Industry News

A DIY Guide to the PTC
You CAN have your say in the future of the wind industry. Here's how.

We're all well aware that Congress' failure to extend the federal Production Tax Credit (PTC), which is scheduled to expire at year's end, could lead to devastating job losses and stunt the growth of renewable energy as a means of fueling the domestic energy portfolio. And as active participants in the wind industry we all share a huge stake in how the PTC drama plays out.

Fortunately, we live in a country where voices are heard and action is taken when something's amiss. And with half of the U.S. wind industry workforce at stake, now is the time to take action and be heard.

This quick-read, do-it-yourself guide is designed to equip you with the proper information and tools to persuade the legislators in Congress to extend the PTC.

First the FAQs

  • The PTC was initially set up in 1992 as a federal incentive to assist in the development and deployment of technologies that would ensure a diverse domestic energy fleet.
  • The tax credit has enabled the wind industry to expand exponentially. Currently more than 75,000 manufacturing, installation and maintenance jobs are supported by the industry.
  • More than 400 manufacturing facilities in 43 states supply the wind industry.
  • The tax incentive is credited, in part, with expanding the domestic content of wind turbine components to 60% today, up from 25% just seven years ago.
  • To avoid being a victim of a potential lame duck session after November's elections, efforts are being made to include the PTC extension as part of special legislation being drafted this month in Congress to extend the much-publicized payroll tax cut. That legislation could be voted on as early as February 29.
  • If the PTC is not extended, it is estimated that total investment in new wind projects will plunge from $15.6 billion to $5.5 billion. Further, 37,000 jobs supported by the industry could be lost in 2013. (Navigant)
  • Representatives Dave Reichert (R-Wash.) and Earl Blumenauer (D-Ore.) have introduced legislation to grant a four-year extension of the PTC, which was recently endorsed by a coalition of more than 370 member organizations.

Aside from the Obvious, Why is the PTC So Important?

Here's the answer in a nutshell. We all agree that America is in dire need of home-grown clean energy resources. We also agree that Americans need jobs. The PTC supports the growth of wind energy through an incentive that promotes development, drives manufacturing and creates jobs. Any reasonable mind can deduce that this perfect combination will positively contribute to a mired economy that is struggling to right itself. The livelihoods of 37,000 workers, and the fates of hundreds of businesses, is what's at stake here.

What's GLWN Doing to Help the Cause?

  • Just recently, GLWN representatives were in Washington D.C. with other major advocates of the domestic wind energy industry to lobby for the PTC extension.
  • One of GLWN's primary initiatives is to make manufacturers in the supply chain more competitive, not only in the wind industry but in other burgeoning renewable energy sectors. We're doing this by assisting manufacturers in successfully making the transformation to Lean systems through our integrated Lean Mastery Program. Lean manufacturing is a key consideration in the OEM bid process, and if your organization can show continuous improvement using Lean concepts, you're be highly attractive as a supplier.
  • GLWN actively fosters development of resources that connect the GLWN network with new business opportunities in the industry. Our GIS Mapping System enables OEMs and developers to quickly locate qualified suppliers nationwide, and has been instrumental in generating high profile and profitable business relationships. Are you on the Map?

What Can You Do?

Here's where we saved the best part for last. As part of the wind industry supply chain, you have so much at stake when it comes to the PTC extension. As hard as GLWN is trying to further the cause, now is not the time to mince words: You need to do your part!

Be Informed (Get the Facts)

  • Follow the credible sources that are reporting on the PTC extension. The American Wind Energy Association has up-to-the-minute news on its website and blog. And Wind Energy SmartBrief puts out industry-specific news that arrives in your email box every day. You can sign up for a free subscription.

Be Prepared (Expect the Worst)

  • Diversification is the buzzword for 2012. If you're presently manufacturing and/or supplying goods to the wind industry, chances are your production operation is well-suited to service and supply other renewable energy sectors that closely scrutinize quality assurance and demand such things as Lean systems.

Be Heard (Let Your Representative Know How You'll Be Affected)

  • It's time to stop complaining to your spouse and start looking directly to the legislative source that is making the decisions. Contact your representative and make your voice heard. If you're looking for contact info for Senators, Representatives, Governors and even the President, you can find their contact info HERE.
  • Not sure of what to tell your representative? No problem, the email is already written out for you. Just complete the form, which will send an email voicing your concerns to the appropriate government official.

Be Involved (Your Future. Your Hands.)

  • AWEA also has a webpage full of information that will enable you to do your part to push the PTC extension.

The US Congress is working on tax legislation right now and it is expected that a tax bill will be finalized as early as February 29th. As your legislators work on the tax bill, it is crucial that they hear from their constituents about the urgency of including an extension of the PTC in any tax bill that moves forward this month.