News From the
Committee on Small Business
Subcommittee on Contracting and Technology
Bruce Braley, Chairman

For Immediate Release
September 26, 2007  

CONTACT: Kate Gilman/ Erin Donar,  (202) 225-4038; Jeff Giertz (Braley) (202) 226-4026

Committee Examines Ways to Increase Investment in the Renewable Energy Sector
Increased Incentives Will Allow Industry to Provide Affordable Power to More Americans

WASHINGTON, DC – Rising energy prices, instability in oil producing regions and climate change are making it clear that America must move away from its reliance on petroleum and towards alternative sources of fuel and electricity. The recently passed Energy Bill will provide tax incentives to producers of renewable power and expand consumer access to alternative fuels, but there is still more that can be done to spur growth in the field. Today, the Subcommittee on Contracting and Technology heard from members of the alternative fuel sector about the challenges they face, and examined the need for additional changes in the tax code to create incentives and spur investment in this important field.      

“Renewable energy is still developing, but it is having a significant impact across many sectors in the economy, creating green collar jobs and spurring development across the country,” said Subcommittee Chairman Bruce Braley (D-IA.). “It is critical that these firms are able to continue to grow and expand the reach of this important industry.”

High energy prices are driving the push for renewable energy, not just in fuel but in alternative forms of electricity, such as wind, solar and hydropower. These sectors have the ability to produce energy from clean, domestic sources that, unlike petroleum, will not be depleted despite continued usage. While these forms of power are playing an ever increasing role in the national supply, renewables account for only 7 percent of the energy produced and consumed in this country - alternative fuels, only make up one percent. Improvements in technology and expansion of the industry  are necessary to ensure alternative power sources are available for all Americans.

“The field has the potential to move the nation towards energy independence, but continued development is necessary to get us to that point,” said Chairman Braley. “Small firms are the innovators and major producers of renewable energy, yet these pioneers often struggle to remain competitive. Incentives are necessary to allow these ventures to be viable producers of the technologies and fuels that will keep us at the cutting edge of the alternative energy industry.”  

At the hearing, representatives from the renewable power sector discussed the role of small businesses in the push for more affordable alternatives. Small firms account for more than 75 percent of renewable fuels producers, and they often struggle with the costs and other roadblocks associated with producing innovations in the field. Members discussed the Energy Bill, and ways to extend and expand its provisions to broaden the reach of the renewable energy industry. This will help producers create innovative technologies so that abundant, clean, locally produced energy becomes a larger part of the American energy economy.

“Entrepreneurs in this sector often face a difficult road – it is critical that these businesses are encouraged to continue their important work in the renewable power industry,” said Chairman Braley. “With the proper incentives, alternative energy will continue to flourish, enabling small firms to discover new ways to produce and harness energy, so that all Americans can have access to these important innovations.”

###