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Senators Klobuchar, Snowe and Cantwell Introduce Bipartisan Renewable Energy Legislation

Renewable energy investments will promote economic growth, job creation and energy security

February 14, 2008

Washington, D.C. – U.S. Senators Amy Klobuchar (D-MN), Olympia J. Snowe (R-ME) and Maria Cantwell (D-WA) introduced the American Renewable Energy Act today, a landmark bipartisan bill which includes long-term extensions for energy efficiency tax incentives and promotes further development of wind power and other renewable energy sources nationwide.  Once enacted, the legislation would encourage new investments to create innovative opportunities for economic growth with “clean technology” businesses and “green-collar” jobs across the country.

“These are long-term investments in the American economy that will create new economic growth and jobs, and increase our energy security” said Klobuchar.  “In addition to tax relief for the middle-class, we also need long-term policies that will spur innovation and drive economic growth for a strong economy.  This package of renewable energy incentives does that.”

“The future of our energy security and economic vitality is at stake,” Snowe said.  “This legislation lays the groundwork for a partnership that will produce more jobs and realistic energy alternatives.  Working together, our businesses can become the engine that drives not just our economy, but our commitment to the clean technologies that our future will rely on.”

“By jumpstarting  aggressive investment in new energy technologies, we can help invigorate our economy and create high-paying, long-term jobs,” said Cantwell, a member of the Senate Finance and Energy committees.  “Predictable federal incentives and more private investment in the right technologies will help curb pollution, leave more money in consumers’ pockets, and reduce our dependence on fossil fuels.”

The American Renewable Energy Act includes two key provisions: 

First, it will create strong, consistent incentives for private sector investment in renewable energy by extending key renewable energy incentives, like the Production Tax Credit, for five years.  These incentives are otherwise set to expire at the end of 2008.  To pay for extending these renewable energy tax credits, the American Renewable Energy Act would rollback several tax giveaways to major oil companies.

The long-term credits for both wind and solar producers will provide businesses the clarity and certainty they need to make large-scale, forward looking capital investments in these technologies. 

“In the last 10 years, these tax incentives have been allowed to expire three times, and it could happen again this year,” said Klobuchar.  “We must stop this game of “red light, green light.  This “stop start” approach is no way to run a business – and no way to run a government policy that’s supposed to promote long-term business investment.”

A second key provision of the legislation will establish an aggressive, nationwide renewable electricity standard that requires utility companies to produce at least 20 percent of their electricity from renewable sources by the year 2025.  This aggressive national standard would revolutionize the renewable energy industry, increase America’s energy security, and create new industries and jobs across America.

“All that’s stopping America from realizing the dream of energy independence is the will to make it happen,” Snowe said.  “We are faced with a very fundamental decision – we can either continue our ways of consuming without regard for the future or we can adopt a new, aggressive standard that will change the way our businesses work and our people live.”

“If we want to get beyond petroleum, we have to stop subsidizing it," Cantwell continued.  "It is time to get to the heart of the matter and invest in renewable and alternative energy sources, and create new jobs and industries, that really will signify our energy independence.”

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