News and analysis about energy in California with an eye toward renewables.

Time Running Out on Wind Tax Credit

Turbines in North Palm Springs | Photo: Nemo's Great Uncle/Flickr/Creative Commons License

The controversial Wind Production Tax Credit is set to expire in just 11 days, but efforts to extend the credit in Congress are in limbo, wrapped up with complex negotiations over the so-called "fiscal cliff."

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The expiration of the credit, which gives wind power producers 2.2 cents per kilowatt hour of electricity produced, is seen as a Mayan-style end of the world by wind industry supporters, and a chance for a sigh of relief by activists fighting new wind power installations in places like Ocotillo, California.

"With the threat of the PTC's expiration, wind project developers are not making plans in the U.S. and American manufacturers are not receiving orders," David Ward of the American Wind Energy Association (AWEA) told ReWire. "Job layoffs have started already, which could total up to 37,000 jobs lost. Without an immediate extension of the Production Tax Credit, the wind industry is facing the recurrence of the boom-bust cycle it has seen in previous years when the PTC was allowed to expire."

A measure that would extend the Production Tax Credit was introduced in Congress in August, but it's one of a package of almost two dozen such measures that are being used as poker chips in the negotiations over the fiscal cliff issue, according to Dirk Lammers at Bloomberg.

AWEA's chair Denise Bode told Congress last week that her group would find a phased-out PTC lasting an additional six years acceptable. That move riled some renewable energy experts, including Grist's Philip Bump, who observed:

Neville Chamberlain would be proud. There is no better way to negotiate than to accede to a tremendously weak position early in the process. Opponents of the PTC are unlikely to accept this position as-is, and will instead push for a faster, more severe reduction, making AWEA's already-bad position even worse. And AWEA concedes a key conservative talking point: that the PTC isn't needed, that wind can compete on a lopsided playing field in a few years. That's probably extremely optimistic.

This proposal is also hugely damaging to other renewable energy sources, like solar, which have production tax credits expiring at the end of next year. How will the solar industry defend its extension -- an extension which, again, used to be routine -- if the wind industry has set a standard of a gradual phasing out?

One could ask the same question about the geothermal tax credit as well.

ReWire is dedicated to covering renewable energy in California. Keep in touch by liking us on Facebook, and help shape our editorial direction by taking this quick survey here.


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About the Author

Chris Clarke is a natural history writer and environmental journalist currently at work on a book about the Joshua tree. He lives in Joshua Tree.
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There never should have been any tax credits for this industry. I happen to know the secret California Condor deal was cut (they call it mitigation) between the wind industry, the USFWS , the CA DFG, and several conservation groups about 20 years ago.

Today with this mitigated nonsense we have 3 isolated small populations of condors with wind projects closing in on all sides. These condors are not wild, they are not self-sustaining or free. The condors have had most of their habitat stolen from them and the ones now flying around are just hanging around their feeding stations. If they start wandering around wind projects they are trapped because researchers know they will be killed by turbines. If they are killed you will never hear about it.
The last known sighting of a wild condor in Arizona was in 1924 near the town of Williams. Today the Perrin wind farm is catching the winds in this historical California Condor habitat. The Vermilion Cliffs National Monument where the Arizona condors population or prisoner camp has been set up is about 80 miles away. A short flight for a truly wild condor.

Soon the free flying population of whooping cranes will be gone and we will have a population living a similar lifestyle as the condors. The migrating free spirited ones will be dead and those remaining will be another localized population of prisoners. This may be a good answer for Wall Street and Lawyers but it is one sick way to manage the world.

But there is an even bigger problem with the ongoing wind industry slaughter. Hundreds of species that get little attention are being impacted across the world by wind turbines, not just condors and whooping cranes.

This is why I comment and give advice to people all over the world about the wind industry. These madmen have to be stopped.