[Congressional Record Volume 149, Number 32 (Thursday, February 27, 2003)]
[Extensions of Remarks]
[Page E335]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                       RENEWABLE FUEL EQUITY ACT

                                 ______
                                 

                            HON. MARK UDALL

                              of colorado

                    in the house of representatives

                      Thursday, February 27, 2003

  Mr. UDALL of Colorado. Mr. Speaker, I rise to join my colleague Mr. 
Hunter of California in introducing the Renewable Fuel Equity Act. I'm 
grateful to my colleague for his leadership on this issue, and I look 
forward to working with him to build bipartisan support for this 
important legislation.
  We all know we need to expand and diversify our production of energy 
from renewable resources. The legislation we have introduced today 
would help us do this by providing tax incentives for new renewable 
energy development.
  Solar, wind, hydropower, biomass and geothermal energy are each 
potentially enormous energy resources. Every state has renewable energy 
potential. But the various kinds of renewable resources are not spread 
uniformly across the country. Current tax law creates regional and 
technological inequities by failing to provide uniform benefits for all 
renewable energy resources. For example, the Section 45 production tax 
credit enacted in 1992 has spurred significant new investment, but it 
only applies to power plants using wind power.
  That's why we need to expand this proven incentive to all renewable 
energy sources. Clean power production provides greater reliability for 
our electricity system while promoting cleaner air and water. Renewable 
energy sources provide reliable power that is cost-effective over the 
long run, but their high initial capital cost discourages investment. 
Providing tax incentives for new renewable power production can make 
the difference.
  The Hunter-Udall bill also offers incentives for smaller power 
systems, particularly those not connected to the grid, as these systems 
are unlikely to get an effective stimulus from the production tax 
credit. Under current law, the production tax credit does not apply to 
off-grid systems, and it is complex for a small farm or business to 
use. To address such situations, our legislation would make a 20 
percent investment tax credit available to all small renewable 
technologies as an alternative.
  Investment in new renewable power is good for the economy and the 
environment, and studies show that providing these tax incentives will 
spur new investment without cutting Treasury revenues. The Hunter-Udall 
bill makes good sense.
  I look forward to working with my colleague and with Congress to get 
this sensible legislation passed.

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