Wind, solar and geothermal tax credits extended, but fossil fuels get incentives too

(Photo of wind farm in Texas from Flickr and photographer fieldsbh)

Washington Report: In case you missed it, the $700 billion bailout bill included renewable energy tax credit extensions, which just a week earlier had seem DOA for this session of Congress because the Senate and House couldn’t agree. It was the Senate version (the least desirable one) that was attached to the bailout. So we got good news and bad news: the good being that renewable energy companies can continue to grow – the bad being that coal, oil shale and tar sands got a break too. The $17 billion package of extensions included:
• 1 year of production tax credits for wind (the industry is already lobbying for longer-term extension of credits)
• 2 years of production tax credits for geothermal, biomass and other alternative sources.
• 8 years of investment tax credits of 30% for solar energy for homes and commercial properties and removal of the $2,000 cap (so an installation costing $30,000 would be reduced to $20,000).
• Biodiesel credits for the U.S. that put an end to Europeans shipping their product here to get the credit and then back again.
• New credits for plug-in electric hybrid vehicles of $2,500 to $7,500. The new Chevy Volt would qualify at the top level.
• New credits for wave and tidal energy projects.
• New employer tax credits to reimburse up to $20/month to those who use bicycles as their main commuter transportation
• New credits for refineries that process oil shale and tar sands.
• New credits for coal-fired plants that capture and store carbon dioxide, including pumping it into depleted oil fields to extract the remaining oil.
• Inclusion of coal-to-liquid fuel as an alternative fuel.
(Sources: Greenwire, E&E Daily)

Wins and losses in this Congress in fight against global warming

Washington Report: Congress has left Washington for the election campaign, and a lame duck session in November is unlikely to bring much action on the global warming front. So we can probably go ahead and assess what this Congress has done for us in the fight to curb greenhouse gases. There was a flurry of activity, with multiple committee hearings and dozens of proposed bills, so the topic was high profile. But what was really accomplished? Not much.
• The biggest victory was passage for the first time in 2 decades of a corporate average fuel economy (CAFE) standard for cars and light trucks. They will have to average 35 mpg by the year 2020. That bill also had a renewable fuel standard, which encouraged a controversial increase in the use of corn ethanol, which does nothing to curb greenhouse gases and drove up food prices.
• Left on the drawing board, passed by the House but not the Senate, was a renewable electricity standard of 15% by 2020 to force power plants to use less fossil fuel and more renewables.
• Failed to summon the 60 votes needed to debate a compromise and watered-down global warming bill by Sens. Joe Lieberman (I-Conn.) and John Warner (Va.)
• Permitted the 26-year-old off-shore drilling ban to expire, as well as a ban on oil shale extraction in Western states. (Though Democrats are hoping to reinstate the offshore ban, at least partially.)
• Extended renewable tax credits for wind, solar and other renewable sources, adding incentives for plug-in cars and wave energy, but also for fossil fuels in the form of refining oil shale and tar sands, producing coal-to-liquid, and sequestering carbon. The tax credits were on their way to oblivion when the Senate leadership attached them to the $700 billion bailout bill at the 11th hour.
So, the fossil fuel interests basically won every round except auto fuel efficiency, if you see extension of renewable credits as maintaining the status quo. There’s been a lot of activity, but not much progress. We need to get those 60 votes in the Senate.

House, Senate both extend renewable energy tax credits, but are still at odds

Washington Report: At long last, both House and Senate have extended the renewable energy tax credits due to expire at years’ end. The House passed its bill Friday, the Senate its earlier in the week. But they passed different versions and now have to reconcile them, which seems to be a problem. At issue are:
*The addition of tax credits for oil shale and tar sands refineries and coal-to-liquid in the Senate bill.
*Failure to pay for all credits in the broader Senate bill, which goes beyond energy credits with other business and individual tax credits.
House Dems and environmentalists strongly object to the introduction of credits for fossil fuels. Rep. Jay Inslee (D-Wash.) called oil shale “enormously environmentally damaging.” So are tar sands and coal-to-liquid fuel. On the second point, Blue Dog (conservative) Democrats in the House don’t want to see anything passed that isn’t 100% paid for. The White House favors the Senate bill, despite some taxes on oil, and says it would veto a final bill that looks like the House version. So now the two chambers have to resolve the conflict. Inslee said he thinks that is possible, since a large majority favors the extensions. The Senate Bill passed 93-2. House Dems have passed renewable tax credit extensions without fossil fuels 8 times. (Sources: E&E Daily, E&E News PM)