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We are pleased to report that yesterday the U.S. Senate adopted the Cantwell-Ensign amendment as part of the Housing Stimulus bill by a vote of 88-8. Shortly after, the Senate passed H.R. 3221, The Housing Stimulus Act of 2008, by a vote of 84-12.

The Senate Cantwell-Ensign amendment (#4419) enjoyed overwhelming bipartisan support and its adoption sent a clear signal that legislators hope to pass the renewable energy tax credit extensions soon. Besides a one-year extension of the production tax credit for wind and others, the solar industry gains several benefits: 8-year extension of commercial ITC, repeal of utility exemption, and removal of AMT exemption; 1-year extension of residential ITC, complete lifting of the $2,000 cap for residential PV projects, and removal of AMT exemption. It included all elements of the Cantwell-Ensign proposed bill, S. 2821.
 

Yesterday the House Ways and Means Committee reported out its version of a housing stimulus package. SEIA staff is already in contact with staff and leaders in the House and Senate on next steps.

There is still much work to be done and SEIA staff is pivoting to focus on the House in an effort to garner the same level of support we saw from the Senate. The Hill press has reported that Senator Ensign has reached out to White House staff for early engagement and support in finding a path to pass an extension to the renewable energy tax credits. Both CNN Money and E&E News recognized the challenges faced in resolving elements of House and Senate bills, particularly how to address House-proposed pay-for’s over the next few weeks.

Our industry also attracted overwhelming support from more than 250 wide-ranging groups, companies and political leaders from across the nation. Our grasstops coalition work over the last several months resulted in several support letters being sent as well as personal calls placed to Hill leaders. Notable signers on the letters were 3M, Best Buy, Bosch, Conergy, Dow Chemical Co., Duke Energy, Edison Electric Institute, GE Energy, Home Depot, John Deere, JP Morgan Chase, National Association of Home Builders, National Venture Capital Assn., Sierra Club, Target, Trane, the United Steelworkers and Whirlpool. Separate letters were sent by the U.S. Chamber of Commerce, National Association of Manufacturers, and Western Governors Association. This represents a huge outpouring of support for good policy that 85 percent of the American public supports.

Congratulations to everyone for getting past this important hurdle that has plagued us for 10 months. And, again, thanks for all your support. Your calls, letters, and personal visits to congressional members and your contributions to SEIA’s PAC have all made a huge difference in our ability to effectively elevate the solar industry message.

SEIA Action Alert – Apr. 3, 2008

LIST OF CURRENT 23 COSPONSORS:

Allard (R-CO), Cantwell (D-WA), Coleman (R-MN), Collins (R-ME), Cornyn (R-TX), Craig (R-ID), Dole (R-NC), Domenici (R-NM), Ensign (R-NV), Feinstein (D-CA), Graham (R-SC), Hatch (R-UT), Klobuchar (D-MN), Martinez (R-FL), Roberts (R-KS), Salazar (D-CO), Sanders (D-VT), Schumer (D-NY), Smith (R-WA), Snowe (R-ME), Stabenow (D-MI), Sununu (R-NH), and Thune (R-SD).

To locate your Senators’ Washington phone number, go to http://www.congress.org/congressorg/directory/congdir.tt and type in your company’s zip code.  Alternatively, you can reach your Senators’ offices through the Capitol Switchboard at 202-225-3121. Convey the following points to your Senator:

·        I work for (name of company) in your state (describe the company, # employees, growth).

·        The solar investment tax credits are critical to our company’s business and must be extended this year to prevent a slowdown in solar development and job creation.

·        The solar tax credits will reduce energy costs, increase energy independence, and create more jobs in your state.

·        Please do what is right for your constituents and for the country.

·        We need you to cosponsor the Clean Energy Tax Stimulus Act of 2008 that includes strong solar tax provisions.

