Renewable energy bill crucial to future

Bipartisan Energy Legislation Introduced By Sen. Cornyn Gets Major Boost

San Antonio Express-News
April 15, 2008

 

Important tax incentives designed to nurture the growth of renewable energy got a major boost last week in the U.S. Senate.

Senators voted 88-to-8 to attach a bill extending the clean energy tax incentives for another year to an unrelated housing bill, Reuters reported.

Sens. Kay Bailey Hutchison and John Cornyn of Texas are cosponsors of the bipartisan energy legislation, which now moves to the House.

The bill doesn't address many looming long-term issues, but the incentives are slated to expire this year. And a significant amount of investment could be suspended if the extension is not passed soon.

"If both houses of Congress don't pass a bill, and the president doesn't sign it into law within the next one to two months, we will start to see as much as $20 billion of anticipated investment in 2008 delayed or cancelled," Sen. Maria Cantwell, D-Wash., one of the bill's authors, said in prepared statement. Cantwell and Sen. John Ensign, R-Nev., introduced the bill on April 3.

The measure extends tax credits for investments in renewable clean energy sources such as wind, biomass, hydropower and a 30 percent tax credit for businesses that install solar and fuel cell technology.

Additionally, Cantwell noted, the measure gives one-year tax breaks to homeowners who make their homes more energy efficient. The Union of Concerned Scientists emphasized that a coalition of 100 business, trade and advocacy groups support the extension.

Encouraging renewable energy generation is crucial because of environmental concerns surrounding traditional generation methods such as coal and nuclear plants.

The renewable energy field also is creating domestic jobs. Ensign said in a prepared statement that the tax credits could help create 120,000 jobs.

Similar legislation has been approved by the House but has been bogged down because that measure would pay for the incentives by taking away tax credits from big oil companies, Reuters reported.

The Senate measure doesn't address a method for recouping the cost, and the White House is opposed to the unrelated housing bill.

While energy legislation has major hurdles to clear, last week's action pushes the process forward.

Expanding renewable energy generation is an important goal, and lawmakers should agree on a way to accomplish this goal without a lengthy delay.