QUICK NEWS, 12-9: NEW ENERGY FIGHTS BACK; SOLAR TAX CREDIT OR NOT; SAVE THE EV TAX CREDIT; WIND JOBS AT STAKE

NEW ENERGY FIGHTS BACK
Clean-Energy Incentives at Risk in Tax Deal
Martin Vaughan, December 7, 2010 (Wall Street Journal)

"Billions in federal subsidies for manufacturers of solar panels and wind- and solar-power facilities will end Jan. 1, 2011, unless lawmakers who negotiated a deal to extend tax cuts back down from their positions.

"The clean-energy incentives were created by 2009 economic stimulus legislation.
Republicans are taking a firm stand that they aren't part of a deal reached with the White House, and shouldn't be a part of broader legislation to extend tax cuts for individuals and businesses, according to GOP aides."

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"Democrats have sought to extend the programs, most recently in legislation from Sen. Max Baucus (D., Mont.) that failed in the Senate last week…Republican leaders…[say] the deal they reached with the White House is final, and only some specifics of the provisions that were part of the deal need to be ironed out…[in meetings btween ] Congressional staff of both parties…[and] White House officials…

"Ultimately some decisions about what to include will be subject to negotiations by GOP and Democratic lawmakers. One open question is an extension of Build America Bonds for state and local infrastructure projects. Democratic staff…[are reportedly pressing] for those bonds to be extended as part of the tax package…"

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"On the energy-tax breaks, solar- and wind-power facilities for the past two years have been able to get federal grants equal to 30% of the cost of installing new facilities. Tax credits have long been available for those costs, but the stimulus act removed the need for new solar and wind operators to tap the tax credit market for financing.

"The American Wind Energy Association warned…that a refusal to extend the grant program could jeopardize 15,000 jobs in the sector…A one-year extension of the program sought by Mr. Baucus would have provided $3 billion in federal grants in 2011…A 30% tax credit for builders of plants that manufacture solar panels or other clean-energy components also appears set to be phased out…[C]reated as part of the stimulus law, [it] could have provided $2.5 billion in tax credits under the Baucus proposal."


SOLAR TAX CREDIT OR NOT
North American photovoltaic market predicted to double in 2011
December 8, 2010 (Reuters)

"…[While renewable energy lobbyists warned] that the failure of Congress to extend a key financial incentive would be disastrous for the solar and wind industries…IDC, a research firm, released a report predicting that the North American photovoltaic market will double in 2011…

"What has the renewable energy industry worried is the expiration at year’s end of a Treasury program that lets developers take a cash grant to cover 30 percent of the cost of big solar, wind and geothermal projects in lieu of taking an existing investment tax credit. Since most green energy companies have no profits to offset with the tax credit, the cash grant has become crucial to obtain financing to build multibillion-dollar solar power plants and wind farms…"

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"While some of those projects are photovoltaic farms that install tens of thousands of solar panels like those found on residential roofs or on the ground in huge arrays, many are solar thermal power plants that use mirrors to heat liquids to create steam to drive an electricity-generating turbine.

"While the tax credit and federal loan guarantees are critical for such utility-scale projects, the residential and commercial rooftop market depend on a host of state and federal incentives that won’t be as affected if the cash grant program disappears."

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"California, for instance, runs a program that is subsidizing the installation of 3,000 megawatts of rooftop solar while states such as Oregon, Illinois and Massachusetts have carved out quotas for photovoltaic projects in their renewable energy targets…Hence, IDC estimates that installed photovoltaic capacity in North American in 2011 will more than double to between 2.3 gigawatts and 2.7 gigawatts…

"Contributing to the growing rooftop solar market has been a rapid decline in photovoltaic module prices over the past two years, increased competition with low-cost Chinese manufacturers and the spread of leasing programs that allow homeowners to go solar without incurring the significant capital costs of installing photovoltaic arrays."


SAVE THE EV TAX CREDIT
Tell Congress -- Don't let the EV infrastructure tax credit expire!
December 8, 2010 (Plug In America)

"Last year, Plug In America, along with plug-in vehicle and EV infrastructure manufacturers from coast to coast worked with members of the House and Senate to get a critical plug-in vehicle infrastructure tax credit into the stimulus bill. These EV tax credits of 50% up to $2,000 for individuals, and 50% up to $50,000 for businesses have led to the beginning of early deployment of EV charging infrastructure all across the United States.

"But the infrastructure tax credit is set to expire on 12/31/2010…Just as plug-in cars are about to get on the road is absolutely the wrong time to end these tax credits."

Click thru to track any emerging EV

"We were initially successful in advocating an extension in the proposed 2010 tax extenders legislation. But now…the tax credit extension for EV infrastructure may be scaled back or eliminated from the tax extenders bill. This credit should be extended at the same level as in the stimulus for at least another three years."

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"…[S]end a strong message to your representatives in Congress and the President telling them that you want plug-in electric vehicles to be successful along with the truly green jobs they can create…[M]ake sure we can get affordable plug-in infrastructure at our homes and businesses and support plug-in vehicles getting on the road now…Ask Congress to advance the next generation of transportation options…

"…Each and every voice they hear will make a difference…[Click thru to] fill in your zip code…so we can load up your representatives and in less than a minute you can get your message to Congress about this key issue…...[and] you may want to purchase your EV charging station before the end of the year..."


WIND JOBS AT STAKE
Wind industry says 3,000 Texas jobs could be lost if key subsidy isn’t renewed
Dave Michaels, December 8, 2010 (Dallas Morning News)

"The wind industry says it's mobilized to lobby Congress to extend a key subsidy that kept the business going during the recession. Despite having White House support, the program was left out of an agreement announced this week that would extend the Bush tax cuts, unemployment insurance, and a host of other incentives. It has sent more than $1.3 billion to wind-energy projects in Texas since 2009…

"The wind and solar industries are hoping that Democratic senators will be able to add the program to the tax package. And they are playing up the ramifications if that doesn't happen. In Texas, wind-energy developers and manufacturers may lay off 3,000 workers if the program isn't renewed for two more years, said Denise Bode, CEO of the American Wind Energy Association. Nationwide, 20,000 jobs hang in the balance…"

What happens when policies don't support growth. (click to enlarge)

"Even with the program, newly installed wind capacity will fall this year by half compared to 2009. Without the subsidy, the outlook for next year is ‘flat line or down,’ Bode said.

"AWEA noted that oil companies benefit from permanent tax credits that provide certainty for investors, while the renewable sector must lobby every couple years to preserve its subsidies…"