>> Sreenivasan: THE U.S.

CURRENTLY HAS NO NATIONAL PLAN

TO COMBAT CLIMATE CHANGE.

SEVERAL STATES, HOWEVER, HAVE

CLEAN ENERGY MANDATES OFFERING

TECHNOLOGY-SPECIFIC GRANTS AND

TAX CREDITS TO HELP RENEWABLE

ENERGY PRODUCERS COMPETE WITH

FOSSIL FUELS.

AND IT APPEARS TO BE WORKING.

SINCE THE YEAR 2000, THE AMOUNT

OF RENEWABLE ENERGY ON OUR GRID

FROM SOURCES LIKE SOLAR AND WIND

HAS MORE THAN DOUBLED.

BUT AFTER THIS YEAR, A TAX

CREDIT SUPPORTING WIND ENERGY

FOR NEARLY 30 YEARS IS PHASING

OUT.

NEWSHOUR WEEKEND SPECIAL

CORRESPONDENT KARLA MURTHY

REPORTS ON HOW THE INDUSTRY IS

COPING WITH THE END OF THE

INCENTIVE.

IT'S PART OF OUR ONGOING SERIES

"PERIL AND PROMISE: THE

CHALLENGE OF CLIMATE CHANGE."

>> Reporter: OFF A RURAL COUNTY

ROAD IN WEST TEXAS, SEVERAL

DOZEN LOCAL LANDOWNERS AND

GUESTS ARE GATHERED AROUND THREE

200-FOOT-LONG WIND BLADES.

USING SPECIAL ACID-FREE MARKERS,

ATTENDEES SIGN THE FIBERGLASS

AND BALSA WOOD BLADES,

CEREMONIALLY KICKING OFF WHAT

WILL BE ONE OF THE LARGEST WIND

FARMS IN TEXAS: AVIATOR WIND.

HOLLIS FARRIS IS ONE OF THOSE

LANDOWNERS.

HE OWNS A 5,000-ACRE RANCH USED

FOR RAISING CATTLE AND GAME

HUNTS.

>> WELL, I'VE ALWAYS ENJOYED THE

WIND.

WHERE MY HOUSE SITS, I GET WIND

COMING FROM THIS DIRECTION AND

THAT DIRECTION.

I DIDN'T THINK IT'D EVER MAKE ME

ANY MONEY.

(LAUGHS )

>> Reporter: EIGHT OF THE 191

TURBINES THAT MAKE UP THE

AVIATOR WIND PROJECT WILL BE ON

FARRIS'’ PROPERTY.

TOGETHER, LANDOWNERS NEGOTIATED

HOW MUCH THEY WOULD EARN WHEN

THE TURBINES SPIN.

APEX CLEAN ENERGY, WHICH IS

DEVELOPING THE PROJECT,

ESTIMATES THAT AVIATOR WILL

GENERATE $172 MILLION FOR THE

80 PARTICIPATING LANDOWNERS.

FARRIS DIDN'T WANT TO DISCLOSE

EXACTLY HOW MUCH HE EXPECTS TO

MAKE, BUT, WITH HIS EIGHT

TURBINES, HE COULD EASILY EARN

SIX FIGURES A YEAR.

>> THE WAY I SEE IT, YOU HAVE A

BAD YEAR, THIS GIVES YOU AN

INCOME TO KEEP THE RANCH

RUNNING.

>> Reporter: WHEN AVIATOR WIND

IS COMPLETED, IT WILL PRODUCE

525 MEGAWATTS OF ENERGY EACH

YEAR, ENOUGH TO POWER ABOUT

185,000 HOMES.

MARK GOODWIN IS THE C.E.O. OF

APEX CLEAN ENERGY.

>> AN OLDER PROJECT FROM TEN

YEARS AGO WOULD HAVE TWO OR

THREE TIMES AS MANY TURBINES,

AND THE COST OF THE ELECTRICITY

HAS COME DOWN SIGNIFICANTLY IN

THE LAST TEN YEARS.

>> Reporter: SO, WAY MORE

PRODUCTIVE?

>> IT IS WAY MORE PRODUCTIVE,

AND THE-- THE COST HAS

ESSENTIALLY STAYED THE SAME OR

GONE DOWN.

>> Reporter: THE TURBINE BLADES

BEING INSTALLED AT AVIATOR ARE

NEARLY 60% BIGGER THAN ONES ON

TURBINES INSTALLED LESS THAN A

DECADE AGO.

THIS HELPS EACH TURBINE GENERATE

MORE ELECTRICITY, IN TURN

DRIVING DOWN THE PRICE OF THE

POWER IT CAPTURES.

