Articles filed under Taxes & Subsidies
“NextEra may produce wind energy, but its real business is subsidy mining,” said Robert Bryce, a senior fellow at the Manhattan Institute and an expert on the energy sector. “Renewables need subsidies because they aren’t economic in the free market. By subsidizing renewables, the wholesale power markets across the country are getting more and more distorted."
House Bill 2298, by Speaker Charles McCall, R-Atoka, and Senate Pro Tem Mike Schulz, R-Altus, sets the expiration date at July 1 rather than allowing it to continue until 2021.
While wind energy is clean and renewable, it creates relatively few permanent jobs and most of the power (and the profits) go out of the state. ...The petroleum industry pays taxes on the energy it produces and creates an enormous number of jobs and wealth inside the state.
The Oklahoma Senate has overwhelmingly voted yes on a bill that would move up the sunset date of the state’s wind power tax credits to July 1.
On March 23 the USA division of the wind energy company, NaturEner, announced it had donated $50,000 to the Sunburst School District to help the small Montana town avoid having to lay off one or more of its 21 school teachers.
Sen. Randy Smith, R-Tucker, spoke in favor of the bill. He said when the Legislature created the tax break in 2001, it should have added a sunset clause. He added that other industries don’t receive as generous a break.
But Reed, a New York Republican who supports the tax credits, says their [tax credits] preservation should not be taken for granted as Congress attempts to reform the byzantine US tax code for the first time in a generation. Tax reform is expected to be the next major legislative battle following healthcare reform. “There are no guarantees in Washington,”
House Bill 2298, by Speaker Charles McCall, R-Atoka, would end the zero-emissions tax credit July 1, more than three years earlier than its current sunset date. The bill passed, 74-24, over the objections from some lawmakers that it could jeopardize wind projects already in an advanced stage of development.
After the committee recommended legislators indefinitely suspend Ohio’s portfolio standards, the Legislature sent to Kasich’s desk a measure that would have delayed implementation until 2019. Kasich vetoed the bill two days after Christmas.
Swanton Wind sought to have GMP buy power from the planned wind farm under prices established through PURPA; however, the pricing regime Swanton Wind applied under expired in September, 2016. Green Mountain Power fought that effort, saying that Swanton Wind filed its application too late. The Public Service Board agreed,
Oklahoma wind developers are fresh off a record-setting year. Only Texas installed more wind capacity in 2016, a fact that thrusts the Sooner State's power markets into a sudden transition and is agitating opponents along the way.
As the O’Brien County Assessment of Wind Energy Conversion Property ordinance requires, MidAmerican Energy Company (MEC) recently reported to the assessor’s office the final net acquisition cost figure for the recently completed and commissioned O’Brien Wind Energy Project located in northern O’Brien County along Highway 18 near Sanborn.
As the US wind industry races to complete projects before the PTC expires, concerns are growing over looming tax reforms and the threat of border tariffs.
Wind power generators received $600 million in federal subsidies last year, helping to drive an increase in electricity prices for consumers. Data collated by Australian Power Project, which advocates a sustainable national energy policy, showed $588.7m was paid to wind farm operators.
Gov. Mary Fallin, R-Okla., recently released her proposed 2018 executive budget, which includes two new anti-wind tax proposals. The first proposal would end the zero-emission tax credit for wind facilities placed in service after 2017. The second proposal would begin taxing the production of wind energy at $0.005/kWh produced.
While the PTC has fueled big booms in US wind installations, it has also added a layer of complexity to the market by requiring many developers to secure tax equity. That additional complexity has been especially prohibitive for smaller developers and those based in other countries.
Signing this legislation was simply a mistake. What was promised to cost the state less than $2 million annually when I was in office has soared to $113 million for the 2014 tax year and is expected to cost billions in the future. Wind farms average 10 percent to 13 permanent jobs, which hardly lives up to the promised employment growth. ...As your former governor and a proud citizen of Oklahoma, I encourage us all to work together to end this subsidy no later than July 1, 2017.
State Rep. David Brumbaugh, author of House Bill 2246, said the cost is much more than officials first had in mind when they created the credit. He also said that wind generation has exceeded the goal set by former Gov. Brad Henry that renewable energy should make up 15 percent of the state's power generation by the year 2015. It's now at 20 percent, Brumbaugh said.
Renewables producers will have to repay any financial support received in addition to the feed-in tariff to the national electricity system, according to a decree published by the industry ministry.
Congress’ renewal of the production tax credit in 2015 gave wind farm developers a powerful incentive to retrofit turbines, said Alex Morgan, a New York-based analyst for Bloomberg New Energy Finance. Thousands of turbines totaling 9,700 megawatts across the U.S. are between 10 and 20 years old, making them a prime target for upgrades, she said.