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Group takes issue with Congress for cutting wind energy tax break

<b>By KEVIN WALKER<br>
Michigan Correspondent</b> </p><p>

WASHINGTON, D.C. — The American Wind Energy Assoc. (AWEA) expressed its disapproval of the latest federal energy bill, which lacks an extension of the production tax credit, a tax break the industry views as critical to its growth.</p><p>
“Today’s vote is out of step with Americans across the political spectrum who overwhelmingly support clean, homegrown renewable energy,” said AWEA Senior Director of governmental and public affairs Gregory Wetstone, in a Dec. 13 news release.</p><p>
Wetstone was referring to the U.S. Senate’s failure to overcome a filibuster of the energy bill that contained the tax credit extension. President Bush signed a version of the bill shortly afterward that didn’t contain the credit, which would benefit the biofuel industry as well as the wind industry.</p><p>
According to the AWEA, the bill that was filibustered would have extended the tax credit for an additional two years, and created a small wind tax credit. The current production tax credit will expire at the end of 2008.</p><p>
“The tax credit helps the wind industry be competitive with other industries that have their own tax credits,” said Susan Sloan, a spokeswoman for the AWEA. “It’s good to set policies for the long-term.”</p><p>
As it stands, she said many people are going to “hurry around” to get wind projects completed by the end of the year. Without an extension of the tax credit, wind projects will have to be online before the end of the year in order to be eligible for the break.
“We are fairly confident that the tax credit will be extended,” Sloan added.</p><p>
Jeannette Hagen, a spokeswoman for Noble Environmental Power, a Connecticut-based wind energy company, echoed Sloan’s comments. “I don’t think anybody’s panicking at this point,” she said of the credit‘s ultimate fate. Hagen added her sense is that the tax credit usually gets extended, albeit at the last minute. Noble Environmental Power is in the planning stages of a wind energy park in the town of Ubly, Mich., in the Thumb area of the state. Hagen said although construction hasn’t started yet, the project should be online by the end of the year. The project was delayed more than once by the need for more studies, including a sound study. The Thumb Windpark may have as many as 46 turbines when completed.</p><p>
After it completes the project in Ubly, Noble is planning to build another wind park about 10 miles south of there. That project, currently known as Phase 2, could have 60 turbines. Hagen said it should be completed in 2009 or 2010.</p><p>
There is only one wind park under construction in Michigan, the Harvest Wind Farm, also located in the Thumb area. That park is being developed by John Deere in partnership with Wolverine Power, and will have 32 turbines. There are three other small wind parks in the state.</p><p>
The AWEA is also pushing a so-called renewable portfolio standard (RPS). So far, 22 states and the District of Columbia have adopted RPS requirements. An RPS basically means a state has to get a certain amount of its energy from renewables. Although there is no law that dictates an RPS in Michigan, state leaders also want energy companies to adopt an RPS.</p><p>
“It’s more of a guideline, not a law,” said T.J. Bucholz, a spokesman for Gov. Jennifer Granholm. “We’re just trying to diversify Michigan’s economy.”</p><p>
He said it’s important to have a renewable energy infrastructure in place so that there can be an achievable RPS.</p><p>
Consumers Energy of Michigan, one of the two main energy suppliers in the state, has a Green Energy program. According to a report produced by the company last year, it would like to double its renewable energy portfolio to 10 percent by 2015, mostly through greater use of wind energy.

1/10/2008