The cost of Green in Oregon
It seems that the true cost of Green Energy has been misrepresented to the voters of Oregon.
From the
Portland Oregonian:
State lowballed cost of green tax breaks
State officials deliberately underestimated the cost of Gov. Ted Kulongoski's plan to lure green energy companies to Oregon with big taxpayer subsidies, resulting in a program that cost 40 times more than unsuspecting lawmakers were told, an investigation by The Oregonian shows.
Records also show that the program, a favorite of Kulongoski's known as the Business Energy Tax Credit, has given millions of dollars to failed companies while voters are being asked to raise income taxes because the state budget doesn't have enough to pay for schools and other programs.
The incentives are now under intense scrutiny at the Oregon Department of Energy, which is scrambling to curb their skyrocketing costs.
A bit more:
The official estimates turned out to be absurdly low. In 2007-09, the business tax credit cost the state $68 million, of which about $40 million can be attributed to the bigger subsidies. The latest estimate for 2009-11 puts the tab for subsidies at $167 million in lost revenue, which is projected to grow to $243 million for 2011-13 -- about what Oregon spends now from its general fund on the entire state police budget.
Three specifics:
A wind energy project received four separate $10 million tax credits even though it will generate less electricity than projects getting one-tenth the $40 million subsidy.
A Clatskanie ethanol plant got $12 million in tax subsidies plus a $20 million state energy loan, then promptly went bankrupt and stopped operating. The plant, Cascade Grains, claims it's still owed $10 million in tax credits, and it may sue to try to get them.
A Boardman tire recycling plant got $3.4 million even though, after more than two years, it has yet to recycle tires. Investors are suing founders of Reklaim Technologies, now known as McKinstry-Reklaim, alleging they were misled about the project's solvency.
Green energy will never ever be cost effective. Ethanol was known from the start to take more energy to produce one gallon than that gallon of fuel had in it. Cost of power from a nuke plant is about 1.4 cents kW/Hr and about 30 cents from PV Solar. Do the math!
Posted by DaveH at November 1, 2009 10:16 AM