US Energy Bill Update: Senate Approves Compromise Legislation

After a hard-fought battle on the political playing field, the renewable energy industries have suffered a difficult defeat. The Senate voted yesterday evening on an Energy Bill that left out the investment and production tax credits and a renewable portfolio standard (RPS), avoiding a Presidential veto but dramatically reducing the role of renewables in Congress' energy plan.

The Bill passed by a vote of 85-12. It now goes back to the House for approval and then to the President to be signed into law. The White House issued a statement yesterday saying that it would accept the Bill.

?The failure to pass critical policy provisions to reduce energy costs for business owners and homeowners, protect our energy infrastructure against acts of nature and terrorism, and fundamentally reduce emissions causing respitory diseases and global climate change was an abdication of duty to the American people by a minority of legislators from both parties and The Administration," said Scott Sklar, President of the Stella Group, a renewable energy marketing and policy analysis firm.

The new piece of legislation includes a 40% increase in fuel economy standards, a 36 billion gallon renewable fuel mandate and increased energy efficiency standards for new federal buildings. The Bill did not, however, include extensions of the tax incentives that provide a stable, predictable investment climate for distributed generators and large-scale project developers.

The House had originally passed a Bill that included the tax provisions and a RPS, but the Senate rejected the legislation. After the vote, some Democratic Senators said they would revisit both the RPS and tax provisions in the next session of Congress.

While the omission of those provisions is considered a setback by the industry, Congressional leaders are hailing the passage of the Bill as a bipartisan success. Trade groups in Washington such as the American Wind Energy Association and the Solar Energy Industries Association have promised they will continue to lobby Congress for tax credit extensions before they expire in December of 2008.

renewableenergyaccess.com

By: RenewableEnergyAccess.com

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