The House of Representatives is working to slash federal discretionary spending.
Tell Congress to cut the Section 1603 Cash Grant renewable energy bailout program!
BACKGROUND
The Section 1603 Cash Grant program disproportionately benefits wind energy development by shifting substantial debt to U.S. taxpayers. Cutting this program is a quick and painless way to eliminate $5 billion in Federal waste.
As you may know, the Section 1603 cash grant program was extended for one year as part of the tax bill passed in December 2010. This program enables wind developers to secure direct monetary outlays from the Federal government to cover 30% of a project's qualifying cost, no questions asked.
There are cheaper, much more effective opportunities for achieving clean energy goals. Instead, we have succeeded in adopting a policy that drives up construction and energy costs while eliminating any incentive to build projects that meet the highest performance standards. In fact, the more expensive, less efficient a project is to build and operate the greater the benefit for owners, vendors and contractors while the public assumes the debt.
This program is not equivalent to the Production Tax Credit ('PTC'). Please see our analysis on how cash grants differ from the PTC here.
The Appropriations Committee is preparing the 2011 budget ('Continuing Resolution') for a vote on the House Floor as early as Wednesday, February 16.
THE ACTION
Please Call, Email and Fax your Congressional House delegation TODAY.
Ask them to defund the Section 1603 program in the budget. A sample letter is provided here for your convenience.
To find your representative click here: https://www.house.gov/house/MemberWWW_by_State.shtml
In addition to your representative, the Republican members below need to hear from you:
House Leadership:
Speaker John Boehner, OH - https://www.speaker.gov/Contact/
Majority Leader Eric Cantor, VA - https://majorityleader.house.gov/Contact/
Appropriations Committee Republican Members:
Harold Rogers, KY
Jerry Lewis, CA
C.W. Bill Young, FL
Frank R. Wolf, VA
Jack Kingston, GA
Rodney Frelinghuysen, NJ
Tom Latham, IA
Robert B. Aderholt, AL
Jo Ann Emerson, MO
Kay Granger, TX
Michael K. Simpson, ID
John Abney Culberson, TX
Ander Crenshaw, FL
Denny Rehberg, MT
John R. Carter, TX
Rodney Alexander, LA
Ken Calvert, CA
Jo Bonner, AL
Steve Latourette, OH
Tom Cole, OK
Jeff Flake, AZ
Mario Diaz-Balart, FL
Charles Dent, PA
Steve Austria, OH
Cynthia Lummis, WY
Tom Graves, GA
Kevin Yoder, KS
Steve Womack, AR
Alan Nunnelee, MS
This is an important and unique opportunity we cannot afford to miss. OUR WINDOW OF OPPORTUNITY IS NOW!
If you have any questions, or concerns, please email me at llinowes@windaction.org .
Thank you very much,
--Lisa Linowes
www.windaction.org
Dear Representative _________________,
Cutting federal spending is one of the highest priorities facing Congress today. The Section 1603 Cash Grant Program is a good place to start. This program provides direct monetary outlays to wind energy developers for 30% of a project’s qualifying cost without setting performance standards on construction costs or energy generation.
Unlike the Production Tax Credit, the upfront cash grants provide minimal incentive for developers to negotiate lower prices with suppliers and no financial obligation to meet claimed capacity factors. In fact, the more expensive, less efficient a project is to build and operate the greater the benefit for owners, vendors and contractors while the public assumes the debt.
If Congress is serious about cutting government waste in the discretionary budget, green energy subsidies deserve another look, beginning with the Section 1603 program.
Respectfully,