Union Bank of California received OCC approval late last year for an equity investment in 70 percent of a wind energy project, which would allow the bank to take advantage of federal tax credits. The company intends to purchase wind turbines and land in order to generate electricity. Despite Union Bank's claim that the deal is structured as an investment rather than a loan only to take advantage of the tax credits, the OCC is not requiring the windmill company to repay the principal, and periodic payments are conditioned on revenues generated by the company.

New legislation that would require many U.S. utilities to generate 20 percent of their electricity from renewable energy resources by 2020 was introduced yesterday by Congressman Tom Udall of New Mexico. House bill 969 proposes to “amend title VI of the Public Utility Regulatory Policies Act of 1978 to establish a Federal renewable energy portfolio standard for certain retail electric utilities and for other purposes.” The bill defines a renewable energy resource as solar (including solar water heating), wind, ocean, tidal, geothermal energy, biomass, landfill gas or incremental hydropower.

Money doesn't grow on trees, but it may grow on windmills. The developers of the four proposed wind farms in Jefferson County could capitalize on tax breaks and incentives at the federal, state and local levels through their projects. Opponents say the subsidies take taxpayer money and give it to those who already are rich. "It's the taxpayers and electric customers that are taken to the cleaners," said Glenn R. Schleede, a widely known wind power opponent who has worked for electric utilities and the federal Office of Management and Budget.

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

House Democrats haven't given up hope of hitting up the oil and gas companies for billions of dollars in higher taxes to provide incentives for renewable and clean energy programs. But similar legislation last year failed in the face of veto threats from President Bush. And White House officials already are voicing concerns about this latest proposal. "We strongly oppose raising taxes in any way that would lead to higher energy costs for Americans," White House spokesman Scott Stanzel said late Tuesday. "At a time when energy costs are quite high, raising taxes on energy producers is the wrong approach."

Hurdles to securitizing renewable-power deals remain, both for government and private contracts. The idea of securitization is to spread risk across hundreds of contracts and ensure a steady return for investors. That is much easier to do with home mortgages than it is with solar- or wind-power contracts, due largely to the relative immaturity and small size of renewable-energy markets.

NextEra Energy Inc. remains on track to set a record for new wind installations in 2012, putting its total about 10,000 MW. But the company said its NextEra Energy Resources until will see a significant drop-off in activity in 2013, even Congress extends the federal production tax credit (PTC) for wind sometime after the election.

The U.S. production tax credit for wind energy should be extended and phased out over five to 10 years, said Lew Hay, executive chairman of NextEra Energy Inc., the country's largest producer of wind and solar energy.

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.

Despite an all-out lobbying push, the American Wind Energy Association (AWEA) could not convince lawmakers to include the PTC in year-end legislation to extend tax provisions, such as a payroll tax cut and unemployment benefits, that expire on 31 December without Congressional action.

"The truth is that paying equity subsidies for green energy is expensive," Kevin Book, managing director at ClearView Energy Partners LLC, a Washington-based policy analysis firm, said in an interview. "Who will be the strong voice to defend credits, and which credits get defended?"

The state, often rated as having the greatest wind potential in the nation, now has about 1,400 megawatts of total wind capacity. ...But notices of intent for new wind farms have stalled since last fall and development has slowed in recent months.