House Dems have new energy bill, adding renewable electricity standard and tax credits

(Photo of Speaker Nancy Pelosi from Flickr and Talk Radio News Service)

Washington Report: Rallying back after being caught off-guard on offshore drilling, Nancy Pelosi and the House Democratic leadership plans to bring a new energy package to the floor when Congress returns next week. Emphasizing renewable energy, green jobs and efficiency, the Democratic package will include some expansion of offshore drilling, because it has become so popular with the public. But most of the emphasis will be on renewables. One important element will be the oft-tried extension of renewable tax credits, due to expire the end of the year. Large wind and solar projects are at risk because of the delay in extending the credits, held up by Republicans in the Senate (with John McCain refusing to vote many times, including once when a yes vote from him would have done the trick). While the new House bill is a work in progress, it is expected to include:
• A renewable electricity standard (RES), which has passed the House but not in the Senate.
• An energy efficiency standard
• Repeal of big oil tax breaks
• Help for mass transit
• Some relaxation of the off-shore drilling ban, with safeguards
• Extension of renewable and efficiency tax credits
Republicans are already calling the bill a gimmick and say the RES (which would mandate a percentage of electricity come from renewable sources) is a deal-breaker. A vote could take place as early as Sept. 12.

And in the Senate
Majority Leader Harry Reid (D-Nev.) says he will call for a vote on the “Gang of 10” bipartisan energy bill soon after Congress reconvenes. Over the August break, six more Senators signed on – Republicans John Warner (Va.), John Sununu (N.H.) and Norm Coleman (Minn.) and Dems Tim Johnson (N.D.), Ken Salazar (Colo.) and Tom Carper (Del.) Their proposal, which environmentalists says is too reliant on old fossil fuels, would:
• Allow off-shore drilling up to 50 miles off Florida in the Gulf of Mexico
• Allow the Carolinas, Georgia and Virginia to decide if they want drilling 50 miles from their shore and giving them some of the royalties.
• Repeal billions in tax breaks for oil companies to help fund renewable energy and conservation
• Set a goal to wean 85% of autos off oil-based fuels in 20 years
• Extend renewable and efficiency tax credits until 2012
• Give tax credits for extremely efficient vehicles
• Fund next-generation biofuels and loan guarantees for coal-to-liquid plants that can capture carbon dioxide.

How they differ
The Senate “Gang of 10” proposal (details still unknown) would not include a renewable energy standard (RES) or energy efficiency standard. The House proposal (also few details) would include no coal-to-liquid provision. Presumably the Senate proposal will do less for renewables than the House package and will allow more offshore drilling. Once the details are known it will be more clear what the differences are. Original sponsors of the “Gang of 10” proposal are all pro-drilling. They are Sens. Kent Conrad (D-N.D.), Saxby (R-Ga.), John Thune (R-S.D.), Ben Nelson (D-Neb.), Lindsey Graham (R-S.C.), Blanche Lincoln (D-Ark.), Mary Landrieu (D-La.), Johnny Isakson (R-Ga.), Bob Corker (R-Tenn.) and Mark Pryor (D-Ark.).

The White House view
A spokeswoman for President Bush said Friday he wants Congress to give him a "clean" energy bill (not to be confused with "clean energy" bill) that expands offshore drilling, removes limits on oil shale leasing and extends the renewable tax credits. Apparently his idea of a "clean" energy bill is one that doesn't have all that other stuff in it.

The urgency
If agreement isn’t reached soon, renewable tax credits will expire, putting a stop to many wind and solar projects. Also the moratorium on offshore drilling will die if it’s not renewed by Congress. But more important, going into this election season, is that the voters are worried about gas prices and want to see some action taken. Will Republicans be able to win out with their “drill now” mantra? Or will Democrats prevail with an emphasis on renewable energy and green jobs? Both claim their plans will further energy independence. The maneuvering will be interesting – and disturbing – to watch. Whatever they do won’t help gas prices and – more important – won't do as much as is needed to fight against global warming.

