in News Departments > Policy Watch
print the content item



Rep. Mike Fitzpatrick (R-Pa.) has introduced H.R.2987, the PTC Certainty and Phase-Out Act of 2013, which would extend the PTC for six years before being completely phased out.

According to Fitzpatrick, who introduced the bill into the House before Congress dismissed for the August recess, the bill would provide the business certainty that wind developers and suppliers need.

"This bill gives wind energy producers a six-year window to make this alternative form of energy work on market-based principles," says Fitzpatrick. "The phase-out strategy outlined in this bill can be a model for similar tax credits to provide entrepreneurs with a level playing field while giving these companies the opportunity to innovate and plan for success."

The federal PTC for wind expires at the end of this year. However, a change in the rules, added during the last extension, requires project developers to show that project construction in 2013 must be able to demonstrate "significant work of a physical nature" and show that 5% of their costs have been incurred.

Congress amended the language to allow any project that starts construction in 2013 to qualify for the PTC, rather than require the project to be fully completed. Congress tweaked the rule to allow developers to maximize the tax incentive.

In the release, Fitzpatrick notes the last-minute approach to the previous PTC extension has resulted in thousands of layoffs. Langhorne, Pa.-based turbine maker Gamesa, which is part of Fitzpatrick's Bucks County district, has been particularly hit hard by PTC uncertainty.

"This boom-bust cycle has kept the industry in a state of perpetual uncertainty," says David Flitterman, Gamesa's North American chairman, adding that with stable policy, manufacturers are able invest in research and development that can drive down the cost of energy. 

"Under Fitzpatrick’s bill, that downward trend would continue, enabling the industry to reach grid parity by the time the PTC phases out," says Flitterman. "His legislation provides the certainty manufacturers need to make these long-term investments."

Given the full docket facing legislators this fall, such as debt ceiling and tax reform negotiations, the long-term prospects are unclear for the stand-alone bill in a divided Congress.

In a statement, the American Wind Energy Association says Fitzpatrick's legislation, if part of a comprehensive tax reform bill, "could provide the wind industry with much needed predictability and allow for longer term planning and investment into future U.S. projects."

Mortenson Construction_id2024

Trachte Inc._id1770
Latest Top Stories

Recapping The Wind Industry's Third-Quarter Deals

Mercom Capital Group recaps investment and merger and acquisition activity during July, August and September.


Yearly Installed Capacity Figures Already Beat 2013 Numbers, More Wind On The Way: AWEA

While the American Wind Energy Association (AWEA) lobbies Congress to extend the production tax credit, the association notes wind projects now under construction signal a vibrant 2015.


Yahoo Inks Contract To Buy Kansas Wind Power

The Internet company plans to log in to the Alexander wind project, which is being built by community developer OwnEnergy.


Could Initial Offshore Wind Projects Crash New England's REC Market?

Some are concerned that the first offshore wind projects could negatively impact pricing of renewable energy credits (RECs) in New England.


Catching Up With The DOE's Down-Select Offshore Winners

The three recipients of key U.S. Department of Energy (DOE) funding provide updates on their offshore wind demonstration projects.

Canwea_id1984
Hybrid Energy Innovations 2015
Renewable NRG_id1934