Iowa senators push for PTC extension

After an amendment that would have extended the Wind Energy Production Tax Credit (PTC) was stripped from the $109 billion transportation bill that passed in the U.S. Senate on Wednesday, Iowa’s Senators, Democrat Tom Harkin and Republican Chuck Grassley, introduced a bill Thursday that proposes a two-year extension to the PTC.

The credit extension would continue a tax incentive for companies connected with wind and bio-diesel energy sectors that allows the developing industries to stay competitive with base load fuels like coal and nuclear — a continuation which the legislators claim will save more than 35,000 jobs nationwide.

“Tax reform efforts might modify or address this incentive in the near future, but the jobs and opportunities provided by wind energy should not be abandoned in the meantime.  And limiting the bill’s impact on the deficit can be addressed,” Grassley said in a statement Thursday. “Tax relief has succeeded in developing this clean, renewable and innovative energy source, and it ought to be continued with the degree of certainty that encourages continued investment. Unemployment remains high at 8.3 percent, and energy costs are on the rise. Congress should renew the wind energy tax credit to develop clean energy alternatives and good paying jobs.”

If the credit does not pass by the Dec. 31, 2012, deadline, it could potentially affect over 800 jobs in Newton and Jasper County. The wind blade manufacturer TPI Composites on Newton’s northeast side employs the majority of those workers, holding 704 jobs when the plant is at full production capacity. Facility General Manager Mark Parriott says investors are looking for certainty in the market. Without an extension of the PTC, companies that construct wind turbines, like General Electric or energy companies who erect wind farms, will have less of a demand for TPI products.

“TPI is very excited and encouraged by this development,” Parriott said this morning regarding the introduction of the two-year extension bill. “We continue to believe a that a long-term extension of the PTC is a component of a thriving wind industry in North America. TPI is very pleased that the Iowa congressional delegation is showing continued support in Washington. The bipartisan support shown by Senator Harkin and Senator Grassley shows it’s not a political issue, but an issue of employment and energy security.”

The company’s CEO Steve Lockard echoed Parriott’s comments in a press release Thursday.

“I want to thank Senators Grassley and Harkin as well as the entire group of bipartisan cosponsors for helping to lead this important effort,” he said. “Extending the PTC will provide a stable business environment for Iowa’s growing wind industry. Wind power manufacturers like TPI are powering one of Iowa’s fastest growing sources of new jobs and economic activity. As many as 5,000 jobs in Iowa and hundreds of jobs at our plant in Newton are at stake. The PTC is the key to keeping this success story going.”

The failed PTC amendment stripped Wednesday was a one-year extension, and although industry leaders are looking for a long-term extension, industry leaders say that the American Energy and Job Promotion Act introduced Thursday will keep plants like TPI from seeing serious reductions in workers and output.

“Longer is better,” Parriott said. “We’re pleased that they’re going for more than a one-year extension.”

During a visit to Cline Tool in Newton on Monday, Grassley said that extending the wind energy sector and renewing the tax credit both have bipartisan support in the Senate. The Wednesday vote was the second time this year that legislators have failed to pass an extension of the credit which expires at the end of 2012.

The proposed bill is not yet scheduled for a vote, and will need 60 votes in the body to stop debate and bring it up for an up or down decision.

Senators Mark Udall, D-Colo., Scott Brown, R-Mass., Dean Heller, R-Nev., Ron Wyden, D-Ore., and Michael Bennet, D-Colo. are the other cosponsors of the bill.

Mike Mendenhall can be contacted at 792-3121 ext. 422 or via email at mmendenhall@newtondailynews.com.