Wednesday, May 2, 2012

New Bill Proposes To Extend Wind Energy PTC, Slash Oil Subsidies

A group of Democrats in the U.S. House of Representatives has introduced new legislation that would extend a number of incentives for wind power and other forms of renewable energy while stripping subsidies for fossil fuels.

The bill - Investing to Modernize the Production of American Clean Energy and Technology (IMPACT Act) - introduced by Reps. Ed Markey, D-Mass.; Henry Waxman, D-Calif.; John Larson, D-Conn.; Earl Blumenauer, D-Ore.; and Bill Pascrell Jr.; D-N.J. - proposes an eight-year extension to the production tax credit (PTC) for wind, solar, geothermal, biomass, landfill gas, hydropower, and marine and hydrokinetic power production.

Notably, however, the bill specifies that if a renewable electricity standard or similar measure - such as the clean energy standard proposed most recently by Sen. Jeff Bingaman, D-N.M. - were to become law, the PTC would be phased out within 12 months.

The legislation also would renew the Section 1603 renewable energy cash-grant program - which expired at the end of last year - for another two years.

Among the provisions of the bill is a specific carve-out for offshore wind energy. Under the legislation, the first 3 GW of offshore wind power projects would be eligible for a 30% investment tax credit.

The IMPACT Act is not only pro-renewables, but also pro-manufacturing, as it provides for $5 billion in tax credits under the Section 48C program for the construction of new and modified clean energy technologies.

Read more: http://www.nawindpower.com/naw/e107_plugins/content/content.php?content.9777

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