‘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)

'Gang of 10' Senate proposal gets Obama backing

(Photo of offshore drilling from Flickr and photographer absolutwade/Beau Wade)

Washington Report 1: The Senate “Gang of 10” drew support from Barack Obama Friday for a bipartisan compromise energy package that would relax restrictions on some offshore drilling, while repealing some tax breaks on the oil industry and funding renewable energy and conservation. Obama had previously opposed more offshore drilling but said he favored some of the other provisions in the bill and compromise was needed to get anything passed. The proposal, led by Sen. Kent Conrad (D-N.D.) and Sen. Saxby Chambliss (R-Ga.) was the result of many meetings to craft a bill that would satisfy voters upset over high gas prices and reduce dependence of foreign oil. It will likely come to the floor after the August break. It would:
• Reduce the no-drilling area in the eastern Gulf of Mexico to 50 miles off the Florida coast from 150 miles offshore (both Florida senators strongly objected).
• Allow drilling offshore from four Southeastern states -- Virginia, Georgia, North and South Carolina -- if the states agree, and share some revenue with the states.
• Repeal tax breaks worth $30 billion for oil companies, which made record profits this quarter (see below).
• Extend renewable energy tax credits, due to expire this year, until 2012, to encourage development of wind, solar and other renewable sources.
• Give incentives to coal-to-liquid plants that can capture and store carbon.
• Fund R&D on advanced batteries and help automakers retool.
• Develop and demonstrate next-generation biofuels.
• Give tax credits for highly efficient cars and those that use non-petroleum fuels. Senate Majority Leader Harry Reid (D-Nev.) gave the proposal luke-warm praise as a starting point for some agreement on energy. The American Petroleum Institute opposed the repeal of some oil tax credits (calling it "tax increases), saying it would discourage domestic drilling. (Source: Greenwire)