CONGRESS ON VERGE OF KILLING WIND IN 2013
Iberdrola Suspending New US Wind Farms Without Tax Credit – Executive
January 25, 2012 (Dow Jones Newswire via Fox Business)
"… Spain's Iberdrola SA (IBDRY, IBE.MC) has suspended planning for new wind farms in the U.S... anticipating that Congress may not extend a popular tax credit for the industry…Rich Glick, vice president of government affairs for Iberdrola Renewables…[said] there would be ‘close to zero’ megawatts of wind power built in the U.S. in 2013 if the credit isn't extended soon…
"…[A] broader legislative deal to give payroll tax breaks to U.S. workers is being debated]. If the wind provision isn't included in that bill…to be voted on [by the end of February]… it might not be considered again until after the November elections…Wind farms that are producing electricity by the end of this year can claim the credit, and industry observers say 2012 could be a record year for wind installations as developers race to complete projects…"
click to enlarge
"But the wind industry is scaling back future plans now because it takes years to plan a project and they can't count on any future tax credits…Acciona Wind Power North America… said the company's turbine assembly facility in Iowa might be able to keep its workforce at about 125 without the credit by shipping the turbines to wind farms in Canada, Mexico, or elsewhere. But it could be ramping up production and hiring more people if the credit were still in place…
"The American Wind Energy Association and other trade groups support a bill that would extend the credit by four years. Senate Majority Leader Harry Reid (D., Nev.)…suggested it should be part of ongoing negotiations on the payroll tax…[but] Rep. Fred Upton (R., Mich.), said provisions to delay enforcement of Environmental Protection Agency rule on industrial boiler emissions and to expedite the approval of the cross-border Keystone XL oil pipeline from Canada should also be part of the deal. Many Senate Democrats oppose both…"