The wind industry’s proposal to phase out its most prized federal incentive shook up the ongoing debate over how much support the government should provide to all sectors of the energy industry ahead of a tax reform debate in which a range of benefits are likely to face increased scrutiny from the growing ranks of congressional debt hawks. The American Wind Energy Association unveiled for the first time a proposal to phase out the production tax credit over a period of six years, fulfilling mounting requests from Capitol Hill to put such a plan on the table.
With their proposal not getting much traction this year, the sponsors of legislation that would open up renewable energy projects for private investors called on President Obama today to support their measure in the 113th Congress. Sens. Chris Coons (D-Del.) and Jerry Moran (R-Kan.) say they are hopeful that with the president’s backing, legislation that would guarantee renewable energy firms the investment potential already afforded to traditional energy companies could garner broader support next year. The legislation was introduced over the summer, and it would primarily allow renewable energy outfits the use of what is known as master limited partnerships, or MLPs. Coons said the legislation would “level the playing field between traditional and energy businesses.”
The Department of Energy today announced recipients of up to $168 million over the next six years for demonstration projects aimed at advancing the offshore wind industry. DOE awarded funding to seven projects in six states. The projects will each receive $4 million to complete their planning and evaluation phases, and up to three will be selected to receive additional funding, subject to future congressional appropriation, with the goal of having advanced turbines operating by 2017.
In the overall energy mix, the use of renewable energy sources like wind and solar power will grow the fastest in annual percentage terms, but company officials maintain that they will still account for about 3 percent of the world’s total energy production in three decades.
For apartheid, it was universities in the West and Midwest that got the ball rolling. On the issue of Sudan and Darfur, the cause caught fire earliest at Ivy League schools. But for the latest college divestment movement, most of the action is unfolding at schools like Middlebury, the University of Vermont, Bowdoin, the University of New Hampshire, Tufts, Vassar and Swarthmore. Five weeks into a full-court press, a quixotic campaign to persuade universities to rid their endowments of stock in fossil fuel companies seems to be striking the deepest chord on campuses in the Northeast, organizers report. To highlight the role that fossil fuel emissions play in global warming, students at more than 100 colleges across the country are protesting the investment of their school’s endowment funds in large companies like Exxon, BP and Shell
By 2030, scaled-up green power could meet the demands of a large grid 99.9 percent of the time, according to new research from the University of Delaware. A mix of offshore and onshore wind, along with contributions from solar power, could provide reliable power flow during all but a handful of days in the hypothetical four-year period under study.
The Department of Energy said Wednesday that each developer would receive up to $4 million to complete the engineering, design and permitting phases of their projects in six states. Three of the seven will then be selected to receive up to $47 million over four years, subject to Congressional appropriations, for construction and installation, with the aim of having them begin commercial operation by 2017. So far, no offshore wind farm is operating in American waters. The projects are in Maine, New Jersey, Virginia, Texas, Ohio, and Oregon.
The wind-energy industry asked Congress to extend a tax break for six years, a time frame it said was long enough to cut costs and short enough to ease fears the credit will become a permanent part of the tax code. The American Wind Energy Association, whose members include General Electric Co. (GE) and the U.S. unit of Siemens AG (SIE), offered the proposal yesterday in a letter to Senator Max Baucus, a Montana Democrat and chairman of the Finance Committee, and other members on the tax-writing panel.
The wind industry today is calling for its key tax credit to be phased out over the next six years — putting detail for the first time to its long-standing position that the credit will not be needed forever. The proposal from the American Wind Energy Association, outlined in a letter to lawmakers, could aid efforts to extend the wind production tax credit beyond its scheduled expiration at the end of this year. AWEA has long said it would not need the credit forever but was facing growing calls from Capitol Hill to spell out exactly what that meant. Until last night the group had not precisely detailed how much longer it would be needed or how a phaseout could be structured.
The wind industry is trying to break a Capitol Hill logjam by backing a phaseout of taxpayer support as it seeks to prevent an immediate cut-off of tax credits. The American Wind Energy Association (AWEA) proposed Wednesday extending the 2.2-cent per kilowatt-hour credit for wind power production by one year, then phasing it out through the next five.