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05/02/2007 | Renewable Energy Advocates See Democrats As Allies

Jean Chemnick

Advocates for renewable energy sources are feeling confident these days now that Democrats control Congress.

 

That confidence may not be misplaced. Leaders in both the House and Senate have made energy a top priority and are moving ahead with legislation to support their intentions. And one of the renewable business's own, wind power consultant Jerry McNerney, can promote the cause from the House floor as the new Democratic representative from California's 11th District.

Currently, less than 7 percent of the energy consumed in the United States comes from renewable energy sources such as wind, solar, hydroelectric and geothermal. Fossil fuels and nuclear power provide the remainder. To compete with those well-established sources, the renewable industry has relied heavily on tax credits. Extending those credits well beyond the current expiration date of December 2008 is key to survival, advocates say.

So far they've succeeded in getting some legislators to champion the credit extension issue -- and other favorable legislation -- in the 110th Congress.

The solar investor credit benefits those who invest in technologies such as solar panels and solar water heating systems. Rhone Resch, president of the Solar Energy Industries Association, said the credit stimulates manufacturing and creates jobs. To extend the credit, the group worked with Reps. Dave Camp, R-Mich., and Michael R. McNulty, D-N.Y., on a bill they introduced Jan. 18 that would extend the credit for eight years. The issue is important to Camp because there is a budding solar industry in his upper Michigan district; last year, solar businesses added 1,000 jobs -- a boon in a district that's been hit hard by downsizing.

That same day, the renewable industry won a major victory when the House passed a bill that would cut subsidies for petroleum producers and raise the royalties they pay for drilling rights. Sponsored by Charles B. Rangel, D-N.Y., the bill would use the money that came from the royalties to pay for future legislation aimed at promoting fuel efficiency and alternative energy. It would also give companies drilling in the Gulf of Mexico the choice of renegotiating leases signed in 1998 and 1999 or pay "conservation of resources fees" on every barrel of oil produced. Companies that did not cooperate would be barred from drilling in the gulf.

The bill faces challenges in the Senate from Republicans and from Gulf State lawmakers in both parties. A spokesman for Sen. Mary L. Landrieu said the Louisiana Democrat would support some increase in royalties and measures to force oil producers to renegotiate their leases. But she opposes the wholesale repeal of tax incentives.

House and Senate Democrats are also moving ahead on global warming legislation, which would require an increase in alternative energy to counter a drop in fossil fuels. House Speaker Nancy Pelosi, D-Calif., wants to create a committee on global warming, and the chairman would be Ed Markey, D-Mass., who favors higher fuel efficiency standards for vehicles. In the Senate, Joseph Lieberman, I-Conn., and John McCain, R-Ariz., reintroduced a measure that would create a "cap and trade'' program for energy emissions, allowing emissions credits to be traded, saved or borrowed. Their version would lower the cap to a third of the levels that existed in 2000. Previous versions would have capped it at the 2000 levels.

Members from agricultural districts have recognized that the new focus on energy can bring opportunities to their constituents. House Agriculture Committee Chairman Collin Peterson, D-Minn., has floated the idea of adding a subcommittee on bio-fuel. He and Sen. Tom Harkin, D-Iowa, have said they plan to provide more money for renewable energy in this year's farm bill.


Politico.com (Estados Unidos)

 


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