While this is a new and exciting development, and represents a potential breakthrough in the Senate, renewal of the ITC still faces significant hurdles for passage—including resolution of different provisions from the House-passed bill (H.R. 5351). If the Senate succeeds in passing legislation, it will move to a conference between the two chambers. If you have any questions about the current outlook or the content of the bill, please visit our ITC Resource Page at www.seia.org/itc. 

Please share this message with your company colleagues, friends, and others who support solar.

March 24, 2008At the end of February, the U.S. House of Representatives went “once more unto the breach” in an attempt to create long-term extensions for renewable energy tax credits.

And just as had happened twice before, the bill (on this occasion the Renewable Energy and Energy Conservation Tax of 2008, H.R. 5351) passed the House comfortably. The final vote was 236 - 182 with 11 members of the House not voting, and was largely split along party lines.

In a joint statement, Speaker Nancy Pelosi, House Majority Leader Steny Hoyer and sponsor of the bill Charles Rangel said: “The bill extends and expands tax incentives for renewable electricity, energy and fuel, as well as for hybrid cars, and energy efficient homes, buildings, and appliances. It does not add to our deficit, but rather repeals $18 billion in tax subsidies for Big Oil companies. By strengthening our renewable energy sector, the bill will help create the next generation of good-paying, green collar jobs and bring down energy prices in the long term.”

Of course, it’s that “$18 billion in tax subsidies for Big Oil” that has stymied similar bills before, with Senate Republicans closing ranks in the face of intense lobbying from that very sector of American industry. And the Bush Administration has already issued a letter indicating that the president will veto a bill that rolls back tax breaks for the oil and gas industry, so all eyes are now on the Senate: can the Finance Committee find sources of revenue for renewable energy tax credits that are less objectionable to the GOP and the White House?

We understand that in this interim period between House and Senate votes, Finance Committee members are working hard to find common ground between opposing positions. There are other potential sources of revenue out there that could sway enough Republicans to switch their vote when the bill comes to the Senate floor in late April–enough to avoid a filibuster, perhaps enough even to overcome a veto–but it’s going to take a lot of haggling on the Hill to make everybody play nice.

Postscript: We’re told—by Oil and Gas—that Oil and Gas needs those tax breaks to finance exploration for new sources of oil and gas. What a difference three years makes. Here’s President Bush on 5/14/2005:

“And so one of the initiatives that I will push, again, is to get an energy bill out. I will tell you with $55 oil we don’t need incentives to oil and gas companies to explore. There are plenty of incentives. What we need is to put a strategy in place that will help this country over time become less dependent. It’s really important. It’s an important part of our economic security, and it’s an important part of our national security.”

http://www.solar-nation.org/2008/03/24/whats-the-latest-on-that-energy-bill/

The Senate May Kill 42 GW of Planned Renewable Energy
Written by Hank Green Wednesday, 05 March 2008

While the U.S. House has happily passed the renewable energy credits that have, for the last few years, kept the U.S. competitive with other countries in this burgeoning new economy, the Senate has failed to pass the legislation three times.

The largest planned solar power project in history, a 280-megawatt solar thermal plant in Arizona, will not be built if the tax credits are not extended. But that’s not where the story ends. Over 42,000 MW — that’s as much as 75 coal-fired power plants — are hinging on this bill. Those projects, representing the largest yearly growth in U.S. solar EVER, will go online in 42 states only if the subsidies stay in place.

The renewable energy credits will expire at the end of 2008 and already planned projects are putting in a provision saying that they will cancel if the credits are not passed. The problem seems to be that every version of the renewable energy credit bill that has hit the Senate takes subsidies away from oil and gas companies and gives them to the renewables energy. Pete V. Domenici of New Mexico, the head Republican on the Energy and Natural Resources Committee, has said that he will block any such legislation, calling the repeal of their subsidies a “tax” on oil and gas.

