Lost among the fiscal cliff debates on marginal tax rates and the sequester is a bipartisan package of important tax cuts that the House and the Senate should take up and pass immediately, regardless of whether Democrats and Republicans can reach a larger compromise. I refer to a package of tax cuts passed earlier this year by the Senate Finance Committee, commonly referred to as the “tax extenders package,” which I feel has not received the attention it deserves as a major component of the fiscal cliff. While I hope the negotiations to avert the fiscal cliff are successful, we should not wait for a “grand bargain” to materialize before we finish our work on tax extenders. Tax extenders are different from the other fiscal cliff issues.
AWEA says Congress should extend the credit as part of a package to address the looming “fiscal cliff” of across-the-board tax increases and spending cuts.
“It’s down to the wire on wind, and Congress has a choice. If they do nothing, the wind industry will fall over its own fiscal cliff and America will lose most of its wind installations next year,” said Rob Gramlich, senior vice president for public policy at AWEA, in a statement.
Opponents of an expiring wind energy tax break are urging lawmakers to vote against its extension and arguing the phaseout of the credit floated by an industry trade group would carry an exorbitant price tag, as wind supporters in Congress and the Obama administration continue to argue that an extension to the credit is vital to protect jobs. The back-and-forth fight over whether to extend the wind production tax credit beyond its scheduled end-of-the-year expiration continued to simmer in the background of the larger debate over the looming “fiscal cliff.” The credit is seen as a likely candidate for inclusion in a larger deal, and advocates and opponents yesterday continued to lay out their arguments for and against it. Sen. Mark Udall (D-Colo.), a leading advocate for extending the credit, appeared yesterday at a forum with Energy Secretary Steven Chu, where the pair argued that extending the PTC was necessary to maintain jobs in the industry, especially among domestic manufacturers that have increased their supply of wind turbine components in the recent years that the credit has been in place.
The United States on Tuesday pressed forward with plans to slap steep punitive duties on wind turbine towers imported from China at prices deemed unfairly low, even as officials welcomed a high-level Chinese delegation for trade and economic talks. The U.S. Commerce Department set final anti-dumping duties ranging from 44.99 to 70.63 percent on utility-scale towers manufactured in China and additional countervailing duties of 21.86 to 34.81 percent to combat Chinese government subsidies.
A record amount of wind is being turned into electricity in Colorado this week as the last of 250 turbines started turning at NextEra Energy Resource’s Limon wind farm. The wind is now providing about 17 percent of all the electricity used by Xcel Energy customers — more than four times the national average.
House Speaker John Boehner said yesterday that he’s preparing to bring a “Plan B” bill to the floor that would extend existing tax rates for all but the wealthiest individuals, but aides and lawmakers say the legislation is unlikely to include an extension to the wind production tax credit or other temporary incentives. The bill would extend current tax rates for people who make less than $1 million per year, the Ohio Republican said at a news conference this morning after a meeting of the House Republican Conference. The bill is expected to come to a vote Thursday.
The ongoing war of words over the “fiscal cliff” that intensified yesterday left unanswered one of the most important questions for energy watchers: What will happen to a suite of expired or expiring tax credits? The debate over those incentives, including the wind production tax credit and subsidies to promote energy efficiency and alternative fuels, has largely simmered on the back burner amid the broader debate over across-the-board tax hikes and spending cuts scheduled to take effect in January. That is still the case, although observers continue to believe they have a good chance of being included in a year-end cliff package, if there is one.
Danes may be proud of their country’s leadership in wind energy, but increasingly they don’t want any turbines near their houses. Which makes it more difficult for the government to reach its goal to get 50 percent of its electricity from wind by 2020, up from 28 percent last year. So Denmark, home to the world’s top two wind turbine manufacturers, has invited bidders to build 500 megawatts of offshore wind parks and generate enough electricity to power half a million homes.
The wind blowing off the coasts and lakeshores of the United States could power the country four times over, according to the Department of Energy. Yet to date, not a single offshore wind turbine has been built. The problem, in a word, is cost — technology and installation costs remain prohibitively high, and the bar is set to rise further with the expiration of the production tax credit for wind energy at the end of this year.
The Obama administration’s efforts to promote offshore wind in the Atlantic Ocean this week expanded south to North Carolina and Georgia, building on an existing program to tap winds in the mid-Atlantic. The Interior Department on Wednesday announced it is gauging industry’s interest in building wind farms in three areas totaling nearly 2,000 square miles off North Carolina.