SECTION: CAPITOL HILL HEARING TESTIMONY

LENGTH: 922 words

COMMITTEE: HOUSE RESOURCES

HEADLINE: ALTERNATIVE ENERGY SOURCES ON PUBLIC LANDS

TESTIMONY-BY: JAMIE C. STEVE,, LEGISLATIVE DIRECTOR,

AFFILIATION: AMERICAN WIND ENERGY ASSOCIATION, WASHINGTON, DC

BODY:
October 03, 2001

Jamie C. Steve, Legislative Director, American Wind Energy Association, Washington, DC

Enhancing U.S. Energy Security with Renewable Energy and Energy Efficiency Technologies

Energy shortages and price-hikes are again a major domestic concern. While fossil fuels will continue to play an important role in our economy for years to come, part of the answer to achieving energy security is to continue investing in renewable energy sources such as wind, solar, geothermal, biomass, and hydropower - while also achieving improvements in energy efficiency.

Investing in domestic, renewable energy technologies strengthens our national security, spurs new high-tech jobs, kick-starts rural economic development and helps protect the environment. Senators, there are no downsides - only upsides - when you choose to invest in renewables and energy efficiency. - Today, a homeowner in remote Kotzebue, Alaska, can afford to use all her appliances because wind turbines are reducing the need for high-priced diesel fuel to power electric generators in her village.

- Today, over 140 steel workers in Shreveport, Louisiana are starting work on a $40 million wind contract to build tubular turbine towers slated for Texas.

- Today, a micro-brewery in Ft. Collins, Colorado, the makers of Fat Tire Amber Ale, are purchasing all their electric needs from a wind power facility located in Medicine Bow, Wyoming.

- This year, the Federal government will take in over $41 million in royalty and production payments from geothermal development on Federal lands.

- Tomorrow, a farmer just outside of Pendleton, Oregon will collect his first annual lease payment of $2,000 for each wind turbine placed on his property.

Mr. Chairman, as a member of the Sustainable Energy Coalition - a group of more than 30 renewable energy and energy efficiency trade associations, environmental groups, and energy policy organizations - I can assure you that with the right policies, solar, geothermal, biomass, hydropower, and wind will produce even more benefits for the American people.

Renewable Energy Provisions of S. 2557 (Title IX)

Wind / Biomass Tax Credit: As to the specific provisions of S. 2557, we are particularly pleased by the inclusion of an extension, thru 2004, of the Production Tax Credit (PTC) for electricity generated using wind or biomass. The tax credit is particularly important in financing new wind and biomass projects throughout the U.S. It was through the leadership of Sen. Charles Grassley (R-IA) and the support of many members of this committee - including Chairman Murkowski, ranking member Bingaman, and Senators Dorgan, Burns, Smith, Graham, Johnson, and Wyden - that this tax credit was recently extended through December 2001.

Residential Solar Tax Credit: We also endorse the 15% solar credit capped at $2,000 per installation of photovoltaic and solar water heating systems. However, we suggest this provision be expanded to afford the same credit for small wind energy systems (up to 50 kilowatts) geared toward the same residential customers.

Provisions Needed to Improve S. 2557

- Increased Investments in Department of Energy R&D: We seek additional support for cost-shared DOE/industry partnerships aimed at further driving down the cost of all renewables technologies. This work has cut the cost of wind power more than 80% from 35 cents in the early 1980's to only 4-6 cents per kilowatt-hour today. Specifically, we seek support for DOE's Wind Powering America, Million Solar Roofs, and Geo-Powering the West initiatives, as well as a similar initiative for biomass. These efforts should also include an increased emphasis on small wind systems (50 kilowatts or less) aimed at significantly increasing the availability of this energy option for homes, schools, and businesses.

As to items not contained in S. 2557, but currently under consideration by this committee in utility restructuring legislation, we urge adoption of:

- A market-based Renewables Portfolio Standard (RPS) to promote clean power generation, ensure energy diversity, and enhance power reliability; (a policy already adopted by nine states: AZ, CT, ME, MA, NV, NJ, PA, TX, and WI).

- A Public Benefits Trust Fund to ensure continued support for energy efficiency, low-income assistance, and promotion of zero- emission technologies, such as small solar and wind systems - 50 kilowatts or below - that would not benefit from an RPS. These items have historically been included in the rate structure of most states.

- Further, we support the inclusion of a consumer disclosure provision, as well as a net metering requirement. Such provisions would establish a technical interconnection standard for on-site renewables, user-friendly consumer contacts, and a fair valuation for excess power generation. We also support mechanisms to protect against market power abuses, which are necessary to allow new entrants to compete fairly in the marketplace.

Conclusion

Investments in efficiency and renewables are delivering value for taxpayers by lowering our energy demand while developing additional domestic energy sources that strengthen our national security, spur new high-tech jobs, boost rural economic development and help protect the environment.

Why would we not invest to create more success stories like those of the homeowner in Kotzubue, the steel workers in Shreveport, the brewmeister in Ft. Collins, and the farmer in Pendleton?

Thank you.



LOAD-DATE: October 4, 2001