WIND POWER IN THE UNITED STATES

HAS ALSO GOTTEN A BIG BOOST FROM

A FEDERAL SUBSIDY CALLED THE

PRODUCTION TAX CREDIT, OR

P.T.C.

FIRST PASSED IN 1992 AS PART OF

THE BIPARTISAN ENERGY POLICY

ACT, IT'S ONE OF SEVERAL

INCENTIVES TO SUPPORT RENEWABLE

ENERGY TECHNOLOGIES IN THE

UNITED STATES.

THE P.T.C. PROVIDES A SUBSIDY TO

WIND ENERGY PRODUCERS FOR EACH

KILOWATT OF ENERGY GENERATED FOR

THE FIRST DECADE OF A PROJECT'S

OPERATION.

WHILE THE CREDIT WAS ORIGINALLY

SCHEDULED TO END IN 1999, IT HAS

BEEN EXTENDED BY CONGRESS 12

TIMES SINCE THEN.

>> THE IDEA WITH THE P.T.C. WAS

TO SAY, "OKAY, WE'VE GOT THESE

TECHNOLOGIES THAT DON'T SEEM TO

BE DEVELOPING AS FAST AS WE WANT

THEM TO, SO LET'S PUT AN

INCENTIVE THERE."

>> Reporter: MELISSA LOTT IS A

SENIOR RESEARCH SCHOLAR AT

COLUMBIA UNIVERSITY'S CENTER ON

GLOBAL ENERGY POLICY.

>> SO, IF YOU LOOK BACK AT 1992

AND YOU LOOK AT ONSHORE WIND, WE

HAD SOMEWHERE AROUND 1.5

GIGAWATTS OF WIND.

AND IF YOU LOOK AT IT TODAY,

FAST FORWARD, WE'RE TALKING AT

HAVING OVER 100 GIGAWATTS OF

WIND POWER IN THE COUNTRY.

AND IT'S PRODUCING 7% OF THE

ELECTRICITY IN THIS COUNTRY AT

THIS TIME.

SINCE 2011, WE'VE SEEN THE

AMOUNT OF WIND ON THE SYSTEM

DOUBLE.

THAT'’S INCREDIBLE GROWTH.

>> Reporter: AT THE SAME TIME,

THE P.T.C. HAS ALSO HELPED PUSH

DOWN THE WHOLESALE COST OF WIND

ENERGY BY ABOUT 70% IN THE LAST

DECADE.

>> ONSHORE WIND LOOKS LIKE IT'S

COMPETITIVE IN A SIGNIFICANT

NUMBER OF STATES IN THE U.S.

SO, IF THE IDEA BEHIND THE

P.T.C. WAS TO SAY, "OKAY, WE'RE

GOING TO HELP A TECHNOLOGY

THAT'S NOT QUITE THERE," WELL,

IN THE CASE OF WIND, MAYBE IT IS

THERE NOW.

>> Reporter: AND THAT'S EXACTLY

WHAT LAWMAKERS HAVE DETERMINED.

AFTER NEARLY 30 YEARS, CONGRESS

IS PHASING OUT THE P.T.C.

WIND PROJECTS NEED TO BE

OPERATIONAL BY THE END OF 2020

TO RECEIVE THE FULL CREDIT, WITH

THE INCENTIVE COMPLETELY

DISAPPEARING BY 2024.

THAT MEANS PROJECTS LIKE AVIATOR

ARE RACING TO BE UP AND SPINNING

THIS YEAR.

(HORN HONKS )

A TURBINE CAN BE BUILT IN AS

FAST AS TWO AND A HALF WEEKS;

AND TO BUILD NEARLY 200 OF THEM

BY THE END OF THIS YEAR REQUIRES

CAREFULLY CHOREOGRAPHING THE

LOCATION OF EQUIPMENT LIKE

CRANES, AND A SMALL ARMY OF

CONSTRUCTION WORKERS.

WHILE SOME TEAMS ARE PREPARING

SITES, OTHERS ARE RECEIVING AND

STAGING THE MASSIVE PIECES OF

INFRASTRUCTURE THAT MAKE UP EACH

TURBINE.

(HORN HONKS )

GETTING THE SECTIONS OF EACH ONE

HERE IS ALSO A LOGISTICAL FEAT.

THE BLADES ARE SHIPPED ON

EXPANDABLE TRAILERS AND ARE SO

LONG THAT ACCESS ROADS BUILT FOR

THE PROJECT CAN'T BE TOO STEEP

OR THE BLADES COULD SCRAPE THE

GROUND.

BEYOND THE SCALE AND INCREASED

PRODUCTIVITY OF WIND PROJECTS

LIKE AVIATOR, RENEWABLE ENERGY

HAS ALSO GOTTEN A BOOST FROM BIG

CORPORATIONS HOPING TO ADDRESS

CLIMATE CHANGE BY OFFSETTING

THEIR GREENHOUSE GAS EMISSIONS.

