[Stewart] Umholtz, Tazewell County state's attorney, last week said he will pursue legal action against his own County Board's decision to extend an existing enterprise zone, allowing a wind farm development to be eligible for a sales tax abatement. He seeks an Illinois Attorney General's Office opinion on the matter. One of the points Umholtz disagrees with is the issuance of a 3-foot extension many local governments, including the city of Peoria and Tazewell County, utilize to extend their enterprise zones.

After two months of fever-pitch debate over how to deal with the soaring price of oil, Congress left town Friday without doing anything on energy. The final day featured a group of raucus Republicans who remained on the House floor after an adjournment vote was passed, the microphones turned off and the lights dimmed, demanding that Democratic leaders return and take action on comprehensive energy legislation.

A lawsuit brought against the Taylor County Commissioners Court in April for granting what the plaintiff claims are illegal tax abatements to wind farms in the county was dropped Thursday with little fanfare. Tuscola resident Dale Rankin, an opponent of wind energy, filed the lawsuit in April alleging that wind energy equipment is not eligible for tax abatements under the state tax code. Rankin said he decided to "nonsuit," or essentially drop, the lawsuit because of what he called "procedural issues." However, he said he plans to refile the lawsuit.

The borough has applied for two Department of Environmental Protection grants, each for $168,000, to fund a proposed $173,000 windmill and solar electric system. The borough would pay $5,000 toward the overall cost. Borough Manager Dave Montz said if one or both grants are awarded, the total amount will not exceed $168,000. Council President Mark Sampogna said, however, he is unsure if council will approve the project, even if funding is secured. The height of proposed installation, 100-feet to 120-feet, could have a negative impact on the appearance of the park, he said.

Over the past few years, wind energy has experienced a tremendous, if precariously fragile, boom. Last year alone, wind-power capacity jumped 21 percent in the United States. Wind is now one of the country's fastest-growing electricity sources, buoyed by strong consumer demand, mounting concerns about fossil fuels, and-perhaps most notable-vital government support. But uncertainty about key federal tax credits threatens to knock the wind out of the wind-power industry.

The production tax credit pays about 20 dollars per megawatt hour. So a single wind turbine like one at Wildorado, can make up to 45 dollars an hour or over 400 thousand dollars a year. This money is essential for developers because it can cost hundreds of million dollars to build a wind farm. "Most of the companies I've visited with say wind energy would not be financially feasible without this federal tax credit that goes with production," said Congressman Mac Thornberry.

The Westfield and Ripley school districts, as well as some municipalities such as the town of Portland, have chosen to opt out of the tax exempt status wind energy developers are eligible to receive. "Wind farms fall under some tax exemption which taxing jurisdictions can reject (opt out of)," Peter Gross of Babcock and Brown explained. "This requires that we get a PILOT (payment in lieu of taxes) agreement with the county, otherwise our assets would be assessed at their full value, resulting in a tax payment that would kill the project economics.

The Cattaraugus County Legislature will decide Wednesday whether to spend $25,000 on a law firm to help negotiate payments from future wind farm developers within the county. Several lawmakers have stated they hope to keep the Cattaraugus County Industrial Development Agency from collecting a percentage of a project worth several hundred millions of dollars, and several said they first want to meet with lawyers in person before agreeing to a contract. The requested $50,000 appropriation was halved after the Finance Committee amended the legislation during the initial round of discussion last Wednesday.

A federal clock is ticking on an ambitious Texas Public Utility Commission plan to build transmission lines to funnel wind energy from West Texas to metropolitan areas. The wind energy industry revolves around a production tax credit that expires Dec. 31. After more than one false start, there is no guarantee Congress will extend it. Expansion will halt, some warn, if lawmakers don't take action this summer. "We don't want lines to just be standing out there," Sweetwater Mayor Greg Wortham said of the planned transmission lines. Wortham is also director of the West Texas Energy Consortium. Until a turbine is producing juice -- no credit.

Pecos County Commissioner for Precinct 3 Jay Kent speculated aloud about how much money the county was losing, but after a discussion the Commissioners Court approved unanimously Monday a tax abatement for the Sherbino II Wind Farm LLC, a development venture of British Petroleum Alternative Energy. The court approved the agreement with amendments. One removes a clause that requires an invoice be sent to BP each year, placing the onus for payment by Jan. 31 of each year of the abatement upon BP; the second specifies a public notice to other taxing entities.

Tazewell County State's Attorney Stewart Umholtz warned Tazewell County board members Monday that he would be required to "take legal action" if the county board approves a questionable expansion of a tax-free zone for a proposed wind farm. County Chairman Jim Unsicker says that Umholtz is entitled to his opinion, but that opinion is not shared by many people. "(Umholtz's) view on the expansion of the enterprise zone is diametrically opposed to the view of a number of people on the board, the state, the city and just about anybody else you want to talk to in the state of Illinois," said Unsicker.

