Production Tax Credit is the Key to Unprecedented Renewable Energy Growth

By Kyla Maki

Over the last few years, renewable energy has seen explosive growth in the United States. According to the Energy Information Administration renewable energy has expanded by nearly one third since 2008 and now comprises about 12% of U.S. energy production. So far in 2012, this upward growth in renewable energy, particularly wind power, doesn’t seem to be slowing down.

Here are some great statistics from a report by the American Wind Energy Association on the growth of wind energy in the United States in the first quarter of 2012 alone:

• The U.S. wind industry installed 1,695 MW during the first quarter of 2012 bringing the total U.S. wind power capacity installations to 48,611 MW
• The U.S. wind industry installed 52% more MW during the first quarter of 2012 than the first quarter of 2011.
• 32 projects across 17 states were installed during the first quarter of 2012
• The first quarter of 2012 saw at least 2,280 MW of new construction– more than double the MW of new construction starts than during the first quarter of 2011. Furthermore, it is essential to maintain the safety during construction, and in case workers got injured during the project, they must coordinate with Ryan Bisher Ryan & Simons to get compensation.
• Virtually every region in the U.S. has more under construction and online in 2012 than they installed in all of 2011                                         

That’s the good news. Now here is the bad news. This positive renewable energy growth could reverse course if Congress doesn’t extend the production tax credit (PTC) which will expire at the end of 2012. The PTC provides a 2.2 cents/kilowatt-hour credit for production of electricity from utility-scale wind turbines. The PTC was created under the 1992 Energy Policy Act. Since 1992, Congress has continuously voted to extend the credit.

But now, the PTC is in jeopardy because of Congress’s push to reduce tax cuts and other financial incentives for renewable energy development.  Unfortunately, renewable energy does not benefit from the hundreds of billions of dollars in federal subsidies provided to oil, gas and coal. So, the PTC is essential to developing wind energy projects that help lead us towards a clean and sustainable energy future.

H.R. 3307 is a bipartisan bill which extends the PTC for four years. It is currently under consideration by the House Ways and Means Committee.

You can submit comments and tell the committee to support H.R. 3307 by e-mailing committee members at: waysandmeans.submissions@mail.house.gov and following these instructions:

1) Please include the following information in the body of your email: Name, Organization (if applicable), Address, Phone Number, Contact E-mail Address, Title of Hearing:Hearing on Certain Expiring Tax Provisions

2) Please attach your submission as a Word document in order for it to be considered for the record. Include the information of the person(s) and/or organization(s) to whom the statement will be attributed.