A coalition of conservative groups is using today’s tax-filing deadline to continue its campaign against a key wind industry tax credit. The American Energy Alliance, the Competitive Enterprise Institute, FreedomWorks and other groups sent a letter today to 21 governors whose states do not have renewable portfolio standards to urge them to lobby against an extension of the national wind production tax credit, which expires at the end of this year. The groups argue that the credit amounts to a subsidy for states with renewable energy requirements, paid for by taxpayers in states without such requirements.
Wind and other eligible renewable energy developers will be able to claim the production tax credit as long as they spend at least 5 percent of a project’s costs by the end of this year, the Internal Revenue Service said today in eagerly anticipated guidelines. The document clarifies an expansion of the PTC’s eligibility that Congress enacted in January, as it extended the credit through the end of this year for wind. Rather than needing to have facilities in service before the credit expires, developers have to commence construction by Dec. 31 to claim the 2.3-cents-per-kilowatt-hour subsidy.
A central fixture in keeping Congress running is now relying 100 percent on wind energy. Union Station in Washington, D.C., has signed a three-year contract with Herndon, Va.-based Washington Gas Energy Services (WGES) to fulfill all its electricity needs from wind farms based around the region, the company announced this week.
Growing concern over duplication of federal programs to aid wind energy development will receive more attention this week in the House. A hearing tomorrow will consider the findings of a recent Government Accountability Office report on various overlapping federal programs to benefit the industry (Greenwire, March 28). The Republican-requested report has bolstered the efforts of some GOP lawmakers and outside conservative groups to end the production tax credit, the industry’s main support mechanism, and otherwise dial back the extent to which the government subsidizes clean energy development.
A proposal to allow renewable energy developers to take advantage of a tax structure that has long been popular among fossil fuel companies is gaining traction among lawmakers tasked with overhauling the tax code. Rep. Kevin Brady (R-Texas), who is leading a working group examining energy tax provisions, praised the idea of opening master limited partnerships (MLPs) to renewable energy companies. The structures have been popular among oil and gas, pipeline and coal companies as a way to attract investors, but current law does not allow renewable companies like wind and solar developers to use them.
President Obama’s budget proposal calls for the permanent extension of a key renewable energy tax credit — an approach that goes beyond even what the credit’s main beneficiary says it needs to thrive and that observers say allows room to negotiate a proposal that falls short of the president’s initial request but still allows wind and other beneficiaries to thrive. The budget released yesterday calls for a permanent extension to renewable and efficiency incentives, such as the production tax credit. The wind industry is the largest beneficiary of the 2.3-cent-per-killowatt-hour credit by virtue of its position as the largest non-hydro renewable energy source, but it also provides support for geothermal, biomass and other renewable electricity producers.
Wind energy was the largest source of new generation installed in the United States last year, with a growing number of utilities and other purchasers signing long-term contracts for the electricity generated by new turbines, according to a report today from the industry’s primary trade group. The American Wind Energy Association’s annual report highlights some good news for the industry but warns that continued uncertainty over the fate of its level of federal support led to a sharp drop in new project planning that buffeted the wind manufacturing sector and continues to challenge the industry.
The American Wind Energy Association in a report released Thursday said that in 2012 only two other states — Texas and California — built more wind generation. Kansas more than doubled its production capacity during the year. That pushed it from 14th to ninth place in the total amount of electricity the state could generate from wind among the 39 states and Puerto Rico that have wind power.
Wind energy grew 28 percent in America last year, setting a new installation record and confirming its status as a mainstream energy source, according to the American Wind Energy Association’s U.S. Wind Industry Annual Market Report for 2012, released today on a webinar for association members and reporters. In its best year ever, the U.S. industry topped all energy sources with 42 percent of all new U.S. electric generating capacity. Over 6,700 new wind turbines were erected, which produce enough electricity to power the equivalent of 3.5 million homes. Overall, America finished the year with 45,100 wind turbines that can power 15.2 million homes.
President Obama’s fiscal 2014 budget request would boost funding for a variety of clean energy initiatives while reducing spending on fossil fuel programs and repealing oil and gas tax breaks. The clean energy increases would come in research and development, state-based competition to enhance energy efficiency and the electric grid, a new trust fund designed to find alternatives to oil in transportation, and a permanent extension of the renewable energy production tax credit.