Statements on Introduced Bills and Joint Resolutions

Floor Speech

Date: Aug. 1, 2013
Location: Washington, DC

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Mr. WYDEN. Mr. President, today Senator Murkowski and I are introducing legislation to promote a new form of hydropower, marine hydrokinetic renewable energy, or MHK. An MHK project generates energy from waves, currents, and tides in the ocean, an estuary or a tidal area as well as from the free-flowing water in a river, lake, or stream.

Our bill will help commercialize MHK technologies through research and development and a more efficient and timely regulatory process for the siting of pilot projects intended to demonstrate the viability of these technologies. It is an ideal follow-up to a pair of bills, H.R. 267 and H.R. 678, to streamline the regulatory process for low-impact conventional hydropower that were reported by the Committee on Energy and Natural Resources by unanimous bipartisan votes a few months ago. Considered together, the two conventional hydropower bills approved by the Committee along with this MHK legislation are a major step forward in advancing carbon-free hydropower technologies.

MHK has tremendous potential to generate a substantial amount of clean renewable energy in the United States and across the globe. It is poised to be a key participant in the transition to a low carbon economy.

What distinguishes MHK from conventional hydropower is that it generates energy without the use of a dam or other impoundment. This gets MHK off on the right foot in terms of minimizing any adverse environmental impact. Investments to capture our nation's rich domestic marine energy resources can also play a major role in the creation of essential domestic engineering and manufacturing jobs.

The energy contained in predictable waves, tidal flows and currents is the basis for worldwide investments in this emerging industry. Water is approximately 800 times denser than air, providing great potential power density along with predictability. These characteristics mean that MHK technologies could provide predictable base-load renewable power in the future.

At the present time there are many different types of MHK technologies with multiple applications under development that are intended to capture the power contained in waves, tides and currents.

Wave energy devices capture the heave and/or surge power of waves and convert them via hydraulic or geared direct drive systems into electricity. Some of these devices are moored to the ocean floor, some are floating on the surface, while others are attached to breakwaters near shore. By last count, there are over 100 wave energy devices under development worldwide. Tidal energy technologies capture the ebb and flow of tides. It is estimated that 60 different tidal energy technologies are under development worldwide. There are other technologies that include run-of-river systems and offshore ocean current technologies. Most of these technologies under development capture uni-directional water flows and look similar to the tidal devices.

The United States has not been a world leader in the development of these cutting edge technologies to date. Instead, our country is seen as a huge potential market for our international competitors in this new industrial sector. The United States has significant wave, tidal, current and in-stream energy resources. The Electric Power Research Institute has estimated that the commercially available wave energy potential off the coast of the United States is roughly 252 million megawatt hours--equal to 6.5 percent of today's entire generating portfolio. This is approximately the amount of electricity presently being produced by the existing fleet of American conventional hydroelectric dams.

The Department of Energy, DOE, has released two nationwide resource assessments that indicate the waves, tides, and ocean currents off the nation's coasts could contribute significantly to the United States' total annual electricity production. DOE is currently developing an aggressive strategy to support its vision of producing at least fifteen percent of our nation's electricity from water power, including conventional hydropower, by 2030.

Our goal should be the establishment of a commercially viable U.S. MHK renewable energy industry, supported by a robust domestic supply chain for fabrication, installation, operations and maintenance of MHK devices. The development of a substantial marine hydrokinetic industry in the U.S. could drive billions of dollars of investment in heavy industrial and maritime sectors, as well as in advanced electrical systems and materials common to many renewable technologies. Federal investments would stimulate private funds and jobs in the construction, manufacturing, engineering, and environmental science sectors.

I am very pleased that my home State of Oregon has made a strategic decision to be an international leader in the commercialization of the marine renewable energy industry. Led by the Oregon Wave Energy Trust, the Northwest National Marine Renewable Energy Center co-located at Oregon State University, and several private companies that are part of the MHK supply chain, Oregon is positioning itself to be a leading force supporting this newly emerging industry.

Unfortunately, the U.S. is falling behind in the race to capture the rich energy potential of our oceans and the jobs that will come with this new industry. The United Kingdom, Ireland, Portugal, Scotland, Australia, and other countries are committed to producing emission-free, renewable energy from MHK sources. Scotland has had a grid-connected, wave energy convertor unit in operation since 2001 and maintains a national goal of producing 2 GW of generation capacity from MHK renewable energy. The U.K. and Ireland have also set aggressive goals for MHK generation by 2020.

