Senate-Approved Energy Stimulus Package

[Guest AWEA]

The American Wind Energy Association (AWEA) hailed Senate approval today of its economic stimulus bill, which includes several provisions designed to create incentives for wind and other renewable energy industries. "This stimulus package is a critical down payment on long-term policies to enhance energy security, encourage new economic investment in jobs, and address climate change," said Greg Wetstone, AWEA's Senior Director for Governmental Affairs. "We look forward to working with our friends in the House and Senate to achieve a compromise bill that can help the wind industry recover its momentum through this down economy and into the next decade."

 

The Senate-passed bill includes a $7 billion renewable energy loan guarantee program (an amount that is $1 billion less than the level provided in the House version of the bill), a 3-year extension of the federal production tax credit (PTC), an additional year of bonus depreciation for 2009, elimination of the cost caps for the small wind investment tax credit, and targeted provisions to encourage construction of new transmission lines to deliver electricity generated from renewables.

 

Wetstone noted that the industry will be pushing for inclusion in the final legislation of a Department of Energy (DOE) grant program included in the House bill last month. "The House DOE grant program is absolutely essential to continuing the growth of wind power and other renewable energy sources through the down economy," he commented.

 

The wind industry posted a record-shattering year in 2008, installing more than 8,300 MW of new wind capacity. In addition, 55 new wind-related manufacturing facilities were opened, expanded or announced in the U.S. last year alone. Wetstone warned that despite this record performance, the wind industry faces many challenges in the current economic environment.

"Last year, projects were coming on so fast that everyone was concerned about a manufacturing backlog. That’s been replaced by a drying up of capital and financing due to the national credit crisis," Wetstone noted. "The wind industry is ready to do its part for the economic recovery, and with the right policies in place, we're ready to lead the nation’s economic recovery and to meet President Obama’s vision of doubling renewable energy production in the next three years."