How you can help
Join the Sierra Club, Physicians for Social Responsibility and other groups Tuesday, Sept. 9 for National Call-in Day. Call your senators and representatives (Congressional switchboard is 212-224-3121) and tell them the emphasis should be on renewable energy, efficiency and green jobs, not offshore drilling and more fossil fuels. Also write a Letter to the Editor to that effect. Help shape the debate.

(Sources: Greenwire, E&E PM, Sierra Club)

Renewable energy tax credit extensions fail again

Washington Report 3: Senate leadership again this week failed to reach the 60-vote threshold needed to extend tax credits for renewable energy and efficiency. After tweaking the bill, they picked up 2 progressive Republicans, Norm Coleman (Minn.) and Susan Collins (Me.), since last week but most of the GOP caucus was steadfast in its opposition to other taxes being used to pay for the extensions. The vote was 52-44, with 4 likely ‘yea’ votes missing – Byrd, Kennedy, Clinton and Obama. With them, it still would have fallen 4 votes short. The next step is uncertain. Republicans don’t oppose extending the credits but rather paying for them with other taxes affecting offshore and international businesses. The tax credits expire at the end of this year. (Source: E&E News PM)

House passes bill to extend renewable energy tax credits, despite White House veto threat

(Photo of solar panels from Flickr and photographer kqed quest.)

Washington Report: The House of Representatives voted 263-160 Wednesday to approve yet another bill extending tax incentives for renewable energy such as wind and solar. But the White House is threatening to veto the $59 billion tax package, not so much on the credit extensions as the means to pay for them. The vote was largely along party lines. Renewable energy industries are eager to see extension of the incentives, due to expire in December, in order to maintain momentum. A House bill that included extensions paid for by repeal of oil and gas breaks, passed late last year but stalled in the Senate. Then earlier this year the Senate attached renewable incentives to a housing bill, but without any means to pay for them. The House, whose leaders want all expenditures paid for, added revenue from tax changes for offshore and multinational businesses to this bill. And that is the part President Bush objects to most. The bill extends production credits for wind till the end of 2009 and for geothermal and biomass for 3 years, as well as investment credits for solar for 6 years. It includes a $4,000 credit for residential solar power and $3,000 or more for buying plug-in cars. House Dems and Republicans disagree about the bill’s chances in the Senate. Meanwhile, House Republicans unveiled their own energy agenda, which would increase incentives for domestic production of fossil fuels, alternative fuels and nuclear energy, in addition to renewables and efficiency. (Sources: Greenwire, E&E News PM)

One more try to extend renewable tax credits so wind, solar growth doesn't lose power

(Photo of wind turbines from Flickr and photographer Nick Atkins.)

Washington Report 2: A new effort to assure continuation of renewable energy tax credits got the green light yesterday from the House Ways and Means Committee. The proposal backs off on paying for the $16.9 billion in credits by rolling back breaks for oil and gas, instead paying for them with totally unrelated tax changes for offshore and multinational companies. The Senate had objected to a tax hit on Big Oil but the House wanted to pay as you go. So it seems this may satisfy both, which would salvage the incentives that keep renewable energy viable. The three times since 1999 that wind credits were allowed to expire, installations dropped 70%, according to the American Wind Energy Assn. The new bill extends wind production tax credits till the end of 2009, biomass and geothermal credits for 3 years, and the solar energy incentive 6 years, also doubling the solar credit cap to $4,000. The bill also provides incentives for cellulosic biofuel and renewable diesel, installation of E85 pumps, and buying plug-in cars, as well as allowing $1.4 billion for coal and gasification projects that store carbon. (Source: E&E Daily)

German official says U.S. at competitive disadvantage in renewable energy race

(Photo of German wind farm from Flickr and photographer Dirk Ingo Franke).

