A smart, effective tax policy that has always enjoyed strong bipartisan support, the PTC encourages entrepreneurs and incentivizes private investment by rewarding wind energy projects only when they are brought online and are successfully producing clean, affordable energy. By providing wind energy companies with the financial certainty necessary to secure the required private capital to begin developing projects, the PTC has been an important part of the growth in America’s wind energy sector. As a result, wind energy now drives $10 billion to $20 billion a year in capital investment; supports tens of thousands of jobs across the county; and accounts for 35 percent of all new U.S. power capacity installed over the last four years.
Iowa is now producing over 20 percent of its electricity from wind farms at stable, dependable rates. We now have over 215 wind-related businesses operating in 55 counties across Iowa, providing jobs for as many as 7,000 workers. In Oregon, wind energy has invested nearly $6 billion in capital and enough wind capacity has been installed to power approximately 770,000 Oregon homes. In the process, thousands of Oregon jobs have been created by wind energy. The benefits of these energy developments also flow directly back to local communities. Land lease agreements from wind power projects have helped keep afloat farmers, ranchers and other rural landowners that have been hard hit by the economic downturn while millions of dollars in additional property tax payments have flowed to cash strapped local governments. In fact, recent estimates of the federal and state tax revenues generated throughout a wind project’s life exceed the tax savings afforded by the PTC.
The economic benefits enjoyed by our states because of wind energy can be maximized nationally if we reaffirm our commitment to energy diversity and smart economic policies like the PTC. The U.S. Department of Energy under the Bush Administration predicted that with the right policy support, national wind power could provide 20 percent of the United States' electricity by 2030. If we can achieve nationally what has already been done in Iowa and Oregon, the wind energy industry would support 500,000 American jobs, generate more than $600 million a year in land lease payments to rural landowners, and rural communities would see increases of as much as $1.5 billion annually in property tax revenues that can be used to fund schools, public safety and other critical public services that are feeling the squeeze of these tough economic times.
Congress faces a critical test in the next few weeks in determining America’s energy future. Without action, the PTC will expire. That needless uncertainty has already cost thousands of jobs and will cause future wind energy development to come to a grinding halt if Congress again fails to act. Should Congress fail to renew this successful program, jobs, communities and the energy futures of Oregon, Iowa, and other states in the coalition will all be in jeopardy.
Iowa Governor Branstad and Oregon Governor Kitzhaber are the chairman and vice chairman of the 28 state Governors’ Wind Energy Coalition.