Senate Rejects a First Step in Passing Oil-Saving Clean Energy Tax Incentives
July 31, 2008
By Environment New Mexico Advocate Lauren Ketcham.
At a time when Americans around the country are struggling with high gas prices, the U.S. Senate Wednesday blocked a crucial package of clean energy tax incentives (HR 6049) that will reduce our oil dependence, reduce energy costs, curb global warming pollution and help shift our country to a new energy future.
We applaud Senator Bingaman’s support for these important incentives that will help to stimulate New Mexico’s clean energy economy, create high-paying green collar jobs and provide needed predictability to the renewables industry as they plan future investment in the Land of Enchantment.
We are disappointed that Senator Domenici voted against this measure. These much-needed clean energy incentives would disproportionately benefit New Mexico, with our abundance of solar and wind resources, and help to ensure long-term employment in these fields.
Another bill, S. 3335, the Jobs, Energy, Families, and Disaster Relief Act of 2008 contains new incentives for plug in electric hybrid vehicles that are capable of achieving 100 miles per gallon. If all vehicles were plug-in electric hybrids, we could reduce our oil consumption by 55 percent, nearly eliminating oil imports. At today’s gasoline prices, the average American driver would save $1500 a year in fuel costs by switching to a plug in hybrid.
The bill also extends incentives for investment and production of clean renewable energy sources such as wind and solar energy. By diversifying our energy mix and reducing our dependence on coal, natural gas and oil, these technologies will help reduce consumer energy costs and are critical to jump starting the clean energy economy we will need to solve global warming.
As one of the fastest growing industries in the U.S., the clean energy industry is a shining light in an otherwise lackluster economy. Unfortunately the renewable energy production tax credit and the solar investment tax credit — are set to expire at the end of this year and investors are beginning to pull out of projects. According to a recent study by Navigant Consulting, failure to promptly extend renewable energy tax incentives places at risk 116,000 jobs in the wind and solar industries and more than $19 billion in clean energy investment.
Finally, the bill extends incentives for money-saving energy efficiency measures, including tax credits for weatherizing homes and purchasing more efficient appliances.
There has never been a more important time jump start a clean energy economy. Our current dependence on oil is a major economic, environmental and national security threat. To solve this problem we need to dramatically reduce oil consumption by shifting to more efficient vehicles, and giving consumers alternatives to driving. We are disappointed that the Senate rejected even this basic first step towards reducing our dependence on oil.
Environment New Mexico is a state-wide environmental advocacy organization working to protect New Mexico’s air, water and open spaces. www.EnvironmentNewMexico.org.
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