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grant have played pivotal roles in the development of wind generation. The PTC confers a dollar-value credit (currently $2.11/kWh) for each kWh of wind electricity generation. Unfortunately, the PTC for wind will expire at the end of 2012 and the cash grant expired at the end of 2011. OSW must have viable markets for the long-term sale of energy and RECs. Liquid markets with plentiful energy and REC off-takers do not exist. In the absence of mar- kets created by regulation, like portfolio standards, and designated markets for OSW RECs, OSW developers will struggle to find off-takers willing to commit to long-term purchases and financing will be hampered. RegulatoryOSW represents a relatively new technology in the U.S. and the necessary regulatory infrastructure has not yet developed. For example, there is insufficient coordination between BOEM and states which have to regulate the sit- ing of transmission in their waters. Finally, while BOEM has leasing authority, it lacks one-stop permitting author- ity over the entire process. At the end of the day, a num- ber of environmental and civil authorities still must approve the lease. What Does the Future Look Like? A handful of serious developers are continuing to pursue OSW development. They are primarily looking to states to develop the incentives needed to support development of this available source of renewable energy. If the U.S. is to reduce its dependence on foreign oil, it should promote this form of abundant energy with appropriate policies and tax credits. Consumers, too, must be willing to pay more, at least initially, for this clean energy until it can become more competitive with existing sources. 28MTRMay 2012legal beat (Photo courtesy: Eidesvik) The Hybrid Powered Viking Lady Works Offshore Wind Fields MTR#4 (18-33):MTR Layouts 4/27/2012 10:07 AM Page 28