A wind farm in Iowa. (NEWSCOM)
GOP lawmakers block renewable-energy-credit bill
By Eoin O'Carroll | 07.31.08
Legislation to extend some $18 billion worth of tax credits for renewable energy fizzled in the Senate Wednesday, as Republican lawmakers made good on their stated intent to prevent the bill from moving forward unless it were accompanied by support for domestic oil drilling.
The Jobs, Energy, Families, and Disaster Relief Act of 2008 extends solar-energy investment tax credits for eight years, and extends credits for gasoline alternatives and wind power for one year. To move forward, the bill would have required a filibuster-proof 60 votes, but it received only 51, with 43 opposed.
The Associated Press reports that, despite the bill’s support among business groups, Republicans oppose it on ideological grounds and because they want to make domestic drilling a priority:
Major business groups, usual GOP allies, have implored Congress to act on the tax credits, many which expired at the end of last year or will run out at the end of this year. But for many Republicans, it’s a matter or principle and politics: many oppose what they say are new tax increases to pay for parts of the package and nearly all say the Senate’s only business now is acting on an energy bill that promotes drilling and other measures to boost domestic oil supply.
The White House, citing new taxes and other objections to the bill, threatened a presidential veto.
But Reuters reports that, even in the face of these obstacles, the bill still has a chance:
Although the tax legislation stalled on Wednesday, it is not dead. The bill can be brought to a vote again, and [Sen. Harry] Reid said he is open to negotiating with Republicans to get the bill passed.
Republican leaders expressed support for the tax package, but said they wanted to focus on passing legislation that would increase domestic oil production.
Separately, lawmakers remain locked in a stalemate over the passage of a bill aimed at reining excessive speculation.
Early on Wednesday, an aide said Senate Republican Leader Mitch McConnell had accepted an offer from Reid to move forward on the speculation legislation, but a spokesperson for Reid rebuffed these claims saying the Republican “overtures about a ‘deal’ are disingenuous at best.”
Reid said on Tuesday that if Republicans blocked the tax package, he would cut off negotiations over speculation bill.
Keith Johnson, an environmental blogger for the Wall Street Journal, points out that, while renewable-energy credits have not been allowed to lapse since they were first introduced, the year-by-year renewal process tends to put people on edge:
The U.S. has never had long-term clean-energy subsidies in place; usually they are renewed for a year or two at a time. Lots of people in the industry blame that unpredictability for the stop-and-start pattern the clean-energy industry’s developed over the last two decades. New projects generally come to a standstill the year after tax credits expire. The American Wind Energy Association, a trade group, lambasted the Senate and pointed to “116,000 jobs and nearly $19 billion in investment at risk.”
But despite the dicey investment environment, some renewable types of energy are thriving. The Guardian reports that the American Wind Energy Association is expected to announce next month that America has become the world’s leading wind producer. And a story by science writer John Louima in Yale’s eco-mag, Environment 360, reports that investors have become very bullish on solar photovoltaic technology.
<< Where would America’s renewable energy come from? | MainComments
2. jerry rubin | 07.31.08
I did the solar photovoltaic panels on my house this year because I had a feeling the GOP would do this. They are now cutting out potential jobs, cutting potential reduction in oil, miscalculating the effects to the planet.
I only hope that the November election and the losses they will see on 20 Jan 09 will show the GOP how bad of a mistake they made.
3. Natalie | 07.31.08
I think it’s utterly disgraceful that Congress wouldn’t vote for a bill that not only boosts clean energy- helping us get off of our dependence for oil- but one that also creates and secures hundreds of thousands of jobs. It’s just silliness to pass tax incentives on such a small calendar scale. If you have any knowledge of business, or common sense whatsoever, you’d see that we need a stable and longer time-scale for these incentives. This bill needs to be passed. I hope there are a lot of people who feel the same way, and if you’re one of them you should look at EnvironmentNewYork.org. They’re actually working specifically to get this bill passed. Pretty cool stuff.
4. WaltC | 07.31.08
I don’t see either political party getting a passing grade on the current energy bill deadlock. The Republicans want increased domestic oil production and the Democrats want increased conservation and renewables. There truly is a growing problem with world oil supply and it’s only getting worse, year after year– I for one don’t want to return to the days of gas rationing and long gas lines. We need a whole range of energy solutions– a combination of everything the Republicans want and everything the Democrats want (and even more, frankly; the current solar tax credit, for instance, is far too timid for my tastes; a $2K limit on solar is way too small to do much good).
Perfect opportunity for bipartisan compromise, you’d think.
Instead we get a bipartisan train wreck.
In November I plant to vote anti-incumbent. Maybe a newer crowd will serve us better.
5. Andrei | 08.01.08
But of course they blocked it. We don’t want to help out the American people now too much now would we? Let alone have a long-term energy security policy. Whoever heard of that anyway?
6. Michael | 08.02.08
Who I vote for in November will be based entirely on their committment to renewable energy, solar and wind. We can not drill our way to energy independence. We’ve got to create a clean energy economy, it’s the only real hope for our country’s economic problems, much less our global climate change problems.
We’ve got to end the grid lock in Washington and vote only for candidates that support renewable energy.
7. Tom Tescher | 08.04.08
I wrote Senator Lugar and Congressman Pence a letter disapproving their position on the Speculation and PTC legislation. It’s pure political gamesmanship. The GOP see this as their last best hope to stave off large losses this coming fall. They will point fingers and blame. Pence is still in Washington with others of his ilk parroting the drill, drill, drill song.
