Bill may fuel Mars Hill wind farm

A tax credit that can bring the Mars Hill wind energy project to fruition has been included in the final federal energy bill, Maine’s senators said Wednesday. Final votes on the measure could come this week.

Evergreen Wind Power LLC has been waiting on the tax incentive before beginning construction on Maine’s first wind farm – 30 turbines atop Mars Hill Mountain in central Aroostook County.

The credit would provide renewable energy producers with a 1.9 cent per kilowatt-hour benefit for 10 years. However, to qualify, wind and biomass operations must complete construction between the beginning of 2006 and the end of 2008.

Evergreen hopes to break ground this fall and complete the project by early 2006.

Without the tax credit, the $68 million wind development project would be 30 percent more expensive, according to Peter Gish, managing director of UPC Wind Partners, Evergreen’s parent company.

Initially, the senate version of the energy bill had proposed a renewable energy tax credit for three years.

The house bill included no such provision. During conferences Tuesday, members from both chambers agreed to the two-year compromise.

Supporters hope the energy bill could come up for a final vote by the end of this week. Republican Sens. Olympia Snowe and Susan Collins and Democratic Rep. Michael Michaud have all supported the credit.

However, legislators are scheduled to recess for nearly a month starting next week, and may delay the vote until after they return, a Senate spokesman said Wednesday.