After half a million dollars and six months, the turbines are ordered and the power is purchased.
Only the need to obtain a renewable energy tax credit stands in the way of the wind farm in Spanish Fork that hopes to start harvesting wind in 2008. It's overcome opposition from Spanish Fork residents, windmill property owners and construction price hikes.
However, if tax credits for renewable energy sources aren't restored in a legislative session by the end of this year, then there will be no wind farm because the company can't afford to build and operate it without the credits.
"All the money we spent would be wasted," Wasatch Wind President Tracy Livingston said. "And the state would be unable to reap the benefits of the first commercial wind farm."
Tax credits for renewable energy were removed during this year's legislative session. They've been in place since 1980, but sunset every five years. This year, the bill -- House Bill 42 -- died in the Senate.
"What actually happened to it that killed it was the confusion over whether we were going to have a flat tax plan or not, which did not include tax credits at all," said Rep. Sheryl Allen, R-Bountiful, who sponsored the legislation.
She said that the Legislature was debating the flat tax up until the last night of the session, and when it didn't pass, taxes stayed the same, without a renewable energy tax credit.
"It wasn't 'are renewable tax credits goodfi' or 'are renewable tax credits badfi' but are we going to have a new system with no tax credits or notfi" Allen said. She said that the tax reform will be debated this summer, and with that, the tax credits.
Livingston said the company is worried about the credits, but hopeful it can be resolved in a summer session. He signed a 20-year contract with Utah Power last week for the wind.
Utah Power, which supported the tax credit in the Legislature, will pay over $60 million dollars for the power over two decades. It signed up to buy all 18.9 megawatts the wind farm will put onto the grid annually.
"We're able to fix the price for 20 years, you can't do that with any other form of power. That's the real beauty," Livingston said. Prices for natural gas and coal fluctuate, where once the wind farms are built there are minimal operating costs and the wind is free.
David Eskelsen, Utah Power spokesman, said that wind is a great commodity because it's dependable, though not always readily available. It comes at the same time every day. Utah Power uses wind power from Oregon, Wyoming and Washington.
Livingston has been working on building his windmills since 2005. He's overcome resident opposition, who worried about noise and view obstruction.
Spanish Fork Mayor Joe Thomas has worked on negotiations between land owners, Wasatch Wind, residents and the city.
"Basically, the highlights on this whole deal is that everyone has a greater or equal win from the original positive," Thomas said. "And that all just came from people being open and talking about it."
Wasatch Wind will be leasing some of the land for the windmills from the city, earning the city $450,000 over 20 years. The city started the process to annex the property last week and is rewriting the industrial zoning regulations in order to include windmills.
The zoning change still needs to go through the public hearing process. The Spanish Fork Planning Commission has reviewed the change. Livingston isn't concerned about that, however.
"We're not really waiting, we're moving forward with the plans on the project. From what we understand, the zoning change will happen," he said.
Livingston said the only problem that will stop the wind farm is the tax credit, which he said he'd like to be made retroactive to the first of this year due to the expense that the wind farm has already amassed.
Sarah Wright, executive director of Utah Clean Energy, said that the lack of credits will stop a lot of renewable energy from happening.
"We will definitely be putting a bill before the Legislature again this year to reinstate the tax credits and make them retroactive from the beginning of the year," she said.
Allen said that knowing the renewable energy tax credits would benefit corporations would help pass the bill.
"The same issues are still there and unresolved, but it is always really helpful to hear from industry that it provides an incentive for them to, in this case, build a wind farm that would be benefit the state," Allen said, referring to the tax credits and the motivation for Wasatch Wind.
Utah Clean Energy said it hopes that the Spanish Fork wind farm motivates more renewable energy resources, creating a domino effect that shows how cost-effective renewable energy can be.
"I think sometimes you just need to be able to see it and kick the tires and give the utility experience," Wright said.
Natalie Evans can be reached at 344-2561 or nevans@heraldextra.com.
This story appeared in The Daily Herald on page D4.
Posted in Local on Sunday, July 2, 2006 11:00 pm
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