Clean Energy for America

New York State Passes PACE Finance Enabling Legislation

2009-11-17T10:22:00.001-08:00

Legislation will allow for municipalities to dramatically accelerate the energy retrofitting of New York State's buildings and homes

ALBANY, N.Y., Nov. 17 /PRNewswire-USNewswire/ -- Last evening the New York State legislature passed a bill that authorizes municipalities to establish sustainable energy programs that will finance the installation of renewable energy systems and energy efficiency improvements across the state. These programs will make use of a new form of energy finance, known as Property Assessed Clean Energy or "PACE." PACE programs eliminate the upfront cost for energy improvements by allowing property owners to pay for the improvements over 15-20 years through an increase in their annual property taxes. PACE programs are a recent innovation in finance and have emerged nationwide over the past year during which time 15 states have passed enabling legislation.

"PACE finance can help accelerate deep building retrofits in New York's dense cities, energy efficiency improvements in the suburban housing stock and colder upstate climate, and both efficiency and renewable energy power improvements across the commercial real estate sector," said Jeffrey Tannenbaum, founder of PACENOW.org and on behalf of the Fir Tree Philanthropies. He added, "New York now has a potential financing structure that can help reduce energy bills, and carbon emissions while creating long term job opportunities in the clean energy space."

Representative Steve Israel (NY 2nd District) stated, "I am thankful that Governor Paterson and the State Legislature see the potential for PACE programs in New York and I look forward to working with our local communities to launch PACE bond pilot programs across New York."

Governor Paterson said, "Now, thanks to the leadership of President Obama and Congressman Israel, the federal government is offering programs that encourage the use of PACE loan programs ... I want to thank the Legislature for recognizing this opportunity and for agreeing to pass this critical legislation."

Ashok Gupta, Director of Energy Policy for the Natural Resources Defense Council, stated, “PACE is a powerful tool for advancing energy efficiency retrofits, creating badly needed jobs and reducing global warming pollution. New York has taken an important first step on PACE and we look forward to working with the Legislature and the Governor to quickly expand the scope of this bill beyond PACE programs relying on federal assistance.”

"New York State can now tap critical federal dollars to create much-needed jobs with PACE programs," said Jack D. Hidary, Chairman of Americans for Clean Energy and one of the leaders of the PACENOW coalition. He added, "PACE will put more people to work and will bring energy efficiency and solar to buildings across the state with loans that make it easy for owners to pay for this cost-reducing work."

The PACENOW coalition includes the following leading companies, foundations and governmental organizations: Alliance to Save Energy; City of Annapolis, MD; Apollo Alliance; Association of Bay Area Governments; City of Berkeley, CA; Bipartisan Policy Center; County of Boulder, CO; California Energy Commission; Center for American Progress; Climate Communities; Clinton Global Initiative; Fir Tree Philanthropies; Jack D. Hidary Foundation; Johnson Controls Inc.; Jones Lang LaSalle: Living Cities; County of Montgomery, MD; National Association of Real Estate Investment Trusts (NAREIT); Natural Resources Defense Council; PACENOW.org; Polyiso Insulation Manufacturers Association; Real Estate Roundtable; Renewable and Appropriate Energy Laboratory; Renewable Funding LLC; Serrafix Corp; Solar Electric Industries Association; County of San Diego, CA; City of San Jose, CA; City of Sonoma, CA; Stewards for Affordable Housing for the Future; and the Vermont Energy Investment Corp.

About PACENOW:
PACENOW.org is the advocacy and educational non-governmental organization for PACE finance. For more information about PACE finance, please visit www.PACENOW.org.

About The Fir Tree Philanthropies:
The Fir Tree Philanthropies ("FTP") primary objective is to accelerate America's energy independence and promote sustainable capitalism through innovations in public policy, finance and entrepreneurship.

PACE FACT SHEET

History: The PACE finance industry began in California in 2008 when state enabling legislation was passed allowing for municipalities to create financing districts that could provide low cost retrofit capital to homeowners and building owners secured by senior tax liens on their property. PACE has the potential for large growth due to recently passed similar enabling legislation in more than a dozen states. Current PACE enabled states are: CA, CO, IL, LA, MD, NV, NM, NY, OH, OK, OR, TX, VT, VA, WI.

Property Assessed Clean Energy ("PACE") Finance Defined: A PACE bond or lien is a debt instrument where the proceeds are lent to commercial and residential property owners to finance energy retrofits (efficiency measures and small renewable energy systems) and who then repay their loans over 15-20 years via an annual assessment on their property tax bill. PACE bonds can be issued by municipal financing districts or finance companies and the proceeds can be used to retrofit both commercial and residential properties.

