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Six Democratic Senators joined together on Wednesday to announce a comprehensive energy bill that would tax windfall profits and “force” investment in renewable energy.
Among other things, the Consumer-First Energy Act of 2008 would roll back tax breaks for oil companies and invest the money in renewable energy development and energy efficiency technology. It also would create a windfall profit tax on oil companies failing to invest in increased capacity and renewable energy resources.
According to one of the bill’s co-sponsors, Sen. Bernie Sanders (Ind.-VT):
“The bottom line is that at a time when this country faces a major crisis in terms of the price of oil, when many working families in our state and all over this country are hurting, I think we have brought forth a comprehensive piece of legislation, which begins to attack that problem with the result of lowering the price of oil.”
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?
Federal renewable energy tax credits, Congress’ favorite subject to debate but do little about, has once again been brought to the Senate floor. But because the amendment still has no funding mechanism suitable for pay-go rules, I would argue it stands little chance of passage. Pay-go compels new spending and tax law changes to not add to the federal deficit, or if they do, they must create some sort of offset somewhere else in the budget [read more about pay-go].
In a wonky twist that would alter the clean energy incentive structure in this country rather significantly, Senators Alexander (R-TN) and Kyl (R-AZ) offered an amendment (S. Amdt 4429) that would extend the production tax credit for two years (instead of one) for wind, geothermal, biomass, landfill gas, small hydro, and wave and tidal power.
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.”).
By Max Lindberg •
February 20, 2008
I was reading some recent headlines about Yucca Mountain, claiming the federal government will face heavy penalties and judgments if the project isn’t finished. Read beyond the headlines my friends, “we” fund the government, the money comes from our pockets, and it isn’t chicken feed.
The latest estimates are, that if Yucca Mountain isn’t finished until 2017, “we” will owe the utilities an estimated $7 billion in penalties, provided by law, because the repository isn’t finished. Bump completion time up another 3 years, and the bill goes up to about $11 billion.
By Timothy B. Hurst •
January 31, 2008
On Wednesday, the Senate Finance Committee included measures to extend the Production Tax Credit (PTC) for renewable energy through the end of the 2009. The PTC, which is currently the most effective policy tool for developing renewable energy in the US, is set to expire at the end of 2008. The bill would also extend for one year a credit, equal to 30 percent of qualifying expenditures, for the purchase for qualified PV and solar water heating.
Senator Ken Salazar (D-CO), a vocal supporter of renewable energy for rural communities, issued a statement in strong support of the move:
“This package provides targeted tax incentives for small businesses that are the engine of our economy…It is my hope that, before the end of the week, we can pass this bill in the Senate and begin working with our House colleagues to come to swift agreement on how to give America’s economy the jump-start it needs.”
Late last week in a vote of 65-27, the Senate passed an energy bill that made progress in some areas but was stripped down in others.
The crown jewel was certainly a near-40 percent increase in fuel efficiency requirements for vehicles by 2020. For the first time, SUVs, vans, and small trucks fall under the same regulations as passenger cars. Each vehicle group must achieve a 10 miles per gallon (mpg) increase in fuel efficiency
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