WASHINGTON, DC – Today, Congressman Bill Delahunt voted for a landmark legislative proposal which makes further investments in renewable energy sources – including cellulosic ethanol and marine technology – to help to end our dependence on foreign oil while slashing taxpayer subsidies to oil companies.

“With troops in Iraq, oil now costing over $100 a barrel and families’ paying even more for home heating oil, the need to end America’s addiction to foreign oil has never been greater,” said Delahunt. “Expanding the development of renewable energy is a boost to our national security, our economy and our environment.” 

H.R. 5351, The Renewable Energy and Energy Conservation Tax Act of 2008 was passed by the House of Representatives by a vote of 236-182.  This legislation mirrors a similar bill that was passed by the House back in August and could not pass the Senate.

This bill expands tax incentives, such as the Production Tax Credit, as well as further incentives for plug-in hybrid cars, bio-fuels, energy efficient homes, buildings, and appliances. It pays for these initiatives through repealing $18 billion in tax subsidies for oil and gas companies. The vote comes after the top five oil companies reported record profits for 2007, and with ExxonMobil earning $40.6 billion. 

Included in the legislation are Delahunt sponsored provisions that provide incentives to cover marine technologies such as wave and tidal energy.  These will boost Delahunt’s efforts to establish a marine renewable energy center and an offshore renewable energy zone for specific projects off the coast of the Cape and Islands.  Late last year, Congress endorsed an initiative co-sponsored by Delahunt to establish a marine renewable energy fund to develop these technologies.

“I believe Southeastern Massachusetts, the Cape and Islands can become a center for renewable energy development and eventually lead the nation in the creation of thousands of new, high paying jobs in the emerging clean energy field,” Delahunt said. “Our region is uniquely positioned to play a major role in developing new tidal and wave technology as well as deepwater wind energy.  I look forward to working with our Congressional and state delegation, the University of Massachusetts and local communities in our district to make this vision a reality.”

Specifically this legislation would:

• Boost Production of Biofuels:  The bill will create a new production tax credit of 50 cents per gallon for cellulosic alcohol for use as a fuel in the United States. The credit is in addition to the current 51 cents per gallon ethanol credit and the 10 cents per gallon small producer credit. It will be available through the end of 2010. Delahunt has long advocated for the commercial production of cellulosic ethanol and renewable diesel.
• Provide a Long-term extension and modification of renewable energy production tax credit: The bill extends the placed-in-service date for three years (through December 31, 2011) for certain qualifying facilities: wind; closed-loop biomass; open-loop biomass; geothermal; small irrigation; hydropower; landfill gas; and trash combustion facilities. It also includes a new category of qualifying facilities that will benefit from this extended placed-in-service date -facilities that generate electricity from marine renewables (e.g., waves and tides). The bill would cap the aggregate amount of tax credits that can be earned for these qualifying facilities placed in service after December 31, 2009 to an amount that has a present value equal to 35% of the facility’s cost. The bill clarifies the definition of an open-loop biomass facility and the definition of a trash combustion facility.
• Provide a Long-term extension and modification of solar energy and fuel cell investment tax credit: The bill extends the 30% investment tax credit for solar energy property and qualified fuel cell  property for eight years (through the end of 2016). It also increases the $500 per half kilowatt of capacity cap for qualified fuel cells to $1,500 per half kilowatt of capacity. The bill removes an existing limitation that prevents public utilities from claiming the investment tax credit and allows the energy credit to be used to offset alternative minimum tax (AMT).
• New Clean Renewable Energy Bonds (“CREBs”): The bill authorizes $2 billion of new clean renewable energy bonds for public power providers and electric cooperatives. Sixty percent of the authorization must be used for qualifying projects of public power providers and forty percent must be used for qualifying projects of electric cooperatives. Qualifying projects include facilities that generate electricity from the following resources: wind; closed-loop biomass; open-loop biomass; geothermal; small irrigation hydropower; landfill gas; and trash combustion facilities.
• Provide for Long-term extension and modification of the residential energy-efficient property credit. The bill would extend the credit for residential solar property for six years (through the end of 2014). The bill would also increase the annual credit cap (currently capped at $2,000) to $4,000. The bill would include residential small wind equipment and geothermal heat pumps as property qualifying for this credit. The bill creates a new production tax credit of 50 cents per gallon for cellulosic alcohol produced for use as a fuel in the United States. This credit is in addition to the current 51 cents per gallon ethanol credit and the 10 cents per gallon small producer credit. The credit is available through the end of 2010.
• Extend biodiesel production tax credit; extension and modification of renewable diesel tax credit. The bill extends for two years (through December 31, 2010) the $1.00 and 50 cent per gallon production tax credits for biodiesel and the small biodiesel producer credit of 10 cents per gallon. The bill also extends for two years (through December 31, 2010) the $1.00 per gallon production tax credit for diesel fuel created from biomass. The bill eliminates the requirement that the diesel fuel must be produced using a thermal depolymerization process. As a result, the credit will be available for any liquid fuel created from biomass without regard to the process used so long as the fuel is usable as a fuel in diesel-powered highway vehicles. The bill also clarifies that the $1 per gallon production credit for renewable diesel is limited to fuel that is produced solely from biomass. Diesel fuel that is created by co-processing biomass with other feedstocks (e.g., petroleum) will be eligible for the 50 cent per gallon tax credit for alternative fuels.
• Extend and increase of alternative refueling stations tax credit. The bill increases the 30% alternative refueling property credit (capped at $30,000) to 50% (capped at $50,000). The credit provides a tax credit to businesses (e.g., gas stations) that install alternative fuel pumps, such as fuel pumps that dispense E85 fuel. The bill also extends this credit through the end of 2010.
• Establish Plug-in hybrid vehicle credit. The bill establishes a new credit for each qualified plug-in hybrid vehicle placed in service during each taxable year by a taxpayer. The base amount of the credit is $4,000. If the qualified vehicle draws propulsion from a battery with at least 5 kilowatt hours of capacity, the credit amount is increased by $200, plus another $200 for each kilowatt hour of battery capacity in excess of 5 kilowatt hours up to 15 kilowatt hours. Taxpayers may claim the full amount of the allowable credit up to the end of the first calendar quarter after the quarter in which the manufacturer records 60,000 sales. The credit is reduced in following
  quarters. The credit is available against the alternative minimum tax (AMT).
• Create Qualified energy conservation bonds. The bill creates a new category of tax credit bonds for green community programs and initiatives designed to reduce greenhouse gas emissions. There is a national limitation of $3.6 billion which is allocated to States, municipalities and tribal governments. This proposal is estimated to cost $1.9 billion over ten years.
• Provide an extension and modification of credit for energy-efficiency improvements to existing homes. The bill extends the tax credits for energy-efficient existing homes for two years (through December 31, 2009) and includes energy-efficient biomass fuel stoves as a new class of energy-efficient property eligible for a consumer tax credit of $300. This proposal is estimated to cost $1.53 billion over ten years.
• Provide an extension of energy-efficient commercial buildings deduction. The bill extends the energy-efficient commercial buildings deduction for five years (through December 31, 2013). This proposal is estimated to cost $776 million over ten years.
  
  

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