Bill to Eliminate Production Tax Credit for Offshore Wind
This past Friday the 13th (5/13/05), Senators Alexander and Warner introduced the so-called Environmentally Responsible Wind Power Act, S.1034. Among other things, the bill disqualifies offshore wind projects from receiving the 1.8 cents Production Tax Credit (PTC) and gives adjacent states within a project “viewshed” the power to veto a proposed offshore project in the adjacent state. This article, Bill takes Aim At Subsidies for Wind (May 17, 2005) discusses the bill a little more and notes that the American Wind Energy Association denounced the bill at its annual conference now taking place in Denver.
Although wave energy projects are not yet eligible for a production tax credit, a bill like this one is a likely death knell for that possibility. A PTC, for all offshore renewables, either wave or wind, is vital to development of these projects and attracting potential investors. The Alexander-Warner bill is currently under consideration by the Senate Energy and Natural Resources Committee so if any of your Senators serve on that committee, please urge them to reject the proposed legislation.