Offshore Wind Energy: Federal Funding Strategy and Advocacy for Offshore Wind Energy Development

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Offshore Wind EnergyFederal 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 RD 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 FY0744M FY0840M
  
• 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 AdvertisedSolicitation, 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 statesup 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
• RD for land-based systems balanced
  exploration of
• offshore wind and other emerging markets

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Federal Wind Energy Priorities

• 20072008 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 Clevelands Federal Strategy for
Wind Energy

• Participate aggressively in competitive
  merit-based grant and loan guarantee programs
• Seek Congressionally-directed appropriations
  during FY09 budget cyclebegins 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 Clevelands 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 Clevelands Federal Strategy for
Wind Energy

• Directed appropriations
• Develop pilot project not covered by competitive
  programs
• Work with partners/appropriators
• Focus on FY 09 budget cyclebegins 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
  wind1.9 cents per kilowatt-hour first 10 years
  of operation

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Key Elements of Clevelands Federal Strategy for
Wind Energy

• Recruit Federal agency champions for Cleveland
• Build relationships with key executive branch
  officials to drive RD 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 Clevelands 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
  winds 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
• [phone]
• kcarnes_at_techvision21.com
• 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 6M 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