CQ TODAY PRINT EDITION
– ENERGY
Oct. 2, 2008 – 8:17 p.m.
Lobbyists Target House Republicans Over Renewable-Energy Tax Breaks
By Coral Davenport, CQ Staff
With the renewable-power industry counting for its growth on tax breaks included in the economic rescue package on the House floor Friday, wind and solar energy lobbyists went to work to get recalcitrant Republicans to switch their votes.
“We’ve got a long list of House Republicans who we’re talking to about that,” said Greg Wetstone, senior director of legislative affairs at the American Wind Energy Association.
The Senate-passed version of the $700 billion economic bailout legislation (
Renewable-energy advocates are making the pitch that if the provisions are allowed to expire on Dec. 31, it could stall the nation’s transition from fossil fuels and cost the struggling U.S. economy 116,000 jobs and $19 billion in new investment.
The Senate added the renewable-energy tax break “extenders” to its economic bailout package, which passed Wednesday, in an effort to lure votes from House Republicans who helped kill their chamber’s rescue bill (
“It’s a high-profile sweetener, meant to bring over House Republicans,” said Bill Wicker, a spokesman for the Senate Energy and Natural Resources Committee. “That’s all part of the calculus.”
Energy Effort Hits Close to Home
For some House Republicans who voted against the bailout, the energy tax credits have more than a philosophical appeal. For example, Denmark’s Vestas Wind Systems is building a wind turbine plant in the district of Rep. Marilyn Musgrave , R-Colo., who voted against the bailout.
“We’ve done it under the assumption that Congress will continue the production tax credit,” said Roby Roberts, Vestas senior vice president of external relations. “The [credit] is central to the . . . growth of this industry.”
|
||
|
That plant, along with two others that Vestas is building in Colorado, will create 2,500 new jobs by 2010 and generate $500 million, the company says, but only if the tax credits are extended.
Musgrave was “carefully reviewing” the revised legislation, an aide said Thursday.
The renewables industry is also targeting Rep. Michael R. Turner , R-Ohio, whose district is home to the manufacturing company WebCore Technologies LLC.
Lobbyists Target House Republicans Over Renewable-Energy Tax Breaks
“Wind turbine blades are our No. 1 source of revenue and source of jobs,” WebCore ownerRob Banerjee said. “We’ve added 30 jobs in the last six months. We’ve put in close to a $1 million investment in the last six months, with another $1 million investment planned for the next six months. If the [tax credits extension] doesn’t pass, that’s a significant slowdown — loss of revenue, laying off a lot of people, putting off a lot of investment.”
The industry also argues that growth in the renewables sector will stall if the tax credits are not extended.
“I don’t know if there are many other areas of the economy you could look at for 2008 and say, yeah, that’s an area that’s done well,” said Wetstone. “If this credit is not extended, we are going to see that growth come to a screeching halt in 2009.”
Some Republicans said the strategy is not working.
“It’s going to make it even more outrageous,” said Dana Rohrabacher , R-Calif. Rohrabacher said he will vote against the bailout again despite wind and solar projects in his district. “The extenders all should have been enacted into law long ago,” he said. “Now they’re saying that we’re going to hold it over your head that you won’t pass these? Renewable energy is an important issue for me and for my district — to hold that over my head is unconscionable. It’s rotten politics.”
Offset Issue Plagues Energy Tax Credits
So far, the 110th Congress has not extended the energy tax credits despite strong bipartisan support. The hang-up has been how — and whether — to pay for them.
The Senate tax bill (
House Democrats objected to a tax bill without full offsets. Until Senate leaders attached their entire extension package to the bailout plan, the alternative-energy credits looked to be dead for the year.
But while the renewable-energy extenders may switch some Republicans, fiscally conservative Democrats could defect over tax extenders that are not paid for.
Senate Democrats are betting it won’t go that far. Sen. Jeff Bingaman , D-N.M., said the bill offers “the last best hope” for Congress to pass legislation supporting renewable energy this year.
“It will be a real black mark on Congress if we fail to enact these,” he said.
POST A COMMENT
Oops! The following errors must be addressed: