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Fact check: Does nearly 40 percent of Iowa's electricity come from wind?
Wind farm in Iowa
Secretary of Energy Rick Perry ordered a review of the impacts of renewable energy policies on the reliability of the electric grid, and the results are due within a week.[1][2] In reporting on Perry’s directive in the Daily Caller, Michael Bastasch cited critics, including Sen. Chuck Grassley (R-Iowa), and noted that “Iowa gets nearly 40 percent of its electricity from wind turbines.”[3]
Does Iowa get nearly 40 percent of its electricity from wind turbines?
Yes. In 2016, 36.6 percent of Iowa's electricity was generated from wind power, according to the U.S. Energy Information Administration. Coal is the primary fuel used for electricity generation in the state.[4]
Background
In calling for the review, Perry instructed his staff to explore "[t]he extent to which continued regulatory burdens, as well as mandates and tax and subsidy policies, are responsible for forcing the premature retirement of base load power plants." (The term base load in this context refers to non-variable, or constant, sources of electricity generation such as coal, natural gas, and petroleum.) According to Perry, “[G]rid experts have expressed concerns about the erosion of critical base load resources … This has resulted in part from regulatory burdens introduced by previous administrations that were designed to decrease coal-fired power generation.”[1]
In response, representatives of the renewable energy industry, including the American Wind Energy Association, challenged Perry’s suggestion that wind and solar energy are unreliable and called for public input before the study results are used to set policy.[5][6]
Sen. Grassley also wrote to Perry criticizing his order, characterizing it as hastily developed and saying that it “appears to pre-determine that variable, renewable sources such as wind have undermined grid reliability."[7]
Wind energy regulations and tax credits
In 1983, Iowa became the first state to institute a Renewable Portfolio Standard (RPS). Iowa's RPS dictates that the state's investor-owned utilities (MidAmerican Energy and Alliant Energy Interstate Power and Light) must contract for or own a combined total of 105 megawatts of electricity generating capacity from renewable sources.[8]
Iowa’s Sen. Grassley sponsored the Production Tax Credit, which first passed Congress in 1992.[9] The law granted a 1.5 cents-per-kilowatt-hour federal tax credit (in 1993 dollars) to wind energy producers for 10 years after they began service. In 2015, Congress voted to phase down the credit for wind facilities (through 2019) and to eliminate the credit for other renewable power generating facilities constructed after December 31, 2016.[10][11]
Wind energy producers in Iowa may also qualify for one of two state tax credits (for either 1 cent or 1.5 cents per kilowatt-hour) over a 10-year period, depending on generation capacity and other criteria.[12][13]
In contrast to the tax credits and other wind power subsidies, federal officials have issued stricter regulations on the use of coal as a feedstock for electricity generation. For example, the Obama administration finalized its Clean Power Plan (CPP) in October 2015, establishing carbon dioxide emission reduction requirements for new and existing power plants. Under the CPP, states are required to develop plans to reduce emissions and seek approval from the Environmental Protection Agency. Plans must include a combination of the following measures: increasing energy efficiency; shifting from coal to natural gas; and generating more electricity from lower-emission sources such as nuclear power and renewable sources.
On March 28, following an executive order from President Trump, EPA Administrator Scott Pruitt announced the agency would review and, if appropriate, repeal the CPP, the provisions of which had not yet gone into law due to legal challenges.[14]Cite error: Closing </ref> missing for <ref> tag
Nationwide, 5.5 percent of electricity was generated from wind in 2016.[15]
Trend data for all sources of electricity production in Iowa are shown below.[16]
Conclusion
Secretary of Energy Rick Perry ordered a review of the impact of renewable energy policies on electric grid reliability. A Daily Caller article detailing criticisms of the review by the wind industry and others claimed that “Iowa gets nearly 40 percent of its electricity from wind turbines.”[3]
An estimated 36.6 percent of electricity in Iowa was generated using wind power in 2016.[4]
See also
- Energy policy in Iowa
- Fact check/China, India, and the Paris Climate Agreement
- Fact check/Would the Clean Power Plan mitigate climate change?
Sources and Notes
- ↑ 1.0 1.1 Crowell Morning, "Memorandum to the Chief of Staff: Study Examining Electricity Markets and Reliability," April 14, 2017
- ↑ Utility Drive, "Utility CEOs to DOE: Hands off state energy policies, grid planning," June 15, 2017
- ↑ 3.0 3.1 Daily Caller, "EXCLUSIVE: Leaked Memo Details Wind Industry Campaign Against A Major Energy Dept Study," June 12, 2017
- ↑ 4.0 4.1 U.S. Energy Information Administration, "Iowa State Energy Profile," accessed June 18, 2017
- ↑ The letter challenging Perry's suggestion was also authored by the trade associations Advanced Energy Economy and the Solar Energy Industries Association.
- ↑ American Wind Energy Association, "Perry Study Letter Final," April 28, 2017
- ↑ United States Senate, "Senator Grassley's Letter to Secretary Perry," May 17, 2017
- ↑ In 2015, plants generating electricity from wind in Iowa had the capacity to produce 6,314 megawatts. Iowa Utilities Board, "Iowa's Electric Profile," accessed June 18, 2017
- ↑ United States Senate, "Chuck Grassley, United States Senator for Iowa," August 2, 2012
- ↑ Database of State Incentives for Renewables & Efficiency, "Renewable Electricity Production Tax Credit (PTC): Program Overview," updated May 24, 2016
- ↑ The credit amount is reduced 20 percent for wind facilities beginning construction in 2017, 40 percent for facilities beginning construction in 2018, and 60 percent for those beginning construction in 2019.
- ↑ Database of State Incentives for Renewables & Efficiency, "Renewable Energy Production Tax Credits (Corporate): Program Overview," December 9, 2016
- ↑ The Iowa Legislature did not renew the 1.5 cents-per-kilowatt-hour credit in 2017; therefore, facilities beginning operation after the end of the year will not, under current law, be eligible for that credit. Midwest Energy News, "End of state tax credit expected to impact Iowa clean energy growth," May 4, 2017
- ↑ Federal Register, "Review of the Clean Power Plan," March 28, 2017
- ↑ U.S. Energy Information Administration, "Electricity Data Browser, Net Generation for All Sectors (thousand megawatthours)," accessed June 18, 2017
- ↑ Iowa Utilities Board, "Iowa's Electric Profile," accessed June 18, 2017
Launched in October 2015 and active through October 2018, Fact Check by Ballotpedia examined claims made by elected officials, political appointees, and political candidates at the federal, state, and local levels. We evaluated claims made by politicians of all backgrounds and affiliations, subjecting them to the same objective and neutral examination process. As of 2025, Ballotpedia staff periodically review these articles to revaluate and reaffirm our conclusions. Please email us with questions, comments, or concerns about these articles. To learn more about fact-checking, click here.
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