AMONG THOSE SIGNING THE BLADES

AT AVIATOR WAS A TEAM FROM

FACEBOOK, WHICH HAS PLEDGED TO

BUY ABOUT 40% OF THE ENERGY

PRODUCED HERE.

URVI PAREKH IS THE HEAD OF

RENEWABLE ENERGY FOR FACEBOOK.

>> WE'VE SET A GOAL THAT IN

2020, FACEBOOK-- 100% OF ITS

OPERATIONS WILL BE SUPPORTED BY

RENEWABLE ENERGY PROJECTS.

AND OUR INTEREST IS IN MAKING

SURE THOSE RENEWABLE ENERGY

PROJECTS ARE IN THE SAME REGION

OR ELECTRICAL GRID WHERE OUR

CONSUMPTION HAPPENS.

>> Reporter: THE POWER FACEBOOK

IS BUYING FROM AVIATOR WILL

OFFSET ENERGY USED BY ITS DATA

CENTERS IN NEARBY FORT WORTH AND

NEW MEXICO.

IN THE LAST SEVEN YEARS,

FACEBOOK HAS ALREADY BOUGHT

ENOUGH RENEWABLE ENERGY TO POWER

ABOUT 75% OF ITS OPERATIONS.

DOES IT MAKE ECONOMIC SENSE TO

BE PURCHASING POWER HERE FROM

THE AVIATOR WIND PROJECT?

>> YOU KNOW, WE LOOK AT THE

AMOUNT OF MONEY IT TAKES TO RUN

AN ENTIRE DATA CENTER, AND THE

RENEWABLE ENERGY PIECE IS-- IS

ALL-- IS BUILT IN FOR US.

AND IT'S NOT THAT MANY YEARS AGO

WHEN PEOPLE BELIEVE THAT

RENEWABLE ENERGY WAS TOO

EXPENSIVE TO USE.

AND IT'S BEEN IMPRESSIVE WITH

TECHNOLOGICAL ADVANCES TO SEE

THE COSTS OF RENEWABLE ENERGY

COMING DOWN.

>> Reporter: AVIATOR'S OTHER

MAJOR CUSTOMER IS McDONALD'S,

WHICH IS ALSO CONTRACTING TO BUY

ABOUT 40% OF THE ANNUAL ENERGY

PRODUCTION HERE.

IT'S THE FAST FOOD GIANT'S FIRST

LARGE RENEWABLE ENERGY PURCHASE.

SO, YOU HAVE SOME BIG COMPANIES

THAT HAVE AGREED TO BUY A

SIGNIFICANT CHUNK OF ENERGY FROM

YOUR PROJECT.

I MEAN, HOW IMPORTANT ARE THOSE

KINDS OF AGREEMENTS TO CREATING

A MARKET FOR BIG WIND PROJECTS?

>> IT'S CRITICAL, AND IT IS A

TERRIFIC EVOLUTION OF OUR

INDUSTRY WHERE THERE ARE A LOT

OF CORPORATIONS LIKE McDONALD'S

AND FACEBOOK WHO UNDERSTAND THAT

ONE OF THE BEST WAYS FOR THEM TO

MITIGATE THEIR CARBON EMISSIONS

IS FOR THEM TO PROCURE

ELECTRICITY FROM WIND FARMS LIKE

AVIATOR.

>> Reporter: GOODWIN SAYS THESE

CORPORATE COMMITMENTS TO COMBAT

CLIMATE CHANGE IN TURN END UP

SUPPORTING THE RURAL COMMUNITIES

WHERE PROJECTS LIKE AVIATOR ARE

BASED.

SO, THIS WHOLE FACILITY IS BRAND

NEW?

>> ALL OF IT IS BRAND NEW.

>> Reporter: AARON HOOD IS THE

SUPERINTENDENT OF THE ROBERT LEE

INDEPENDENT SCHOOL DISTRICT,

WHICH IS LOCATED IN THE SAME

COUNTY AS AVIATOR WIND.

HOOD SAYS THAT WITH JUST ABOUT

285 STUDENTS, THE DISTRICT

HISTORICALLY RELIED ON TAXES

PAID BY OIL AND GAS OPERATIONS.

MORE RECENTLY, THOUGH, IT'S BEEN

TAXES PAID BY WIND PROJECTS.

>> WE'’RE PROUD OF IT.

SCHOOLS OUR SIZE USUALLY DON'T

GET OPPORTUNITIES TO DO THIS.

>> Reporter: YEAH.

>> AND SO, WE-- WE WERE VERY

FORTUNATE.

