[Congressional Record (Bound Edition), Volume 155 (2009), Part 7]
[Extensions of Remarks]
[Page 8979]
[From the U.S. Government Publishing Office, www.gpo.gov]




INTRODUCTION OF THE WIND INCENTIVES FOR A NEW DECADE ENERGY ACT OF 2009

                                 ______
                                 

                          HON. KEVIN McCARTHY

                             of california

                    in the house of representatives

                        Thursday, March 26, 2009

  Mr. McCARTHY of California. Madam Speaker, I am pleased to introduce 
the Wind Incentives for a New Decade (WIND) Energy Act of 2009, which 
would extend the production tax credit (PTC) over the next decade to 
demonstrate that we are committed to powering our nation with more 
alternative and clean electricity.
  Electricity prices have soared more than 26 percent nationally since 
2000. Wind energy and other renewable energy resources are a crucial 
component to ensuring that Americans have access to clean, reliable, 
diversified, and affordable electricity. According to the U.S. Energy 
Information Administration, wind energy today accounts for 
approximately 3 percent of electricity produced in the United States. 
However, wind energy capacity has the potential to significantly 
increase in the United States in the future--but only if we have a 
stable investment climate.
  A clean, reliable, and renewable energy source, wind-generated 
electricity produces no carbon dioxide or greenhouse gas emissions. In 
fact, in 2007, the American Wind Energy Association (AWEA) estimated 
that wind energy displaced more than 28 million tons of carbon dioxide 
from being released into the atmosphere. A 2007 report compiled by the 
American Solar Energy Society indicates that widespread use of wind has 
the potential to displace up to 1,780 million metric tons of carbon 
dioxide by 2030.
  By extending the PTC through 2020, my bill would create long-term 
fiscal stability primarily in the wind energy market. This certainty is 
vital to wind energy project planning and development. By providing a 
long-term credit, wind energy developers can attract investors and plan 
out schedules for project development, thereby creating an efficient 
and cost-effective process for allocating resources and encouraging 
investment in this industry. This alone has the potential to reduce the 
costs associated with many of these projects thereby making wind-
generated electricity more competitive with other types of electricity 
that is generated.
  The wind energy industry currently employs over 85,000 individuals 
and indirectly employs tens of thousands more in industry-related 
support services. With a current national unemployment rate of 8.1 
percent, which is higher in the construction sector (21.4 percent) and 
manufacturing sector (11.5 percent), providing long term stability in 
the tax code for the PTC would help create sustainable, good-paying 
jobs. In fact, in 2008, AWEA estimates the wind industry invested over 
$7.8 billion in wind turbines, primarily made of steel, which 
translated into purchases of more than $3 billion of steel and cast 
iron components.
  Additionally, a report published in 2007 by the U.S. Department of 
Energy's Lawrence Berkeley National Laboratory found that a 5- to 10-
year extension of the PTC, relative to one- or two-year extensions, 
could reduce the cost of wind projects by up to 15 percent, result in 
better transmission line planning, enhance private research and 
development spending, and significantly increase domestic manufacturing 
of wind equipment thereby, creating American jobs. In addition, this 
report goes on to indicate that by extending the PTC through 2020, wind 
energy has the potential to increase in the United States from about 3 
percent to 17 percent of our electricity supply by 2030.
  Unfortunately, since its creation in 1992, the PTC has been allowed 
to expire three times, only to be retroactively renewed and extended. 
In addition, Congress has very nearly allowed this credit to expire 
many times, but then has passed 11th hour extensions of the provision. 
The 3-year extension of the PTC included in the recently-enacted 
stimulus bill is a good start; however, given the history of extending 
this credit, such uncertainty in this process is a major disincentive 
to long-term wind and renewable energy development. This situation has 
led to a boom-bust cycle in wind energy rather than a consistent, 
longterm investment in one of our nation's limitless green energy 
resources. For instance, information compiled by AWEA shows that each 
time the PTC was allowed to expire but then was reactively renewed and 
extended, the subsequent year wind energy installations decreased 73 
percent--93 percent compared to the prior year.
  Kern County, which I represent, is a model of renewable energy 
resources, and Tehachapi, California, is a leader in wind energy 
development. In fact, the Tehachapi Wind Resources Area, located in the 
Tehachapi Mountains of eastern Kern, has attracted wind energy 
developers because, if you have ever been there, the wind blows nearly 
all the time through the mountain tops and valleys. Underscoring the 
vast wind energy potential in this area, over 3,500 wind turbines have 
already been installed, which produce electricity to power more than 
250,000 homes and create more than 650 jobs (both directly and 
indirectly) in the local communities. In addition, Kern County produces 
over 30 percent of the total wind-generated power in California, and 
accounts for about 5 percent of the total wind power generated in the 
United States. Even with all of this, it is my understanding there is 
still opportunity for significant expansion of wind power in the Kern-
Tehachapi area, which some estimates put as high as bringing an 
additional 6,000 megawatts of wind-generated electricity online. A 
long-term extension of the PTC would help ensure that the Tehachapi 
Wind Resources Area, as well as the United States', vast potential for 
wind energy can be developed in a reliable and timely manner, which not 
only benefits Kern County, but California and the United States.
  It is time for Congress to take decisive action to help ensure that 
Americans have reliable and affordable renewable electricity. A long-
term extension of the PTC would help ensure that we can maximize the 
potential of our American renewable energy resources, such as wind, and 
create thousands of new, skilled jobs, both in manufacturing and 
engineering in this country.

                          ____________________