Oregon’s Wind Advantage - PowerPoint PPT Presentation

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Oregon’s Wind Advantage

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  1. Oregon’s Wind Advantage Why Oregon Makes Sense for Wind Manufacturers Tim McCabe, Director Business Oregon (Oregon Business Development Department)

  2. Oregon Is Committed to Renewable Energy • Oregon greenhouse gas reduction targets in law: • 10% below 1990 levels by 2020 • 75% below 1990 levels by 2050 • 2020 target is double new federal goal • Oregon promotes wind and other renewable energy through state incentives: • residential and business tax credits • low interest loans • utility public purpose charge

  3. Oregon Regulatory Policies Encourage Renewable Use Simpler siting review for renewable energy Renewable Portfolio Standard (RPS) • Utilities must provide 25% of electricity from renewable energy by 2025 • virtually all Oregon’s electric load growth must be from renewable energy Power Plant Emission Standard • No new coal plants unless they meet CO2 emissions of natural gas plants, i.e. virtually precludes any new coal plants in Oregon

  4. Wind Energy in Oregon • Nearly 2,000 MW operating • 2,000 MW more being built • 2,100 MW more under review • Energy = 6 fossil fuel plants • Oregon #4 State in US in wind operating plants • Oregon is North American Headquarters of Vestas and Iberdrola

  5. Economic Benefits - Wind Energy Projects • Over 1,600 jobs in construction and operation • 1,000 jobs at Vestas and Iberdrola US headquarters alone • $76 million for farmland leased • $142 million local taxes & fees • #1 green jobs per capita in US

  6. Why Oregon Makes Sense for Wind Manufacturers • Renewable energy incentives • Low business costs • Competitive industrial power rates, low business taxes, tax abatement and incentives • Highly skilled workforce • Access to market for windfarms • Oregon is #4 State in windfarm capacity in US and borders California #3 and Washington #5 • Convenient gateway to Pacific Rim and Europe

  7. Manufacturing Incentives for Wind & Other Renewable Energy • Business Energy Tax Credit (BETC) • 50% tax credit on first $40 million investment. • Convertible to cash at variable rate yields (current @35%) • Multiple credits possible over time • Biennium cap of $200 million of credits • Subject to application & approval • Subject to negotiated performance contract

  8. Manufacturing Incentives continued: • Small Scale Energy Loan Program (SELP) • Loans backed by state tax-exempt general obligation bonds; adequate security required • Interest rate based on bond issue rate, typically 6-7% • Loan terms are flexible, from 5 to 20 years, loan size as large as $20 million • Loans for energy efficiency, renewable energy production, and renewable energy manufacturing • Can include most capital costs e.g. design, engineering land, building and equipment costs. • Fess and interest pay program costs • Can be used with state BETC and federal incentives

  9. Low Costs of Manufacturing Wind in Oregon • Low State and Local Taxes • Low Power Costs • Low Worker Compensation Rates • Low Cost of Land & Buildings • Low Total Operating Costs • Near Other Large Wind Markets: California(#3), Washington (#5)

  10. Oregon Has Low State and Local Business Taxes • Oregon has the lowest effective tax rate in the U.S. (Ernst & Young COST Study, 2010) • Local property taxes, 1–2% of assessed value, rising not more than 3% per year • Inventories and vehicles excluded • Programs to exempt new plant & equipment • No sales tax, no VAT, no inventory tax, stamp tax or transfer tax • Affordable, stable power

  11. Oregon Business ClimateLowest Total Effective Business Tax Rate in the U.S.Oregon is tied for The Lowest in the U.S. at 3.5%

  12. Enterprise Zone (E-Zone)Property tax abatement program • New, qualified plant & equipment 100% exempt from taxation • Three years automatic with hiring requirements and potential urban zone additional conditions • Extra one or two years (years 4 & 5) based on written agreement with local zone sponsor • Future use for subsequent phases or projects • Exemption periods apply to each year’s newly operational property over 3 years per authorization • Future authorizations with 10% employment increases

  13. Low Electrical Power Cost • Average industrial rates are about half that of California’s (U.S. Department of Energy, 2010)

  14. Skilled, Ready Workforce • Established windfarm workforce • Over ten years experience in construction, operation and maintenance of windfarms • Wind-specific programs at community colleges, university system and union training centers • Oregon's attraction and retention of 18-34 year olds is 39% above U.S. average

  15. Oregon Population:3.7 million - 78% in Cities • Top 5 state for attracting young educated workers • Growing population

  16. Access to Market • Access to Key Markets • Easy distribution to Oregon, California, and Washington, three of the top five wind markets in the US, as well as the Pacific Rim • Full intermodal access • Portland International Airport voted best airport for business travel 4 of last 5 years. (Conde Nast, 2006-2008, 2010)

  17. Advanced Inter-Modal Connectivity Port of Portland, Oregon

  18. Port of PortlandWest Coast Flight Hub • About 13 million passengers per year • 200,000 tons of air cargo per year • 20 carriers • 14 passenger carriers • 6 all-cargo carriers • About 216 passenger flights daily • Nonstop flights to Asia, Europe & Canada • Tokyo, Amsterdam, • Calgary, Toronto, Vancouver • General aviation airports in Hillsboro, Troutdale and Salem, Oregon

  19. Delta Non-Stop Service:Tokyo-Portland-Amsterdam

  20. For more information on whyOregon makes sense for wind manufacturers Mr. Tim McCabe, Director 1-503-986-0110 Tim.mccabe@biz.state.or.us Mr. Mike Grainey Renewable Energy Advisor 1-503-986-0071 michael.w.grainey@state.or.us or Mr. Bruce Laird Clean Technology Recruitment Officer 1-541-944-2920 bruce.a.laird@state.or.us www.Oregon4biz.com