[Congressional Record Volume 149, Number 27 (Thursday, February 13, 2003)]
[Senate]
[Pages S2470-S2471]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. GRASSLEY (for himself, Mr. Baucus, Mr. Conrad, Mr. Crapo, 
        Mr. Breaux, Mr. Leahy, Mr. Harkin, Mr. Durbin, Mr. Craig, Mr. 
        Johnson, Mr. Chafee, Ms. Snowe, and Mr. Kerry):
  S. 395. A bill to amend the Internal Revenue Code of 1986 to provide 
a 3-year extension of the credit for producing electricity from wind; 
to the Committee on Finance.
  Mr. GRASSLEY. Mr. President, I rise today to introduce important tax 
legislation on behalf of myself and Senators Baucus, Conrad, Crapo, 
Breaux, Leahy, Harkin, Durbin, Craig, Johnson, Chafee, Snowe, and 
Kerry.
  This bill, entitled the ``Bipartisan Renewable Efficient Energy with 
Zero Effluent, BREEZE, Act,'' extends the production tax credit for 
electricity generated by wind for three years. The current tax credit 
is set to expire on January 1, 2004.
  As the author of the Wind Energy Incentives Act of 1993, I sought to 
give this alternative energy source the ability to compete against 
traditional, finite energy sources. I strongly believe that the 
expansion and development of wind energy must be facilitated by this 
production tax credit.
  Wind, unlike most energy sources, is an efficient and environmentally 
safe form of energy production. Wind energy makes valuable 
contributions to maintaining cleaner air and a cleaner environment. 
Every 10,000 megawatts of wind energy produced in the United States can 
reduce carbon monoxide emissions by 33 million metric tons by replacing 
the combustion of fossil fuels.
  Since the inception of the wind energy production tax credit in 1993, 
more than 3,000 megawatts of generating capacity have been put online. 
This generating capacity powers nearly 900,000 homes.
  Just last year, over 400 megawatts of new wind energy capacity was 
installed, bringing total capacity to more than 4,500 megawatts. Wind 
energy is currently serving the equivalent of more than 1.3 million 
average American homes in 27 states across the country.
  During the past two decades, the price of wind energy has been 
reduced more than 80 percent, making it one of the least expensive 
sources of renewable energy. In order to continue this investment and 
development in America's energy future, we must extend the production 
tax credit.
  From 1999 to 2001, wind energy capacity in Iowa grew by 33 percent, 
and while Iowa ranks tenth in the nation in terms of wind energy 
potential, Iowa currently ranks third nationally in wind development, 
with over 400 megawatts of generating capacity. Only California and 
Texas generate more electricity from wind than Iowa. And, the Iowa 
Department of Natural Resources estimates that Iowa has the potential 
to produce nearly 5 times its own annual electrical needs through wind 
power.
  Wind energy also produces substantial economic benefits. For each 
wind turbine, a farmer or rancher can receive more than $2,000 per year 
for 20 years in direct lease payments. Iowa's major wind farms already 
pay more than $640,000 per year to landowners.

  Equally important, wind energy increases our energy independence, 
thereby providing the United States with insulation from an oil supply 
dominated by the Middle East. Our national security is currently 
threatened by a heavy reliance on oil from abroad.

[[Page S2471]]

  Unfortunately, due to the structure of the current tax incentive, a 
significant portion of the electricity industry is unable to take 
advantage of the credit. Rural electric cooperatives and municipal 
utilities provide power to nearly 25 percent of the Nation's consumers. 
To encourage a unified national energy plan, it's only fair to give 
cooperatives and other not-for-profit utilities the ability to use 
renewable tax incentives.
  REC's and municipal utilities should be given a mechanism to utilize 
the tax incentives for renewable electricity generation. And, while the 
legislation I'm introducing today does not address this issue, I look 
forward to working with my colleagues on the Finance Committee to 
include such a mechanism in a comprehensive energy tax package.
  Extending the wind energy tad credit would allow for even greater 
expansion and planning stability in the wind energy field. Wind is a 
domestically produced natural resource, found abundantly across the 
country. Because wind energy is homegrown, it cannot be controlled by 
any foreign power.
  Wind energy can be harnessed without injury to our environment. Wind 
is a reliable form of power that is renewable and inextinguishable. 
This legislation ensures that wind energy does not fall by the wayside 
as a productive alternative energy source.
  The Senate needs to extend this important incentive and I encourage 
my colleagues to join us in this effort.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 395

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Bipartisan Renewable, 
     Efficient Energy with Zero Effluent (BREEZE) Act''.

     SEC. 2. 3-YEAR EXTENSION OF CREDIT FOR PRODUCING ELECTRICITY 
                   FROM WIND.

       Section 45(c)(3)(A) of the Internal Revenue Code of 1986 
     (relating to wind facility) is amended by striking ``January 
     1, 2004'' and inserting ``January 1, 2007''.
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