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REPORT DOCUMENTATION PAGE Form Approved OMB NO. 0704-0188 Public reporting burden for this collection of information is estimated to average 1 hour per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to Washington Headquarters Services, Directorate for Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA 22202-4302, and to the Office of Management and Budget, Paperwork Reduction Project (0704-0188), Washington, DC 20503. 1. AGENCY USE ONLY (Leave blank) 2. REPORT DATE 3. REPORT TYPE AND DATES COVERED April 2002 4. TITLEANDSUBTITLE An Economic Valuation of a Geothermal Production Tax Credit 6. AUTHOR(S) Brandon N. Owens Technical Report - Analysis 5. FUNDINGNUMBERS TA: GT11-1108 7. PERFORMINGORGANIZATIONNAME(S)ANDADDRESS(ES) National Renewable Energy Laboratory 1617 Cole Blvd. Golden, CO 80401-3393 8. PERFORMINGORGANIZATION REPORT NUMBER 9. SPONSORING/MONITORINGAGENCYNAME(S)ANDADDRESS(ES) National Renewable Energy Laboratory 1617 Cole Blvd. Golden, CO 80401-3393 10. SPONSORING/MONITORING AGENCY REPORT NUMBER NREL/TP-620-31969 11. SUPPLEMENTARY NOTES 12a. DISTRIBUTION/AVAILABILITY STATEMENT National Technical Information Service U.S. Department of Commerce 5285 Port Royal Road Springfield, VA 22161 12b. DISTRIBUTION CODE 13. ABSTRACT (Maximum 200 words) The United States (U.S.) geothermal industry has a 45-year history. Early developments were centered on a geothermal resource in northern California known as The Geysers. Today, most of the geothermal power currently produced in the U.S. is generated in California and Nevada. The majority of geothermal capacity came on line during the 1980s when stable market conditions created by the Public Utility Regulatory Policies Act (PURPA) in 1978 and tax incentives worked together to create a wave of geothermal development that lasted until the early 1990s. However, by the mid-1990s, the market for new geothermal power plants began to disappear. Today, market and non-market forces appear to be aligning once again to create an environment in which geothermal energy has the potential to play an important role in meeting the nation's energy needs. One potentially attractive incentive for the geothermal industry is the Production Tax Credit (PTC). The current PTC, which was enacted as part of the Energy Policy Act of 1992 (EPAct) (P.L. 102-486), provides an inflation-adjusted 1.5 cent per kilowatt-hour (kWh) federal tax credit for electricity produced from wind and closed-loop biomass resources. Proposed expansions would make the credit available to geothermal and solar energy projects. This report focuses on the project-level financial impacts of the proposed PTC expansion to geothermal power plants. 14. SUBJECT TERMS 15. NUMBER OF PAGES 16. PRICE CODE 20. LIMITATION OF ABSTRACT UL Standard Form 298 (Rev. 2-89) Prescribed by ANSI Std. Z39-18 298-102 geothermal; California; Nevada; Production Tax Credit; PTC; PURPA; The Geysers; market; Energy Policy Act. 17. SECURITY CLASSIFICATION OF REPORT Unclassified NSN 7540-01-280-5500 18. SECURITY CLASSIFICATION OF THIS PAGE Unclassified 19. SECURITY CLASSIFICATION OF ABSTRACT UnclassifiedPDF Image | An Economic Valuation of a Geothermal Production Tax Credit
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