A group of Senate Democrats have proposed a new energy bill to promote clean energy. If passed, the legislation would end some subsidies for fossil fuels and close some oil and gas tax loopholes; incentivize clean energy such as solar and wind through grant programs and tax incentives; and encourage carbon capture and sequestration along with continued development of nuclear energy and biofuels.
In response to the proposed bill, Tom Kiernan, CEO of American Wind Energy Association (AWEA) commented, “We commend Senators Reid, Wyden, Schumer, and Cantwell for putting forward a policy framework to provide domestic energy producers with greater stability so businesses can invest and bring costs down even further. The tax code has a century-long history of incentivizing American-made energy, and we must continue to ensure that we have abundant, clean, and affordable energy to power our economy. Wind energy has proven that it can deliver in these areas and it must continue to be a critical part of the U.S. energy mix. We appreciate the leadership of Sens. Reid, Wyden, Schumer, and Cantwell in trying to find common ground to ensure that the U.S. is well-suited to face the energy challenges of the 21st century by promoting a diverse energy portfolio.”
According to Senate Finance Committee staff, this legislation would save Americans at least $20 billion over the next 15 years and create/support at least 3.5 million jobs.
“By providing long-term, steady federal tax and energy policy, this legislation provides the stability that businesses in the solar industry need to grow – adding tens of thousands of new, well-paying solar jobs across the country, which today includes more than 174,000 Americans,” said Solar Energy Industry Association (SEIA) President and CEO Rhone Resch. “We also applaud the inclusion of programs that remove barriers for low-income Americans, making it easier for everyone to access clean, affordable, reliable solar energy.”
If approved and signed into law, this legislation would temporarily extend the federal solar investment tax credit (ITC), and then ease the transition afterward through the creation of long-term, technology-neutral clean energy tax incentives.
Resch added, “The United States deserves to be a world leader in cutting-edge technologies, and providing a long-term extension of the ITC will encourage massive investment in the U.S. solar industry. When you provide certainty to solar consumers and businesses with an energy tax code that promotes innovation and encourages the development of new and efficient technologies – America wins. We see this bill as a major step forward, and the solar industry looks forward to working with Congress so all solar technologies are included.”