How it works: The key innovations of PACE finance involve materially lengthening the repayment period for energy retrofit loans and structuring the loan repayments as annual property tax surcharges. These innovations result in large benefits to property owners (positive cash flow in the first year on energy retrofits), municipalities (no fiscal burden yet large job creation), existing mortgage holders (borrower cash flow improves and the property value increases), and to PACE bond holders/investors (virtually no risk on investment because the PACE lien is senior in right to mortgage debt). Specific benefits are as follows:

PACE Fact Sheet

• Property owners benefit from large cash savings as efficiency savings exceed the annual financing cost: Instead of large required upfront payments by property owners for energy retrofits, the capital is lent to property owners and repaid over 15-20 years via an annual property tax surcharge. This long term repayment mechanism results in annual energy savings that greatly exceed the annual property tax cost, making PACE finance highly attractive to home and building owners.
• States/Municipalities create jobs and have no added credit risk: States and municipalities benefit from immediate job creation and the fact that PACE finance creates no credit or fiscal burden as the entire liability resides directly with those property owners who opt in to receiving PACE loans.
• Appeal to existing mortgage holders: PACE finance improves the cash flow of property owners (annual energy savings > annual tax surcharge cost) and increases the property's overall value all of which increase the creditworthiness of the existing mortgage
• PACE bond holders/investors benefit from a highly secure investment: PACE bonds have strong appeal to investors given that they are secured by long term tax liens that are senior in right to mortgage debt.

CONTACT: Sandi McLaughlin, PACENOW.org, +1-212-659-4917, info@pacenow.org

Cash for Clunkers Interview - Forbes

2009-08-11T07:35:00.000-07:00

Click here

Your Bottom Line

2009-08-10T08:59:00.001-07:00

Cash for Clunkers Continues; Become an Empowered Patient; Stay Employed By Making the Most of Your Job; It's a Good Time to Start a Small Business

GERRI WILLIS, CNN HOST: Hello. I'm Gerri Willis and this is YOUR BOTTOM LINE, the show that saves you money. Become an empowered patient: tips to wage a battle against your insurance company if your claim is denied. Making the most of a miserable job: solutions that don't involve sacrificing your paycheck. And starting a small business: grab a pen and paper, we'll show you how. YOUR BOTTOM LINE start right now.

Cash for Clunkers, some say a big success, others argue poorly planned by the government. The program burned through its billion dollar first round of funding in less than one week. Now, with $2 billion more headed on the way, how long can we expect it to last? Jack Hidary is the chairman of SmartTransportation.org.

You helped design this plan so we really got the person who knows the most about it with us today. I want to share some numbers we have, though, to ask you about them.

Full Article at: Click Here

Cash for Clunkers Hits Goal in Five Days!

2009-07-31T06:29:00.000-07:00

Jack Hidary - Huffington Post Article
July 30th, 2009

Cash for Clunkers Hits Goal in Five Days!
As a co-architect of the federal Cash For Clunkers (CFC) program and advisor to various congressional offices on the issue, it is gratifying to see how quickly it has been adopted by the American people. CFC achieves multiple goals -- it stimulates auto sales while increasing the efficiency of the U.S. fleet.

For full article Click Here

Pacenow.org

2009-06-30T12:48:00.000-07:00

Jack Hidary is excited to be a member of the Pacenow consortium.

The Waxman/Markey Bill was amended to reflect our comments and now empowers the Federal government to provide indirect credit support for the issuance of PACE bonds (essentially they can be guaranteed to help spur the market). In addition, the energy & commerce committee has provided for monies by capitalizing the “green bank” with $7.5 billion which is great and the key for beginning to finance the retrofit of our nation’s buildings.

Thank You: We owe thanks to the senior teams in the offices of Chairman Waxman (Jeff Baran, Phil Barnett, Greg Dotson, John Jimison), Rep. Markey (Jeff Duncan, Jeff Sharp) , Rep. Van Hollen (Bill Parsons), Rep. Inslee (Beth Osborne), Rep. Dingell, and Rep. Gordon. They agreed the amendment made sense and made it happen. We also received excellent counsel and help from Congressman Israel (Tricia Russell), John Sheiner in Chairman Rangel’s office, the team at the National Commission on Energy Policy (Sasha Mackler, Lourdes Long), Susan Leeds at NRDC.

Click here for more information.

Cash for Clunkers

2009-06-30T12:37:00.000-07:00

June 19, 2009- Congress Passes Cash for Clunkers. A bill passed June 18th, 2009 by the Senate will establish a national program to encourage car owners to voluntarily trade in their older, less fuel efficient car, truck or SUV for more fuel efficient vehicles.

Click here for the full article.

2009-06-05T08:31:00.000-07:00

Call to Action!

2009-05-20T13:41:00.000-07:00

THANKS TO YOUR CALLS AND EFFORTS we had big wins on solar and wind incentives in the stimulus bill.

Now we are building on those wins with the energy bills moving their way through Congress.

A key goal is the Renewable Electricity Standard, known as the R.E. S.

This would set a minimum of solar, wind and other clean energy across the US: 15% by 2021. This is not as high a standard as we were hoping for, but it a good step in the right direction.

