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Mark Amodei on Energy & Oil |
Congressional Summary:Amends the Internal Revenue Code to extend through 2016 the tax credit for electricity produced from wind, biomass, geothermal or solar energy, landfill gas, trash, hydropower, and marine and hydrokinetic renewable energy facilities.
Proponent's Comments (Governor's Wind Energy Coalition letter of Nov. 15, 2011 signed by 23 governors):Although the tax credit for wind energy has long enjoyed bipartisan support, it is scheduled to expire on Dec. 31, 2012. Wind-related manufacturing is beginning to slow in our states because the credit has not yet been extended. If Congress pursues a last minute approach to the extension, the anticipated interruption of the credit's benefits will result in a significant loss of high-paying jobs in a growing sector of the economy. We strongly urge Congress to adopt a more consistent and longer-term federal tax policy to support wind energy development, such as H.R. 3307.
The leading wind project developers and manufacturers are slowing their plans for 2013 and beyond due to the current uncertainty. The ripple effect of this slow down means reduced orders for turbines and decreased business for the hundreds of manufacturers who have entered the wind industry in our states. When Congress allowed the tax credit to expire in 1999, 2001, and 2003, the development of new wind installations dropped significantly, between 73% and 93%, and thousands of jobs were lost. Providing renewable energy tax credits in order to provide consistency with conventional energy tax credits is the right policy to move the nation forward in an energy sector that offers global export opportunities and the ability to modernize a segment of our electric production infrastructure.
Congressional Summary:Amends the Energy Conservation and Production Act to repeal provisions concerning the Department of Energy's weatherization assistance program for low-income persons to increase energy efficiency of dwellings.
Proponent's Comments (Rep. Chuck Fleischmann Press Release):Fleischmann said, "I have worked since day one to balance our budget and stop the 'tax, borrow, spend' mentality that has dominated Washington for far too long. I am glad to introduce legislation to end the Weatherization Assistance Program in order to save billions of dollars."
Other federal programs, such as the Low Income Home Energy Assistance Program (LIHEAP), are already in place to assist low-income households in managing energy costs. The Dept. of Energy's Inspector General conducted a review of this program concluding that weatherization work on homes was poorly administered and led to potentially harmful effects for home inhabitants.
Opponent's Comments (GreenBuildingAdvisor.com, Nov. 22, 2011):The purpose of the measure is to eliminate the Weatherization Assistance Program (WAP), which provides free weatherization services for low-income households. The WAP has historically been ignored by politicians as a cost-cutting target because its annual budget was, at a few million dollars, relatively small. But its budget ballooned dramatically--to about $5 billion over three years--under the federal stimulus program.
The congressman says the WAP is dispensable because LIHEAP is already in place. Weatherization improvements, however, provide ongoing energy savings rather than one-time assistance with energy bills.
Fleischmann points to a DOE review that called the expanded program "poorly administered." But the main concern identified in that report was the sluggish rollout of services in many states, due to confusion over wage and other implementation requirements.