Wind, other renewables, need Senate to pass tax credit

 

In recent months several wind-power projects — one of them very large — have gotten under way in northcentral Montana. But because of the U.S. Senate's failure to act, several more are stalled.

 

The state's biggest wind project is under construction near Ethridge, between Cut Bank and Shelby on the Hi-Line — 140 turbine-topped towers that will generate 210 megawatts of power.

Glacier Wind Project's owner, Spain-based NaturEner, hopes to be operating by Halloween.

The reason for the fast-track construction calendar is the end-of-year expiration of a federal production tax credit that makes wind and other renewable power generators financially competitive with other sources of electricity.

Other wind projects, large and small, in Montana and across America, are hanging up at the finance stage until Congress renews the tax credit.

The House passed an extension, but the measure stalled in the Senate, where it failed Tuesday for the third time.

"The general agreement among everyone is, 'Look, Congress is not going to let these things expire,'" Bill Wicker, a spokesman for the Senate Energy and Natural Resources Committee, said this week. "Unfortunately there aren't a lot of extra dollars laying around."

At a time when America and the world are clamoring for "green power," it boggles the mind that this relatively inexpensive credit — a one-year extension would cost $3.5 billion — can't get funded.

We know about "a billion here, a billion there" and all that, but $3.5 billion would fund the tax credit for wind generators for 10 years; the same amount funds the war in Iraq for about 10 days.

Sen. Jon Tester, D-Mont. and a member of the Energy and Natural Resources Committee, said Thursday the Senate would revisit the issue next week.

"The progress we've made in alternative energy grinds to a halt if we don't extend this credit," Tester said. "It gives Montana the tools we need to lead the way in developing our other natural resources like wind, biomass, and geothermal energy."

The wind industry grew about 45 percent last year and now provides enough electricity to power about 4.5 million homes, a number that has increased by half a million a year for several years now — with the tax credit of 2.1 cents a kilowatt-hour in place.

An industry spokesman said wind could provide a fifth of the nation's electricity needs by 2030 — with the credit in place.

"Everybody is looking for an alternative to traditional fuels," said Vic Abate, renewables vice president at GE Energy, the largest wind turbine manufacturer in the United States.

Wind power "is really on the cusp of becoming a tremendous growth engine," he said, "and we could see it growing for a decade plus."

So could we — with the credit in place. The Senate should pass the credit.