Gov. Sarah Palin has trimmed back her support for renewable energy in the face of declining oil revenues, but the Legislature is still pushing forward with last year's proposed projects. ...Palin budget director Karen Rehfeld said the governor was still committed to renewable energy, but with next year's budget likely to have a significant deficit at estimated oil prices, it wasn't a good idea to take money out of savings for new spending now.

The wind-energy boom has been seeded by federal and state tax credits that generally are most beneficial for wealthy investors, partnerships and corporations who might have unrelated income to offset. The federal stimulus bill appears to allow the tax benefits to be claimed by such a taxable pool, increasing profits and dividends to a lot of smaller owners, said Lee Schafer, director of investment banking at Northland.

Stephenson County officials are asking certain area taxing bodies to abate property taxes for the EcoGrove wind farm project for approximately three years, as part of an effort to ensure the initiative's financial viability. While these taxing bodies would lose money in the short term, they would make a considerable amount of funding once the wind farm is up and running and if the project continues to expand, officials said.

The stimulus package, while welcome, may not be a quick fix for the struggling wind and solar industries, experts say. The package is loaded with tax credit provisions that both industries have long sought ...and an option of converting tax credits from both industries into direct cash. In theory, that means the federal government could end up footing the bill for 30 percent of the cost of a wind farm or solar array.

California increasingly is depending on solar energy to meet its commitments to reduce greenhouse gas emissions under the state's landmark 2006 global warming law. According to regulators, utilities received 30% more bids for solar power projects in 2008 than in the previous year while wind farm proposals dropped by half and "very few" geothermal tenders were filed. The fact that utilities received 24,000 megawatts' worth of renewable energy bids last year (more than enough, if built, to meet the 33% renewable energy target) speaks to the frothy state of the market.

The Naples School Board voted last week to accept an agreement with First Wind that would give the district higher payments on any windmills the company may build within the district boundaries. ...At this point, Macaluso said First Wind has put the project on hold because of finance troubles.

No, the big stimulus plan won't "save or create 3.5 million jobs," as the president and congressional Democrats claim - at least not this year. The economy will remain feeble through 2009, analysts warn, and businesses will keep shedding jobs ...The stimulus agreement, heading for final votes in the next day or so, goes to the heart of President Barack Obama's strategy to revive the economy and will go far in shaping how Americans view his economic leadership. What it won't do is quickly snap the country out of the painful recession, now in its second year.

The state Senate refused Monday to re-open debate on Sen. Frank Kloucek's proposed tax break for noncommercial wind-energy systems. The legislation failed on the first attempt on Friday, when Lt. Gov. Dennis Daugaard broke a 17-17 tie by voting against it. An attempt to reconsider the bill on Monday fell short 17-18, as Sen. Jim Bradford, R-Pine Ridge, switched from yes to no.

Taxing jurisdictions benefiting from the Maple Ridge Wind Farm have retained an Albany firm to lobby against proposed Empire Zone program changes that could impact future revenues. "We've got a lot of money at stake," Lewis County Attorney Richard J. Graham said at Tuesday evening's legislators meeting. County legislators approved an agreement with Capitol Public Strategies to provide consulting services for up to $7,500 per month for the next four months.

Wind power advocates are pushing for billions in tax incentives and grants in the $819 billion recovery package moving through Congress, hoping to offset an economic slowdown affecting the industry. Expansion of wind energy, ...could depend on how the stimulus plan is overhauled by the Senate ...The Senate version includes the tax breaks but does not offer the grant program, which would allow wind and solar industries to convert tax credits into grants from the Energy Department.

The wind energy fight has blossomed into more of a battle than many had expected - especially among Democrats. ...critics argue that this amounts to a cash entitlement for the producers and is too expensive for the public. "Developers are racing to build wind turbines in the middle of Nowhere, USA, requiring extensive and expensive new transmission development, and we are not assured that the power generated will meet our load demands, given that wind typically produces off peak, at night, and in the winter," said Lisa Linowes of the Industrial Wind Action Group.

According to the Financial Times, E.ON UK, the British arm of the German energy group, said the viability of its London Array project, a planned 1000 MW wind farm in the Thames estuary, had been called into question by the falling prices of oil, gas and carbon dioxide emissions permits. ...Centrica, the owner of British Gas, estimates that each megawatt of wind power capacity costs about £3m to build: more than the equivalent cost for a nuclear power station.

A new tax incentive is in place for the stalled First Wind wind farm project in Prattsburgh, pending what officials hope is the final approval by the Naples Central School District next week. The Steuben County Industrial Development Agency signed on to a new payment-inlieu of-taxes (PILOT) agreement that will provide more money to the Prattsburgh and Naples school districts while also increasing the town of Prattsburgh's share.

Citing a weakened economy and the prospect of new regulations for renewable energy, We Energies of Milwaukee has withdrawn its request to spend up to $69 million to coordinate construction of wind power projects to meet a state mandate. ..."In the months since the filing, economic conditions in the United States and Wisconsin have changed dramatically, and the potential for additional state legislation and for federal renewable legislation is coming into focus," the utility says in a letter to the PSC.

Congress, meanwhile, is trying to restart wind and solar development. The industries insist that the best way forward is to make the tax credit "refundable," so that the money from the tax credit would be available directly, and investors would not need big profits to invest.

The legislation would extend for three years a tax credit that subsidizes the power from new wind farms. The tax credit applies for a project's first 10 years. However, future projects may not be eligible for the subsidy unless the credit is renewed beyond this year. Even that tax incentive hasn't been enough to get some projects going during the recent economic downturn, because potential investors don't owe enough in taxes to benefit from a credit, industry officials say.

House lawmakers are proposing to give solar and wind energy producers billions in government grants instead of tax credits to build renewable energy capacity, potentially transforming the way renewable energy projects have been financed for years. The new grant program, which will be administered by the Department of Energy, is part of House economic stimulus legislation announced Thursday.

The green energy sector has a lot riding on 2009. Policymakers from Washington to Beijing have pledged billions of dollars in "cleantech" investment to jump-start the depressed global economy and create millions of new low-carbon jobs. ...As with the solar industry, wind power has been hit by a sudden slowdown in private sector investment as credit has dried up and the price of oil has fallen from its mid-2008 high. The industry hopes public spending will help fill the gap until the global economy gets back on its feet.

Federal tax credits that Congress passed only three months ago to increase investment in renewable energy have lost much of their effectiveness amid a global economic downturn and should be reworked, industry officials say. ...Because most companies and individuals expect far lower tax liabilities than they did months ago, the incentive to invest in alternative-energy technology because of tax credits has been muted, industry trade associations say.

U.S. Rep. Bruce Braley, D-Iowa, said today that he is introduced a bill to extend the wind energy production tax credit until 2017. The current credit, which was extended last year, is set to expire at the end of 2009. Braley told reporters Thursday a long-term extension will create some certainty in the market and spur greater development.