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Solar power in jeopardy in the Oregon Legislature (Posted 06/09/09)

As you know, the current Oregon Legislative Session is winding down and there are bills pending that have a profound impact on the solar industry in Oregon. 

 

The challenge presented to our lawmakers is creating effective legislation that allows for the continued growth of the solar industry while making necessary adjustments to help ease the constraints of monumental budget deficits.  This necessity has unfortunately created a situation that could kill all commercial projects under development in Oregon as well as any future development unless critical action is taken immediately by stakeholders in solar.

 

As many solar programs like your own are reaching their first plateaus of development, the Chair of the Senator Finance and Revenue Committee, Senator Burdick, has introduced an amendment to HB 2472 that drops the Business Energy Tax Credit from 50% to 30%, it drastically reduces the dollar amount of the tax credit given and further reduces the value of the BETC by any Federal, State and ETO grant funds utilized.  The net result of this amendment as it stands will be that all present projects in development and any future municipal, educational and commercial solar energy projects will become financially unviable and die.

 

The solar industry needs your support in contacting Senator Burdick and the other Senators listed below to voice your concern over this amendment for a number of reasons that will have a direct impact on your project and your community as follows:

 

  • Jobs
    • Existing jobs are eliminated as projects dry up in an industry that has experienced explosive growth since the BETC was set at 50%
    • Thousands of new solar jobs go away as literally 100’s of megawatts of planned solar projects go undeveloped in the next 2-3 years
    • New Green Collar workforce development programs loose their primary placement tool

 

  • Federal funding
    • 30%  BETC = limited Oregon solar projects to use ARRA funding
    • ARRA Workforce Development funds go unused
    • ITC Federal grants will be unusable without a fix

 

  • Identity
    • Oregon has worked very hard to establish itself as the leader is sustainable practices and as a hub for solar energy nationally.
    • Taking huge, industry killing steps backwards while the nation and other states around us are taking giant steps forward will crush that identity

 

  • Revenue
    • While well intentioned, this amendment’s elimination of solar BETC usage has small comparative impact on the budget as it addresses only installation and lumps solar in with wind
    • Solar installations have made up less than 1% of utilization of the production BETC while Wind has used almost all of it without the apparent justifying need to make some projects financially viable
    • Manufacturers have moved to the state not only because of availability of the BETC but also for the local installation growth opportunity.  Take away that base and lose the interest of future employers in local solar manufacturing

 

We recognize that steps need to be taken to help resolve our budget deficit but please join with us in urging the Senators to make effective decisions and not take broad strokes that eliminate the good with the bad.  Oregon is merely weeks away from expanding its recognition as a true leader nationally in Sustainability and Solar Energy.

 

Please contact the Senators listed below today and tell them you support their efforts to help our economy and ask them to consider the following requests:

  1. Leave the Business Energy Tax Credit at 50% --- 30% kills your projects
  2. Eliminate misuse but allow for growth in Oregon’s Renewable Energy Economy and protect our State’s investment in Solar by capping BETC project size at 5MW instead of lowering allowable project costs
  3. Do not count Federal and State grants and ETO  funding against the BETC base amounts

 

Your help right now will determine if the Oregon Solar Industry continues to grow or dies in a dawn of opportunity.  Please pass this information along immediately to anyone you feel might have a stake in the solar future of Oregon.


Below are the Senate contacts working with HB 2472, concerning cuts to the BETC program.  Decisions will likely be made today and tomorrow.  PLEASE contact them immediately.  Thank you.

Senate President, Peter Courtney D-Salem
503-986-1600
sen.petercourtney@state.or.us

Senate Majority Leader, Richard Devlin D-Tualatin
503-986-1719
sen.richarddevlin@state.or.us

 

Senate Finance and Revenue Committee
Senator Ginny Burdick, Chair D-Portland
503-986-1718
sen.ginnyburdick@state.or.us

Senator Mark Hass, D- Beaverton
503-986-1714
sen.markhass@state.or.us

Senator Frank Morse, R-Albany
503-986-1708
sen.frankmorse@state.or.us

Senator Chris Telfer, R-Bend
503-986-1727
sen.christelfer@state.or.us

Senator Diane Rosenbaum, D-Portland
503-986-1721
sen.dianerosenbaum@state.or.us

You can also write your own legislator directly by following this link:
 http://www.leg.state.or.us/writelegsltr/

 

 

Please feel free to call me with any questions,

Russ

 

 

Russ Wright

Regional Sales Manager - Northwest U.S.

 

 

rwright@sunedison.com

                                                

office:  (503) 297-6408

cell:      (503) 519-0605

fax:      (866) 656-5541

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