Quantcast
Environmental News for a Healthier Planet and Life

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

Popular
Wind farm in Weatherford, Oklahoma.

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.

EcoWatch Daily Newsletter

Moroccan patients who recovered from the novel coronavirus disease celebrate with medical staff as they leave the hospital in Sale, Morocco, on April 3, 2020. AFP / Getty Images

By Tom Duszynski

The coronavirus is certainly scary, but despite the constant reporting on total cases and a climbing death toll, the reality is that the vast majority of people who come down with COVID-19 survive it. Just as the number of cases grows, so does another number: those who have recovered.

In mid-March, the number of patients in the U.S. who had officially recovered from the virus was close to zero. That number is now in the tens of thousands and is climbing every day. But recovering from COVID-19 is more complicated than simply feeling better. Recovery involves biology, epidemiology and a little bit of bureaucracy too.

Read More Show Less
Reef scene with crinoid and fish in the Great Barrier Reef, Australia. Reinhard Dirscherl / ullstein bild / Getty Images

By Elizabeth Claire Alberts

The future for the world's oceans often looks grim. Fisheries are set to collapse by 2048, according to one study, and 8 million tons of plastic pollute the ocean every year, causing considerable damage to delicate marine ecosystems. Yet a new study in Nature offers an alternative, and more optimistic view on the ocean's future: it asserts that the entire marine environment could be substantially rebuilt by 2050, if humanity is able to step up to the challenge.

Read More Show Less
Sponsored
A daughter touches her father's head while saying goodbye as medics prepare to transport him to Stamford Hospital on April 02, 2020 in Stamford, Connecticut. He had multiple COVID-19 symptoms. John Moore / Getty Images

Across the country, the novel coronavirus is severely affecting black people at much higher rates than whites, according to data released by several states, as The New York Times reported.

Read More Show Less
Four rolls of sourdough bread are arranged on a surface. Photo by Laura Chase de Formigny and food styling by Lisa Cherkasky for The Washington Post / Getty Images

By Zulfikar Abbany

Bread has been a source of basic nutrition for centuries, the holy trinity being wheat, maize and rice. It has also been the reason for a lot of innovation in science and technology, from millstones to microbiological investigations into a family of single-cell fungi called Saccharomyces.

Read More Show Less

Trending

A coral reef in Egypt's Red Sea. Tropical ocean ecosystems could see sudden biodiversity losses this decade if emissions are not reduced. Georgette Douwma / Stone / Getty Images

The biodiversity loss caused by the climate crisis will be sudden and swift, and could begin before 2030.

Read More Show Less