H. Carnes(202) 966-6610
www.techvision21.com
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TECHVISION21 SERVICES
• Securing competitive and discretionary funding for leading edge technology
– Developing a 12-24 month funding strategy
– Preparing quality competitive grant applications
– Building relationships with federal program managers
• Directed appropriations
• Washington representation and advocacy
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ABOUT TECHVISION21
Strong track record of results: – Kettering University Center for Fuel Cell Systems and
Powertrain Integration: $6+M from multiple sources
– USC Annenberg Center for the Digital Future: $3M from the Department of Defense
– Council on Competitiveness: $2M for Economic Development Initiatives (EDA and NSF)
– Integrity BioFuels: $.5M for plant in Indiana
– SC Internet Company: $1M from DOD