[Congressional Record Volume 150, Number 116 (Thursday, September 23, 2004)]
[Senate]
[Pages S9558-S9559]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
ALTERNATIVE ENERGY TAX CREDITS
Mr. REID. Mr. President, we are going to soon be dealing with a tax
conference report, and I am satisfied with what it does for the middle
class--it is important and good--but I am disappointed with what it
does not do for alternative energy.
It does have a provision in it dealing with wind, and I think that is
important, but the United States needs a new strategy, a new vision to
meet our energy needs. We cannot meet the demands for oil in this
country by producing our way out of the problem. America controls less
than 3 percent of the oil reserves in the world, including what is in
ANWR. So we must look elsewhere for other sources of energy like
renewable energy.
This Nation is rich in renewable energy resources--the heat within
the Earth, the warmth of the Sun, and the force of the wind. We have
always been blessed with these resources. Now we have the technology to
harness them efficiently.
The Senate is already on record supporting the development of
renewable energy. We know that renewable energy can provide a steady
supply of electricity that is made in the USA. We know it can create
thousands of jobs. We know it can protect our environment and reduce
global warming, and we know it can help reduce our dependence on oil
from the Middle East. That is why the Senate has voted repeatedly to
include strong incentives for the development of renewable energy in
comprehensive energy bills. In fact, 54 Senators signed a letter last
fall supporting a national goal of renewable energy or a renewable
portfolio standard that would have required 10 percent of all
electricity produced in this country by 2020 be generated from
renewable sources.
Nevada has set some of the highest goals in the Nation for developing
renewable energy. We are going to steadily increase our electricity
generated from renewable sources with a goal of 15 percent by the year
2013. The Senate has also voted in its energy bills to expand and
extend the section 45 production tax credit for renewable resources. In
the last week, thirty-six Senators signed a letter urging that an
extension and expansion of the section 45 production tax credit for
renewable energy resources be included in the FSC/ETI bill, known as
FSC.
The existing production tax credit only covers wind energy, closed-
loop biomass, and poultry waste. We must extend and expand the
production tax credit to include other renewable energy resources, such
as geothermal, solar, and open-loop biomass. This is what the Senate
has repeatedly supported.
We know the production tax credit will spur the production of solar
and geothermal power because it has already worked for wind power.
There are farmers in the Midwest who make more money producing
electricity from the windmills than they do from growing soybeans,
wheat, and corn.
Because of the existing credit, combined with new technology, the
development of wind energy has exploded in the past few years. By
extending and expanding that incentive, the section 45 production tax
credit would spur billions of dollars worth of economic development and
create tens of thousands of jobs, especially in rural areas. But we may
not be able to act on the FSC/ETI bill this year, so I was hopeful that
the Senate and House committees that met to finalize a bill on tax cuts
for families would act to extend and expand section 45 production tax
credits. They did not do that, and I am disappointed.
This legislation, which we will get later this evening, will only
extend the production tax credit for a few renewable energy resources--
wind, closed-loop biomass, and poultry waste--and they have enjoyed
that credit for more than 10 years. So our job certainly is not done,
and that is an understatement.
We are not on the road to diversifying the Nation's energy supply by
increasing our use of renewable energy resources.
Wind will help us in Nevada, there is no question about that, but we
would do well with solar and geothermal. We are the Saudi Arabia of
geothermal energy. I like wind energy, but it is an intermittent energy
supply that must be supplemented by geothermal, solar, open-loop
biomass, and other renewables. Wind is stronger when it is part of a
balanced renewable energy portfolio.
It is my understanding that the House will shortly announce conferees
finally--finally--to the FSC bill so a conference can be convened.
Let's do that so we can extend the production tax credit for eligible
facilities from date of enactment through at least December 1, 2006.
Eligible resources need to be expanded from wind and closed loop to
include geothermal, solar, biomass, and other renewables.
It is important to include tradable credits to public power utilities
and rural electric cooperatives, which serve 25 percent of the Nation's
power customers, by allowing them to transfer their credits to taxable
entities.
We all know that a reliable, clean supply of energy is a key to our
Nation's success this century. We all appreciate the United States has
been blessed with abundant resources of clean, renewable energy, and we
all realize that the section 45 production tax credit has successfully
spurred the development of wind power.
Now that tax incentive has expired. We must extend it and expand it,
which we are going to do tonight for wind energy only, at least that is
my understanding. So this is the first step toward the kind of energy
policy our Nation needs, a policy that looks toward the future and
makes our Nation stronger.
I repeat, I am quite certain that in this conference report coming to
the floor this evening, there will be an extension of the wind energy
production tax credit. We so badly need it in the other areas. This
wind energy production tax credit is going to work and it is going to
work well, but it would work a lot better if it had its companions, sun
and geothermal.
I ask unanimous consent to print a letter from the Geothermal Energy
Association in the Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:
[[Page S9559]]
Geothermal Energy Association,
Washington, DC, September 23, 2004.
Hon. Harry Reid,
U.S. Senate,
Washington, DC.
Dear Senator Reid: Thank you for your clear and cogent
remarks this afternoon on the Senate floor regarding a
renewable energy production tax credit. Like you, we are
disappointed that the Conference Committee on H.R. 1308 has
extended this powerful incentive only for wind energy
projects. As you said today in the Senate, ``We must extend
and expand the production tax credit to include other
renewable energy resources like geothermal energy, solar
energy, and open-loop biomass. This is what the Senate has
repeatedly supported.''
The Board of Directors of the Geothermal Energy Association has
approved the following statement on this matter:
For the past twelve years, the PTC has been effectively a single
technology incentive and it's time for that to end. Providing the PTC
incentive to some renewable technologies while withholding it from
others is detrimental to the latter, precludes balanced renewable
industry growth, impedes utilization of valuable energy resources, and
interferes with the natural operation of market forces. For these
reasons, the present situation is not in the public interest. Congress
should seek to encourage growth in all renewable technologies and
expand the PTC to include all renewable technologies.
All renewable technologies should be treated fairly; either all
should receive the benefit of the PTC to spur their growth, or none
should receive it. At least in this manner all renewables would be
competing on an equivalent basis. It is our hope that before Congress
adjourns it will enact law provisions passed by the House and Senate
that would expand the PTC to include geothermal energy and other
renewable technologies.
We share your hope that the Conference Committee meeting to consider
the FSC-ETI bill will take the next step and expand the Section 45
credit to all renewable technologies.
Sincerely,
Karl Gawell,
Executive Director.
Mr. REID. I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The assistant legislative clerk proceeded to call the roll.
Mr. BINGAMAN. Mr. President, I ask unanimous consent that the order
for the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
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