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Don't Miss The Great Solar Debate: Where Does the Global Solar Industry Stand? Click Here to Register! ×

How House Republicans May Control the Energy Debate

Rep. Dave Camp enters the energy policy spotlight as top Republican on the House Ways and Means Committee. Is that good or bad for renewables?

Lindsay Morris, Associate Editor, Power Engineering
November 03, 2010  |  14 Comments

With midterm elections complete and a GOP House in place, the newcomers have the opportunity to either push forward or detain renewable energy policy.

The new Congress has several ideas to work with that were held over from Obama's first two years in office, including a renewable electricity standard that expands the definition of what energy types count toward the thresholds, particularly adding emission-free nuclear power and clean coal to the definition of renewable energy. Some wonder if the new Republican Congress will be staunch policy conservatives like many of their predecessors, or flexible enough to implement changes that will positively affect renewable energy.

Tax incentives are sure to be a major driver to renewable energy development during this half-term. Rep. Dave Camp (R-MI) is in line to become the new chairman of the House Ways and Means Committee, a role that has significant influence over tax measures for renewables.

Camp is the current top Republican on the Ways and Means Committee. His Michigan District 4 is home to a number of wind and solar manufacturers, such as Dow Chemical, Dow Corning and United Solar Ovonic. Though a self-proclaimed supporter of alternative energy, Camp believes “it takes today’s energy to power tomorrow’s technology,” as he said in the April 14, 2010 Hearing on Energy Tax Incentives Driving the Green Job Economy.

“You cannot increase the cost of producing 85 percent of the energy being used today and expect consumers or employers to benefit from tax incentives that are going to less than 10 percent of the energy being used today,” Camp said.

Camp was referencing the fact that there was little change in America’s reliance on fossil fuels from 2007 to 2009 despite the investment of nearly $40 billion in tax subsidies for renewables enacted in October of 2008. In the remarks Camp made during the April 14 hearing, he said that in 2007, petroleum, coal, nuclear and natural gas supplied 93 percent of America’s energy, while renewable energy supplied only 7 percent. In 2009, 92 percent of the nation’s energy came from petroleum, coal, nuclear and natural gas and 8 percent from renewables.

While Camp’s words may seem discouraging to some renewable developers, his track record displays more openness toward renewables than some of his Republican predecessors. In October 2009, he cosponsored legislation to invest $2.25 billion for a solar technology research and development program and to create a committee to study the near and long-term research and development needs in solar technology. In November of 2009, he cosponsored legislation to amend the Internal Revenue Code of 1986 to allow an investment credit for property used to fabricate solar energy property. And as a push for the bulk of the power industry, Camp cosponsored legislation in January 2009 to amend the Clean Air Act to provide that greenhouse gases are not subject to the Act.

Elias Hinckley, a partner at the law firm Venable and professor of international energy policy at the Edmund A. Walsh School of Foreign Service at Georgetown University, said Camp’s reputation as a proponent of clean energy could be beneficial to renewables. However, if Tea Party candidates instigate an energy tax, “that may guide some of his policy driving.”

In regards to policy under the new House, Hinckley said the extension of existing tax subsidies for renewables is “relatively safe.” However, the Treasury Grant Program may not be met with an extension. “I see some real difficulty considering its eroding support,” Hinckley said.

Bob Cleaves, president and CEO of the Biomass Power Association, said Camp has been a supporter of biomass in the past and comes from a state that ranks in the top five states in the country in terms of biomass plants. “If the past is any judge of it, we anticipate continuing to getting a lot of support from within the Ways and Means Committee.”

Cleaves said extension of the Treasury Grant Program and other subsidies will depend largely on what happens during the lame-duck session. “The question is: is there going to be enough time in a lame duck for Congress to address the extensions? We’re very hopeful that it gets addressed before year-end.”

Instead of the new House focusing on climate issues, Cleaves said he expects a greater emphasis on tax policy. “Whether a newly reconstituted Congress can get their arms around the idea of a federal Renewable Portfolio Standard, I think that remains to be seen.”

Many political analysts are projecting the new House to offer suggestions for compromise, including tax breaks and incentives for investment in nuclear power, clean coal and renewable energy. Scott Segal, an industry lobbyist, told Politico that he expects Republicans to accept incentives for energy efficiency, nuclear power and hydroelectric power, coupled with credits for geothermal heat pumps and next-generation heating, ventilating and air conditioning.

“An approach like this would be very consistent with the expressed desire of the President to continue to focus on energy but to do so in ‘chunks’ as opposed to a comprehensive bill,” Segal said.

Camp’s philosophy seems to mesh with this expectation for new technology that will lessen reliance on foreign oil and encourage innovation through alternative and renewable fuels. In an issue statement, Camp said, “It is imperative that policies are in place to encourage the research and development of new, cellulosic fuels that use crop and animal waste and greater use of solar, wind, clean coal and other new energy technologies.”

