On February 6, Congress approved and sent to the President an economic stimulus package that did not include energy-related tax incentives. Senate Finance Committee Members Olympia Snowe (R-ME) and Maria Cantwell (D-WA) led an effort to include in the bill a package of short-term extensions of clean energy and energy-efficiency tax incentives, including a one-year extension (through 2009) of the Clean Renewable Energy Bond (CREB) program for consumer-owned utilities, with an additional $400 million in bonding authority. The House-passed version of the bill did not include energy-related incentives.
In addition, Sens. Jack Reed (D-RI) and Susan Collins (R-ME) led an effort to add $1 billion in Low Income Home Energy Assistance (LIHEAP) to the Senate bill as well.
After falling one vote shy of the 60 needed to end debate on the Senate version of the bill, Senate Democratic leaders were forced to strip the energy incentives and LIHEAP funding, and eventually passed the House-passed version, with slight modifications. The bill was signed by the President on February 11, 2008.
While it is disappointing that the energy incentives were not included in this bill, NEPPA will continue to work on advancing the tax package in other legislative vehicles this year. The House has already signaled that it will take up an $18 billion stand-alone, energy tax bill in the next few weeks. The new House bill, unveiled last night (2/12), includes $2 billion in CREB authority and APPA-supported CREB modifications to the program. What is unclear, however, is whether this bill will garner the support needed to pass the Senate, given that Republicans and the White House still adamantly oppose its being "paid for" by the oil and gas industry.