Wind industry credit axed

I Aloha Molokai News Release

In a big victory for the people of Hawaii, our environment, and all American taxpayers, the U.S. Senate this week killed the Production Tax Credit for industrial wind factories. This corporate subsidy, a major contributor to America’s enormous budget deficits and the cause of environmentally destructive wind projects in many states, was long overdue for defeat.

Kanohowailuku Helm, president, I Aloha Molokai.

Also defeated was the notorious Section 1603, which gave industrial wind developers 30 percent of their total budget as an up-front cash grant. Called “pocket money” this shameful subsidy guaranteed Big Wind developers more than $1 billion before they even start work.

Here in Hawaii, HECO and Governor Abercrombie continue to push Big Wind against growing popular opposition. But the PTC defeat will make their sales pitch much harder. Without these subsidies, wind factories no longer look more attractive to investors than solar or geothermal, as even industry spokesmen will admit.

Without these subsidies, Hawaiian officials and communities should be able to consider alternative energy projects on their own merits. Everyone should now be able to see that covering Molokai and Lanai with giant wind turbines and blasting cables through fragile marine habitat is neither wise nor necessary.

We will continue our efforts until the threat of industrial wind factories covering Molokai and Lanai is removed, and we send out A BIG MAHALO to all those, here and on the mainland, who worked to defeat this legislation.

Kanohowailuku Helm


5 Responses

  1. Great news! This will go a long way to stopping the steamroller that was headed for Molokai and Lanai. Looks like US Congress got the message that this was the worst of all alternate energy choices even if Obama bin Windbag and Buggercrummie still don’t get it.

  2. right on… INDUSTRIAL WIND ,INDUSTRAIL FARMING are the same.

  3. While it can be argued whether or not a tax credit to the wind industry is good or not, a tax credit is not the same as a subsidy. The primary tax credit available to wind farms in the U.S. by the Federal “Production Tax Credit”, which has been in existence for the last 10 years and was reinstated through the American Recovery and Reinvestment Act in 2009, provided income tax credit of 2.1 cents per kilowatt-hr for the production of electricity from utility-scale wind turbines. This is a credit that was strictly available during the first 10 years of operation of a wind farm. Based on the original estimates of Hawaiian Electric, the Molokai wind farm would provide wholesale electricity at somewhere between12-14 cents per kilowatt- hr. This would have compensated for approximately 6-7% of the gross revenue of the wind farm during these start up years. In an initial meeting with Pattern Wind, the question arose that if this tax credit were discontinued, would the project still be feasible? The reply was it would be difficult bit still feasible.

  4. Steve Morgan, I thought there was a difference between subsidy and tax credit. What concerns me is the gambling, wind energy and native status or the whole ‘average’ man. The feasibility of the corporation or business community would still prevail or be at cause for Pattern Wind to continue over time? Attracting investors is the predicting forecast?

  5. braddas are lucky to have someone as studied as steve morgan.

    beware to “axeing” of any tax credit for it was at least the devil you knew.

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