Unfortunately, we are two votes shy of this passing. We need the votes of Evan Bayh and Blanche Lincoln, both Democrats, by TOMORROW to pass this critical legislation in the Senate.

Please help us by calling their offices TOMORROW - THURSDAY MAY 21, 2009 from 9AM to 4PM eastern.

Senator Evan Bayh:
(202) 224-5623
Chief of staff: Tom Sugar

Senator Blanche Lincoln:
(202) 224-4843
Chief of staff: Elizabeth Burks

Sorry for the last-minute note, but this gap just developed and we have been called on to to close it.

When you call, please state the following:

1. Thank them for their past support of renewable energy.

2. Urge them to vote YES on R.E.S so that we can have a healthier, more secure country and future with more solar, wind and geothermal.

The staff are ready for these calls so don't be shy - make your voice heard and give them a call. Ask for the chief of staff or other staffer who handles R.E.S. Each call will only take one minute.

Your future will thank you!

Please post back to the facebook group after you call to encourage others to add their voices.

Jack and the team

'Cash for Clunkers' Plan Is Considered

2009-02-02T06:35:00.000-08:00

WSJ

WASHINGTON -- Auto-industry officials are in advanced talks with Capitol Hill lawmakers on a proposal that would aim to revive vehicle sales by giving federal tax credits of as much as $4,500 to consumers who replace older gas guzzlers with new, fuel-efficient cars.

Executives and lobbyists for domestic and foreign auto makers hope to reach an agreement on what they call a "cash for clunkers" program in the next few days so it can be added to a nearly $900 billion economic-stimulus package the Senate will debate next week. A House version of the package, valued at $819 billion, passed on a largely party-line vote Wednesday.

It isn't clear that auto makers and Congress will strike a deal. Detroit Three executives haven't signed off on a plan, in part because they worry that the plan would encourage people to replace their older, American-made cars and trucks with new vehicles made by overseas-based rivals. It isn't clear how long the program would last or what it would cost the government.

The cash-for-clunkers plan is one of dozens of proposals designed to aid certain industries and companies that lobbyists are pitching to lawmakers. Together, those provisions have pumped up the cost of the economic-stimulus proposals by billions of dollars.

Full Article at: Click Here

Measure Introduced by Senators Feinstein, Collins, and Schumer Would Establish National Incentive Program for Voluntary Retirement of Fuel-Inefficient

2009-01-16T08:05:00.000-08:00

Washington, DC – A measure introduced today by U.S. Senators Dianne Feinstein (D-Calif.), Susan Collins (R-Maine), and Charles Schumer (D-N.Y.) would establish a national voucher program to enable and encourage drivers to voluntarily trade in their older, less fuel efficient car, truck or SUV for a more fuel efficient vehicle.

Specifically, the so-called “Cash for Clunkers” program would reimburse drivers with a credit of $2,500 to $4,500 for drivers who turn in fuel-inefficient vehicles to be scrapped, and purchase a more fuel efficient vehicle. The traded-in vehicles must have a fuel economy of no more than 18 miles per gallon, be in drivable condition, and have been registered for at least the past 120 days. Vouchers could also be redeemed for transit fares for participating local public transportation agencies. The program would operate for four years, from 2009 – 2012, and is expected to encourage the early retirement of up to one million vehicles per year.

“Last Congress, we successfully enacted legislation – which I authored with Senator Snowe and others – to improve the fuel efficiency of America’s fleet of new cars, trucks and SUVs by at least 10 miles per gallon over 10 years. But we face real challenges with trying to encourage drivers to trade in their older, less fuel efficient vehicles – particularly in this tough economic climate,” Senator Feinstein said.

“This bill will help address that problem. It will create a voucher program to reimburse drivers who trade in their old cars, trucks and SUVs with a coupon of $2,500 to $4,500, depending on the fuel efficiency of the purchased car. If enacted, this bill would be an important part of helping getting America’s struggling automobile industry back on its feet – and help consumers who are concerned about covering the cost of buying a more fuel efficient vehicle. I’d like to thank my colleague Senator Salazar for his leadership in helping to craft some of the bill’s key concepts,” Senator Feinstein added.

“This legislation would give consumers an incentive to turn over their old, inefficient vehicles, saving 80,000 barrels of motor fuel every day,” Senator Collins said. “Taking these cars and trucks off our roads and highways would help reduce our dependence on foreign oil, decrease greenhouse gas emissions, and stimulate the economy. In addition, it would help boost demand for manufacturers of newer, efficient models and bring in new business for car dealers who are struggling in the current economy.”

Senator Schumer said: “For Americans who have a clunker sitting in their driveway, this is an even better trade-in offer than they could get from any car dealership. Our proposal will take inefficient cars off the roads in exchange for a down payment on a newer, cleaner vehicle. Car owners also have the option of swapping their old car for vouchers to ride their local bus or subway for free. This is a classic win-win that can provide stimulus for the economy and make long-term gains for the environment.”