The Ocean Renewable Energy Coalition, the industry's trade group here in Washington DC, calculates that more than $782 million has been spent by the UK government on wave energy R&D over the past 10 years. That total approaches $1 billion over the same period if you add in the commitments to ocean energy R&D from France, Portugal, Spain, Norway, and Denmark.

Early funding support, along with development of full-scale device testing centers, demonstrates that the significant technological advances and the competitive advantages in this industry are trending in Europe's direction. As an example of the disparity in investments, Europe currently has several wave and tidal energy test facilities, led by the European Marine Energy Center in Scotland, that are helping technology developers commercialize their wave and tidal energy convertors. The United States clearly has a need for such infrastructure. I know that Oregon State University has a strong desire to compete for funding to help establish a testing center in the Pacific Northwest. Unfortunately, recent funding levels have not supported development of such offshore testing infrastructure in the U.S. to date.

Given this internationally competitive situation, I believe that Congress must make targeted Federal investments to close the gap. Commercialization of technologies to harness marine renewable energy resources will require Federal funding to augment research and development efforts already underway in the private sector. Just as the wind and solar industries have received DOE funding support for over 3 decades, which has resulted in the rapid deployment of these technologies in recent years, the nascent marine energy industry seeks similar Federal assistance to develop promising technologies that are on the verge of commercial viability.

Unfortunately, in addition to the limited private sector funding available to these startup companies, permitting and regulatory obstacles are tremendous disincentives to technology developers of marine energy projects in the United States. While other countries have adopted permitting and regulatory regimes that appear to be more efficient, the United States is still struggling with how to permit and regulate these technologies. I cannot overstate the seriousness of this problem. To give just one example, it took one MHK developer 5 years and $2 million to obtain a license from the Federal Energy Regulatory Commission for a 1.5 megawatt project.

The regulatory situation is simply unacceptable and is greatly slowing progress in the MHK industry. Until companies get projects in the water, Congress and the public will not learn about the environmental impacts, engineering challenges or the true costs of offshore renewables.

Capturing the benefits of our vast marine-based renewable resources will require a mix of new incentives, updated regulatory regimes and general outreach and education. However, the most important actions that can be taken by the Federal Government in the short term are to provide the necessary resources for research, development and demonstration of various marine renewable energy technology platforms and a workable and efficient regulatory process. Increased federal support will accelerate deployment of these technologies, create thousands of high paying jobs, give confidence to investors, and help attract private capital.

The Marine and Hydrokinetic Renewable Energy Act of 2013 helps accomplish these goals in a number of ways. It reauthorizes the DOE's MHK research, development and demonstration 3 programs, including the National Marine Renewable Energy Research, Development, and Demonstration Centers.

Increased resources for the DOE Water Power Program will enable the United States to leverage its technological superiority in shipbuilding and offshore oil and gas production. This will create jobs and diversify these maritime industries. In the absence of such funding, however, the United States will have to depend on foreign suppliers for ocean energy technologies, and will have missed a significant opportunity to expand our economic competiveness in this renewable energy sector.

The regulatory component of the bill makes the regulatory process for MHK of not more than 10 MW more efficient and timely. It modifies and improves the FERC ``pilot license'' process in many ways. Improvements include a goal to complete the pilot license process in 12 months or less; a designation of FERC as the ``Lead Agency'' for the purpose of coordinating environmental review; a clarification that any shut down requirement be ``reasonable,'' and a clarification that an MHK project does not need to be removed when it is shut down if FERC deems leaving it in place is preferable for environmental and other reasons.

MHK is a clean, home-grown, emissions-free source of electricity that can improve the security and reliability of the electric grid. Investing in MHK research, development and demonstration today will pay great dividends in the future. MHK has tremendous potential to benefit the United States and the entire world. Now is the time to move forward on MHK and the Marine and Hydrokinetic Renewable Energy Act is the way to do it.

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

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Mr. WYDEN. Mr. President, today I rise to introduce a bill that will give Oregon State University the flexibility to continue its important agricultural work in Hermiston, Oregon. I am pleased to be joined on this bill with my colleague from Oregon, Senator MERKELY. I look forward to working with Senator MERKLEY, other colleagues, and supporters of the bill to update the federal interests in the land to match current needs and conditions.

