Senate Finance Committee gets energy groups' endorsements

The leaders of four renewable-energy trade associations—the Biomass Power Association, Geothermal Energy Association, Energy Recovery Council, and National Hydropower Association—commended a last minute vote by the Senate Finance Committee to enhance PTC (production tax credits) for all renewable-energy sources. The tax credits are essential for the development of clean energy-generating facilities by offsetting the high cost of construction. The Committee's action will give renewable base load technologies equitable access to this important program by allowing eligible facilities to qualify for the tax credits when construction commences. "We are highly encouraged that the Senate Finance Committee passed this tax credit extension, and we urge the full Senate and the House to approve the credit before the end of the 112th Congress," said Bob Cleaves, President and CEO of Biomass Power Association. "Construction of new biomass facilities can be prohibitively expensive, and our industry relies on one-time tax credits to attract private investors to support the building of new plants. An extension of PTCs will help ensure that renewable energy sources continue to produce a growing share of electricity for our nation." Karl Gawell, Executive Director of Geothermal Energy Association commented "The proposed changes in the tax code would encourage new renewable technologies across the board. Allowing projects to qualify by starting construction will spur development of geothermal power projects that would otherwise be on hold due to the impending PTC cliff. At this critical time, the Committee's action will create jobs and support U.S. companies in highly competitive global energy markets." "Modifying the definition of 'placed in service' will provide more opportunities for waste-to-energy facilities to utilize the renewable tax credit, which will in turn drive sustainable waste management practices in the United States," said Ted Michaels, President of Energy Recovery Council. "These changes allow more base-load renewable energy like hydropower to be built as part of our national energy portfolio and increase America's access to reliable, affordable electricity," noted Linda Church Ciocci, executive director of the National Hydropower Association. "We look forward to working with Finance members and staff further on the provisions so that hydropower project developers can better utilize these important incentives." Baseload energy sources - which provide consistent power independent of external factors like weather or time of day - particularly rely on PTCs at a time when fuel costs are high and electricity prices are low. These sources of energy combined produce almost 75% of the nation's renewable electricity, according to U.S. Energy Information Administration. Biomass Power Association Energy Recovery Council Geothermal Energy Association National Hydropower Association