[Congressional Record Volume 146, Number 120 (Monday, October 2, 2000)]
[House]
[Page H8593]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                          WIND FOR ELECTRICITY

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from California (Mr. Filner) is recognized for 5 minutes.
  Mr. FILNER. Mr. Speaker, I represent San Diego, California, which is 
undergoing a tremendous crisis in terms of the price that we pay for 
electricity. In the last 3 months, prices have doubled and tripled. And 
while we have a short-term cap on those prices, we are looking to 
Congress to bring down the wholesale price of electricity and bring 
down the rates to consumers and small businesses.
  Tonight, I want to speak about the long-range issue of energy and how 
that affects San Diego and the rest of our Nation. We all know that 
oil, natural gas, and home heating fuel prices are at a 10-year high. 
American consumers are facing record increases in domestic energy 
costs. This past summer households have been hit by soaring electricity 
rates in California, and motorists have faced astronomical gasoline 
price hikes. Now, in the coming winter months, high energy prices will 
affect households throughout the country.
  The economic consequences are all too evident to individual consumers 
both at home and overseas. In Europe we see gasoline shortages, panic 
buying, and massive protests over rising prices. Furthermore, the 
impact does not stop with the individual consumer; the whole Nation 
bears the consequences. A surge in the price of energy can derail the 
economic expansion that we have worked so hard to achieve and maintain.
  I think we know that energy supplies and prices are indeed cyclical. 
We have been lulled into inaction by the long downside half of that 
cycle. Oil and gas have been in adequate supply and the moderate energy 
prices have made us forget the upside of that cycle. The energy crises 
of the 1970s and 1980s are forgotten history. Consequently, we have 
failed to implement policies to increase our energy supplies and to 
promote stable prices. We have steadily grown more dependent on 
conventional and imported energy. Congress has done very little to 
protect the Nation from the inevitable upswing in that cycle.
  In particular, we have failed to support the development of 
alternative energy resources. In terms of domestic resource potential, 
wind energy is the most overlooked fuel source in this Nation. This 
resource is available in almost every State and can be utilized for 
electric generation more quickly than any other energy resource. 
Although California has been a leader, other States, such as Wyoming, 
Wisconsin, Vermont, Texas, Pennsylvania, Oregon, New York, Minnesota 
and Iowa, are beginning to utilize their wind energy resources. The use 
of wind power for electric generation is slowly growing.
  Compared with the tax incentives for conventional nuclear energy, 
Federal tax support for renewable energy resources, such as wind, is 
relatively small. Aside from accelerated depreciation, which is shared 
by other fast-evolving technologies, wind facilities now qualify only 
for a temporary Federal production tax credit. This credit helps 
provide a price floor, but if the price of wind-generated electricity 
rises above a certain benchmark, the tax credit phases out and this 
credit took effect in 1994.
  It was originally decided to sunset this credit in June of 1999. But 
several years after the credit was enacted, Congress considered 
repealing it when energy prices were at an all-time low. Fortunately, 
Congress retained the credit and later extended it until 2002. Despite 
waivering congressional policy, the credit has promoted use of domestic 
wind energy resources and has promoted technological development.
  An uncertain credit and a temporary extension, however, does not 
support long-term planning, development and construction of electric 
generation projects. The experience with another credit program proves 
my point. Between 1986 and 1992, when the section 48 solar and 
geothermal credit was finally made permanent, Congress extended this 
credit in 1-, 2-, and 3-year increments. Sizable projects could not be 
undertaken because of the short eligibility period; and small short-
term projects that were attempted had to be rushed to completion at 
great cost to meet the qualification deadline. For both policy and 
practical reasons, the wind production credit should be made permanent, 
like the credit for solar and geothermal resources.
  Our long-time reliance on conventional fuels has created a mindset 
which ignores alternatives. Mr. Speaker, the resulting institutional 
practices resist the use of nonconventional energy resources. Power 
management, transmission, and pricing practices need to adjust to the 
requirement of utilizing a new alternative resource. With the threat of 
another energy crisis looming in the future, Congress needs to reassess 
and redirect our national energy programs.
  To spur that analysis and redirection, I have introduced today the 
Wind for Electricity Act to specifically promote the development of 
wind energy resources in this Nation. I know that San Diego is looking 
to this Congress for short-term relief from the high prices of 
electricity and to long-term alternative energy resources. I hope we 
all act soon.

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