Cantwell-Nelson bill would enable major wind power development

September 28, 2010 -- Today Nebraska's Senator Ben Nelson and Senator Maria Cantwell of Washington introduced legislation enabling major wind power development in Nebraska that would create jobs and provide Nebraskans with more electricity produced from renewable energy. Nebraska's key utilities welcomed the bill for promoting renewable Nebraska power.

"Our experience with ethanol has shown Nebraskans we can be a national leader in renewable energy, and wind is the next frontier," said Senator Nelson. "Nebraska ranks 4th among the states for potential wind energy development, but today we're 24th in actual production of wind energy.

"Our bill will open the door for Nebraska's public power utilities to obtain tax incentives they need to build and own wind power projects. That, in turn, will provide jobs and clean energy for our future, while also holding down electricity rates for Nebraska consumers," Nelson said.

The Cantwell-Nelson bill introduced today would provide incentives to the nation's public power utilities, putting them on par with similar tax incentives already available to investor-owned utilities. Investor-owned utilities now can take advantage of a federal Production Tax Credit that has allowed them to invest greater amounts in renewable energy.

The Cantwell-Nelson "Clean Renewable Energy Investment Act of 2010" modifies the existing federal Clean Renewable Energy Bond program to provide a more effective federal incentive to Nebraska public power and rural electric systems, which collectively serve 100% of Nebraska's retail electric consumers. This will enable Nebraska consumer-owned utilities to develop and own renewable resources directly, rather than buying energy under a power supply contract with a third party. It also will ensure that the full benefit of the federal incentive flows to electric consumers -- resulting in lower costs to their consumers and creating green jobs.

"With access to these energy development tax incentives, our non-profit public power utilities will be able to build renewable projects at a lower cost to their ratepayers and begin construction quicker, leading to more immediate job creation," said Senator Nelson. "We can harness the windy plains and win with wind."

Nebraska utility officials welcomed the Cantwell-Nelson bill, which also is cosponsored by two other senators. A similar bill has been introduced in the U.S. House.

Omaha Public Power District President and CEO, Gary Gates said: "As a long-time supporter of an incentivized approach towards development of renewable energy, OPPD greatly appreciates Senator Nelson's support and sponsorship of the 'Clean Renewable Energy Investment Act of 2010.' Enactment of this legislation would provide public power with access to renewable energy incentives that were previously unavailable and should promote further renewable energy project development where it is the most financially beneficial to our ratepayers."

Kevin Wailes, Administrator and CEO Lincoln Electric System, said: "We are fortunate to have Sen. Nelson's initiative and ongoing support to 'level the playing field' related to renewable energy incentives so that Public Power has comparable opportunities to those of private developers."

Ron Asche, President and CEO of Nebraska Public Power, said: "We appreciate Senator Nelson's efforts supporting renewable energy incentives for public power which are comparable to the incentives for private developers, with the introduction of his Clean Renewable Energy Investment Act of 2010."

Jay Holmquist, General Manager of the Nebraska Rural Electric Association, said: "Nebraska Rural Electric Association (NREA) appreciates Senator Nelson's ongoing efforts to give our state's public power systems the comparable flexibility to fully develop renewable generation. This legislation will enable Nebraska's electric utilities to develop and own renewable resources and will ensure that the full benefit of the federal incentive flows to electric consumers -- resulting in lower costs to our consumers and creating green jobs."