News Update: We’ve gotten ourselves into quite a bind. Reluctant to embrace alternatives to fossil fuels, the U.S. now lags far behind Europe in renewable energy technology. The German deputy environment minister said this competitive disadvantage makes America less likely to welcome international agreements to fight global warming. Last year the European Union produced 10% of its electricity from renewable sources, double the percentage in the United States. Germany, a world leader in use of renewables, got a record 18% of its electricity from renewable sources in 2007. We may find ourselves falling further behind instead of grabbing a piece of the alternative energy business. Time to wake up. For starters, extend renewable tax credits to encourage investment. Then we can pass that RES (renewable electricity standard) the Senate squelched by 1 vote last year. (PlanetArk)

House OKs renewable energy tax credits

(Photo of windfarm from Flickr and photographer Alessandro Ronchi)

Congressional Round-up: The House voted 236-182 Wednesday to approve renewable energy tax credit extensions, funding them by eliminating tax breaks for 5 big oil companies. This is the fourth time they approved such a bill in the past year. Now comes the hard part. A similar bill has failed to get the 60 votes needed in the Senate to avoid a filibuster. That is likely again, though one tactic under discussion is to try to get some of the package included in the final budget reconciliation bill. The extensions are needed because current ones expire at the end of 2008, and already investment in renewables is slowing down. House Speaker Nancy Pelosi (D-Calif.) warned that a failure to extend the credits could cost the country 116,000 jobs. The Senate could bring up the bill as soon as next week. The House bill (H.R. 5351) provides:
• A 3-year extension on investment credits for wind, geothermal and other renewables.
• An 8-year extension of incentives for commercial solar energy and 6 years for residential, doubling the top credit for homeowners to $4,000.
• Incentives for plug-in hybrids, energy efficiency and installation of pumps for fuel with 85% ethanol.
The GOP and White House object to rescinding $13.6 billion in tax cuts for integrated oil companies. They say it will thwart exploration and raise prices for consumers. Dems said with oil over $100 a barrel, the 5 companies affected are making record profits and will lose less than 2% of those profits in the next 10 years. Call your Senators to approve this bill at (202)224-3121. Also, check to see how your Rep voted. (Sources: Washington Post, E&E Daily, E&E News PM, Sierra Club)

McCain nets zero on environment from Conservation Voters
Many see Sen. John McCain (R-Ariz.), the presumptive GOP nominee for president, as pro-environment. The League of Conservation Voters disagrees. McCain scored the lowest possible grade, a zero, on LCV’s 2007 Scorecard. Democratic contenders Sen. Hillary Clinton (D-N.Y.) came in at 73, and Sen. Barack Obama (D-Ill.) at 67. McCain, who introduced global warming legislation back before it was popular, has twice failed to show up for a vote on renewable tax credit extensions, where his vote could have made the difference. LCV says it’s a pattern and he missed all critical environmental votes last year. His lifetime score is 24. To see how your elected representatives scored, check the LCV scorecard. (Sources: Sierra Club, LCV)

1-minute Angst: Bush priorities

Summary for Feb. 18-22

Bush 2009 budget: Coal spending up 25%, nuclear up 37%; renewables cut 30%. No extension for renewable tax credits due to expire this year. Without them, new renewable projects in trouble.

Britain sees signs of spring, has warmest Feb. 12 ever … Afghanistan so cold some lose limbs to frostbite, others sell children they can’t care for.

International Energy Agency calls U.S. “timid” about pursuing fuel economy and renewable energy. Our goal of 35 mph by 2020 pales beside EU’s 47 mph by 2012 … Abu Dhabi builds green city in desert … Plague re-emerges, thanks to Global Warming.

House re-introduces renewable tax credit extensions, something Senate rejected twice by 1 vote … Rep. Waxman fights power plants near national parks.

See below for full text.

New renewable tax-credit bill in House

Congressional Round-up: The House last week introduced a bill to extend production tax credits, funded in part by the repeal of oil tax benefits. The credits are due to expire at the end of the year, causing uncertainty for renewable energy industries. This bill is very similar to the one passed last summer by the House, but stifled in the Senate by 1 vote. It’s questionable whether the bill could pass the Senate in its current form. It includes:
• Extension of credits for wind, biomass, geothermal, small hydroelectric, landfill gas and trash combustion facilities through 2011, with a cap of 35% of the cost after 2009,
• Extension of solar energy and fuel cell investment tax credits for eight years,
• An end to deduction eligibility for the 5 larges oil companies,
• A 6% cap on benefits for smaller oil companies,
• A new credit for plug-in hybrid cars,
• Extension of tax credits for domestically produced cellulosic ethanol and biodiesel,
• A request that the National Academy of Sciences analyze current science on the production of biofuels and the domestic impact of a dramatic increase.

