[Congressional Record Volume 147, Number 30 (Thursday, March 8, 2001)]
[Extensions of Remarks]
[Pages E314-E315]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                 TAX CREDIT FOR WIND ENERGY PRODUCTION

                                 ______
                                 

                            HON. MARK FOLEY

                               of florida

                    in the house of representatives

                        Thursday, March 8, 2001

  Mr. FOLEY. Mr. Speaker, I wanted to bring to the attention of the 
House a measure that has been introduced to extend the current, and 
very important, tax credit for wind energy production (the PTC) until 
the year 2007.
  I introduced this legislation with my Ways and Means colleagues Jerry 
Weller, Bob Matsui and Karen Thurman--as well as Jim McCrery, Rob 
Portman, Wes Watkins, and Jim Ramstad--because of the pressing need to 
get this issue addressed. If we do not extend the credit, the current 
PTC will expire at the end of the year--a situation that would deliver 
a stunning setback to a form of alternative energy development that is 
needed more now than ever, given our growing energy difficulties.
  Mr. Speaker, wind energy production credit was originally enacted 
under the bipartisan Energy Policy Act of 1992 and has enjoyed strong, 
bipartisan support every since. In fact, during the 106th Congress, 197 
House members cosponsored H.R. 750 to extend the credit.
  What the credit itself does is to provide an inflation-adjusted 1.5 
cents per kilowatt-hour credit for electricity produced with wind power 
equipment. The credit is only available if the wind energy equipment is 
located in the United States and electricity is generated and sold by a 
U.S. taxpayer.
  There should be no question, given the current domestic energy 
crisis, that the need for

[[Page E315]]

fostering alternative energy sources in the United States is critical--
and wind energy has phenomenal potential. As of now, the majority of 
domestic wind development has been located in California, but there are 
numerous other states that have great natural potential, including 
North Dakota, Texas, Kansas, South Dakota, Montana, Nebraska, Wyoming, 
Oklahoma, Minnesota, Iowa and
  Wind energy projects also offer a boon to farmers, particularly those 
in the Farm Belt--one of the most promising areas for the development 
of domestic wind resources. Wind power projects and ranching and 
farming are fully compatible; wind plants can be located and operated 
with little or no displacement or interference with crops or livestock. 
And for farmers and ranchers, the lease payments paid to them by wind 
operators serve as a stable source of extra income.
  Wind projects also create important new economic opportunities in the 
communities in which they are located. New wind facilities lead to 
increased local tax bases, new manufacturing opportunities, rental 
income for farmers and ranchers and new construction, and ongoing 
operational and maintenance jobs. This leads to more jobs and other 
economic opportunities in rural areas where those things can be scarce.
  Equally important, wind energy is an environmentally friendly form of 
energy that produces no air or groundwater pollution.
  Unfortunately, none of these benefits are possible without the 
production tax credit.
  Wind energy is viable and working, but without the credit, 
development would be hindered dramatically. As we know all too well, 
energy prices are in a terrible state of flux now. This sort of 
fluctuation makes the financing and development of wind projects 
terrifically difficult. Put simply, the production tax credit abrogates 
this problem by leveling the costs of production through a guaranteed 
revenue stream. In the end, such a guarantee--which must be at least 
five years to ensure viability--will foster a cost-effective and 
environmentally sensitive energy sector. And that is exactly what we 
need.
  For all these reasons, we owe it to ourselves to pass a five-year 
extension of the wind energy production tax credit. And I urge my 
colleagues in both the House and Senate to continue to support this 
important fledgling industry.

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