legislative affairs
The wind energy industry’s top legislative priorities are explained in the report, Wind Energy for a New Era: An Agenda for the New President and Congress, available at www.NewWindAgenda.org
Production Tax Credit (PTC)
Small Wind Investment Tax Credit
Renewables Electricity Standard (RES)
Renewable Energy Transmission Highways
National Climate Change Legislation
Federal Agency Support for Siting Wind Power Projects and Transmission Lines
Research and Development
Production Tax Credit (PTC)
Description: Under present law, an income tax credit of 2.1 cents/kilowatt-hour is allowed for the production of electricity from utility-scale wind turbines. This incentive, the renewable energy production tax credit (PTC), was created under the Energy Policy Act of 1992.
Current Status: Through the American Recovery and Reinvestment Act (passed in February 2009), Congress acted to provide a three-year extension of the PTC through December 31, 2012. Additionally, wind project developers can choose to receive a 30% investment tax credit (ITC) in place of the PTC for facilities placed in service in 2009 and 2010, and also for facilities placed in service before 2013 if construction begins before the end of 2010. The ITC then qualifies to be converted to a grant from the Department of Treasury. The Treasury Department must pay the grant within 60 days of an application being submitted. Grant applications must be filed through this online portal. Further information is available in AWEA’s summary of the Treasury Grant Program.
Small Wind Systems Tax Credit
Description: Under present law, a federal-level investment tax credit (ITC) is available to help consumers purchase small wind turbines for home, farm, or business use. Owners of small wind systems with 100 kilowatts (kW) of capacity or less can receive a credit for 30% of the total installed cost of the system.
Current Status: The ITC, written into law through the Emergency Economic Stabilization Act of 2008, is available for equipment installed from October 3, 2008 through December 31, 2016. The value of the credit is now uncapped, through the American Recovery and Reinvestment Act of 2009.
AWEA members can access a factsheet on how to use the ITC by:
- Logging in to www.awea.org/membercenter/login.html
- Selecting "AWEA eCommunities" on the left side of the screen
- Selecting the "Small Wind" eCommunity
- Selecting "Document Archive"
- Selecting the "Misc." folder
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National Renewable Electricity Standard (RES)
Description: The renewable electricity standard (RES), also known as a renewable portfolio standard (RPS), uses market mechanisms to ensure that a growing percentage of electricity is produced from renewable sources, like wind power. The RES provides a predictable, competitive market, within which renewable generators compete with each other to lower prices. RES policies currently exist in 28 U.S. states, but not at the national level.
Factsheets:
What is a renewable electricity standard?
How does a renewable electricity standard save consumers money?
Why is a national renewable electricity standard needed?
Is a renewable electricity standard achievable in all regions of the country?
Current Status: AWEA seeks a strong national RES policy. Ideally, a national RES would call for 25% of the nation’s electricity to come from renewable energy by 2025, with an aggressive near-term target, such as 10% by 2012, as was called for in the Obama-Biden New Energy for America plan, to ensure rapid renewable energy deployment. Additional recommendations are available in the New Wind Agenda report.
Current Legislation:
Senate:
- The Senate Energy and Natural Resources Committee reported the energy bill, The American Clean Energy Leadership Act, out of committee on June 17, 2009. The bill contains a 15% renewable electricity by 2020 standard, allowing for 4% of the standard to be met through energy efficiency improvements. The bill, combined with a climate bill, is expected to be considered by the full Senate this fall.
House of Representatives:
- The full House of Representatives passed The American Clean Energy and Security Act (H.R. 2454), a comprehensive energy and climate bill, on June 26, 2009. The committee’s bill contains a 20% renewable electricity by 2020 standard, allowing for 8% of the standard to be met through energy efficiency improvements.
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Renewable Energy Transmission Highways
Description: The U.S. is home to vast quantities of clean energy resources, but lacks a modern interstate transmission grid to deliver carbon-free electricity to customers in highly populated areas of the country. This is perhaps the biggest obstacle to the long-term growth of wind power and other renewables.
