Library filed under Taxes & Subsidies from Texas
Texas Public Policy Foundation released the paper “Texas Wind Power Story: Part 1 – How Subsidies Drive Texas Wind Power Development,” which shows that the growth of the wind industry in Texas is spurred by, and only viable because of subsidies such as the production tax credit, along with tax breaks at the state and local level. Texas has witnessed a boom in wind energy development over the past 15 years that put the state on the map as a leader in renewable energy. The state remains attractive for further development but the expansion of wind power has placed a strain on the reliability of the state's delivery system. A summary of the paper is provided below. The full paper can be downloaded from the links on this page.
If a developer spent 5 percent of the project costs -- such as buying turbines or steel for towers -- by the end of 2016, that company qualified for the 100 percent tax credit. The House proposal would retroactively eliminate that provision and force projects to re-qualify for the credit by starting actual work on the projects.
Nueces County Judge Loyd Neal and Wes Hoskins, chairman of the South Texas Military Facility Task Force, recalled being told if Senate Bill 277, or something substantially similar didn't pass, the bases would likely be candidates for closure in the next few years. Hoskins said federal officials told them, "encroachment is the No. 1 issue in the nation (facing military installations), and Texas is in trouble."
A room full of protestors attended the Hamilton Independent School District board of directors meeting Monday to speak out against a wind farm application.
The Clay County Commissioners’ Court will be ignoring the interests of Clay County if it awards more wind farm tax abatements.
The fight to beat back the perceived encroachment of wind energy developments on military airspace in Texas is being re-ignited this legislative session. This month, Sen. Donna Campbell (R-New Braunfels) filed a Senate Bill 277, which attempts to limit tax incentives to wind farms built within 30 miles of military bases.
We have both taught problem-solving approaches to science and engineering students emphasizing that identifying the real problem may be the more difficult task since getting the right answer to the wrong problem is at best misleading and can be counterproductive. Simplistic solutions to complex problems rarely lead to the desired result, but complex problems can often be broken into smaller entities that lead to appropriate solutions provided that each segment recognizes and takes into consideration the other parts of the problem.
Two possible wind farm developments in Clay County could threaten flight training missions and radar operations at nearby Sheppard Air Force Base, according to base officials and wind energy opponents. The worst case scenario, officials have said, is that Sheppard's missions are moved elsewhere and Wichita Falls loses an estimated $750 million in annual economic impact.
Steve DeWolf founded Wind Tex Energy in Dallas and developed several wind farm projects over the years ..."Given the lack of cooperation in Congress and the crazies on both sides, I don't know if the PTC is going to get passed," DeWolf said. "And a lot of the best sites in Texas are taken, and then you have the competition from low natural gas prices."
Lubbock Power & Light officials are anticipating House representatives will approve SB 931 and are helping the West Texas Municipal Power Association to maximize the value of RECs WTMPA currently holds before the bill is implemented. If SB 931 is passed by the majority of the Legislature the bill would take effect Sept.1. If it’s passed by two-thirds of the Legislature, the bill will take effect immediately after Gov. Greg Abbott signs it.
Industry-friendly policies helped Texas retain its position last year as the nation’s top wind energy producer, but partisan politics now threaten that standing, wind advocates said last week as they released an annual report on the state of the industry.
Billions of dollars in Texas wind projects remain in a holding pattern, just waiting for the final go-ahead on the federal production tax credit.
The Randall County commissioner’s court spent more than an hour discussing details of Chermac Energy Corporation’s proposed tax abatement agreement for the wind farm they are working to build in southern Randall County. Three motions had been made and voted on, each failing by a 2-3 vote.
Randall County commissioners agreed they want a wind farm built in the county but couldn’t decide on how much tax revenue they wanted to give up to make that happen.
Susan Combs, the state comptroller, stirred controversy last month when she said Texas’ growing wind energy industry should “stand on its own two feet.”
An area wind farm has expressed interest in a 10-year agreement that would reduce the taxes it would owe to Canyon Independent School District, Assistant Superintendent Randy McDowell said during the district’s board meeting Monday evening.
The evidence is in; wind energy claims are, at least for now, hot air. It’s time for Texas lawmakers to end the subsidies that have propped up the renewable energy market and let those industries stand on their own. That’s the conclusion of Texas Comptroller Susan Combs in a recent report.
The subsidies to wind generation companies are the only subsidies the state has handed out which do not require the companies to commit to job creation. From SpaceX to Toyota, other companies receiving subsidies have had those subsidies conditioned on job creation. But the wind industry is somehow 'special.'
Judges Jennifer Walker Elrod and Jerry Edwin Smith said that while PURPA promotes alternative energy, it does not “do so at the expense of the American consumer” but “mandates that the rates that utilities pay for such power shall be just and reasonable.” The majority went on to say that the more favorable pricing is meant only for those generators “able to forecast when they will deliver energy to the utility — and capable of delivering the specified amount of energy at the scheduled time.”
Texas PUC chairwoman, Donna Nelson, has initiated an investigation into "the costs of [transmission] system upgrades, the costs to maintain and operate the current system, and the allocation of those costs specifically related to renewable resources." In her memo below (and attached). Chairwoman Nelson warns of the costs, particularly of the wind PTC is extended by Congress.