US Renewable Energy Bill Fails in the Senate

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July 31 – Democrats failed on July 30 to muster enough votes in the Senate to end the debate on a bill for the extension of US renewable-energy tax credits on a positive note. The call for a vote on the bill was rejected four times in a row this summer. Despite calls for more clean energy from renowned personalities, such as Al Gore and T. Boone Pickens, the bill, which required at least 60 votes in favor from the 100-member Senate to move forward, received merely 51 “yes” votes.

The bill, which would have extended solar energy investment credits by eight years and provided a one-year extension to tax credits for biodiesel, renewable diesel and wind power, has been temporarily shelved. The bill would have also extended the research and development tax credit that expired last December.

According to lawmakers who support the legislation introduced by Senator Max Baucus, the extensive tax package for renewable energy is essential to support investment in the US renewable energy industry. Senate Majority Leader Harry Reid said that although the bill is just a one piece of the puzzle, it is a very important piece and can make a significant impact on energy prices with immediate effect.

The delay in the approval of the bill is causing uncertainty in the renewable energy industry and putting new projects at risk. Many of the tax credits expired last year and a number of them are due to expire by the end of this year. This would result in the cancellation of a large number of renewable-energy projects that are currently in the pipeline. While criticizing the Senate for rejecting such an important bill, the American Wind Energy Association pointed out that “116,000 jobs and nearly $19 billion in investment are at risk.”

 

Influential business groups have urged Congress to act on the tax credits. According to Reuters, the Senate may put the bill to a vote again prior to the August recess.

 

Alternatio Cirqui, EconomyWatch.com Energy Correspondent