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UPDATE - Wind Energy Credit

                       LEGISLATIVE UPDATE
              **************************************
              *             from the               *
              *  AMERICAN WIND ENERGY ASSOCIATION  *
              **************************************
                          July 1, 1997


SENATE PANEL APPROVES
2-YEAR PTC EXTENSION

Thank you for any help you may have been able to give on our June
18 urgent legislative alert on the wind energy production tax
credit. 

The U.S. Senate Finance Committee gave its approval June 19 to a
two-year extension of the 1.5-cents/kWh production tax credit
(PTC) for wind energy facilities.  As passed by the Committee,
the provision, included in a larger tax bill, would make the
credit available for wind farms installed before July 1, 2001,
instead of July 1, 1999, as in existing law. 

This is a critical step toward extension of the PTC in this
year's session of Congress.  Senators Chuck Grassley (R-Iowa) and
Jim Jeffords (R-Vt.), both Finance Committee members, took the
lead in pressing for the PTC extension, and Committee Chair
William Roth (R-Del.) also deserves credit for including the
provision in his proposed package of changes to tax law. 

WHAT HAPPENS NEXT

The next phase of the Congressional legislative process--a
conference committee between the House and Senate on the tax
legislation--will determine the fate of the PTC. 

WHAT YOU CAN DO

You can help in this effort in two ways: 

(1) CONTACT YOUR REPRESENTATIVE.  URGE HIM OR HER TO COSPONSOR
H.R. 1401, a bill sponsored by Rep. Bill Thomas (R-Calif.) that
would extend the PTC.  The more cosponsors on the bill, the
easier it will be to persuade the House members of the conference
committee to go along with the Senate provision.  You can reach
any Representative's office by calling the U.S. Capitol
switchboard at (202) 225-3121. 

(2) CONTACT YOUR SENATORS.  URGE THEM TO SUPPORT EXTENSION OF THE
PRODUCTION TAX CREDIT FOR WIND.  Be sure to ask them to let you
know their position and, if they are supportive, what they have
done to express their support.  You can reach any Senator's
office at (202) 224-3121. 

ARGUMENTS TO USE

- The production tax credit levels the playing field.  Today,
wind plants cost about 20% more than they need to, because
investors demand a higher rate of return from wind plants than
they do from power plants that burn fossil fuels.  The credit
compensates for this difference. 

- Wind is clean and emits no air pollution.  Air pollution is a
serious problem in the Northeast, in part because of pollution
from coal-fired power plants in the Midwest. 

- Wind emits no carbon dioxide, the leading greenhouse gas. 
Greater use of wind energy will help to slow or prevent global
climate change. 

- Coal-fired power plants are also major sources of acid rain,
mercury pollution of lakes and streams, and other pollutants. 
Wind energy avoids all of these damaging impacts on the natural
environment. 

FOR FURTHER INFORMATION

Contact Jaime Steve or Sheila McNamara in the AWEA office, phone 
(202) 383-2500.