When implemented, as estimated by the American Council for an Energy-Efficient Economy, the program would:

• Save between 40,000 to 80,000 barrels per day of motor fuel by the end of the fourth year, (based on an estimated 500,000 to 1,000,000 vouchers issued per year).

• Reduce greenhouse gas emissions between 6.6 million metric tons to 7.6 million metric tons, or the equivalent of removing 1.1 million to 2.2 million vehicles from the road in one year, (based on an estimated 500,000 to 1,000,000 vouchers issued per year).

• Reduce nitrogen oxides, which cause ground-level ozone (a leading cause of respiratory health problems, like asthma), by 3,043 short tons (2,761 metric tons) by 2013, (based on an estimated 500,000 to 1,000,000 vouchers issued per year).

The legislation is intended to help compliment the implementation of the new fuel economy law – authored by Senators Feinstein, Snowe and others – which would raise average fuel economy standards for America’s fleet of vehicles by at least 10 miles per gallon (mpg) over 10 years or from 25 mpg to at least 35 mpg by Model Year 2020.

Companion legislation is also being introduced today in the House by Representatives Steve Israel (D-N.Y.), Jay Inslee (D-Wash.), Barbara Lee (D-Calif.), and Dennis Moore (D-Kansas).

How the legislation would work:

Eligible drivers would receive a reimbursement voucher for the purchase of a new or used vehicle with a fuel economy rating that exceeds the CAFE target for that class of vehicle by at least 25 percent. The bill also requires that the voucher be used towards the purchase of a vehicle that has an MSRP of less than $45,000, is model year 2004 or later, and meets or exceeds federal emissions standards. Vouchers could also be redeemed for transit fares for participating local public transportation agencies.

Drivers who apply for the program must ensure that their vehicles turned in for scrapping match the following criteria:

• Vehicles must be in drivable condition;
• Be currently registered in the U.S.; and
• Have a when-new fuel economy rating of less than 18 miles per gallon (as reported by the original manufacturer for purposes of CAFE compliance).

The bill specifies that during the first year of the program, vouchers will be issued for the following amounts:

• For traded-in vehicles that are model year 2002 and later, drivers would receive a voucher for:
o The purchase of a new vehicle: $4,500
o The purchase of a used vehicle: $3,000
o Transit fare credit: $3,000

• For traded-in vehicles that are model year 1999 – 2001, drivers would receive a voucher for:
o The purchase of a new vehicle: $3,000
o The purchase of a used vehicle: $2,000
o Transit fare credit: $2,000

• For traded-in vehicles that are model year 1998 and earlier, drivers would receive a voucher for:
o The purchase of a new vehicle: $2,000
o The purchase of a used vehicle: $1,500
o Transit fare credit: $1,500

In each subsequent year (2010, 2011, and 2012), the model years would be advanced by one year. Vouchers would be eligible for redemption for up to two years after the date of issuance, and no individual would be eligible to obtain more than one voucher in any three-year period. Dealers, dismantlers and scrap recycling facilities would also be eligible for a payment of $50 per vehicle, or an alternative amount to be specified by the Department of Energy.

Stimulate with Solar -- Let's Get America Working Now for the Future

2009-01-06T12:03:00.000-08:00

America's New Year's gift will be a $750 billion stimulus bill prepped and passed this month in Washington. Congress and the Obama team have made it clear that green energy jobs and infrastructure will be key elements of this package.

Building out solar jobs and installations should be a key ingredient of this platform. In terms of "shovel-ready" projects, solar is able to deliver jobs and clean energy quickly at a great return on investment.

There are two things holding back solar right now which can be easily fixed in the stimulus bill:

1. The disappearance of tax equity investors --

Since all the traditional investors in solar projects who did so to gain the tax credits to shelter profits now have no profits, they are out of the game. This includes Morgan Stanley, Wells Fargo and others.

To fix this, let's make solar tax credits refundable for at least two years.

2. 30% is not enough in a downturn

The Congress renewed the solar tax credit at 30% this past October. While in normal economic times that might be fine, it is not cutting it in this downturn.

States have pulled back their subsidies or have delayed new ones. Residential and small commercial customers who do not seek financing in many cases would install solar with a greater incentive.

We recommend increasing the federal solar tax incentive to 50% for two years -- 2009 and 2010 -- that would catalyze a wave of solar installation in the US. That is great timing since the cost of solar panels has plummeted.

The cost of increasing the solar tax credit for 2 years to 50% is only $353 million -- a small amount in a $750+ billion bill.

These two moves will also create the jobs for all the retrained green collar workers to fill. Congress intends on funding the Green Jobs Act at $500 million in the stimulus. Where will all these workers go to work? We must create demand for the jobs and solar is one the fastest ways to scale up green energy.

Let your member of Congress know how you feel about solar -- 2 quick fixes can make a world of difference.

