‘Gang of 10’ bill dead for now; tax credit extensions likely for renewable energy

(Photo of wind farm from Flickr and photographer lamusa/Jennifer)

Washington Report: The Gang of 10 bipartisan Senate energy package is over, at least until after the election. The 20 supporters apparently couldn’t reach agreement and pulled the bill Friday. Pressure to expand offshore drilling after a more generous Democrat bill passed the House, as well as a fast-tracked bipartisan bill to extend renewable energy tax credits contributed to the decision. The financial crisis also promised to bump an energy debate as a top priority. But it was unclear Friday whether the offshore drilling ban would be allowed to expire Sept. 30 or would be extended in a resolution to continue government spending till year’s end. Meanwhile the Finance Committee’s bill on tax credit extensions is likely to come up next week. That bill would, among other things:
• Extend production tax credits for wind 1 year.
• Extend investment tax credits for solar energy 8 years.
• Extend credits for energy efficient buildings for 1 year.
• Add credits for small residential wind turbines and geothermal pumps.
• Add credits for new advanced coal and coal gasification, and to industry for capture and storage of CO2
• Add consumer credits for plug-in vehicles
• Limit but not repeal tax breaks for oil companies.
A coalition of industry and environmentalists warned Thursday that failure to extend renewable tax credits could cost 100,000 jobs and billions in investments. (Sources: Greenwire, E&E PM, E&E Daily)