When three Eastern Oregon wind farms got big federal grants last week, the news brought a debate that has been simmering at the state level to a boil.

Because wind farms are expensive, wind power company officials say, they need all the help they can get. But some say the recent grants serve as a high-profile reminder that Oregon doesn't need to spend more to woo wind farms.

"Oregon is far more generous than other states," in terms of renewable energy credits, said Jody Wiser, chairwoman of Tax Fairness Oregon. "And it's not driving more building in Oregon; it's just giving money away."

Jan Johnson of Iberdrola Renewables said the company has taken advantage of Oregon's credits, and is investing more money in wind farms here, such as the Star Point project. The federal grant shifted money that had been awarded as production credits over several years to a cash payment up front.

The payment reimburses the company for about 30 percent of the cost to build the Hay Canyon and Pebble Springs wind farms, Johnson said. "It doesn't cover everything, but it does give a direct infusion of cash we can put into construction under way.

"We're using this now to fund those additional projects."

Oregon offers $10 million credits to wind power producers, with a provision that can provide an additional $1 million. An effort to scale back that credit passed the Legislature but was vetoed by Gov. Ted Kulongoski last month.

Big wind power companies might leave Oregon for windier states if the tax breaks disappeared, Wiser said. That wouldn't bother her.

"If they have the site and the transmission lines, they can and should," Wiser said. "That's a prudent business decision and, for all of us, that is the right thing to do."

Of course, that doesn't mean Oregon should lessen its demand for clean energy, she said.

But Oregon's renewable portfolio standard, also upheld with a governor's veto, requires the purchase of renewable energy. Increasing the percentage requirement for renewable energy in utilities' mix will drive production more efficiently than wind farm credits, Wiser said.

"Wind is by far the cheapest source of renewable energy, so that's what the electric companies are going to buy."

Big wind farms often serve customers across state lines. Two of the three Oregon wind farms awarded grants last week, Hay Canyon and Horizon Wind Energy's Wheat Field Wind Farm, have agreements with Snohomish County Public Utility District in Washington. The third, Pebble Springs, sends its electricity to Southern California.

There's nothing wrong with that, said Charles Sheketoff, executive director of the Oregon Center for Public Policy. "The point of the (American Recovery and Reinvestment Act) was to have (federal) government dollars invested in the infrastructure of America," he said. "That's appropriate."

"The issue is, are these facilities that also get (state tax credits), property-tax breaks?" Sheketoff said. "How much does it cost to subsidize these?"