Link: http://www.huffingtonpost.com/jack-hidary/stimulate-with-solar---le_b_155170.html

Recent News: Happy Anniversary: Thirty-Five Years After the Oil Embargo

2008-10-17T08:51:00.000-07:00

October 17th’s seen its share of historic events: The end of the Babylonian exile, Cornwallis’ surrender, the Great London Beer Flood, Al Capone’s tax conviction, the Mets won a World Series game.

But the biggest of all may have come October 17, 1973, when OPEC imposed the oil embargo against the West and first used oil as a political weapon. That led to a decade of supply shocks, rising prices, and a global energy crisis—but also to a new generation of small, fuel-efficient cars and a never-since-matched energy conservation effort in the U.S.

Thirty-five years later, the world is still on tenterhooks, waiting to see what OPEC does with the oil spigot. This time, though, an embargo isn’t in the cards—just an old-fashioned cut in oil supplies. The oil cartel will meet next week in Vienna, and will cut at least one million barrels of oil production per day, Qatar’s oil minister said. OPEC could cut further at its regular December meeting.

That’s probably a bigger cut than will actually be needed to balance global oil supply and demand and stabilize falling oil prices, Barclays bank argues. Demand for oil is plummeting with the economic crisis and will likely fall even more next year. And non-OPEC countries notoriously miss their oil-production targets. Which means the oil market will probably come into balance early next year anyway. But oil markets are impatient, and want balance now. Says Barclays:

In other words, and not for the first time, OPEC is likely to find that to stabilise the market it may have to cut far more than is strictly necessary to stabilise quantities […] The classic symptoms of a medium-term price overshoot following a short-term price undershoot do appear to be lining up at this point.

The outlook isn’t just limited to prices yo-yoing past equilibrium. OPEC aims to hogtie prices in the range of $70 to $90 a barrel, but that cheaper level of oil makes a lot of new exploration projects economically unattractive. The credit crunch is mothballing exploration projects, too. At the same time, production is steadily dwindling at plenty of existing oil fields. That combination means the world will likely soon face a supply crunch again in the next few years, Nobuo Tanaka, the head of the International Energy Agency, told Dow Jones Newswires:

“On the basis of the current structure of the supply side, there’s not enough investment to catch up with the demand side, so the price of oil is likely to rise over the medium to long-term,” Mr. Tanaka said.

The 1973 embargo first got the U.S. and other Western countries seriously thinking about new energy strategies. Thirty-five years on, has anything really changed?

Recent News: Americans for Clean Energy Applauds Renewal of Solar and Wind Energy Tax Credits

2008-10-06T09:32:00.000-07:00

Grassroots organization links public's voice to Congress using Facebook.

Washington, D.C. (PRWEB) October 6, 2008 -- As part of the Emergency Economic Stabilization Act, Congress renewed the solar and wind tax credits. Americans for Clean Energy (www.americansforcleanenergy.org) (ACE) organized thousands of members in the months leading up to the Act to connect Congress with Americans across the country who want green jobs and a more secure energy future for the U.S.

Thousands of ACE members joined an ACE-created Facebook Group and made more than 20,000 calls to Capitol Hill. This effort is one of the first and largest political mobilizations using Facebook and social media.

"Renewing solar and wind tax credits will lead directly to thousands of good paying green jobs across the country, said Jack Hidary, Chairman of ACE, "We are also pleased that Congress has included a tax credit for plug-in electric vehicles. Our dependence on oil continues to grow and the adoption of plug-in vehicles is critical to achieving energy independence (www.americansforcleanenergy.org) for America"

"We mobilized thousands of members of our group using Facebook and other technologies," said Steve Boyd, Executive Director of ACE. "Our members called in to Congress at key points over the past several months to let our representatives know how important this issue is to them."

"By extending the solar credit for eight years, Congress has finally given the private sector the right signal - it is time to invest in renewable energy," said Josh Becker, co-founder and Board Member of ACE, "Solar manufacturing companies, as an example, have been reluctant to build out manufacturing plants in the US without a long-term market signal. Now they have one."

The Stabilization Act, signed into law this past week, provides for an eight year extension of the investment tax credit (ITC) for solar energy. With this eight year extension, solar manufacturers will for the first time be able to confidently invest in job creating operations in the U.S.

In addition to the solar tax credit, the package also includes a one year extension of the producer tax credit (PTC) for wind energy (www.americansforcleanenergy.org). Americans for Clean Energy will ask Congress to extend the wind tax credit in the next session.

About Americans for Clean Energy:

Americans for Clean Energy (www.americansforcleanenergy.org) is a bipartisan organization focused on renewable energy and clean technology. Americans for Clean Energy supports the increased adoption of solar, wind and other renewable energy sources, as well as clean transportation solutions. Americans for Clean Energy uses its Facebook group and fan page and other technologies to organize thousands of members. For the link to its Facebook group and more information please visit www.americansforcleanenergy.org.

