**Oregon Renewable Wind Energy**

**U.S. Senate Committee on Commerce, Science, and Transportation**

Oregon is blessed with abundant renewable energy in the form of
commercially developable wind regimes. These wind regimes are allowing
the creation of several types of wind projects:

-   **[Commercial]{.underline}** sized wind projects with power for sale
    to Northwest Utilities -- these projects range from 50 MW up to as
    large as 450 MW

-   **[Community based]{.underline}** wind projects that are locally
    owned by private landowners or partnerships with local communities,
    counties, etc. -- these projects range in size up to 10 MW

Oregon is seeing wind development in diverse areas in the state

-   **[Mid-Columbia]{.underline}** -- this area is undergoing dramatic
    growth in commercial wind farms. Klondike and Condon are currently
    online with 150 MW with expansions planned in Sherman County,
    Gilliam, Wasco and Morrow Counties. BPA is working with developers
    to provide new transmission access into their 500 kV transmission
    systems with an anticipated additional 1900 -- 2500 MW in the next 5
    years.

-   **North-Eastern Oregon** has Stateline, VanCycle, and Combine Hills
    plus a proposed 100 MW project in La Grand with Horizon

-   **Southern Oregon** has a number of projects in the planning stage
    in Lake, Harney, and Klamath counties.

The Oregon **Renewable Energy Work Group** is crafting legislation for
the next legislative session in 2007 to introduce a Renewable Portfolio
Standard (RPS) of 25% Renewables by 2025.  The RPS will probably be a
hybrid type with the majority likely going to large scale wind projects
on competitive bids while a significant portion may be going to locally
owned Community Based Renewable Energy projects.

A number of Oregon communities are conducting resource assessments to
identify potential locally owned project in their areas. These smaller
projects can use smaller transmission systems than those needed by
larger commercial projects and allow for smaller projects in areas not
available to the bigger wind projects. Their advantage is that the
revenues from these projects remain local and they provide energy self
sufficiency and economic development in rural areas that can not benefit
from the larger commercial wind projects.

Oregon is developing support programs to allow for growth of renewable
energy projects:

-   State tax incentives in the form of **Business Energy Tax Credits**
    (BETC) which allow for tradable state tax credits similar but more
    flexible than federal Production Tax Credits (PTC)

-   Low interest **Sustainable Energy Loan Program** to provide
    financing for qualifying projects

-   Economic Development funds to assist communities in early
    feasibility studies.

**[FEDERAL PROGRAMS]{.underline}**

Oregon is putting in place a number of state programs to facilitate
Renewable Energy Projects. The needs of Oregon are changing and becoming
more sophisticated as our Renewable Energy vision matures. Our federal
needs are becoming better defined and can be articulated to a few simple
issues:

1.  **Extend Production Tax Credits (PTC) for 10 yrs** -- the current
    on-again/off-again two year funding of PTC's has crippled Oregon's
    ability to buy wind turbines for community projects and is seriously
    hampering commercial wind development. Turbine manufacturers have
    left the U.S. and the few remaining are sold out for years in
    advance to a few large developers. We must have longer PTC
    extensions to attract turbine manufacturers to locate and build
    enough turbines to meet demand

2.  **Create a "COMMUNITY SIZED"** category in the energy bill to
    recognize the unique needs of smaller locally owned projects up to
    20 MW. At present, the PTC language works well for commercial scale
    projects but is actually an impediment to smaller locally owned
    projects. A separate category would allow for specialized policies
    aimed at locally owned smaller projects.

3.  **Support S. 2571 and H.R. 4716**, both of which would create a new
    30% tax credit for the purchase of small wind systems used to power
    homes, farms, and small businesses. The small wind tax credit is one
    component of S. 2571, a wide-ranging energy policy bill sponsored by
    Senator Kent Conrad (D-ND). Meanwhile, H.R.4716, sponsored by
    Representative Tom Cole (R-Okla.), is focused exclusively on the
    small wind tax credit.

 

We encourage an Oregon workshop comprised of knowledgeable stakeholders
to define a new vision for Renewable Energy at a federal level that
speaks to the evolving needs as Oregon moves to become more energy
sufficient in the difficult energy times we face.

The following map shows a number of community based renewable energy
projects currently under study in Oregon. These projects are providing
rural Oregon with opportunities for economic development and energy
self-dependence.

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