Today BP wind energy has a half page add in
the Watertown Daily Times promoting their Cape Vincent Wind project by extolling the financial benefits of wind for
our community.
They have
facts and figures highlighting the tax benefits for our community
unfortunately their math is not based on facts and the information that they
are giving is misleading.
In their add they state that their numbers are based on a previously approved PILOT agreement , assuming the wind farm generates approximately 200- 285 Megawatts .
In their add they state that their numbers are based on a previously approved PILOT agreement , assuming the wind farm generates approximately 200- 285 Megawatts .
In their recently released
Public Involvement Plan to the Public Service Commission , BP promoted the
terms of the defunct Galloo Island PILOT plan to estimate PILOT
payments for BP Alternative Energy's 200/285 megawatt project .[2]
The Payment -in -Lieu -of Taxes plan for the Galloo Island Wind
Farm was not supposed to be a model for other wind power projects. The Galloo PILOT is a consequence of the
JCIDA's failure to follow the intent of the Legislature.[3]
A PILOT has not been negotiated for the Cape Vincent project, the
developer's reliance on the Galloo plan to project payments to municipalities
is a troubling sign that it will be presumed as the basis for the future talks. [3]
A PILOT allows the
developer to make reduced payments to taxing jurisdictions instead of paying
property taxes. The Galloo PILOT was approved along with a sales tax exemption
and sale-leaseback agreement, which eliminates mortgage recording taxes. The PILOT for the 252-megawatt project
will run 20 years and have base and supplemental payments .[4]
On the wind farm
aspect, the JCIDA had worked for months on developing a uniform policy before
the Galloo Island Wind Farm's developer pressed for an individual
payment-in-lieu-of-taxes agreement.
The Galloo PILOT was
different from the standard PILOT laid out in the agency's policy and those changes
were approved after months of intense pressure
[5] If the wind farm operator ceases operation
and doesn't pay the agency the PILOT, the agency returns title to the developer .[5]
The Galloo draft
policy included a separate clause for renewable energy PILOTs, which allows for
a fixed base payment per megawatt, increasing each year, and supplemental
payments based on high electricity prices.
.[5] JCIDA Board member John Doldo Jr. said the
Galloo Island project wasn't lucrative enough for the taxing jurisdictions. He
said the PILOT payments represented less than 14 percent of full taxation.
"If you give that much away, there must've been a need to give that
much," he said. Mr. Doldo based his numbers on the cost of the project
" about $537 million of on-island investment .[5]
Only about one mediocre paying job is created for every 10 turbines installed that's hardly job creation. Government watchdog groups say the absence of uniform standards makes the whole PILOT program open to abuse, because each wind company gets to negotiate its own private deal with the IDA.
In addition, wind companies that fail to meet their original IDA job creation promises rarely get penalized .[6] New Yorkers in general are beginning to become completely fed up with PILOTs, IDAs, wind farms and seeing their tax dollars squandered by politicians and bureaucrats to offshore ownership. Taxpayers are beginning to revolt against the wind developers, IDAs and local governments and the November 2009 election results underscore this attitude .[6]
Only about one mediocre paying job is created for every 10 turbines installed that's hardly job creation. Government watchdog groups say the absence of uniform standards makes the whole PILOT program open to abuse, because each wind company gets to negotiate its own private deal with the IDA.
In addition, wind companies that fail to meet their original IDA job creation promises rarely get penalized .[6] New Yorkers in general are beginning to become completely fed up with PILOTs, IDAs, wind farms and seeing their tax dollars squandered by politicians and bureaucrats to offshore ownership. Taxpayers are beginning to revolt against the wind developers, IDAs and local governments and the November 2009 election results underscore this attitude .[6]
Once again the
taxpayer is paying higher taxes to support a corrupt industry and people say
the wind is free. Think about this - 65% of a commercial wind farm is being
paid for with your American tax dollars thanks to stimulus money, NYSERDA, PTC
(Production Tax Credits), rapid depreciation schedules, PILOTs, etc. while the
foreign owner enjoys the profits while raping your community .[6] PILOTs are supposed to make jobs for
communities but with wind farms this never happens .[6] PILOTs should be completely repealed and
eliminated and taxpayers should demand the full value of tax revenue from the
wind project and nothing less
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