Contact Info:

Steve Boyd

202-442-0442

Boyd.steve @ gmail.com

Tax credits clear final hurdle as House approves Wall Street bailout

2008-10-06T07:17:00.000-07:00

The House today easily approved, and President Bush subsequently signed, a massive Wall Street rescue package that extends a slew of renewable energy and efficiency credits.

The House vote was 263-171.

The $17 billion energy tax package provides a one-year extension of the expiring production tax credit for wind projects and a two-year extension of production incentives for geothermal, biomass and several other energy types.

It also provides an eight-year extension of credits for investments in residential and commercial solar projects, and incentives for energy efficient homes and buildings, plug-in vehicles, biofuels, advanced coal projects and other technologies.

The alternative energy sector and environmentalists lobbied hard for extension of credits for various renewable power projects, warning that allowing the incentives to lapse would cost scores of jobs and slow deployment of technologies that are crucial to fighting global warming.

House Speaker Nancy Pelosi (D-Calif.) said the various energy provisions in the bill (H.R. 1424) would create and save a half-million jobs. An earlier version of the bailout bill without the energy tax credits failed in the House in a 205-228 vote on Monday. The Senate added the energy language and other tax provisions as a "sweetener" to attract additional votes in the House. A new jobs report from the Labor Department today and political pressure from the White House and presidential nominees also helped move some votes.

The bill pays for the energy tax breaks in part by limiting oil industry tax incentives, casting aside industry warnings that it could slow investment in domestic oil projects. The largest oil industry revenue-raiser would freeze the Section 199 deduction for the industry at 6 percent, which would raise an estimated $4.9 billion over a decade.

But environmental groups also suffered a loss, failing to convince lawmakers to strip several fossil fuel credits, including incentives for refinery projects to process oil shale and oil sands.

The bill is a major victory for the solar industry, which had lobbied for a long-term extension of incentives for the sector.

The wind industry avoided a lapse in the production tax credit, which industry officials claimed would have been devastating. The credit is key to financing wind projects, and project growth has fallen sharply when the credit has lapsed in the past.

Other provisions include $1.5 billion in credits for advanced coal projects that control carbon emissions, separate credits on a per-ton basis for underground storage of carbon dioxide from industrial sources, extension of credits for biodiesel production, and extension of credits for installing alternative fuel pumps at gas stations.

Efficiency measures include extension of credits for energy savings improvements in existing homes, efficient new homes, energy savings in commercial buildings and the manufacture of efficient clothes washers, dishwashers and refrigerators. Another provision provides accelerated depreciation for "smart" electric meters and grid equipment.

The bill also includes $3.3 billion for rural counties hurt by the decline in timber sales on federal lands. It would reauthorize the Secure Rural Schools and Community Self-Determination Act for four years, phasing down payments each year, and would readjust its funding distribution formula. It also includes four years of mandatory funding for the Payments in Lieu of Taxes program.

Renewable sector cheers, but wind power wants more
The solar industry applauded the bill. In addition to the eight-year credit extension, the bill removes a $2,000 cap on the size of the residential credit and makes other changes that the sector says will make residential and commercial solar more widely deployed.

"This long-term extension of the solar tax credits will create a domestic solar industry with hundreds of thousands of jobs while providing clean, affordable, carbon-free energy to millions of American families, businesses, and communities," said Solar Energy Industries Association President Rhone Resch in a statement.

A wind industry official praised Congress but pledged to work for a longer extension of the wind credit, which was renewed for one year in the bill. The credit is now available for projects placed in service until the end of next year.

"We look forward to working next year with a new Congress and administration to fashion a serious long-term clean energy policy that increases domestic energy, increases our reliance on clean renewable energy, and creates jobs for Americans," said Greg Wetstone, a lobbyist for the American Wind Energy Association, in a statement.

Congress Passes Solar tax credit

2008-10-03T14:47:00.000-07:00

California solar power companies are breathing a sigh of relief as Congress on Friday passed a solar tax credit that could provide billions in future funding.

The renewable-energy Incentive Tax Credit bill was attached to the larger $700 billion Economic Growth and Financial Stabilization Act of 2008, which passed on a 263-171 bipartisan vote and was signed by President George Bush a few hours later.

The tax credit portion of the law beefs up and extends an expiring tax credit for renewable-energy projects. It extends a wind power credit for one year, extends geothermal and biomass energy credits for two years, and provides incentives to the solar industry -- such as the removal of a $2,000 credit cap for residential solar installations -- for eight years, until 2016.

Other provisions include $800 million for clean-energy bonds. The total package is worth $17 billion over eight years.

Recent News : Economic crisis rattles cap-and-trade debate

2008-10-02T09:55:00.000-07:00

Darren Samuelsohn, Greenwire senior reporter

With both presidential candidates vowing to proceed with aggressive climate agendas next year despite titanic economic woes, many experts are warning that those ambitious plans must be changed to reflect a diminished national appetite for new programs with hefty price tags.

