[Congressional Record Volume 147, Number 7 (Monday, January 22, 2001)]
[Senate]
[Pages S358-S359]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DORGAN:
  S. 94. A bill to amend the Internal Revenue Code of 1986 to provide a 
5-year extension of the credit for electricity produced from wind; to 
the Commission on Finance.


                    extending wind power incentives

 Mr. DORGAN. Mr. President, today I am introducing a bill that 
would extend for five additional years the Federal tax incentive that 
is currently available for facilities that produce electricity from 
wind.
  Despite all of its promise, wind energy is still a relatively 
untapped clean source of energy in our region and across the country. 
U.S. wind energy capacity in today's electricity marketplace is about 
2,600 megawatts. That's enough to serve about 600,000 typical American 
households. In 1999, the Administration committed our country to a goal 
of producing five percent of our total electricity needs--about 80,000 
megawatts--from wind power by the year 2020.
  Wind energy is one of the world's fastest growing energy 
technologies. As a result, wind energy can--and should--play a larger 
role in helping this country move toward greater energy independence. 
Soaring energy prices over the past year provide a stark reminder of 
the importance of reducing our reliance on foreign energy sources and 
keeping a diverse energy supply here at home. In addition, for states 
like North Dakota, wind energy offers needed economic opportunities for 
farmers and other rural landowners.
  North Dakota is the top-ranked state for wind energy potential and is 
often referred to as the ``Saudi Arabia'' of wind by industry experts. 
Together, North and South Dakota could supply two-thirds of the 
nation's current electricity supply with their wind energy

[[Page S359]]

capacity, according to a Department of Energy analysis.
  Greater wind development would also bring new jobs to many rural 
communities. Moreover, struggling family farmers could earn an extra 
$2,000-$3,000 annually for each 750 kilowatt wind turbine placed on the 
farm, while removing only a small fraction of land from the farmer's 
overall operation.
  Congress and the Administration have made some important progress in 
the effort to promote greater wind energy development. Congress has 
increased federal funding for wind and other renewable energy research 
and development at the Department of Energy over the past several 
years. It also has provided a substantial federal income tax credit 
that is vital for continued private sector investment in wind 
generation facilities. Most recently, the U.S. Department of 
Agriculture's Rural Utilities Service awarded its first-ever wind 
energy loan a rural electric cooperative serving the Upper Midwest will 
use to finance the construction of wind turbine generators and power 
lines to help distribute wind-generated power to rural communities.
  Regrettably, Congress and the Administration have undermined their 
very own efforts by failing to ensure that the federal income tax 
credit provided to facilities producing electricity from wind is 
available over the long term.
  I recently cosponsored a wind energy conference in North Dakota. It 
was attended by more than five hundred people, including developers, 
industry experts, utility executives, rural landowners, public 
officials and others. This was double the number of expected 
participants, which demonstrates the growing interest in this renewable 
energy resource.
  Among other things, I heard from wind energy developers who 
emphasized that one of the major obstacles to greater deployment of new 
wind technologies is the continued uncertainty surrounding the 
availability of the wind energy production tax credit. This credit is 
now scheduled to expire at the end of the year. Industry experts tell 
me that financial lenders will soon stop providing needed capital to 
new wind initiatives. As a result, projects already underway will 
quickly come to a halt. Many developers will simply be unable to build 
and purchase equipment, secure financing, obtain the required 
environmental permits and bring wind turbine generators on-line by 
year's end.
  One of the best ways to give developers the certainty and help they 
need to bring new state-of-the-art wind turbines to the marketplace at 
a competitive rate is to provide a sufficiently long period of time for 
them to access the credit. That's exactly what the bill I'm introducing 
today would do. Specifically, my bill would extend the current 
production tax credit for qualifying wind facilities that are placed in 
service on or before December 31, 2006.
  The wind energy production tax credit has had broad bipartisan 
support in the Senate and the House of Representatives in previous 
years, so I am optimistic that we can pass this legislation quickly in 
this new Congress. I urge my Senate colleagues to cosponsor this 
legislation and work with me to get it enacted into law as soon as 
possible. If we don't, many new wind energy initiatives will come to a 
standstill at a time when this country can least afford it.
                                 ______