Please forward this e-mail to your US Representative sent by Jim Harvey. The purpose is to stop wasting massive taxpayer dollars and stop this senseless blight of our beautiful Mojave Desert. Bill Lembright ----- Original Message ----- From: Jim Harvey AREP To: Bill Lembright ; Chuck Bell ; Linda Gommel ; Richard Selby Sent: Monday, December 12, 2011 7:26 PM Subject: Fw: Fwd: Please forward: Letter to Congress regarding 1603 From: Nettie Pena Sent: Monday, December 12, 2011 6:36 PM To: jim harvey Subject: Fwd: Please forward: Letter to Congress regarding 1603 Hello All, I am forwarding a letter on behalf of Lisa Linowes, Executive Director of the Industrial Wind Action Group in New Hampshire (see http://www.windaction.org/). IWA is working on a multi-state campaign that involves sending letters to Congressional House members asking that they not permit Section 1603 grants to be extended past December 31, 2011 --- including generous taxpayer subsidies to multibillion-dollar energy corporations for utility-scale wind projects. According to IWA, eighty-percent of the $9.8 billion in Section 1603 cash grants went to wind energy developers (see: http://www.windaction.org/faqs/33759 and http://www.treasury.gov/initiatives/recovery/Documents/Status%20overview.pdf). Lisa is asking for a minimum of twenty endorsements from California residents to send a letter representing the State of California to Congress. Please contact me if you are interested in signing the letter (be sure to include your name and address). Thanks, Helen Rep. --------------------------------- US House of Representatives Washington, DC 20515 Dear Representative ---------------------------------, As residents of California we urge you to vote NO on any further extensions of Section 1603 grants due to expire this year. While the goal of Section 1603 is to increase the use of renewable energy, including utility-scale wind, the high costs and limitations of this program cannot be ignored. High Cost: Eighty-percent of the $9.8 billion in Section 1603 cash grants went to wind energy developers. This represents a more than 10-fold increase in federal subsidies to the industry over what it received prior to the program's adoption. As an open-ended subsidy there are insufficient safeguards for taxpayers. Since the grants are not made public until projects are placed in service, taxpayers will not know the true cost of 1603 until 2013 or later. Total outlays for wind alone could reach nearly $20 billion with no extension.
Exaggerated Job Claims: It takes only 0.1 jobs per megawatt to operate a wind facility Of the 12.3 gigawatts installed with 1603 funds, only about 1200 permanent jobs were created. Most of the 75,000 jobs claimed by the industry are temporary construction positions. Many of the manufacturing plants/jobs cited by wind industry proponents build components for industrial uses and are not wind-specific. No production accountability: The Treasury assumes that 1603-funded wind projects operate with a 30% capacity factor (that is, produce 30% of the projects’ potential production levels) but many projects do not meet this assumption. Five wind facilities in New York, for example, received $300 million in grants and operated 25% BELOW this level in 2010. Section 1603 imposes no performance criteria, and imposes no penalty for projects that under-perform or do not meet developers' claims. This lack of accountability shifts performance risks to taxpayers Inflated Turbine Pricing: Upfront cash grants provide minimal incentive to negotiate lower prices with suppliers. In fact, the higher the capital costs the greater the 1603 grants. With turbines representing 55+% of project costs, manufacturers are encouraged to keep prices high. There are cheaper, more effective opportunities for achieving clean energy goals that will also help the economy. Direct cash outlays go in the wrong direction by rewarding higher construction costs, higher energy pricing, and marginal to poor performance. It's time for Section 1603 grants to expire. Respectfully, cc: