Green Options

The $3 billion in grants are designed to temporarily replace the production tax credit that has been a critical factor in the growth of renewable energy capacity in U.S.

The U.S. small wind industry projects that the enactment of the credit, combined with a forthcoming equipment certification program, will provide thousands of new green collar jobs and contribute to an estimated 40% annual growth for the industry.

Whether the global credit crunch will actually help or hurt the search for solutions to climate change is becoming a debatable issue.

Currently, the issue of climate change appears to be on the back burner as governments are focused on the financial problems that have shaken the global economy. It could be several months before politicians return to focusing their attention on long term problems like global warming.

The green economy shows signs of rebounding faster than others shaken by the global financial turmoil. There are several indicators pointing to the fact.

Given the hue and cry that has been unleashed in America with regard to the bailout, there is finally good news for the renewable energy industry. The Emergency Economic Stabilization Act of 2008, passed by the House of Representatives and signed into law by President George Bush immediately afterwards, extends investment and production tax credits for the wind and solar industries. The extensions will be partly paid for by a change in the tax code for the oil and gas [...]

The U.S. Senate is likely to vote today on legislation that would extend tax breaks for renewable energy production and energy-efficiency measures. Republican presidential hopeful John McCain has recorded an absent vote on the matter 8 times this year. Will he make it 9?

While in Aspen last week for a fundraiser at the Aspen Institute, Republican Presidential hopeful John McCain met for breakfast with Texas billionaire oil man turned wind energy advocate T. Boone Pickens. Asked specifically if he was for renewing tax breaks for wind and solar that expire this year, he surprisingly said, “of course.”

For the fourth time this summer alone, Senate Republicans have blocked any formal consideration of extending renewable energy tax credits. The 51-43 vote on Wednesday to invoke cloture on S.3335 fell nine short of the 60 needed to begin floor debate (a ‘Yea’ vote indicating support for the bill and/or willingness to debate it). Although Democrats Obama, McCaskill, Rockefeller, and Kennedy did not record votes, the motion still lacked the necessary support for passage.

Renewable energy investment and production tax credits are set to expire at the end of this year and it is argued by many that passage of the credits is essential to fledgling (and still relatively expensive) solar, wind and geothermal industries.

Senate leaders had hoped that since they padded the bill with titles to extend tax breaks for teachers, businesses and parents, they would be able to muster the support of a couple more Republicans needed for its passage. But only four Senators crossed the aisle to vote with the Democrats: Susan Collins and Olympia Snow of Maine, Elizabeth Dole of North Carolina, and Gordon Smith of Oregon.

As I sat down to write this, I tried to think of how many different times I have written about Senate extensions of the investment tax credits and production tax credits for renewable energy in the last year. And honestly, I’m not sure - but I know it’s a lot.

By an impressive tally of 88-8, the Senate approved The Clean Energy Tax Stimulus Act (S.2821) as an amendment to HR.3221, which aims to mitigate the economic impact of the current housing crisis.

The renewable energy tax credits were slipped into a housing bill that that did not end up looking the way its lead author, Sen. Chris Dodd really intended it to, remarking earlier in the week that it was “a housing bill, not a Christmas tree.”

However, will the production tax credit and investment tax credit ever make it to the President’s desk to sign?

But is the bill different enough to pass?

As was reported at Hill Heat, and elsewhere, Senators John Ensign (R-NV) and Maria Cantwell (D-WA), led a bipartisan group of senators in announcing a bill to incentivize the development of renewable energy and expand energy efficiency in buildings, homes, and appliances. The Clean Energy Tax Stimulus Package of 2008 (pdf) will provide some certainty to investors and those individuals and businesses that are considering adding solar, wind, biomass, methane capture, or other clean energy technologies.

Teetering on the brink of passage

Renewable Energy tax packages always face trouble in the Senate, and this dates back to our first energy crises in the 1970s. In a more recent example, a tax package failed repeatedly on the Senate floor, including a $22 billion version that fell one vote short of winning approval as an amendment to a broader energy bill in December. Many Republicans balked at the funding mechanism for the previous renewable energy incentives because they rescinded tax breaks from the big energy companies (which was spun by the right as a “tax increase.”).