Congressmen Veasey (TX-33), Arrington (TX-19) Lead Bipartisan Letter Urging Oversight On Wind Blade Recycling

WASHINGTON - Congressmen Marc Veasey (TX-33) and Jodey Arrington (TX-19) led a bipartisan letter urging the Treasury Department and the Internal Revenue Service (IRS) to strictly adhere to Congressional intent related to production and investment tax credits to guard against potential unintended economic and environmental consequences of IRS tax credit guidance for wind blade recycling industry.

In the letter the lawmakers wrote: "We write today to express concern over recent reports of discarded wind turbine blades in Texas, highlighting the potential unintended consequences of Internal Revenue Service (IRS) clean energy tax credit guidance.

They added:

"Due in part to recent tax guidance, repowering of wind projects has become an attractive option for many wind project owners in the United States. Generally, wind farm repowering means removing old turbine blades and replacing them with newer, more efficient models. According to previous IRS guidance, each wind turbine, pad, and tower is treated like a separate power plant or "facility." The IRS uses the 80-20 test to determine whether the facility is "new" and thus qualifies for the tax credit. That is, the amount spent on repowering the facility must be at least four times the value of the used parts retained from the old turbine, pad, and tower.5 We have concerns about the fair market valuation of these older wind blades when applying the 80/20 rule. Each wind energy property has distinct development costs, energy output capacity, and contracted electric energy rates that dictate the extent to which the incentives impact the financial feasibility of any wind energy property.

"Further, these rotor blades are made of composite materials (e.g., Fiber-Reinforced Plastics, mostly fiberglass, and carbon fiber) and pose a significant recycling challenge to the wind industry and the composite materials sector. As Fiber-Reinforced Plastics (FRPs) are complex to recycle, most rotor blades are currently going to either landfills or incineration facilities until new processes are developed to create a sustainable supply chain.6 While blade materials are non-toxic, we have concerns about space in landfills and the risks of simply replacing one environmental challenge with another.

"We strongly encourage your vigilant adherence to Congressional intent related to the production and investment tax credits, along with fidelity to the 80-20 rule. While we endorse the wind industry's efforts to enhance efficiency and incorporate cutting-edge technologies into their operations, we emphasize the importance of stringent enforcement. Neglect in this regard could potentially encourage bad actors to take advantage of the industry and worsen a growing environmental concern."

The full letter can be found here.