Many Senators claim that ending oil and gas subsidies will only serve to increase gas prices but, call me crazy, giving taxpayers’ money to the oil companies so they can lower prices doesn’t really make that much sense. We could just give the money straight to the taxpayers instead of helping to increase the already-record profits of the oil industry.

Subsidies exist to help bolster new economies when they need the capital, not to prop up dying systems. If our country can put together the funding to create 42 gigawatts of renewable energy, that will be something that we can all be proud of. That, in fact, will stop the demand for new coal power plants while putting us in a position to compete with the rest of the world in this new energy economy.

Senate Democrats are scrambling to put together a stand-alone version of the bill. The last two have failed by just one vote (notably, John McCain did not vote on either bill) and Democrats are confident that they can pull that extra vote from somewhere before their effectual deadline at the end of the first quarter of ‘08. Let’s hope they get this done…NOW.

Posted by Martin LaMonica |

NEW YORK–The solar industry’s trade group is borrowing political tactics from the oil and gas industry to try to extend a tax credit that it considers vital to continued growth of renewable energy.

Rhone Resch, president of the Solar Energy Industry Association (SEIA), said Wednesday that his group has created a lobbying coalition of utilities, homebuilders, and environmentalists to pressure Congress to pass a law to extend–and improve –an existing tax credit for renewable energy investments. The group has also formed a political action committee to ensure that Congress members who voted against the renewable energy tax credit are not re-elected, he said.

“We talk about the green revolution…It’s not a revolution until some blood gets spilled,” said Resch, who spoke at the Piper Jaffray Clean Technology and Renewables Conference here Wednesday.

Resch added that the investment tax credit has become a political football. “There’s going to be a lot less grand-standing in the next couple of weeks,” he said.

He noted that a tax-credit bill needs to be passed by the end of the first quarter.

An existing federal tax credit for renewable energy projects is set to expire at the end of 2008. An extension of the tax credit was narrowly defeated at the end of last year during the creation of the 2007 Energy Act, and an economic stimulus plan was passed without the extension earlier this month.

Resch said that the solar industry is abandoning its strategy of pushing for a repeal of a tax break for oil and gas manufacturers in order to pay for the solar tax credit. The solar industry will favor a broader lobbying push instead.

The industry is seeking an eight-year extension of the existing investment tax credit and a more generous credit, which is now 30 percent of the total cost of commercial renewable-energy projects.

Resch said that the industry has already started to see “significant sales drop-off” because of the uncertainty surrounding the investment tax credit, particularly for large-scale solar projects.

He said he’s optimistic about the passage of a law this year.

Next year is shaping up to be much more supportive for the renewable-energy industry because all three top presidential candidates are very strong on addressing climate change, Resch said.

It would be an engaging exercise in political pressure, wouldn’t it? To get every state governor who has affirmed that solar energy development is vital to their state’s future to convey that message, forcefully and individually, to each of the presidential candidates.

Solar Nation is looking for your help!

The idea comes from a letter written earlier this month by California’s Governor Schwarzennegger to President Bush, in which he urged the President to support solar tax credits in the energy bill then coming up for a final vote in Congress. As we now know, Senate Republicans killed the tax credit elements before the President could even carry out his veto threat. But even if this president is unresponsive, what about those dozen and a half presidential candidates jostling for voters’ attention?

The candidates’ attitude to renewables has been charted by the League of Conservation Voters (available here). And the attitudes range from “no articulated position” (Giuliani on efficiency targets) to “90% carbon reductions by 2050″ (Richardson on carbon caps). But the fact is that even the stronger supporters of renewables tend to leave the topic out of their everyday campaign rhetoric, perhaps considering that it will not engage voters in the way that health care and the Iraq war do.

Would their rhetoric change if they were the targets of letters, from a significant number of governors, that spelled out the value of solar energy support to each state’s economy, environment and public health? Would that move candidates like McCain, Kucinich and Romney from their meaningless position on energy efficiency of “general support but no target specified” to one that forced them to actually make a commitment?

