The original author of the Wind Energy Incentives Act of 1993, Grassley's legislation would promote the maintenance, investment and development of wind energy by extending the existing tax credit until June 30, 2004. Under current law, the investment and production tax credits will expire June 30, 1999.
As directed by the Energy Policy Act of 1992, Grassley's production tax credit currently provides a 1.5 cent per kilowatt incentive for the production of electricity by wind energy. Grassley's legislation enables producers to take advantage of existing Section 45 production tax credits in the production of wind into electricity.
According to a Department of Energy study, Iowa ranked 10th among the top states measured for wind energy potential. "Many farmers and producers in Iowa already recognize the economic and environmental benefits of wind energy production," said Grassley. "This is one Midwestern bumper crop with a year-round harvest season."
According to Grassley, wind energy provides utilities with an increasingly cost-effective energy source for consumers. A recent contract in Iowa promises to supply 112.5 megawatts of wind-generated electricity in Buena Vista county by mid-1999.
"Alternative sources of energy can provide a viable solution to America's dependence on finite fossil fuels," said Grassley. "It's a smart investment. With all the costs factored in, wind energy can produce electricity at nearly half the cost of petroleum-based fuels. Instead of being held captive by the prevailing winds of foreign affairs in the Mideast, consumers need access to a domestically produced, pollution-free source of energy."
A senior member of the tax-writing Senate Finance Committee, Grassley has long advocated efforts to foster investment in renewable energy sources, including wind, biomass, soy diesel and ethanol. In 1992, the American Wind Energy Association recognized Grassley's leadership for renewable energies and named him "Senator of the Year."