"They have to keep it front and center in a way, but clearly the fiscal straitjacket already there will be strapped and pulled considerably tighter," said Norman Ornstein, a congressional expert at the American Enterprise Institute, a conservative think tank.

Several ideas could gain traction as promising revenue-neutral alternatives for curbing heat-trapping greenhouse gas emissions -- including carbon taxes or a "cap and dividend" system that recycles the program's revenue to taxpayers while promoting energy conservation.

Full Article At: Greenwire

Recent News: Green the Bailout

2008-09-29T10:05:00.000-07:00

Thomas L Friedman

Many things make me weep about the current economic crisis, but none more than this brief economic history: In the 19th century, America had a railroad boom, bubble and bust. Some people made money; many lost money. But even when that bubble burst, it left America with an infrastructure of railroads that made transcontinental travel and shipping dramatically easier and cheaper. . .

Full Article at: Click Here!

Recent News: House eyes changes today after Senate approves long-stalled credits

2008-09-24T07:30:00.000-07:00

RENEWABLE ENERGY: House eyes changes today after Senate approves long-stalled credits
Ben Geman, E&E Daily senior reporter

The House plans to vote on long-stalled extensions of renewable energy tax credits today following a breakthrough Senate vote yesterday, but Democratic leaders are planning changes to the measure that could slow a final deal.

The Senate yesterday voted 93-2 for a $17 billion energy tax package that extends credits for wind, solar, energy efficiency and other projects. The energy credits are part of a larger tax bill (H.R. 6049) the Senate sent to the House that also extends several business and personal tax breaks, and provides a one-year "patch" for the Alternative Minimum Tax.

Under the Senate bill, the energy credits are fully offset, the other "extenders" are partially paid for, while the AMT fix -- which is to prevent the tax from hitting middle-income earners -- is not offset.

But the House is planning to split the measure into separate parts, and the energy and non-energy "extenders" will be together as a fully offset bill, according to a Democratic aide, who said the non-energy extenders will be limited to one-year.

"A partially paid-for package of energy and business tax extenders is a no-go in the House," said Rep. Earl Pomeroy (D-N.D.), a member of the fiscally conservative "Blue Dog" Democrats and the Ways and Means Committee. "If a smaller package is all that can be paid for, then a smaller package is what we'll pass."

The AMT patch and disaster relief provisions will move separately under suspension of the rules, the aide said.
House drops fossil fuel incentives

The House version of the energy tax package contains some differences with the Senate plan, including removal of some fossil fuel incentives that environmentalists oppose.

The House plan drops a Senate provision that provides incentives for expansion of refineries to process oil sands and oil shale, and alternative fuel credits that can be applied to coal-based fuels, according a Ways and Means Committee summary.

Senate Majority Leader Harry Reid (D-Nev.) had pleaded with the House to accept the overall Senate tax package, arguing it reflected a hard-fought compromise with Republicans that could collapse if altered (Greenwire, Sept. 23).

Renewable and efficiency credits have cleared the House several times but repeatedly fallen victim to partisan conflicts in the Senate during this Congress until yesterday's vote.

The credits have wide bipartisan support but their renewal has been slowed for months over debates about how -- and whether -- to offset the costs of tax incentives.

Both chambers provide a one-year extension of the production tax credit, which otherwise would expire at year's end, for wind projects and longer credits for other renewable sources.

The bills include eight-year extensions of investment tax credits for commercial and residential solar projects, and renew a suite of incentives for efficient homes and buildings, among other provisions.

But Senate Finance Chairman Max Baucus (D-Mont.) expressed confidence the chambers could reach agreement. "The bottom line is this: We are talking about the edges here. We are going to get this all passed. We are talking about background noise, which sometimes is noisy, but it is still background noise. We will get these passed," Baucus said.

If he is right, the extension of the renewable energy credits will give at least a sigh of relief to the wind industry, which has pressed for long-term extension of its credit but above all wanted to prevent a lapse. Past lapses have led to sharp reductions in the industry's growth rate.

"Clean energy tax credits are a vital part of the solution to some of America's most pressing problems," said Gregory Wetstone, a lobbyist with the American Wind Energy Association, citing jobs that come along with the industry and environmental benefits of renewable power.

The solar industry got a big boost from yesterday's vote. The Senate plan provides a long-term extension of its credits and removes certain restrictions on the incentive, notably the $2,000 cap for residential solar systems.

The solar industry commissioned a study by a company called Navigant Consulting Inc. that showed that an eight year extension would lead -- directly and indirectly -- to several hundred thousand new jobs and more than $232 billion in investment between 2009 and 2016.

Recent News: Vote on the Production Tax Credit (PTC) in the Senate scheduled for tomorrow.