Solar Nation will be taking up this challenge early in the new year, and is appealing to all readers with actual or potential lines of communication to their state governor (either through an advocacy organization or independently) to be a part of this challenge. Would your governor stand behind such a letter? Can we work together with your governor’s senior energy advisor to craft a letter appropriate to your state’s needs?

If you can and would like to be a part of this effort, we’d like to hear from you soon. Please contact chris@solar-nation.org to get started.

December 17, 2007

by Scott Sklar, The Stella Group, Ltd.

Everyone in the renewable energy community tried to put a good face on it, but let’s face it — we have a second recent Energy Bill with little support for renewable energy and energy efficiency.

Right now, the monied interests are framing the debate and the country is losing.

Now to begin, I was pleased to see an increase in automobile mileage standards, which is obviously needed to cut imports. However, it is embarrassing that not only Europe has surpassed us with such standards, but China as well.

Secondly, the commitment to biofuels was very significant. The Bill included a 36 billion gallon Renewable Fuels Standard of which nearly a third has to be dedicated to next-generation cellulosic biofuels.

Throughout the process, there was also some dark humor, as Field Palmer from Green Chip Review wrote: “I mean nothing — absolutely nothing — could prepare us for the reality of peak oil, the caustic tide of global warming or WWIII over oil like the CAFE Standards. Just imagine the ramifications of our national fleet getting 35 mpg by 2020. I know what you’re thinking…Who needs solar, geothermal, or wind power if your truck can get 22.2 mpg? Never mind the average light duty vehicle gets 21.6 mpg right now.”

Over $21 million was invested in ads and high paid lobbyists by electric utilities and the oil and gas industry, which resulted in an Energy Bill with no tax credit extensions and enhancements and no portfolio standards for energy efficiency and renewable energy.

As a 2004 article in the Boston Globe on the 2005 Energy Bill points out, “analysis of tens of thousands of pages of lobbying records shows that entities with a stated interest in energy policy spent $387,830,286 lobbying Washington last year. They also paid tens of millions of dollars in campaign contributions to officials putting together the package at the White House and on Capitol Hill.”

According to The Hill, a leading newspaper that covers Capitol Hill, “Southern Company, by spending huge sums both on lobbying and on political campaigns, is among the biggest power players in Washington. The utility, which reported $14.4 billion in revenues in 2006, helped derail an administration plan to create a national electricity market three years ago.”

Southern’s argument is that the RPS would raise costs for its 4.3 million customers in Alabama, Georgia, and Florida. Other Southeastern utilities, such as Louisiana-based Entergy, have joined Southern in arguing their area doesn’t have sufficient renewable sources of power.

“In fact, they do,” said Leon Lowery, a Senate Energy and Natural Resources Democratic aide. Lowery and other RPS supporters say the regional differences in renewable power are overblown, because there are already 6 megawatts of biomass that would qualify. The Bingaman bill also states that improvements in the efficiency at hydroelectric power plants would count as a renewable, as would landfill gas used to produce electricity, Lowery noted.

Rudy Giuliani is also one of the utility companies’ strongest supporters. Perhaps not surprisingly, his law firm, Bracewell & Giluliani LLP was hired by these groups to lead the intense lobbying against the Senate energy bill, which, according to a December 2007 article from ThinkProgress.org would have forced utility companies to “boost electricity generated by wind, solar and other forms of renewable energy to 15 percent of the U.S. total by 2020.”

Not to be outdone by the electric utilities, the oil and gas industry ran full page ads in The Washington Post for weeks deriding the Energy Bill as a “Tax Bill,” drowning out environmental and advocacy groups who had contrary points-of-view that these industries have had their highest profits in history and the $21 billion in offsets for clean energy tax credits represented a miniscule amount for them.