 

14 Comments

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Douglas Prince
Douglas Prince
November 10, 2010
And Phil, you grinning jackal - Stop hitting the bong before you post. I know why you're always smiling, big guy. Ha!
Douglas Prince
Douglas Prince
November 10, 2010
Rojelio - You're spot on about the two-headed corpse and perhaps one day we'll actually have a 3-party, or more, system. But that day may be a way off. Of course, people said the same thing about a black man becoming president. However, I think those type discussions are best left to political boards looking for that kind of debate.
I also agree that it's amazing that RE development, as a whole, does seem to have a life of its own. Now that the political environment has changed, it will be interesting to see what mandates come up, if any, that will aid such development. I think the key politico to keep an eye on will be Representative David Camp from Michigan. He's about the become the head of the House Ways and Means Committee and that's going to be the key committee to getting any sort of RE mandates on the table. He has a nice history of supporting RE, but pressure from the sidelines could guide his hand.
Just food for thought, from a Moron.
Douglas Prince
Douglas Prince
November 10, 2010
akmikee - Actually, I consider myself only moderately liberal. But if you notice in my post, I was responding, not defending, to harrywallace's invective against President Obama. I just think the political rhetoric should be kept off the RE boards, so I was, hopefully, making a point to Mr Wallace. I don't mind points being made about government policy and procedure, but idiotic name calling is just, well, idiotic.
And anonymous - Yes, I am your typical renewable energy advocate. So fuck you, too.
Roger Moore
Roger Moore
November 10, 2010
Phil, what the hell are you talking about?
Roger Moore
Roger Moore
November 10, 2010
What's all this liberal versus conservative? We have a rotting corpse of a two-headed one party system. In case anybody noticed, Obama actually increased troops in Afghanistan by 70,000 and I could list about 50 ways he is perfectly on the same script that Bush was on. The Feds just announced they're printing another trillion dollars starting now. You think they give a shit which puppets just got elected? These guys flamboyantly argue about tangential social issues for the benefit of morons like Douglas and then they scurry behind the curtains and screw like rabbits devising ways to squeeze the last drops of wealth from what's left of the American middle class.

The truly amazing thing is that solar energy seems to have a life of it's own, still growing despite lousy politicians and the beginnings of a depression.
Phil Manke
Phil Manke
November 9, 2010
What we see in our own mind the ego projects onto others. The ego believes it can be rid of these fearful thots in this way. The good news is that you are not your ego, unless you wanna be. Give it up.
Insalaco mike
Insalaco mike
November 9, 2010
Douglas has the same defense that all liberals use, anger and hate.
ANONYMOUS
November 5, 2010
I guess that Douglas Prince is a typical renewable energy advocate
Douglas Prince
Douglas Prince
November 5, 2010
"Obama is a cancer"? Gee, how adult, how civilized, how relevant to the article.
Oh, hey, I've got one for you -- "Harry Wallace is a cocksucking piece of shit."
There, feel better? Isn't this a lovely way to have a conversation?
You fucking asshole...
Harry Wallace
Harry Wallace
November 5, 2010
Are you kidding? The entire bunch of them are responsible and Obama is worse. Obama is not a manager. He is a salesman. Never balanced a bank book in his life. Doesn't even listen to the people who elected him.

Get real. Obama is a cancer.
Angus Campbell
Angus Campbell
November 5, 2010
One way of recovering money from upstart renewable enrgy companies is to create a government run corporation for the purpose of investing in these companies. The corporation is run with appointed business leaders, lawyers and financiers who decide if an investment is merited. After investing, the government corporation sits on the board of the renewable company and ensures it is run efficiently, profitably and legally. When the energy is being sold and the company returns a profit, the governmet corporation would be required to sell of its shares at market value. This would ensure a return for taxpayers from both profits and shares.
Todd Griset
Todd Griset
November 3, 2010
It will be interesting to see the effects of the election results on whether we will see a federal renewable portfolio standard (RPS). Many people suggest that greater Republican representation will take even more of the "wind out of the sails" of the push for a federal RPS. Perhaps we will see more carrots (e.g. tax incentives, grants) and fewer sticks like mandatory purchase obligations.

Other interesting questions arise on the state level, where a similar rising tide of Republicans may seek to alter state RPS programs. Yet California voters rejected the proposition that would have suspended the action of California's climate change bill. Still, the results of yesterday's election will extend to state-level renewable policies as well.

I write a blog about energy matters, ranging from renewable energy policy to dam removals, and offshore wind energy to transmission projects. For example, I recently wrote about renewable energy credits and state RPS programs:
http://energypolicyupdate.blogspot.com/2010/10/october-20-2010-renewable-energy.html

You can follow my blog here:
http://www.energypolicyupdate.blogspot.com/
Todd Griset
Energy Blog
Kent Harle
Kent Harle
November 3, 2010
I think it will be great. After all it was under the Bush administration that we got both the 30% Federal Energy Tax credit and then again got it extended for many more years before he left office. It was a Republican Gov of CA that implemented the Recent Solar Rebate program in CA that has been a total success. He also stood up to unions that would have dramatically raised the cost of installing Solar. I do not think we need to worry about what the Republicans are going to do....we need to address all segments of energy, we cannot just stop what we have been doing for 100 years but we do need to begin transitioning to many new cleaner types of energy as quick as feasibly and financially possible.
James Davis
James Davis
November 3, 2010
President Obama cannot undo in two years what it took Bush, Jr. eight years to screw up. The Republicans lost miserably in two major elections in 2006 and 2008 because of their stupidity and their agenda of 'death, destruction, poverty, and war'. If the Republicans are stupid enough to believe that the American people (democrats and Tea Party) are as stupid as they are and will put them back into power they really are as stupid as we believe they are. The Republicans are now a divided house and a dived house will always fall. They have been given back a very small part to play in restoring America from the Bush, Jr.'s agenda and we are watching. If they insist on continuing the Bush, Jr.' agenda of 'death, destruction, poverty, and war', the Tea Party will dismantle the Republican Party and start their reign and the Tea Party will work with the Democrats in restoring America to its power in the world and our dominants in clean energy.

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Lindsay Morris

Lindsay Morris

I am an associate editor for Power Engineering magazine. I cover EPA's regulations for the power industry in detail. When it comes to renewables, I write regularly about solar and wind-related policies and technologies. I'm a native of...
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