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Senate version of “Fiscal Cliff” legislation includes 12 energy tax extenders; boost for algae

1 January 2013

Among the many extensions specified in the amended version of a House bill (H.R.8) passed by the US Senate on New Year’s Day by a vote of 89 - 8 to avoid the across-the-board increase in taxes currently called for by the “fiscal cliff” are a number for energy tax benefits.

The amended bill, now called the “American Taxpayer Relief Act of 2012” and next to be considered by the House, contains 12 extensions outlined in Title IV of the bill, ranging from extension of production credits for Indian coal facilities to benefits for alternative fuels (including algal biofuels) and plug-in vehicles. The Sections are:

  1. Credit for energy-efficient existing homes is extended to 31 December 2013.

  2. Credit for alternative fuel vehicle refueling property is extended to 31 December 2013.

  3. Credit for 2- or 3-wheeled plug-in electric vehicles. In the case of a qualified 2- or 3-wheeled plug-in electric vehicle, up to 10% of the cost of the qualified 2- or 3-wheeled plug-in electric vehicle, or $2,500 may be allowed as a credit.

    Qualifying 2- or 3-wheel vehicles need a 2.5 kWh pack (down from 4 kWh), are capable of achieving a speed of 45 mph (72 km/h)or greater, and must be acquired after 31 December 2011 and before 1 January 2014.

  4. Extension and modification of cellulosic biofuel producer credit. The extension now carries through to qualified production beginning before 1 January 2014. Algae is treated as a qualified feedstock.

    Additionally, the section strikes the term cellulosic biofuel in favor of “second generation biofuel”.

  5. Incentives for biodiesel and renewable diesel are extended to 31 December 2013.

  6. Extension of production credit for Indian coal facilities placed in service before 2009 for an 8-year period rather than a 7-year period. The amendment applies to coal produced after 31 December 2012.

  7. Extension and modification of credits with respect to facilities producing energy from certain renewable resources. Among other provisions for municipal solid waste, hydro, and biomass facilities, production tax credits for wind facilities are extended to 1 January 2014.

  8. Credits for energy-efficient new homes are extended to 31 December 2013.

  9. Credits for energy-efficient appliances are extended into 2013.

  10. The special allowance for cellulosic biofuel plant property is extended to 1 January 2014. In addition, algae is treated as a qualified feedstock for such.

  11. The special rule for sales or dispositions to implement FERC or state electric restructuring policy for qualified electric utilities is extended to 1 January 2014.

  12. Alternative fuels excise tax credits are extended to 31 December.

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January 1, 2013 in Fuels, Plug-ins, Policy, Wind | Permalink | Comments (6) | TrackBack (0)

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Passed.

Republicans continue to jerk the country around and disrupt the wind industry costing Americans jobs.

They could have passed the PTC legislation months ago and saved a lot of people getting laid off and projects disrupted. This just ain't right.

If nuclear electricity received the same PTC, you'd see reactor containments popping out of the ground like mushrooms.

A PTC for new nuclear was established in the 2005 Energy Policy Act which put nuclear on the equal footing with wind and closed-loop biomass.

Those production tax credits have been sitting there, waiting.

Radioactive mushroom sprouting has not been observed in the following years.

A PTC for new nuclear was established in the 2005 Energy Policy Act which put nuclear on the equal footing with wind and closed-loop biomass.
No it didn't.  The wind PTC is 2.1¢/kWh for 10 years, with no cap; the nuclear PTC is 1.8¢/kWh for 8 years, capped at $125 million per MW(e) (about 6940 hr/yr, when properly operating plants can run flat-out for over 8700) and also capped at 6000 MW(e) of capacity.  That's 5.5 AP1000's, of which 4 are under construction already.
Those production tax credits have been sitting there, waiting.
You have to be in production to get a PTC, and the NRC COL process takes 4-5 years before you can break ground.
Radioactive mushroom sprouting has not been observed in the following years.
Vogtle units 3 and 4 and Virgil C. Summer units 2 and 3 are rising from the ground.  Give nuclear the same PTC or ITC terms that wind gets, streamline the NRC's procedures to go at the AEC's old pace, and remove the cap.  You'd see nuclear take over base-load generation from both coal and CCGT.  You'd also see the air and water clean up, and a lot fewer issues with pipelines.

Good news on the wind PTC. Apparently the new bill does not require that wind farms be completed by the end of 2013 in order to qualify for funding.

This will eliminate the end of the year scramble to complete and allow companies to keep working while the next round of games are played in Congress.

The details aren't out yet, it's not clear how much of the project must be completed this year and how long after 12/31/13 the project has to complete.

Why not treat Nuke installations prepayment the same as Wind-Solar installations prepayments and than follow up with the same ($0.02/kWh or so) hand outs for energy effectively produced and effectively used.

Both programs should be similarly capped (in time and in $$$) to avoid runaway cost.

Nuke operators should be forced to contribute to a clean fund for (all) used fuel safe disposal.

The common objective (to reduce the use of fossil fuel, pollution and climate changes) could be reached in all fairness?

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