Proposal would allow power plants near national parks
Rep. Henry Waxman, (D-Calif.), chair of the House Oversight Committee, has urged the EPA to reject a proposal that would make it easier to build power plants near national parks. Waxman told EPA Administrator Stephen Johnson the proposed change in the New Source Review rules would violate the Clean Air Act. He said EPA technical experts acknowledged the change would allow “significant degradation” of the air in parks and national wilderness areas. He gave Johnson until March 5 to say why he ignored the advice of his staff. (Source: E&E News PM)

e-mailbag: Bob R. of Chicago writes, “Despite his admitted support and even sponsorship of environmental legislation, [John] McCain has too many constraints related to his conservative perception of reality to lead the nation effectively against the onslaught of global warming.”

Renewable tax credits in Senate stimulus bill

Congressional Round-up: A Senate version of the economic stimulus package, with the addition of green jobs and renewable tax credits, was approved 14-7 by the Finance Committee yesterday. It could go to the floor for a vote any time now, so call your Senators right way at (202)224-3121 and tell them to vote for it. The short-term extension of renewable tax credits is sorely needed because they are due to expire the end of this year. While about 30 Senators are pushing for multi-year extension of the tax credits, to assure investment continues to grow, Energy Chair Jeff Bingaman (D-N.M.) said this is a good start. Clean energy bonds are part of the bill, as well. The House version does not include renewable incentives. (E&E News PM, Sierra Club)

Boxer introduces bill to override EPA on California
Senate Environment Chair Barbara Boxer (D-Calif.) introduced a bill Wednesday to overturn the EPA’s refusal to grant California a waiver to enforce its tailpipe-emissions law. S. 2555 directs the EPA to grant the state’s request. Co-sponsors include Democratic Presidential Candidates Hillary Clinton and Barak Obama, as well as Sens. Benjamin Cardin (D-Md.), Susan Collins (R-Me.), Dianne Feinstein (D-Calif.), John Kerry (D-Mass.), Patrick Leahy (D-Vt.), Robert Menendez (D-N.J.), Bill Nelson (D-Fla.), Bernie Sanders (I-Vt.), Sheldon Whitehouse (R-R.I.), Chris Dodd (D-Conn.), Ted Kennedy (D-Mass.), Frank Lautenberg (D-N.J.), Joe Lieberman (I-Conn.), Barbara Mikulski (D-Md.) and Olympia Snowe (R-Me.) If your senators aren’t both on this list, call them right away at (202)224-3121 and urge them to sign on. So far, 17 states have either passed or are in the process of adopting it the California law, so they too are blocked by the EPA decision. (Sierra Club)

Big Coal runs ads in key primary campaign states
Elections: As state regulators and environmental groups object to new coal plants, an organization backed by the coal industry and electric utilities is responding by running a $3.5 million campaign in key primary and caucus states. Americans for Balanced Energy Choices spent $1.3 million in advertising in Iowa, Nevada and South Carolina to put coal in a more favorable light. The message is that coal can be clean, it is needed to meet the country's energy needs, and more plants should be built. The ads talk about low-sulfur coal, carbon sequestration and better environmental controls and sometimes are vague about carbon emissions versus other pollutants. (Washington Post, Greenwire)

Enviro groups give guidance on how to vote Super Tuesday
Who ya gonna vote for for state rep? It could make a big difference as we depend more heavily on state legislatures to push ahead on renewable electricity standards, clean car bills and carbon emissions targets, filling the void left by the feds. Get some guidance on them and congressional candidates from your local chapter of the League of Conservation Voters or Sierra Club, both of which endorse candidates. In Illinois, where many of my readers live, a journalism grad student at Northwestern’s Medill School, Josephine Lee, has written a story about the endorsements here, including a list of those who received both groups’ approval. Also you may want to check back to my post in early January to see presidential candidates' views. (see archives at right, click on last item on January list).