September 6, 2010

The Wind Industry’s New Push for a National “Renewable Electric Standard”

As most everyone who is paying attention knows, the wind industry’s Washington Lobbyists – American
Wind Energy Association (AWEA) -- is pushing the Senate to pass a National “Renewable Electricity
Standard” (RES) after it returns to Washington on September 13.

A National RES would require that electricity generated from “renewable” energy sources, such as wind
and solar energy, provide some specified percentage, perhaps 15%, of all the electricity delivered by an
electric utility.

This new effort should be taken seriously by taxpayers and electric customers who will pay the higher
costs resulting from such a standard if the industry’s lobbyists are successful.

AWEA advertised the new effort in an August 31, 2010, press release,1 claiming “bipartisan support,” and
sought lobbying support in widely distributed emails. Also, on August 31, Senate Majority leader Reid
(D-NV) expressed interest in the industry’s proposal, indicating that it might be included in an energy bill
he hopes to pass this year. 2

NextEra Energy (formerly The FPL Group) Chairman and CEO Lewis Hay welcomed Senator Reid’s
statement.3 NextEra is the largest owner of wind generating capacity in the US and his long used “wind
farm” tax breaks to shelter profits from corporate income tax, including profits from its subsidiary, Florida
Power & Light.

Earlier, on July 26 and 27, in what appeared to be an industry lobbyist coordinated effort, long-time wind
industry supporters, Senators Sam Brownback (R-KS) and Mark Udall (D-CO) issued press releases
supporting a national electricity standard.”4 5

The wind industry’s well-financed lobbying efforts (not to mention its generous campaign contributions)
may have received a further boost as a result of the nearly $5 billion (actually $4,495,535,117) in
“stimulus” cash grants distributed to wind energy project developers and owners by the US Treasury
Department during the period from September 1, 2009 through July 31, 2010.6

These cash grants, funded from current tax dollars and the growing federal debt that will be borne by our
children and grandchildren for decades, were authorized by the infamous “stimulus” legislation,7 passed by
the Senate and House on February 13, 2009,8 and signed by President Obama on February 17, 2009.

The new wind industry push for a costly “Renewable Electricity Standard” probably reflects two key
factors:

 First, the industry has, in effect, conceded that wind will never provide a commercially viable source
of electricity by its continuing efforts to extend and expand existing federal and state tax breaks and
subsidies for wind energy.9

 Second, the industry probably assumes that it will be difficult – recognizing the massive federal
deficits and national debt that has finally gotten the public (and voters) attention – to get Congress and
possibly state legislatures to extend the extremely generous tax breaks now enjoyed by “wind farm”
owners and their “tax equity” partners in the financial industry.
Many Senators have expressed doubts about the potential for passing any “energy” legislation during the
remainder of the current Congress. However, it should be noted that there are a number of Republican as
well as Democrat Senators who often side with wind industry lobbyists and against the interests of
taxpayers and electric customers when voting on anything that can be labeled “renewable,” “green,” or
“alternative” energy, regardless of the true merits – and while ignoring the huge transfer of wealth (dollars)
from ordinary taxpayers and electric customers to owners of “wind farms” and other renewable energy
facilities.

Glenn R. Schleede
18220 Turnberry Drive
Round Hill, VA 20141-2574
540-338-9958

1
http://www.awea.org/newsroom/releases/08-31-10_Bipartisan_Support_Sparks_Interest_for_RES.html
2
http://thehill.com/blogs/e2-wire/677-e2-wire/116633-reid-put-renewables-mandate-back-in-play-eyes-lame-duck-
energy-bill
3
http://washingtonindependent.com/96447/major-renewable-developer-promises-investment-if-an-res-passes
4
http://brownback.senate.gov/public/press/record.cfm?id=326696
5
http://markudall.senate.gov/?p=press_release&id=714
6
http://www.treasury.gov/recovery/docs/Web%20Posting.xls
7
Specifically, by Section 1603 of the American Recovery and Reinvestment Act of 2009 (ARRA).
8
If you would like to know how your representatives voted on the ARRA, the 60-38 vote in the Senate is detailed at:
http://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?congress=111&session=1&vote=00064
and the 246-183 House of Representatives vote is detailed at: http://clerk.house.gov/evs/2009/roll070.xml
9
http://www.masterresource.org/2010/07/dear-virginia-windpower/,
http://alleghenytreasures.wordpress.com/2010/07/13/glenn-schleede-challenges-virginia-leaders-to-review-federal-
and-state-wind-energy-tax-breaks-and-subsidies/