Iowa

Sioux City Journal

House passes tax credits for alternative energy producers
By Todd Dorman Journal Des Moines Bureau

DES MOINES -- A bill awarding tax credits to small alternative energy producers cleared the Iowa House Monday and is on its way to Gov. Tom Vilsack.

Iowa facilities that produce less than 2.5 megawatts of power from wind, biomass, hydrogen or other alternative sources are eligible for tax credits starting in July 2006. The bill was approved on a 79-16 vote.

Tax credits would add up to $2.8 million in Fiscal Year 2007 and $5.5 million by 2010, according to the Legislature's non-partisan Fiscal Services Division.

Backers argued that the bill would encourage the development of innovative, small-scale energy operations. They sidestepped critics who dubbed it a subsidy.

"Our nation literally runs on energy subsidies," said Sen. Mary Lou Freeman, R-Alta. "And if you think if what we're doing over in Iraq isn't considered a subsidy, then I think we're all mistaken.

"Yes, this is a subsidy. It's an investment in local, small producers," she said.

The tax credit amounts to 1.5 cents per kilowatt hour of electricity generated by wind facilities and $4.50 per million BTUs for methane or other biogas operations. Hydrogen facilities would be eligible for $1.45 per 1,000 cubic feet of fuel.

To be eligible, a facility's majority owner must be an Iowa resident, a farm operation or an electric cooperative. Facilities could receive the credit for up to 10 years.

Minnesota
Community-Based Energy Development (C-BED) tarriff-
http://www.revisor.leg.state.mn.us/bin/bldbill.php?bill=H1344.3&session=ls84

Oregon
This Oregon PUC order has significant potential to advance community wind in Oregon:

http://www.puc.state.or.us/orders/2005ords/05-584.pdf

This message has been edited. Last edited by: Sarah Johnson,

We just updated the Windustry website to include a little more information on the new Iowa tax credit. From what I've heard, it might already be fully subscribed!!

http://www.windustry.org/community/policy.htm.

I heard through the grape vine that Montana is about to start developing Distributed Generation interconnection technical and procedural standards. I guess the governor got "wind" that there is a large potential for wind development in the state and he's actively pushing for legislation to make that happen.

Yeah, Montana!

I'll keep you posted.

quote:

Originally posted by Sarah Johnson:
I should have added Montana to this list too, so it's really 4 new state incentives in 2005:

The Montana legislature adopted a Renewable Energy Standard in April 2005, requiring the state to have 15% renewable energy by 2015. The standard includes a set aside for community based renewable energy projects that amounts to at least 75 MW by 2015. Projects eligible for the set aside must have a nameplate capacity of 5 MW or less; have local owners with a controlling interested; and be interconnected on the utility's side of the meter.

Hi Sarah,

I've been following this bill over the past few months. It doens't seem to do much for wind. It's designed primarily as a luer for PV and inverter manufacturers to locate research and manufacturing facilities in the state of Washington by offering a production incentive to consumers who purchase PV products that are manufactured in the state. If you build it here we will buy it kind of thing.

It's kinda funny how many supporters there are for it in Seattle, seeing as it's cloudy 300 days a year and we are north of the 45th parallel making the azimuth angle pretty steep here.

But it is an interesting idea. I'd like to see it modified for wind on a national level to see if it would attract Vestas or Gamesa to open manufacturing facilities state side.

quote:

Originally posted by Sarah Johnson:
This Washington State law is intriguing too, but I'm still trying to sort out what it will do for wind energy:

http://www.renewableenergyaccess.com/rea/news/story?id=28478

This Washington State law is intriguing too, but I'm still trying to sort out what it will do for wind energy:

http://www.renewableenergyaccess.com/rea/news/story?id=28478