U.S. Sen. Shelley Moore Capito (R-WV) last week introduced a GOP-led, bicameral bill that would repeal the credit for electricity produced from certain renewable resources.
Sen. Capito is an original cosponsor of the PTC Elimination Act, S. 4678, which was introduced on Sept. 23 by U.S. Sen. James Lankford (R-OK) in their chamber to completely phase out the federal production tax credit (PTC) for renewables. The same-named H.R. 8359 was introduced on the same day by U.S. Rep. Kenny Marchant (R-TX) in his chamber.
The PTC was established nearly three decades ago as part of the Energy Policy Act of 1992. Since its adoption, wind generation has grown more than 3,000 percent, with capacity increasing from 1,500 million megawatts (MW) in 1992 to more than 110,000 MW currently, according to Sen. Capito’s office.
“This legislation would ensure that the wind PTC would not be extended past 2020, leveling the playing field within our electric markets,” Sen. Capito said. “We should not be wasting more taxpayer dollars on a credit that completed its goal years ago.”
The bill specifies that any new projects would need to begin construction by the end of 2020 to qualify for the PTC, as is the case under current law. This would affirm that the extension for 2020 is the last one the credit will receive, according to a bill summary provided by the senator’s office.
“When the renewable energy production tax credit was implemented, it was intended by its authors to be a temporary support for a generation technology that was then too expensive to compete,” said Sen. Capito. “Since then, we have seen renewables take ever greater market share, particularly wind energy production, and yet the tax incentive remains in effect.”
In turn, this creates an unfair advantage against other energy sources, such as power plants fueled with West Virginia coal and natural gas, she added.
If enacted, the bill would permit any project that previously qualified or will qualify before the end of this year to receive the value and duration of the tax credit that was in place at the time the project qualified, according to the bill summary.