Excess generation will narrow and energy prices could become more volatile as more gas is used to produce electricity, said Kormos, who works for PJM — a grid operator that oversees the energy system in 13 states and the District of Columbia. “The electric power industry is in the midst of the greatest fuel shift in its history, and the PJM wholesale energy markets are managing through the transition,” he said
U.S. EPA sent its draft guidance for curbing carbon dioxide emissions from existing power plants to the White House yesterday, leaving two months for interagency vetting before the proposal’s expected June 2 release date. The Office of Management and Budget’s regulatory website reported the transfer this morning of the rule, a key component of President Obama’s Climate Action Plan.
Tax credits for biofuels and other gasoline alternatives, energy-efficient new homes and coal producers in Indian Country would be reinstated under legislation unveiled today by the Senate’s top tax writers. The wind industry and other renewable electricity producers still have some lobbying ahead of them, as Senate Finance Chairman Ron Wyden (D-Ore.) and ranking member Orrin Hatch (R-Utah) did not propose a renewal of the production tax credit (PTC), typically the most expensive of the energy provisions included in “tax extenders” bills.
A credit to help the wind industry could soon be renewed, as lawmakers are expected to take it up this week along with nearly 50 other tax provisions that expired at the end of last year. The tax breaks, ranging from charitable contributions to corporate research, would be extended through 2015 as part of a sweeping proposal released by Sen. Ron Wyden, an Oregon Democrat who chairs the Senate Finance Committee, and the panel’s top Republican, Sen. Orrin Hatch of Utah. While the initial draft does not include production tax credits (PTC) for wind, geothermal, hydroelectric and other renewable power sources, a Wyden aide and officials representing the wind industry expected the measure to be included when the committee debates the bill Thursday. The draft included measures that were largely not controversial.
Touting wind energy as an important economic boon in their states, a bipartisan group of governors yesterday asked congressional leaders to renew the production tax credit (PTC) for the renewable energy technology. The PTC, which provides a 2.3-cent-per-kilowatt-hour subsidy to wind farms that began service or started meaningful development by the end of 2013, expired in December. But the wind industry and state leaders are lobbying to revive the credit program, arguing in a letter to Congress that the industry still depends on the PTC for survival. “If gas prices weren’t so cheap, I’d say that wind might be able to survive without the production tax credit, but I think it’s important that we not lose this industry even as we’re on the brink of it being able to stand alone without any support,” South Dakota Gov. Dennis Daugaard (R) said on a call with reporters yesterday organized by the American Wind Energy Association.
The president’s “all of the above” energy strategy may embrace conventional fossil fuels along with renewables, but in the future, they are all going to have to fit within a smaller greenhouse gas footprint, according to Energy Secretary Ernest Moniz. “It all starts with a commitment to low carbon,” he said, speaking Friday at the American Council on Renewable Energy’s (ACORE) forum on renewable energy policy. “We need to make sure that all of our resources can compete in a low-carbon future.”
The Senate Finance Committee’s effort to reinstate a variety of business tax breaks is being delayed as panel members continue to grapple with the details of legislation they hope to soon consider.
Kitzhaber was chairman of the Governor’s Wind Energy Coalition last year, which includes 23 states. Washington Gov. Jay Inslee will chair the coalition next year. Margi Hoffman, a policy advisor for Kitzhaber, says the wind industry has invested some $9 billion in Oregon, though the state’s wind energy boom has cooled off in the last two years. That has less to do with the tax credit than new rules limiting the import of renewable energy into California to satisfy that state’s green energy mandates. Oregon and Washington utilities are still investing in new wind projects, though their pace has slowed too as they get closer to meeting initial targets under their respective states’ renewable portfolio standards.
A bipartisan group of governors is calling on congressional leaders to pass a multi-year extension of tax credits for the wind energy industry. In a letter sent to Congress on Monday, governors from four states urged lawmakers to extend the production tax credit after letting it expire at the end of last year. “Thousands of jobs were lost, as were substantial new investments and local payments,” the letter state
The second bill extends the deadline for putting in place a renewable energy facility in order to qualify for the state’s existing energy generation tax credit. The tax credit is equal to 1.5 cents per kilowatt-hour of generated electricity. The bill extends the current deadline of Jan. 1, 2015 by two years, making facilities placed in service before Jan. 1, 2017 eligible for the tax credit.