According to Bloomberg News data from an April 2007 article in the Washington Post:

“Exxon Mobil, the world’s biggest oil company, said profit climbed 10 percent to a first-quarter (2007) record after higher gasoline and diesel prices increased refining profit. Profit rose to $9.28 billion from $8.4 billion in the comparable period a year earlier, the Irving, Texas company said in a statement yesterday. Revenue fell 2 percent, to $87.2 billion. Refining profit rose 50 percent, as the company increased fuel output at its 45 plants and as growing demand and breakdowns held back competing producers.”

The Energy Bill included $10 billion worth of taxes over 10 years basically on the five top oil and natural gas companies — BP, ConocoPhillips, Chevron Corp., Royal Dutch Shell, and Exxon Mobil Corp. as part of the $21 billion in “Pay as you Go” offsets for the clean energy tax incentives.

If you’re curious, you should look up the campaign contributions of big oil to each of the following senators:

Senator Alexander from Tennessee, Senator Allard from Colorado, Senator Barrasso from Wyoming, Senator Bennett from Utah, Senator Bond from Missouri, Senator Brownback from Kansas, Senator Bunning from Kentucky, Senator Burr from North Carolina, Senator Chambliss from Georgia, Senator Coburn from Oklahoma, Senator Cochran from Mississippi, Senator Corker from Tennessee, Senator Cornyn from Texas, Senator Craig from Idaho, Senator Crapo from Idaho, Senator DeMint from South Carolina, Senator Dole from North Carolina, Senator Domenici from New Mexico, Senator Ensign from Nevada, Senator Enzi from Wyoming,  Sentor Graham from South Carolina, Senator Gregg from New Hampshire, Senator Hagel from Nebraska, Senator Hutchison from Texas, Senator Inhofe from Oklahoma, Senator Isakson from Georgia, Senator Kyl from Arizona, Senator Landrieu from Louisiana, Senator Lott from Mississippi, Senator Martinez from Florida, Senator McConnell from Kentucky, Senator Roberts from Kansas, Senator Sessions from Alabama, Senator Shelby from Alabama, Senator Specter from Pennsylvania, Senator Stevens from Alaska, Senator Sununu from New Hampshire, Senator Vitter from Louisiana, Senator Voinovich from Ohio, and Senator Warner from Virginia.

(Search on the names of the PACs and of the top 3 C-level execs of each company in which you’re interested).

Some clean energy advocates have stated “we can win” tax credits next year, but history shows rather conclusively that no major bills pass Congress during a Presidential election year; however, that doesn’t mean short term tax extender packages can’t pass.

Other optimists point out that we did get some programs in the Energy Bill, which is true. So let’s look at the most significant program: Energy Loan Guarantees. The Bill provides $25 billion for nuclear, $10 billion for renewables, $10 billion for coal to liquids, $2 billion for uranium enrichment, and $2 billion for coal to gas. That means $39 billion for iterations of conventional energy and $10 billion for renewables. Even then, these funds have to be appropriated — and I am willing to bet the conventional industries get their full appropriations while the renewables will not. Paying attention to the political subtext, rather than the press releases, is surely in order here.

I want to be clear here about the Congressional Leadership of House Speaker Pelosi and Senate Majority Leader Reid, who had teed-up comprehensive energy legislation that in both legislative language and “spirit” provided energy efficiency and renewable energy the finest blend of public policies. Even at the last minute, they were working to resolve language issues regarding daylighting and inclusion of geoexchange.

I believe Reid’s statement was right on target when he said, “Today, America consumes 21 million barrels every single day, most of it from unstable regions of the world. That’s one billion American dollars going overseas — every day — to pay for our oil addiction. Those 21 million barrels we will use today — and the 21 million-plus barrels more we’ll use tomorrow — has created a three-pronged crisis: It threatens our economy, our national security and our environment.”

In the face of it, lets hope that the national will can be translated into political will. Right now, the monied interests are framing the debate and the country is losing.

Yesterday, the U.S. Senate dealt a losing hand to all those who believe in solar power as a vital component of our energy future.

