Quantcast
Popular
Wind farm in Weatherford, Oklahoma.

Oklahoma Ends Wind Subsidy Despite Generous Tax Breaks for Fossil Fuel Industry

Oklahoma Gov. Mary Fallin signed a bill into law Monday that will end a state tax credit several years early for electricity generated by wind power.


Under the new legislation, wind farms that start producing energy after July 1 will not be able to claim the state's "zero emission tax credit" program. The credit was originally set to expire in January 2021.

Fallin acknowledged that the program, which pushed claims from $3.7 million in 2010 to $113 million in 2014, helped Oklahoma become the third-largest producer of wind power in the country. However, the Republican governor noted that the state's estimated $868 million budget shortfall necessitated the phaseout of wind incentives.

"The zero emissions tax credit was key to the growth of wind energy in Oklahoma, and I'm grateful to the industry for their ambitious successes, as well as their willingness to work with the state to address our challenging budgetary circumstances," Fallin said. "It is time to ensure that Oklahoma has a bright future, and continues its position as a prominent energy state."

The measure appeared to have support from the wind industry itself. Jeffrey Clark, president of The Wind Coalition, told The Oklahoman that the incentives have been "incredibly beneficial, but we remain the first and only industry to offer to phase out its incentives."

But Fallin and state lawmakers have been criticized for keeping generous tax breaks in place for the oil and gas industry while squeezing other public services such as school funding during the budget crisis.

As the Associated Press reported:

Even then, the revenue generated by wind facilities won't "move the needle very much on the state budget," said Dr. Stephen Stadler, a board member of the Oklahoma Renewable Energy Council. He said lawmakers should roll back other tax credits and incentives, including generous subsidies provided to the oil and natural gas industry.

"Can we afford those subsidies?" he asked. "Things are not even. It's not a level playing field."

Oklahoma's wind subsidies are dwarfed by subsidies to the oil and gas industry, David Blatt from the Oklahoma Policy Institute pointed out.

"The estimates of the cost of subsidies for wind producers vary, but we do know they are substantially less than the $400 million to $600 million cost of subsidies for oil and gas," Blatt wrote.

Fallin's executive budget proposed in February sought to phase out wind incentives that she said are no longer necessary.

"This industry was incentivized sufficiently to now be a major player in the Oklahoma energy industry, and a major winner of now-unnecessary incentives," the budget read.

The Oklahoman reported last year that state fossil fuel executives, including oilman and Trump advisor Harold Hamm, had formed a coalition to lobby for the end of wind tax credits in the state.

Show Comments ()

EcoWatch Daily Newsletter

Sponsored
Animals
Two baby Loggerhead turtles. U.S. Air Force / Senior Airman Veronica McMahon

A Record 589 Sea Turtles Killed By Florida's Toxic Red Tide

Florida's longest red tide in more than a decade has killed scores of the state's most iconic marine animals.

The current outbreak, which began in October 2017 off southwest Florida, has been tied to a record 589 sea turtle deaths and 213 manatee deaths, the Herald-Tribune reported, citing figures from the Florida Fish and Wildlife Conservation Commission.

Keep reading... Show less
Animals
Lake Baikal. W0zny / Wikimedia / CC BY-SA 3.0

Wildlife Under Siege at the World’s Oldest Lake

By Marlene Cimons

Lake Baikal is the world's oldest and deepest lake. It's at least 20 million years old, and roughly a mile deep at its lowest point. The Siberian lake contains holds more water than all the North American Great Lakes combined, what amounts to more than one-fifth of all the water found in lakes, swamps and rivers. It was formed by the shifting of tectonic plates, which created a valley that filled with water. That shift continues today at a rate of around 1 to 2 centimeters year, meaning the world's biggest lake is only getting bigger.

Keep reading... Show less
Insights/Opinion
Oil rig operating next to a walk and bike way in the Signal Hill area of Los Angeles. Sarah Craig / Faces of Fracking / CC BY-NC-ND 2.0

U.S. Oil and Gas Industry Is Drilling Us Towards Climate Disaster

By Kelly Trout

As the 116th Congress commences, in the wake of dire reports from climate scientists, the debate over U.S. climate policies has taken a welcome turn towards bold solutions. Spurred on by grassroots pressure from Indigenous communities, the youth-led Sunrise Movement and communities from coast to coast fighting fossil fuel infrastructure, Capitol Hill is alive once again with policy proposals that edge towards the scale required to address the crisis we're in.

Keep reading... Show less
Animals
Bumblebee on goldenrod. Jim Hudgins / USFWS

Half of Michigan's Bumblebee Species in Decline, One Extinct

Honeybees get a lot of attention for their worrisome decline, but many species of bumblebees—which are key pollinators—are also in trouble.

In Michigan, half of its bumblebee species have declined by 50 percent or more, Michigan Radio reported.

Keep reading... Show less
Sponsored
Popular
Bound bales of crushed plastic bottles and containers sit stacked ready to be recycled at a recycling center in the Netherlands. Jasper Juinen / Bloomberg / Getty Images

Toward a Circular Economy: Tackling the Plastics Recycling Problem

By Margaret Sobkowicz

Why has the world continued to increase consumption of plastic materials when at the same time, environmental and human health concerns over their use have grown?

Keep reading... Show less
Oceans
Bleached coral at the Great Barrier Reef. The Ocean Agency / XL Catlin Seaview Survey / Richard Vevers

2018 Was the Hottest Year Ever Recorded for Our Oceans

The year 2018 was the hottest year for the planet's oceans ever since record-keeping began in 1958, according to a worrisome new study from international scientists.

The findings, published Wednesday in the journal Advances in Atmospheric Sciences, noted that the five warmest years for our oceans were the last five years—2018, 2017, 2015, 2016 and 2014 (in order of decreasing ocean heat content).

Keep reading... Show less
Sponsored
EPA Acting Administrator Wheeler / EPA

Senate Shouldn’t Put Wheeler at the Wheel of the EPA

By Ana Unruh Cohen

As the longest government shut down in history drags on, and the experts protecting our air and water remain off the job, the Senate is barreling forward to put Andrew Wheeler at the wheel of the U.S. Environmental Protection Agency (EPA). He is unfit for this public trust.

In his seven-month tenure as the acting administrator at EPA, Wheeler's relentlessly pushed to advance the pro-polluter agenda launched by Scott Pruitt, the worst administrator in the agency's storied 48-year history. Wheeler may lack Pruitt's scandals, but he's no improvement.

Keep reading... Show less
Health
Westend61 / Getty Images

Top 20 Healthy Salad Toppings

By Lizzie Streit, MS, RDN, LD

Salads are typically made by combining lettuce or mixed greens with an assortment of toppings and a dressing.

Keep reading... Show less
Sponsored

mail-copy

The best of EcoWatch, right in your inbox. Sign up for our email newsletter!