A South Dakota legislative conference committee agreed Thursday on an economic development proposal that could help the state’s wind industry catch up to its potential. Taxes on wind farm construction in South Dakota are currently the highest in the region —up to ten times higher than in Iowa, Minnesota or North Dakota.
Gov. Dave Heineman slammed the Revenue Committee on Thursday for advancing a bill to make wind energy projects eligible for state business tax incentives. The governor called the committee’s priorities “misguided” and said Nebraska citizens bear the burden for special-interest tax breaks. “It is very disappointing that the Legislature’s Revenue Committee has decided to provide out-of-state wind energy developers a tax break, but the Revenue Committee refuses to provide much-needed tax relief to Nebraska families, Nebraska seniors, Nebraska veterans and Nebraska small-business owners,” Heineman said.
A bill that was expected to bring a $300 million wind farm to northeast Nebraska failed to advance from a legislative committee on Wednesday. While the idea might get a second chance later, it blew some cold air on the idea of more tax incentives for wind energy in Nebraska, which has lagged behind neighboring states in development of wind farms.
Midwest Energy News talked with AWEA CEO Rob Gramlich on his recent swing through Chicago to prepare for that global wind industry gathering.
Shareholder owned utilities are set to invest more than $1 billion each month in transmission projects in the US in 2013, with a planned total of $15.1 billion this year up from already-impressive $11 billion in total in 2011. Transmission infrastructure shortfalls have been widely forecast for the entire US power sector, which last saw comprehensive buildouts decades ago. Since then, successive attempts to reform power markets have often been blamed for failing to create sufficient incentives for companies to invest in new needed power line upgrades.
A bipartisan group of senators today urged the Internal Revenue Service and Treasury Department to quickly clarify how they will determine when companies become eligible for an expanded renewable tax credit. As part of January’s “fiscal cliff” deal, Congress agreed to apply the production or investment tax credits to wind, geothermal and other projects that begin construction by the end of this year, a more generous application than the previous requirement that projects be in service by the deadline. But industry officials are awaiting guidance from Treasury and IRS on how the begin-construction requirement will be implemented.
The chairman of the Senate Energy and Natural Resources Committee yesterday warned that a landmark federal ruling to revamp the country’s transmission planning process could force utilities in the Pacific Northwest to illegally surrender their authority for distributing the costs of new power lines. Sen. Ron Wyden (D-Ore.) took issue with the Federal Energy Regulatory Commission’s Order 1000, a far-reaching rule the agency approved two years ago to revamp the country’s process for planning, siting and allocating costs for new power lines (Greenwire, July 21, 2011). Wyden told FERC Chairman Jon Wellinghoff in a letter yesterday that the rule is “akin to trying to hammer a square peg into a round hole” for federally owned entities like the Bonneville Power Administration and Columbia Grid, which don’t traditionally fall under FERC’s jurisdiction.
Energy and Natural Resources Committee Chairman Ron Wyden, D-Ore., called for the Federal Energy Regulatory Commission to allow the Northwest to maintain control over its power future, by providing flexibility regarding compliance with FERC’s Order No. 1000 on transmission planning and cost allocations, in a letter sent today. “As you know, the majority of the Northwest power system is composed of utilities that generally are not subject to FERC jurisdiction and that are the creation of, and subject to, state or federal statutes,” Wyden wrote. “This makes the Order No. 1000 process akin to trying to hammer a square peg into a round hole for the Bonneville Power Administration and other governmental utilities.”
Wind industry officials are concerned that a federal program designed to boost offshore wind construction will stymie growth. Speaking at a panel during the annual Offshore Wind Power USA conference last week in Boston, developers discussed how the federal Bureau of Ocean Energy Management’s new rules on offshore wind contracts could hurt their businesses. The federal agency is slated to hold its first wind energy auction for two sites in Rhode Island and Massachusetts and one site in Virginia.
The head of the Department of Energy’s loan guarantee program last week defended the funding practice after House Republicans expressed concern that the agency is preparing to start issuing new loans. DOE Loan Program Office acting Executive Director David Frantz said in a letter to top Republicans on the House Space, Science and Technology Committee on Thursday that the Loan Program Office plays an important role in accelerating the United States’ transition to clean energy technologies. But Frantz also seemed to indicate that the office has a way to go before any decision is made on a potential loan for the Cape Wind project off Massachusetts.