Current Status: AWEA supports federal policies that would bring about the construction of a high-voltage interstate transmission highway system for renewable energy, as envisioned in DOE’s 20% wind report. Our agenda includes federal legislation, regulatory initiatives by the Federal Energy Regulatory Commission and the Department of Energy, and federal financial support. The cost would be an increase in annual transmission investment from approximately $8 billion today to $11 billion, but this investment would quickly be offset by lower electricity costs and reduced fuel costs, and would lead to greater energy independence. Additional recommendations are available in the New Wind Agenda report.
Additional Resources:
AWEA-SEIA Green Power Superhighways White Paper (February 2009)
Current Legislation:
Senate:
- The Senate Energy and Natural Resources Committee reported the energy bill, The American Clean Energy Leadership Act out of committee on June 17, 2009. The bill contains transmission planning, paying and permitting provisions. A combined energy and climate bill is expected to be considered by the full Senate this fall.
House of Representatives:
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National Climate Change Legislation
Description: As the most readily deployable source of carbon-free electricity generation, wind power is uniquely positioned to contribute to the global warming solution, especially in the early years of the climate protection effort, when few other options are available. Generating 20% of U.S. electricity from wind would be the climate equivalent of removing 140 million vehicles from the roadways. But the potential will not be realized unless climate legislation provides an economic incentive to switch to clean energy sources.
Current Status: AWEA seeks climate legislation that includes an aggressive near-term goal, such as a 15 to 20% carbon dioxide reduction by 2020, in order to promote a near-term shift to renewable energy and get the quick start on greenhouse gas emissions reductions scientists tell us is needed. Additional recommendations are available in the New Wind Agenda report.
Current Legislation:
Senate:
- The Senate Committee on Environment and Public Works has jurisdiction over climate change legislation. The committee is expected to begin to complete a markup of climate legislation by September 25, 2009. A combined energy and climate bill is expected to be considered by the full Senate this fall.
House of Representatives:
- The full House of Representatives passed The American Clean Energy and Security Act (H.R. 2454), a comprehensive energy and climate bill, on June 26, 2009.
The bill contains a provision to reduce carbon dioxide emissions 17% below 2005 levels by 2020 and 83% below 2005 levels by 2050. It also allocates a portion of the allowances given away for free to energy efficiency and renewable energy. However, the allowances flow through state governments rather than directly to renewable generators, as proposed by AWEA.
Federal Agency Support for Siting Wind Power Projects and Transmission Lines
Description: Federal agencies have a key part to play in developing our renewable energy potential because of their role in the siting of wind projects and new transmission lines, especially on federal lands.
Current Status: In line with the wind industry’s recommendation, Interior Secretary Ken Salazar has issued an executive order to prioritize development of responsibly-sited renewable energy projects on federal lands. Also, the economic stimulus legislation allocated money to the Bureau of Land Management, part of which will be used to set up renewable energy coordination offices, in line with the wind industry’s recommendations. Additional siting recommendations are available in the New Wind Agenda report.
On July 28, 2009, House Natural Resources Committee Democratic staff, under the direction of Chairman Nick Rahall (D-WV) released draft legislation impacting the development of renewable energy projects on public lands and in federal waters. This document summarizes the sections of the bill impacting onshore wind projects and this document summarizes the sections of the bill impacting offshore wind projects.
Research & Development
Description: Federal funding for wind energy research and development (R&D;) and other programs is inadequate, especially when compared with funding levels for other fuels and energy sources. The U.S. Department of Energy (DOE) wind program currently receives about $50 million annually, which is well below its all-time high of $63 million appropriated in Fiscal Year (FY) 1980.
Current Status: Thus far in 2009, DOE has announced $118 million from The American Recovery and Reinvestment Act for wind energy R&D. A complete listing of grant opportunities is available at www.grants.gov. With respect to the FY2010 R&D budget, there are three proposals on the table. The President’s FY2010 budget includes $75 million for the DOE wind program. The Senate has passed an energy and water appropriations bill that includes $85 million for the DOE wind program in 2010, and the House of Representatives’ appropriations bill includes $70 million for the same purpose. The differences between the two bills must now be reconciled by a Conference Committee. Final passage is expected early this fall. AWEA seeks to increase the annual funding for wind energy research & development and other programs at the DOE and other Federal agencies to $217 million over the course of the next three to five years.
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