>> Reporter: AVIATOR IS THE

THIRD WIND DEVELOPMENT TO

BENEFIT THE DISTRICT, AND IT'S

EXPECTED TO PROVIDE ABOUT

$34 MILLION IN TAX REVENUE OVER

THE NEXT 25 YEARS.

DID YOU EVER THINK WIND WOULD

PLAY SUCH AN IMPORTANT PART IN

RUNNING YOUR DISTRICT?

>> I DID NOT.

I DON'T THINK ANYBODY HERE EVER,

EVER EVEN THOUGHT ABOUT THAT.

AND SO, I THINK IT'S BEEN, YOU

KNOW, A-- A BLESSING TO US.

I THINK IT GIVES US THE SCHOOL,

THE FACILITY THAT WE HAVE, AND

IT'’S GOOD FOR OUR KIDS.

>> Reporter: BUT WITH THE P.T.C.

PHASING OUT, ANALYSTS EXPECT

THERE TO BE A DROP-OFF IN WIND

INSTALLATIONS OVER THE NEXT

SEVERAL YEARS.

AND ALTHOUGH PRODUCERS HAVE

KNOWN ABOUT THIS PHASE-OUT SINCE

2015, SOME IN THE WIND INDUSTRY

ARE WORRIED.

>> IT COULD BE PROBLEMATIC IF

THERE IS NO CARBON POLICY PUT IN

PLACE.

>> Reporter: APEX C.E.O. MARK

GOODWIN SAYS THERE WAS A BELIEF

THAT A LARGER PLAN TO TACKLE

CLIMATE CHANGE WAS COMING.

>> THE WIND INDUSTRY VOLUNTARILY

AGREED TO A PHASE-OUT, BUT THAT

WAS IN A SCENARIO WHERE, OVER

THAT PHASE-OUT, WE EXPECTED

THERE TO BE A CARBON POLICY THAT

RAMPED UP.

WIND AND SOLAR GENERATE NO

GREENHOUSE GASES.

FOSSIL FUEL GENERATORS, THEY

POLLUTE FOR FREE.

AND THERE SHOULD BE A PRICE ON

THAT, AND THAT WILL HELP BALANCE

OUT WHERE WE GO IN THE FUTURE.

>> Reporter: THERE HAVE BEEN

SEVERAL PROPOSALS TO CURB

GREENHOUSE GAS EMISSIONS DATING

BACK DECADES, INCLUDING CARBON

TAXES, CAP AND TRADE SYSTEMS,

AND, MORE RECENTLY, A GREEN NEW

DEAL THAT WOULD MANDATE

RENEWABLE ENERGY ON THE GRID.

BUT THE U.S. IS FAR FROM PASSING

ANY KIND OF NATIONAL CARBON

POLICY TO PREVENT CLIMATE

CHANGE.

IN FACT, IN 2017, THE TRUMP

ADMINISTRATION ANNOUNCED IT WAS

PULLING THE UNITED STATES OUT OF

THE PARIS CLIMATE ACCORDS.

>> AND THIS IS IN ABSENCE OF A

CLIMATE POLICY.

>> Reporter: ENERGY RESEARCHER

MELISSA LOTT SAYS RELYING ON

INCENTIVES FOR SPECIFIC

TECHNOLOGIES, LIKE THE

PRODUCTION TAX CREDIT FOR WIND,

IS NOT THE MOST EFFICIENT WAY TO

REDUCE GREENHOUSE GAS EMISSIONS.

>> THE BEST THING WE CAN DO IS

TO HAVE A POLICY THAT STAYS

TECHNOLOGY-NEUTRAL AND SAYS OUR

GOAL IS ZERO CARBON.

GIVEN THAT GOAL, HERE'S A

STRUCTURE IN WHICH FOR YOU ALL

TO OPERATE, AND THEN LET THE

MARKETS DECIDE WHAT HAPPENS

AFTER THAT.

>> Reporter: SO, BUT WITHOUT

THAT FEDERAL POLICY, SHOULD WE

CONTINUE HAVING THESE TAX

CREDITS?

>> YEAH, SO THERE ARE ARGUMENTS

BOTH WAYS, BUT I THINK IF WE

DON'T HAVE A NATIONAL POLICY

THAT SUPPORTS CLIMATE

HOLISTICALLY, WE SHOULD BE DOING

WHATEVER WE CAN.

AND IF THE MEANS BEFORE US IS A

PRODUCTION TAX CREDIT, THEN

FINE.

>> Reporter: AS THE WIND

INDUSTRY ENTERS THE LAST YEAR OF

THE FULL P.T.C., 2020 IS

PROJECTED TO BE A RECORD YEAR

WITH DEVELOPERS EXPECTED TO

INSTALL NEARLY 40% MORE WIND

ENERGY THAN LAST YEAR.