DES MOINES, Iowa -- Iowa hasn't seen as much economic pain as some other states during the pandemic, but many residents and small businesses are still struggling.
Supporters of expanding the state's solar tax credit say it could help with any recovery from the crisis. The reimbursement budget for Iowa's credit is capped at $5 million annually, and with many homeowners and businesses investing in solar panels, there's a waiting list to get return dollars from the state.
Cody Smith, policy associate at the Center for Rural Affairs, said that's why the Legislature should consider modifications. He noted immediately paying those on the waiting list, while increasing the cap, would help a lot of Iowans hurting right now.
"Now that we have this economic problem caused by the coronavirus pandemic, this solar tax credit could help put money back into the pockets of people who own those small businesses on main street, and people who have already invested in renewable solar energy," Smith contended.
Smith asserted Iowa should also decouple from the federal incentive, given the ongoing uncertainty surrounding that plan.
Rep. John Forbes, D-Urbandale, said he'll advocate for an expansion in the next session. But he warns its future could depend on the upcoming budget forecast, and whether small businesses see more declines from the crisis.
He also wondered whether Republican leaders will consider the idea.
Certain sectors of Iowa's economy, such as manufacturing, have held steady, but Forbes said smaller consumer-driven businesses like restaurants are still seeing pain.
Dwight Dial, a farmer from Lake City, said trying to get by in this environment is tough. He installed a solar array in 2018, and he said the benefits from that investment are helping.
"My purpose of sustainability is that I am able to farm next year, that I can financially keep going," Dial emphasized. "And the solar unit has made it feasible."
Dial said his operation's energy costs have gone down considerably in a roller-coaster year for Iowa farmers.
But he's still waiting on state reimbursement for his solar purchase, and he said getting that would help pay off the initial investment, bringing more stability.
Those calling for changes say increasing the cap to $10 million not only helps those on the list, it would encourage others to take advantage, creating more demand for the solar industry.
Disclosure: Center for Rural Affairs contributes to our fund for reporting on Budget Policy and Priorities, Environment, Hunger/Food/Nutrition, and Rural/Farming. If you would like to help support news in the public interest,
click here.
get more stories like this via email
Montana is a U.S. leader in the growing industry of sustainable aviation fuel. Experts in the field, and in the agricultural sector, hope to see new policies to support its development.
Sustainable aviation fuel can be made from a variety of agricultural inputs, including seed crops, which produce oils processed into fuel with a low-carbon footprint. Industry growth could mean new buyers for ag producers in the state, where Montana Renewables was the highest domestic producer of sustainable aviation fuel last year.
Bruce Fleming, CEO of the company, said China and Brazil are outpacing U.S. growth.
"If we can get our policy figured out, if we can get American innovation going and not fall behind, then we've got solutions here that will benefit the ag sector, particularly the farmers and ranchers," Fleming explained.
In terms of policy, Fleming acknowledged the "goalposts keep moving," because they vary between agencies at the state and federal levels, making it difficult to plan. He hopes to see policies that embrace the SAF innovation, as the nation did for ethanol.
Nicole Rolf, senior director of government affairs for the Montana Farm Bureau Federation, said the opportunity for farmers to grow and market new commodities is enticing, but she will be watching for tax credits and other policies to support producers.
"How do we make sure that we put the right incentives in place so that we're truly using American-grown feedstocks, and crops and commodities, to feed these sustainable aviation-fuel suppliers?" Rolf asked.
The industry sees both challenges and benefits in Montana. For instance, there are currently no local oilseed crushers, so farmers must ship seeds for processing out-of-state. Rolf pointed out Montana is prepared to ship the finished product by rail and other means, as it already does for other energy products.
get more stories like this via email
Utility providers foresee a big rise in electricity demand which could lead to double-digit rate hikes if it is met with new natural gas-fired power plants, according to a new report.
PJM is the nonprofit independent system managing the power grid in Pennsylvania and 12 other states. It forecasts the need for 67 more gigawatts by 2039.
Sean O'Leary, senior researcher at the Ohio River Valley Institute, said relying on natural gas for the increased power demand could drive up Pennsylvania's rates faster than the national average. He cautioned addressing the climate effects of increased carbon emissions later could make costs skyrocket even more.
"It costs almost as much to retrofit a gas-fired power plant so that it won't emit greenhouse gases as it costs to build the plant in the first place," O'Leary pointed out. "Right now, Pennsylvanians get about 60% of all of their electricity from natural gas."
O'Leary noted PJM anticipates needing around 100 gigawatts of new capacity, combining 30 gigawatts of retiring coal and older gas plants with additional demand, equating to about two-thirds of the system's current generation capacity.
The Institute's report recommended prioritizing renewable resources and called on PJM to reevaluate its demand projections, since it has a history of overestimating future needs. He added more than 90% of PJM's upcoming projects are solar, wind and battery storage, which underscores the growing role of renewable energy and efficiency measures.
"I think in total, there are more than 90 gigawatts, currently, of renewable resources currently queued up and wanting the opportunity to provide energy to PJM," O'Leary reported. "That should be the first place that PJM turns."
He added states like Texas have made enough progress on renewables, solar and wind power now supply almost one-third of the state's electricity. The report showed the growth in renewable energy has also seen rates come down significantly, surpassing Pennsylvania, Ohio and West Virginia, where it was once thought the natural gas boom lowered energy costs.
Disclosure: The Ohio River Valley Institute contributes to our fund for reporting on Budget Policy and Priorities, Climate Change/Air Quality, Energy Policy, and Public Lands/Wilderness. If you would like to help support news in the public interest,
click here.
get more stories like this via email
A new report contended Alabama needs to invest more in energy efficiency so it can do more to lower power bills and curb the effects of climate change.
The Southern Alliance for Clean Energy's report, "Energy Efficiency in the Southeast," said Alabama trails other states in utility company energy efficiency investments. It found this leads not only to higher energy bills for customers, but increased carbon emissions contributing to the warming climate.
Eddy Moore, decarbonization director for the alliance, said there are multiple benefits to prioritizing energy efficiency.
"If we take energy efficiency seriously, there will be everyday cost savings, there will be delays of expensive investments," Moore outlined. "There's also a reliability benefit."
The report found utilities like Duke Energy in North and South Carolina outperform others in the Southeast, with Alabama Power at the bottom of the list.
Heather Pohnan, senior energy policy manager for the alliance, said the barriers to energy efficiency in Alabama include limited funding, minimal program investment, and challenges in reaching low-income and rental housing markets. She noted federal funding, from sources like the Inflation Reduction Act, could be a substantial resource.
"The IRA includes tens of billions of dollars for energy efficiency," Pohnan pointed out. "It was a massive investment that includes tax credits, consumer rebates, loan programs and competitive grant opportunities."
She noted Alabama has yet to apply for key resources, like Home Energy Rebate funds. The future of the funding is unclear with the new leadership headed to the White House. But the report says energy efficiency will be essential to bolster Alabama's power grid against the rising electricity demands of data centers and population growth and to mitigate the effects of extreme weather events.
get more stories like this via email