By a vote of 59-40, just one vote short of the number needed to cut off debate, the Senate failed to include a tax title in the 2007 energy bill that would have provided investment and production tax credits for renewable energies.

Many people have worked long and hard this year to secure a government commitment of support for solar and other nascent renewable industries, including solar citizens like yourself, Congressional Democratic leadership, environmental and conservation groups, industry associations, and scientific bodies.  And although representatives and senators were left in no doubt about the importance of the legislation to America’s future, the peculiarities of the American way of politics trumped common sense and hope.  Senators from states where the oil and gas industry lobby is strongest voted to continue support for the industry, even though the proposed tightening of tax breaks would have amounted to only 1%-2% of its net profits.  To see which senators voted against the tax title measure, check the list at the end of this message.  (Look closely and you’ll find one Democrat who voted ‘nay’, and one presidential candidate who failed to vote at all).

Late yesterday evening, the Senate finally voted on what was left of the bill.  Absent investment tax credits, production tax credits and a national renewable electricity standard (RES), the bill sailed through by a vote of 85-12.  It will now go back to the House, then on for signature by President Bush.  And what the President signs will contain CAFE standards for automobile mileage standards, a renewable fuels mandate, and provisions for energy efficiency in federal government departments.  For renewables, there is practically nothing.

The timing of the vote may strike historians as curious in years to come;   half a world away in Bali, attendees at the UN global warming conference were working toward final agreement on long-term measures to mitigate climate change while the U.S. Senate was rewarding the oil and gas industry for its long-term support.

That renewable energy development in America has suffered a setback is not in question.  But reports of its death have been greatly exaggerated.  Congressional Democrats have stated that they intend to resurrect the RES and tax credit issues in their next session, perhaps in a separate, dedicated bill.  And lobbyists for renewable industries have vowed to keep up pressure on legislators from now until the November elections.

For all those solar citizens who took the time this year to call, fax or e-mail their legislators over this issue, we say a loud and heartfelt “THANK YOU!”  And yes, you were heard.  In the week before Thanksgiving, the House of Representatives took the tax title off the table;   the uprush of public outrage caused by this maneuver forced the lower chamber to restore the funding in short order.  Did this matter, given the final result?  It certainly did, because now no-one on Capitol Hill can be in any doubt that renewables have a high level of support among their constituents.  This should impact Congress’ decision-making as an election year unfolds.

For news on the Senate vote from RenewableEnergyAccess.com, click here.

For Solar Nation commentary, click here.

And the joy of the season, and all seasons, to you.

Solar Nation

Friends-

Some days are uneventful, with little but the promise of extra pie for dessert to get you through.  And then–some days are pivots upon which the course of history turns, moments in time when each of us are called upon to decide the kind of future we want for ourselves and for our children, and take to the ramparts. Tomorrow is one such day.

Tomorrow, Thursday, the Senate will vote on a revised energy bill that includes critical solar investment tax credits necessary to bring solar into the mainstream.  Negotiators have jettisoned the renewable electricity standard (RES) and altered some of the revenue-raising tax provisions to make it more palatable to some oil-aligned Senators and the White House.  But the vote will be extremely close - the bill needs 60 votes to pass, and the opposition is burning up the phone lines, urging Senators not to vote for a bill that eliminates unneeded production incentives for the oil and gas industry.  Word is we are ONE VOTE SHORT.

Can you take a moment to call your Senator, immediately? Find their number here.

You might tell your Senator that the future of the country is dependent on our ability to transition to renewable energy, and that a failure to act now would be a dereliction of duty that future historians will rue for centuries.  But put it in your own words.

Talking points, bill text, and bill summary can all be found here.

Forget the pie. Make the call. Act now or no complaining later.

Onwards-

The Vote Solar Team

The Vote Solar Initiative
300 Brannan Street, Suite 609
San Francisco, CA 94107
www.votesolar.org