Truth is the oil companies have millions of acres leased and they aren’t drilling. They claim not enough rigs or whatever. Why not just offer a deal whereby for each million acres they explore and drill they get another million acres. Put up or shut Exon.
We need to have a long term strategy going forward ASAP. Experts have testified repeatedly that excessive speculation has driven up the price. Seems the quickest remedy for relief would be regulatory legislation the controls a monopolized commodity. Free market is broken.
8. Ron | 08.23.08
Every state across the country should not hesitate to immediately implement a plan of action and a type of legislation termed Renewable Energy Payments or REP’s. The policy behind REP’s has been called “the world’s best renewable energy law”. It has proven to promote the fastest, cheapest, and widest growth of renewable energy. Its core principles are: 1. access to the power grid, 2. long-term guaranteed prices, and 3. no limit to the amount of renewable energy that can be sold to the utility companies.
STATE LEADERSHIP
In the US, energy policy is set at the national and state levels. Recognizing that our Federal Government is doing far too little to promote renewable energy, every state government needs to take leadership.
ENERGY INDEPENDENCE
The US consumes 25% of the world’s oil, but only has 3% of the world’s oil reserves. Our national and state economies are overly dependent on oil. Developing our own renewable energy breaks our dependence on Middle East and other foreign oil, thereby increasing our energy security. Renewables will help to solve global warming, and create millions of new well-paid jobs.
MORE THAN ENOUGH
Every state has more than enough renewable energy from the sun, wind, water, biomass and/or heat from the earth, to meet their needs. Renewable energy can be used for heating, cooling, electricity, and as fuel for machinery and transportation.
FREE & CLEAN
Once the investments are made to buy, install and maintain solar panels, wind turbines, etc., the actual “fuel” is free and ongoing. Compared to the costs related to fossil fuels-extraction, production, transport, pollution, illnesses, and wars-clean renewable energy is cheap. While fossil fuels pollute the environment and cause global warming, renewable energy is clean.
MOST EFFECTIVE LAW
The most effective legislation to stimulate a rapid transition from fossil fuels to renewable energy has been pioneered in Germany. This has made Germany the world leader in the production of solar panels, creating 234,000 jobs. In the 1980s the US had an 80% share of the solar panel market; today we have 25%. The German legislation is so effective that over 45 other countries, states and provinces have adopted similar laws with great success. We must remember Germany has the same number of peak sun hours (3) per day as southern Canada. Most states receive an annual average of twice this amount of solar resource per day.
HOW IT WORKS
This legislation encourages people and groups to install solar panels, wind generators, etc. to produce energy and sell it to their power company at a price guaranteed for 15 to 20 years. People are eager to install this equipment, as they will recoup their investment in about 9 years and have a steady stream of income after that. This increased demand creates jobs, conserves fossil fuels, and lowers greenhouse gas emissions-Germany is on track to meet its reduced CO2 emissions targets three years early.
BRING IT HOME
This simple idea that is producing astonishing results elsewhere has received little attention in the USA. It can help states reach their CO2 reduction targets, and their goals to have a percentage of their energy come from renewables by a set date. Climate chaos, escalating fuel prices, and wars show us that we need to switch from fossil fuels to renewable energy. We have the technology, know-how, and resources. Now we need leadership from our state government.
WE CAN MAKE A DIFFERENCE
We can all be innovative leaders in renewable energy. With REP’s we can do the most to help our country make a rapid transition from fossil fuels to clean renewable energy. By being a leader in clean renewable energy, we will create many thousands of well-paid jobs, improve public health, and help stop global warming. By reducing our dependence on imported fuels, we will keep the revenues of the energy industry within each state and increase our national security.
PLAN OF ACTION
With Decentralized Renewable Energy we create:
Efficiency - Renewable energy can be produced right where it’s used, so almost nothing is wasted.
Security - Currently, accessible renewable resources can deliver six times more energy than all the people on this planet use every day.
Investment - Governments should support future technology that has the capacity to solve energy problems with clean, affordable energy for everyone.
Ecology - Most renewable-energy fuels produce no emissions. The quicker we switch, the quicker we can stabilize our climate and prevent catastrophes.
Independence - Renewable-energy technology produces energy in diverse, small-scale ways, allowing energy independence for everyone, everywhere.
Cost - Renewable-energy fuels are free. The sun and wind do not increase their price, and technology will become cheaper as the market grows. As a result, our valuable water supplies are left to meet other needs.
Economic Growth - Renewable energy provides stable fuel prices while creating a large number of high-skilled jobs in many sectors. The benefits are spread throughout society.
Similar legislation is being introduced in Washington, DC, Florida and Michigan.
9. d.davis | 09.05.08
You guys are all idiots. Did anybody read the bill. No wonder they didn’t vote for it. Look at all the ear-marks. This bill is barely about energy and more about revisions to other laws and other issues. Read the damned bill and get a clue. Everyone assumes Conservatives arent conservationists. Conservatives will sign the bill when its ONLY about eenergy and not about other Liberal agenda. COME ON!
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1. hvymetal | 07.31.08
This is truly the do-nothing congress in action. While the Dems are not perfect, it is the obstructionist Republicans that are the “do-nothings”. They want to score cheap political chits by holding up a substantive energy package. But of course, the Reps, true to their hypocritical style, will all point to the Dems as being the ones not doing anything.