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The United States Senate on Tuesday voted by an overwhelming majority to extend the Production (PTC) and Investment Tax Credits (ITC). The tax measure was passed by a vote of 93-2. Now it goes back to the U.S. House of Representatives where it could be approved later this week.
"I hope they will take into account the seriousness of how difficult it has been for us to get this passed. Don't send us back something else. We can't get it passed."
-- Sen. Harry Reid (D-NV)
Under the legislation, the PTC will be extended for one year and the ITC will be extended for eight years. The extensions would be at least partially paid for by a change in the tax code for the oil and gas industry. The bill also contains removal of the US $2,000 cap for residential solar installations. The US $18 billion package is part of a larger tax bill worth approximately US $148 billion.
Senator Harry Reid (D-NV) expressed the difficulty he and his colleagues in the Senate have had getting the tax credits passes and warned that if the House makes changes to the bill it may not move forward.
"I hope they will take into account the seriousness of how difficult it has been for us to get this passed," Reid said on the Senate floor. "Don't send us back something else. We can't get it passed."
There have been rumors that the House will not pass the bill as it currently stands. If changes are made to the bill in the House the Senate may have to return for a special session next week to debate the bill as the current legislative session ends for election season at the end of this week. The White House issued a Statement of Position on the bill urging its passage, a sign that President Bush would sign the legislation.
Companies in the solar industry have come out in praise of the Senate for passing the bipartisan legislation.
"We applaud the Senate for bringing the U.S. one step closer to becoming a progressive leader in the renewable energy industry, and for enabling us to compete worldwide with the many foreign countries who already have
sophisticated renewable energy programs. The eight-year extension breathes new life into the entire solar industry and will enable Clear Skies Solar to experience the explosive growth that we had originally anticipated of our company and the industry as a whole," said Ezra Green, CEO of Clear Skies Solar.
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There are many reasons to support it.
One, PV and associated industy costs should come down in price due to volume production caused by said credits.
Two, this is better than putting the money into conventional energy tech which already had (more than) their fare share of credits, subsidies, bailouts, ect.
Three, largecsale RE will become less expensive than it is now due to volume scale.
Forth, when oil becomes more expensive (again), it will be hard to develop RE due to lack of available resources! Thus we need to obtain experience in RE creation. With experience, the cost of fuel to make RE will not be such a show stopper since the production of RE plants will be more streamlined.
Fifth, at some point (nomatter what the costs) RE will be cheaper, and eventually, the only source until (if) fusion comes online.
Sixth, when fusion or something better than solar power towers is available, the many billions of large mirrors would be decomisioned. Instead of "cleaning up the desert", simply focus the mirrors as a giant flat mirror to offset negative albedo caused by the retreat of the little iceage and by GW so as to help prevent ocean anoxia.
And seventh, RE is clean, unlimited and can sustain humanity. Without help, it might not be able to support billions of people after the oil crunch.
This week has shown that our dependence on oil as our chief energy source is crippling -- gasoline shortages are disrupting daily life in communities throughout the Southeast and Hurricanes Gustav and Ike have sent all petroleum inventories to low levels. The only economically road forward is also the environmentally sustainable road forward of efficiency and substitution by PHEVs bringing our country to the possibility of solar and wind-powered transportation. To read more on oil markets and the sustainable energy transition our country needs, go to www.setenergy.org
This exemption will reduce and eventually eliminate the current massive transfer of our wealth (700 billion and rising) to unfriendly foreign oil supplying countries.../// if passed...you have created an effective piece of legislation.
It gives so called "Clean Coal" similiar tax breaks as RE.
The Wind ITC, which in the US, has brought on more capacity than any other RE was only extended for a year. Wind by the way is one of the largest regional competitors with Coal. Coal is being extracted heavily right now in the wind rich mid west.
Subtitile C, Section 252
Gives the IRS authority to conduct covert operations.
What does half of this stuff have to do with RE? We shouldn't need to give concessions like this. But alas...RE legislation US style.
Please read the summary here: http://www.govtrack.us/congress/bill.xpd?bill=h110-6049&tab=summary
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