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BOULDER, CO -- State-level renewable portfolio standard (RPS) goals are in jeopardy due to the lapse of the 10-year 1.8 cents/kWh federal production tax credit (PTC), according to a study dated August 23rd from Platts. The PTC was available to owners of wind, closed-loop biomass, and animal waste projects, but expired at the end of 2003. Several variants of the PTC have been proposed in Congress, and an expanded version of the credit passed the Senate in May.
The report "Does the PTC Work?" found that the PTC is unlikely to yield a significant direct market impact as a standalone policy because renewable energy market growth has historically been driven by state-level policies. However, study author Brandon Owens notes that the ...