Environmental Engineering Reference
In-Depth Information
on utilities which failed to meet progressively increasing targets of 3% by
January 1, 2012, 9% by January 1, 2016, and 15% of its load by January 1,
2020.
39
In December 2006, one year ahead of the December 31, 2007 PTC expiry
date, George W. Bush's administration further stabilized the wind power
market by pushing through a further extension of the PTC to December 31,
2008—incorporating the extension into the 2006 Tax Relief and Healthcare
Act.
40
Accordingly, by 2008, market conidence was such that a record 8503
MW of new capacity was added. In sum, in the three year period since the
EPACT was announced, the US wind power market had grown by 178% to
25,410 MW in total installed capacity (see Figure 7.2).
By 2007, even more states were elevating support for wind power. In
Minnesota, a renewable energy standard was announced that required utili-
ties to provide 25% of generated power from renewable energy (including
wind) by 2025.
41
In Oregon, an RPS was announced that required 25% of
retail electricity revenues to come from renewable energy by 2025. In Illinois,
a renewable energy portfolio was announced. Under Public Act 095-0481,
Illinois utilities Ameren and ComEd were required to purchase 25% of their
electricity from qualiied renewable sources by 2025. he legislation stipu-
lated that of the 25% portfolio, 75% was to come from wind energy.
42
In July
2008, Texas approved funds for a $4.93 billion project to expand the state's
electricity grid to transmit wind energy to its major cities.
43
In July 2008, the US Department of Energy released an important study
titled “20% Wind Energy by 2030: Increasing Wind Energy's Contribution
to US Electricity Supply.” he study described a scenario whereby the United
States could achieve 20% wind electricity by 2030, and concluded it was
technologically and economically viable.
44
his study has since served as an
important reference for political proponents of wind power development
and underpins the perceived role of wind power in helping the nation achieve
its GHG emission reduction target of 17% below 2005 levels by 2020, as
announced at the end of the UNFCCC COP15 conference in Copenhagen.
In 2009, another landmark act was passed: the American Reinvestment
and Recovery Act (ARRA).
45
he act was signiicant in three respects. First, it
earmarked a signiicant amount of money for supporting renewable energy
difusion. US$2 billion was set aside for advanced battery development and
US$4.5 billion was apportioned for grid enhancement investment. Second,
ARRA extended the PTC to December 31, 2012 (Sec. 1101)—a staggeringly
long extension compared to previous cases. hird, ARRA introduced a provi-
sion for a 30% investment tax credit to be claimed in lieu of the production
tax credit (Sec. 1102). Although this provision contradicted a global policy
