The Wind and Solar Power Industries Now Employ Twice the Number of Workers in the U.S. as the Coal Mining Industry
In the midst of an unprecedented amount of bad news surrounding the economy, the robust growth in employment in the wind and solar energy sectors has been receiving a lot of attention. Wind industry jobs have increased 70% over the past year, totaling 85,000 in 2008. These 85,000 jobs in the wind industry include some 13,000 manufacturing jobs, many of which are being filled by workers who lost jobs in other manufacturing industries, like the steel industry. Similarly, the solar industry employs more than 80,000 workers in the U.S.
CNNMoney.com ran an article earlier this week noting that the wind industry now outstrips the coal mining industry in number of workers. The article, “Wind Jobs Outstrips Coal,” noted that the coal mining and extraction industry employs about 81,000 workers. According to a 2007 U.S. Department of Energy report cited in the article, these numbers have been steady in recent years, but are down nearly 50% since 1986. Estimates for the total direct employment in the U.S. coal industry range from 136,000 to 174,000 workers, and includes those who mine coal, haul it by rail, barge and truck, and who operate and maintain coal-fired power plants. Thus, the solar and wind energy sectors have quickly caught up the coal industry in terms of overall employment and will soon surpass the coal industry in total employment.
These facts demonstrate the potential of renewable energy to lead the country’s economic recovery when you consider that renewable energy currently supplies a tiny portion of the nation’s electricity supply—about 3 percent—compared to coal, which supplies about 50 percent of our electricity.
WOW - Wisconsin's Wind on the Waters Report Finalized
The final report commissioned by the Wisconsin Public Service Commission on the feasibility of Great Lakes offshore wind development was published on January 15, 2009. The final report reflects comments made from the draft report that was circulated for public comment in the fall of 2008. As reported in a previous blog entry, the report analyzed the feasibility from four perspectives: Engineering and Economic Issues, Human Environment Issues, Legal Issues, and Community Involvement Issues.
The report was discussed in detail this morning in a webinar put on by the Great Lakes Regional Wind Energy Institute. Presenters included representatives from the National Renewable Energy Lab and the Wisconsin PSC. Check back for presentations, they'll be posted soon!
On the Senate Side, Alternatives to the House's Proposed Renewable Energy Incentives
On Friday, January 23, the Chairman of the Senate Finance Committee released his version of the economic stimulus bill. Like its House counterpart (H.R. 598), the proposal by Chairman Max Baucus ("Chairman’s Mark") is called the American Recovery and Reinvestment Tax Act of 2009. The Chairman’s Mark is scheduled to be considered in the Finance Committee on Tuesday, January 27.
As with H.R. 598, the Chairman's Mark would extend the production tax credit ("PTC") sunset date, permit taxpayers to elect to claim the investment tax credit ("ITC") in lieu of the PTC for certain projects, and extend bonus depreciation through 2009. Importantly, however, the Chairman’s Mark does not include the provision in the House bill that would enable taxpayers to receive cash grants in lieu of the ITC for certain projects. Without this grant provision, questions have been raised as to whether the Chairman's proposal would accomplish the legislative purpose of promoting investment in renewable energy development. Other provisions of note in the Chairman's Mark are modifications to the general business credit and a new 30% credit for investment in certain property used in a "qualified advanced energy manufacturing project."
Click here for a detailed summary of the Chairman's Mark. To view our recent Energy Law Alert on the House bill, click here.
House Bill Could Boost Incentives for Renewable Energy Projects
As part of an $825 billion stimulus plan to help revitalize the economy, the American Recovery and Reinvestment Tax Act of 2009 (H.R. 598) was recently introduced in the House of Representatives. The Bill aims to shore up tax incentives and offer new grants that would facilitate the development of renewable energy projects. Highlights of the proposed legislation include an extension of the production tax credit (“PTC”) sunset date, an election between the PTC and the investment tax credit, project grants in lieu of tax credits for certain projects, and an extension of bonus depreciation through 2009.
Check out our recent client alert for more information on HR 598 and its implications for project financing. The House Ways and Means Committee began its markup of the Bill on Thursday, January 22. We will report further developments as the Bill progresses. If you’d like to receive Stoel Rives Energy Law Alerts, click here.
Governor Kulongoski Proposes Nine Bills to Promote Renewable Energy Projects, Energy and Fuel Efficiency
Oregon Governor Ted Kulongoski continues to take aggressive action in the green business realm. Having made renewable energy one of his budget priorities, Gov. Kulongoski filed nine bills under the climate change umbrella to be considered in the 2009 legislative session. According to Gov. Kulongoski, the bills will “build on our leadership in renewable energy that will create jobs and reduce greenhouse gas emissions.”
Continue Reading...Detroit Edison Issues RFP for Renewable Energy
Activity is underway in Michigan to implement the state's recently-enacted renewable portfolio standard, which requires the state's electric utilities to serve 10 percent of their retail sales from renewable energy resources by 2015. In late December, Detroit Edison issued a Request for Proposals to purchase Michigan-based renewable energy credits that will help the utility meet the RPS requirements.
The RFP specifies that the renewable energy certificates must come from resources located in Michigan. Under the state's RPS, qualifying renewable technologies include energy produced from wind, solar, landfill gas, biomass, anaerobic digesters, geothermal, hydroelectric dams, industrial cogeneration and gasification facilities. Detroit Edison states that it is seeking long-term agreements with providers.
Bidder questions, which must be posted to the Power Advocate website, are due by Jan. 13, 2009. Responses to the RFP are due by Jan. 23, 2009.