The Hermiston Agricultural Research & Extension Center, HAREC, provides support to one of the most unique and important agricultural areas in the world: the Columbia Basin region of Oregon and Washington. As one of Oregon State University's, OSU, 12 Agricultural Experiment Stations, HAREC concentrates on the discovery and implementation of agricultural opportunities while also providing solutions to production issues for regional growers and beyond.

Research at HAREC emphasizes identification of new crop opportunities, improved production practices that save money while reducing inputs, plant breeding and varietal evaluation of cereals and potatoes. Through this work it has developed new lines with higher nutritional value, integrated pest management of insects and insect-transmitted diseases, and provided information related to environmental issues and salmon restoration. In recent years the center provided leadership, research, and new knowledge essential to allow growers to diversify production and convert 30,000 acres of commodity crops to high-value crops. The station has led efforts to cultivate value-added agriculture in Morrow and Umatilla counties, resulting in over $50,000,000 in annual economic return.

The history of HAREC and a Umatilla agricultural research center spans more than a century. The Federal Government paved the way in the development of farming and ranching in the Umatilla Basin. In 1954, the Bureau of Land Management granted land to the State of Oregon on the condition that the land is used for cooperative agricultural experimental work. Over the past nearly 60 years, OSU has developed a center with state-of-the-art laboratories, irrigation technology abilities, greenhouses, screenhouses and research and extension faculty. HAREC now supports nearly 500,000 acres of irrigated agriculture.

Just as agriculture in the Columbia Basin has grown by leaps and bounds since 1954, so has the community of Hermiston. This bill removes the reversionary clause from the original land grant while conditioning that any consideration gained by OSU from the sale, lease, or other use of the land be put back into agricultural experimental and research work. It gives OSU the flexibility to adapt to the population growth and city expansion that will ultimately necessitate the relocation of HAREC from inside the urban growth boundary to a more rural location. Without this bill, moving the station would mean triggering the federal reversionary clause and losing HAREC land and all the buildings and improvements over nearly six decades to the Federal Government. I'm sponsoring this bill to ensure HAREC can continue for another hundred years.

Regional leaders and Oregon State University support removing the barriers to the continued operation of the center. I express my gratitude for their work with me on this legislation. I also look forward to working with Senator Merkley to advance this bill and support the agricultural heart of the regional economy.

Mr. President, I ask unanimous consent that the text of the bill be printed in the RECORD.

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Mr. WYDEN. Mr. President. I am honored to join my colleague from Georgia, Senator JOHNNY ISAKSON, in introducing a bill essential to expanding health care options for rural hospitals and beneficiaries living in rural areas, the Medicare Access to Rural Anesthesiology Act.

As it stands today, low Medicare Part B anesthesia payments and low patient volume in rural areas makes it difficult for rural hospitals to attract and retain anesthesiologists. Our legislation would take an important step towards leveling the playing field between urban and rural health care by ensuring that rural Medicare beneficiaries have similar access to anesthesia services.

Generally, Medicare pays for anesthesia services under the Medicare Part B fee schedule, but in order to attract anesthesia providers to rural areas, a statutory exception was created in the 1980s that allows eligible rural hospital to use Part A funds to employ or contract with non-physician anesthesiologist assistants, AA, or certified registered nurse anesthetists, CRNA. This policy however, does not permit eligible hospitals to use pass-through funds to pay anesthesiologists. Leaving anesthesiologists out also prevents AAs from receiving pass through payment because AAs must have an anesthesiologist on premises in order to practice. As a result, many folks in rural areas only have access to one type of anesthesia provider compared to folks in urban areas who can easily visit an anesthesiologist, CRNA, or an AA.

Our legislation would allow eligible rural hospitals to use ``pass-through'' Part A funds to employ CRNAs, AAs, and anesthesiologists. This common sense change would give eligible rural hospitals the power to choose the anesthesia providers that best suit the medical needs of their patients, and would provide these hospitals with another tool to recruit and retain anesthesiology professionals as well as expand the availability of anesthesiology care in medically underserved areas.

Mr. President, I ask unanimous consent that the text of the bill be printed In the RECORD.

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