THE ENERGY DEBATE SHIFTS

How House Republicans may control the energy debate
Lindsay Morris, November 3, 2010 (Power Engineering via HydroWorld)

"…The new Congress has several [renewable energy policy] ideas to work with that were held over from Obama's first two years in office, including a renewable electricity standard that expands the definition of what energy types count toward the thresholds, particularly adding emission-free nuclear power and clean coal to the definition of renewable energy…Tax incentives are sure to be a major driver to renewable energy development during this half-term…

"Rep. Dave Camp (R-MI) is in line to become the new chairman of the House Ways and Means Committee, a role that has significant influence over tax measures for renewables…His Michigan District 4 is home to a number of wind and solar manufacturers…[A] self-proclaimed supporter of alternative energy, Camp believes…[the] little change in America's reliance on fossil fuels from 2007 to 2009 [is] despite the investment of nearly $40 billion in tax subsidies for renewables enacted in October of 2008…[In 2007] renewable energy supplied only 7 percent [of U.S. energy]. In 2009… 8 percent [came] from renewables."

It will be hard for politicians to turn away from the economic logic of New Energy (click to enlarge)

"…[But] Camp's…record displays more openness toward renewables than some of his Republican predecessors…[H]e cosponsored legislation to invest $2.25 billion for a solar technology research and development program…[H]e cosponsored legislation to amend the Internal Revenue Code of 1986 to allow an investment credit for property used to fabricate solar energy property…[but he] cosponsored legislation in January 2009 to amend the Clean Air Act to provide that greenhouse gases are not subject to the Act.

"…[Professor of international energy policy] Elias Hinckley…said Camp's reputation as a proponent of clean energy could be beneficial to renewables…[unless] Tea Party candidates instigate an energy tax…Hinckley said the extension of existing tax subsidies for renewables is ‘relatively safe’…[but] the Treasury Grant Program may not be met with an extension…"

It will be hard for politicians to turn away from the economic logic of New Energy (click to enlarge)

"Bob Cleaves, president and CEO of the Biomass Power Association, said Camp has been a supporter of biomass in the past and comes from a state that ranks in the top five states in the country in terms of biomass plants…[so] extension of the Treasury Grant Program and other subsidies will depend largely on what happens during the lame-duck session…Cleaves said he expects [the new Congress to put] a greater emphasis on tax policy…[Hypothesized compromise energy measures include] tax breaks and incentives for investment in nuclear power, clean coal and renewable energy…energy efficiency… and hydroelectric power, coupled with credits for geothermal heat pumps and next-generation heating, ventilating and air conditioning…"

[Camp:] "It is imperative that policies are in place to encourage the research and development of new, cellulosic fuels that use crop and animal waste and greater use of solar, wind, clean coal and other new energy technologies."