[Congressional Record Volume 153, Number 16 (Friday, January 26, 2007)]
[Senate]
[Pages S1239-S1243]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. SMITH:
  S. 411. A bill to amend the Internal Revenue Code of 1986 to provide 
credit rate parity for all renewable resources under the electricity 
production credit; to the Committee on Finance.
  Mr. SMITH. Mr. President, today I am introducing legislation that 
will bring parity to all renewable energy facilities that qualify for 
the production tax credit under section 45 of the Internal Revenue 
Code.
  I have been a long-time supporter of the production tax credit. There 
are

[[Page S1243]]

significant wind facilities in Oregon, where we have over 335 megawatts 
of installed wind capacity. These facilities provide clean energy as 
well as important revenues to farmers and rural counties in Eastern 
Oregon.
  Currently, however, some eligible renewable facilities get only half 
the per-kilowatt credit that other types of facilities receive. My goal 
here is to level the playing field for all eligible renewables without 
reducing the credit any facility currently receives. Therefore, my bill 
provides that all eligible facilities would receive the higher credit 
amount for each kilowatt of electricity produced.
  I believe that this bill will help to provide the necessary 
incentives to diversify our renewable energy resources. It will also 
eliminate the competitive disadvantage that certain types of renewables 
currently face. Utilities have little incentive to select renewables 
that qualify for the lower credit rate when buying green power. The 
eligible facilities that receive the lower rate include open-loop 
biomass, incremental hydropower, and small irrigation systems, all of 
which are important energy sources that could help meet the growing 
demand for electricity in my State of Oregon and in many other parts of 
the country.
  I urge my colleagues to join me in increasing the credit rate for 
eligible renewables, and fostering the development and deployment of 
these important facilities.
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