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downturn had forced many developers to postpone plans—only 424 MW
were added in 2002 (Figure 7.2).
In hindsight, 9/11 proved to have a catalytic afect on wind power devel-
opment in many states. Between 2001 and 2004, eight states initiated wind
power programs (Illinois, Montana, North Dakota, South Dakota, Ohio,
Oklahoma, Washington, and West Virginia) and eleven more states signii-
cantly ramped up wind power development. 35 An example of a policy driv-
ing the latter was the 2003 policy of Iowa Governor Tom Vilsack to deploy
1,000 MW of renewable energy—a doubling of state capacity, which would
subsequently be achieved only three years later. 36
By 2003, the wind power market was growing in leaps and bounds with
1665 MW of additional capacity being added, an annual increase of 36%
(see Figure 7.2). However, once again congressional debate ensued over the
necessity of the PTC and it was allowed to lapse on December 31, 2003. It
was eventually renewed (retroactive to cover projects in the lapsed period)
for two years in October 2004, under the American Jobs Creation Act. 37
As a result of the extension delay, developments dropped of once again in
2004, with only 373 MW being added. After its renewal, the market once
again responded favorably and 2424 MW of installed capacity was added in
2005—the largest single year increase in the history of the US wind power
program.
In 2005, the boom and bust cycle of wind power development caused
by the PTC renewal delays was interrupted with the passage of the Energy
Policy Act (EPACT). he act sent a strong market message by establishing
renewable energy goals for federal government energy consumption. he
target for the 2007-2009 period was set at 3% or higher, the target for
2010-2012 was set at 5% or higher, and a 2013 and beyond target of 7.5%
or higher was announced (Sec. 203). 38 he EPACT also extended the PTC
through to December 31, 2007 (Sec.1301). he market message sent by the
EPACT fostered an unprecedented growth phase in wind power capacity. In
2006 and 2007 respectively, 2428 MW and 5332 MW of installed capacity
were added.
he EPACT also served to mobilize state-level initiatives. In 2005, Texas
passed a new senate bill (Bill 20) that increased the renewable portfolio tar-
get from 2000 MW to 5880 MW by 2015 and 10,000 MW by 2025. As a
result, by the end of 2006 Texas had surpassed California as the state with
the most wind power capacity. In 2006, Washington State announced an
ambitious renewable portfolio standard (RPS) that required all utilities
that serve over 25,000 customers to acquire 15% of their electricity from
qualifying renewable resources by 2020 and to meet biennial energy ei-
ciency targets. A ine of $50 for each MWh below the target would be levied
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