2008-09-22T13:46:00.000-07:00

The Senate will vote on the Baucus/Grassley Amendment to H.R. 6049, which contains an extension of the Production Tax Credit (PTC) for wind energy for an additional year. The Senate will also vote on the final passage of H.R. 6049. If the Senate passes the bill, it will quickly move to the House of Representatives where it will be voted on later this week. This could be that last opportunity this year for Congress to extend the PTC. We must urge Congress to successfully pass an extension of the PTC, which is set to expire at the end of 2008, before they adjourn for recess at the end of the week.
Wind energy is not only a significant component of the global warming solution, but also a powerful engine in the U.S. economy. Since January 2007, more than 40 wind industry manufacturing facilities have been announced, brought online, or expanded in the U.S., creating over 9,000 jobs and $1 billion in manufacturing investment. When the PTC has lapsed in the past, wind energy investments have fallen 73-93% in the following years. We cannot allow this bright spot in our economy to burn out.

Please contact your Senators and urge them to vote Yes on the Baucus/Grassley Amendment to H.R. 6049 and the Yes on the final passage of H.R. 6049.

Recent News: Investors add carbon emissions to company portfolios

2008-09-22T12:29:00.000-07:00

Almost two-thirds of the world's 385 biggest companies disclosed their greenhouse gas emissions today in the Carbon Disclosure Project, an annual survey used to identify companies who are not addressing climate change.

Nearly two-thirds of the companies polled said they had an executive in charge of climate change management. Half of the companies said they had some sort of executive in 2007, according to the survey.

Investors are using the information from the survey to manage their portfolios and are basing decisions on the belief that carbon emissions will be more closely regulated in the future. Companies that already manage their emissions have a competitive edge as more environmental regulation may lead to unexpected expenses and losing control of sustaining returns and shares.

"[The survey is] effectively an audit of climate change risk. Over 1,500 companies have gone through that process this year, with 77 percent of the Global 500 responding," said Paul Dickinson, chief executive of the Carbon Disclosure Project. "Whilst it's hard to evaluate definitively, the CDP is likely to have had a pivotal role in developing consciousness of those risks"

Recent News: From the Gut

2008-09-17T14:01:00.000-07:00

By THOMAS L. FRIEDMAN

If John McCain can win this election race with a 50-pound ball called “George W. Bush” wrapped around one ankle and a 50-pound ball called “The U.S. Economy” wrapped around the other, then he deserves to represent America in the next Olympics in any race he wants — swimming, cycling or track — I don’t care how old he is. He would be the Michael Phelps of politics.

Full Article: Click Here

Recent News - Al Gore Speech Details

2008-07-17T12:51:00.000-07:00

The Gore-y Details

In a speech in Washington, D.C., today, climate activist Al Gore called for the United States to move toward using electricity that comes exclusively from carbon-free sources within 10 years in order to stave off catastrophic climate change. "I ask you to join with me to call on every candidate, at every level, to accept this challenge," he said. "It's time for us to move beyond empty rhetoric. We need to act now."

Gore said that the convergence of high oil prices, worries about energy independence, and the threat of climate crisis have created a new political environment, paving the way for ultra-ambitious energy policies that could finally break the country's addiction to fossil fuels.

Gore's Alliance for Climate Protection estimates that such a conversion to clean electricity would cost up to $3 trillion over 30 years, but Gore said building a new round of conventional coal plants would also cost roughly as much. Gore's plan calls for continued reliance on nuclear power at current levels while dramatically increasing power sourced from geothermal, solar, and wind.

Meanwhile, some Democrats are quietly dreading fallout from the anticipated conservative backlash to Gore's speech, fearing that a renewed emphasis on climate issues now could turn the debate over short-term energy prices in favor of Republicans.

Recent News - Congress Daily, Outlook, 7/21/08

2008-07-17T12:49:00.000-07:00

Senate Majority Leader Reid might try again this week to bring up a stalled package of renewable energy tax incentives and other tax "extenders" such as the research and development credit, state and local sales tax deduction and numerous other popular provisions.

The House passed its version in May, but twice Senate Republicans have blocked progress, arguing that its revenue-raising offsets should be dropped.

Sources said unless Democrats add enough sweeteners to the bill this time around, it is likely to meet the same fate as the two previous efforts, despite furious lobbying by the business community.

Some industry officials fear the package could stall until the end of the year or lapse altogether if the stalemate continues.

Lobbyists are in the uncomfortable position of being used as surrogates by both Democratic and Republican leaders to try to get the other side to bend.

"We're caught in the middle of this, and they're all just talking past each other," one industry source said.

House Democratic leaders have indicated they are willing to let the business tax cuts expire rather than pass extensions without offsets, which some fear is becoming a more realistic possibility.

Recent News - Senator Harry Reid

2008-07-17T07:32:00.000-07:00

Senate Majority Leader Harry Reid today told Democratic colleagues that the Senate will adjourn for August recess by August 3, a week earlier than originally scheduled. Senate action before the August recess of key items on the agenda, including extenders and energy tax incentives, may be in jeopardy with this shortened schedule.