Logan County State's Attorney Tim Huyett disagrees with his friend and Tazewell County counterpart on a legal issue related to whether the Rail Splitter Wind Farm qualifies for inclusion in an enterprise zone. The agency that administrates all of the state's enterprise zones also disagrees with Tazewell County State's Attorney Stewart Umholtz, who has threatened to sue his own county board if it extends that county's enterprise zone to the wind farm locale, which straddles the Logan-Tazewell county line.

Tazewell County State's Attorney Stewart Umholtz is threatening legal action against the county itself if it ignores his advice and expands an enterprise zone to include a proposed wind farm. Umholtz sent a letter Tuesday to County Board members, saying he opposes expanding the zone to include the Rail Splitter Wind Farm near the Tazewell and Logan county line, saying it would violate state statute. "Let me make myself perfectly clear," Umholtz said in the letter. "The proposed expansion of the enterprise zone does not meet the statutory requirements and should not be approved by the County Board."

A proposed wind farm for Tazewell County is in jeopardy because the county and Horizon Wind Energy LLC can't reach an agreement, threatening to stop the project from moving forward. The Tazewell County Land Use Committee met Tuesday, and problems that have apparently been brewing under the surface for months came to light. Assistant Tazewell County State's Attorney Mike Holly said he is concerned with several parts of a decommissioning plan, which addresses what will happen to 38 wind towers if Horizon ever goes bankrupt, sells the wind farm or abandons it.

The looming expiration date and uncertainty about whether Congress will extend the so-called renewable energy production tax credit is making it more difficult for wind project developers to line up financing, industry officials say. According to the South Dakota Public Utilities Commission, 25 wind energy companies have expressed an interest in developing about 1,000 megawatts of wind power in the state during the next few years. ... "This isn't emergency spending," said Herseth Sandlin, a member of the Blue Dog Coalition. Johnson agreed that they need to find a way to pay for the extension.

The average residential Delmarva Power customer could end up paying just 70 cents a month more over the next 25 years for Bluewater Wind's power than they would have paid for fossil-fuel generated electricity, a team of state consultants said Thursday. The projection is significantly lower than the $6.46 a month "wind power premium" the consultants projected in a December analysis of the previous proposed contract between Bluewater and Delmarva, which would have had Delmarva buy twice as much wind power. ...Under the new, smaller contract, Sheingold estimates the average monthly additional cost on a residential customer, averaged over 25 years, will be 70 cents. In the early years, those additional costs will be an estimated $1.79 a month over market, and over time, will turn into a savings as fossil fuels get more expensive.

The billionaire Chairman of Suzlon Energy Tulsi Tanti has said wind energy firms does not require subsidies, as the prices of fossil fuels like oil, gas and coal are becoming more expensive. Quoting Tanti, a German business weekly said that wind energy does not need subsidies as the fossil fuels are turning more costly.

Wind is always available and it doesn't pollute the planet. But as wonderful as it sounds, using the resource for energy could come with a hefty price tag. ...But there's a big problem. The Texas Public Utility Commission [PUC] hasn't approved a way to funnel all the power from the wind farms in West Texas and eventually the panhandle, into the Dallas/Fort Worth area. Ross points out, "The only impediment we have right now is the construction of transmission lines. We've got to construct the wires to move the power back to Dallas/Fort Worth." According to the PUC, that could cost at least $1 million per mile to get the power into the local area.

The Highland Independent School District learned earlier this month that it is a property wealthy district after being notified of its status by the Texas Education Agency. In TEA terms, Highland is a Chapter 41 district for the 2008-09 school year. Chapter 41 of the Texas Education Code makes provisions for certain school districts to share their local tax revenue with other school districts. ... The Highland ISD has been declared a Chapter 41 district because of significant increases in property values due to the new wind farms in the district. Nelson said those wind farm values will peak in the 2008-09 school year and then decline due to tax code Chapter 313 property tax limitation agreements ...

Delmarva Power signed a landmark offshore wind power deal with Bluewater Wind on Monday, agreeing to buy enough power to light 50,000 homes in Delaware for the next 25 years. The long-awaited, $800 million deal could make Delaware the first state in the nation to build a wind farm off its shores. An array of as many as 70 towering windmills would rise in a tract east of Rehoboth Beach by 2012. ...Both parties agreed the contract will cost average residential customers about $5 a month more -- over the 25 years -- than they would have paid for electricity without offshore wind power. With volatile fossil fuel prices, no one can predict how much additional cost -- or savings -- customers may see over the life of the contract.