By Dave Stevenson, Caesar Rodney Institute
In a major surprise to lobbyists and industry insiders, the Idaho Senate killed an existing wind energy subsidy during the final days of their recently completed legislative session. See http://idahobusinessreview.com/2011/04/11/idaho-senate-kills-much-debated-energy-rebate/
Under current Idaho law, alternative energy producers received a rebate of state sales taxes paid on equipment. The rebate program will now expire June 30, 2011. Wind energy producers were a primary beneficiary of the rebate.
Idaho State Senator Joe Stegner, R-Lewiston, led the opposition, blasting the measure as nothing more than a deal to help specific companies.
"This has been crafted by people who will enjoy that rebate," Stegner said. "It's not been developed by policymakers with regards to whether it's going to be good policy for the state. It's been developed by the industries that will benefit."
Tauna Christensen, a resident of Firth who helped found the group Idahoans for Responsible Wind Energy, said she was "elated" that the rebates weren't extended.
"We already give them massive federal subsidies," Christensen told The Associated Press after the vote. "If they can't survive on those alone, they should not have any more of our taxpayer dollars."
David T. Stevenson, Director of the Caesar Rodney Institute's Center for Energy Competitiveness in Dover, said developments like these in Idaho, and the Maryland Legislature's recent decision to kill Gov. Martin O'Malley's Atlantic Wind Farm proposal, show that it's possible to roll back flawed environmental initiatives.
"Delaware legislators have a similar opportunity with HB 86, which would suspend Delaware's participation in the Regional Greenhouse Gas Initiative ("RGGI"). A regional, state level cap and trade system like RGGI is a great policy for industry insiders. But it's terrible policy for the people of Delaware," Stevenson said.
Also of concern were allegations of corruption and sweetheart deals which plagued the Idaho and Maryland wind power initiatives.
Multiple sources reported that Gov. O'Malley's former Chief of Staff and "best friend" stood to gain substantial personal financial benefit from the Atlantic Wind Farm. See
http://www.washingtonpost.com/rw/WashingtonPost/Content/Epaper/2011-03-16/Bx10.pdf
and
And in Idaho, there was coverage of possible corrupt inside deals, potentially even benefiting members of the Idaho legislature personally, involving alternative energy projects in that state. See http://www.businessweek.com/ap/financialnews/D9MECMKO0.htm
According to Stevenson, the lack of transparency and public accountability surrounding so many of these programs, particularly RGGI, is perhaps the greatest concern about them.
"The RGGI auctions are run by non-governmental entities, and most of the money is spent by a non-governmental entity out of the the public eye."
"Stories like these give the distinct impression that these programs are a corrupt enterprise, profiting well connected political insiders with limited transparency and accountability.
"Regardless of the economic and scientific concerns surrounding the affordability and effectiveness of cap and trade programs, programs like RGGI should be suspended if for no other reason than to demand absolute transparency regarding their financial aspects.
"When the power of government is being used to levy an effective tax on energy and create a market for the sale of credits, citizens have a fundamental right to know who is buying what and who is benefiting (or getting rich) on the backs of ratepayers."
"Until that level of transparency is granted regarding RGGI, Delaware shouldn't be a party to it," Stevenson said.
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