WIND ENERGY 
TAX CREDIT EXTENDED
Sen. Chuck Grassley (R-Iowa) and Rep. Bill Thomas (R-Calif.) 
play key roles; Clinton Administration supplies final push 
during budget negotiations 

The wind energy Production Tax Credit (PTC), an important factor in financing new wind power installations, will be extended for 2½ years (30 months) under the agreement reached between Congressional and Clinton Administration negotiators on the federal budget. “The extension will spur the U.S. wind industry to continue expanding, producing new high-tech jobs, boosting rural economic development and helping achieve cleaner air,” said Randall Swisher, AWEA executive director.

"Two years ago, AWEA set course to obtain an extension of the PTC," said AWEA legislative director Jaime Steve. "While we have had to tack a bit here and there, we stayed the course with confidence and determination, and have reached our destination."

Legislation extending the credit passed the House and Senate just before Congress closed its doors for the Thanksgiving holiday. President Clinton is expected to sign the bill into law shortly after his return from a trip to Europe. The 1.5 cent per kilowatt-hour credit will be effective retroactively from June 30, 1999 (the date it expired) through December 31, 2001.

The extension will allow the domestic wind industry to continue growing and producing new jobs, particularly in the Great Plains, often called the Saudi Arabia of wind power. During the 1990s, wind has been the fastest-growing energy technology in the world, with an annual growth rate of 22.6 percent.  New high-tech wind turbines also are fueling rural economic development and providing supplementary income for farmers and ranchers leasing small portions of their land to wind developers. A single wind turbine removes only about ¼ acre from agricultural production, while bringing in about $2,000 per year in lease payments.

Senator Chuck Grassley (R-Iowa) and Rep. Bill Thomas (R-Calif.) play invaluable role

"Gaining the PTC extension was made possible by leadership from Sen. Chuck Grassley (R-Iowa) and Rep. Bill Thomas (R-Calif.), both of whom sponsored legislation calling for a five-year extension," said AWEA executive director Randall Swisher. “At each step along the way, Sen. Grassley and Rep. Thomas made sure the wind tax credit was part of the mix.” 

"Energy Secretary Bill Richardson a strong proponent of wind energy development and Treasury Secretary Lawrence Summers, along with Sens. Jim Jeffords (R-Vt.), Bill Roth (R-Del.), Frank Murkowski (R-Alaska), Connie Mack (R-FL), Tom Daschle (D-SD), Kent Conrad (D-ND), and Byron Dorgan (D-ND) were also crucial players."

In the House of Representatives, key support came from Speaker Dennis Hastert (R-Ill.), and Reps. Jerry Weller (R-Ill.), Tom Ewing (R-Ill.), Rob Portman (R-Ohio), Jennifer Dunn (R-Wash.), Mark Foley (R-Fla.), Charles Rangel (D-NY), Bob Matsui (R-Calif.), and Karen Thurman (D-Fla.).

“This winning effort has spanned the tenure of three AWEA presidents: current president Robert Gates (Enron Wind Corp.) and preceding presidents Karen Conover (Global Energy Concepts, Inc.) and Brian O’Sullivan (CEO of the Coram Energy Group). Each made a significant contribution to this victory,” Steve said.

"Particular thanks go to AWEA member companies, individual members, component suppliers, utility industry supporters, and environmental allies who are also responsible for our success," Steve added. Since beginning the PTC extension effort in 1997, AWEA and its allies have achieved a number of milestones, including:

• Attracting 192 sponsors nearly half of the entire House of Representatives to the House PTC bill (H.R. 750, introduced by Rep. Bill Thomas), including 27 of the 39 members of the tax-writing Ways and Means Committee.
  

• Gaining 27 sponsors on the Senate PTC bill (S. 414, introduced by Sen. Chuck Grassley), including a majority of the tax-writing Finance Committee.
  

• Gaining strong support from the Clinton Administration, which included a PTC extension in its last two budget proposals.

In 1999, AWEA estimates that over 900 megawatts (MW) of new capacity or "repowered" capacity (in which new more efficient turbines replace older ones) will have been installed, bringing wind energy generating capacity in the United States to more than 2,500 MW. This new wind energy will power the equivalent of over 240,000 American homes, while creating new jobs and displacing over 1.8 million tons of carbon dioxide (the most abundant greenhouse gas linked to global climate change). This amount of new wind power also will displace about 9,000 tons of sulfur dioxide (a component of acid rain), and other harmful emissions from conventional sources of electricity generation. 

AWEA, formed in 1974, is the national trade association of the 
U.S. wind energy industry. The association's membership of more than 700 includes turbine
manufacturers, wind project developers, utilities, academicians, and interested
individuals from 49 states. More information on wind energy is available from the home page
of the AWEA web site: www.awea.org

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