U.S. legislation extending renewable energy and energy-efficiency tax credits failed a key procedural vote and lawmakers will now set the bill aside, at least temporarily. The extensive tax package includes measures providing an eight-year extension of solar energy investment credits, and a one-year extension of tax credits for biodiesel, renewable diesel, and wind power. The bill required 60 “yes” votes in the 100-member Senate to move forward, but received only 51, with 43 opposed.
Lawmakers who support the legislation introduced by Sen. Max Baucus say the package is necessary to support investment in the U.S. renewable energy industry. The renewable energy industry says the delays are causing uncertainty in the industry and jeopardizing new projects.
The package also authorizes $2 billion in clean energy bonds to help finance facilities generating electricity from renewable energy. Republican leaders expressed support the for tax package, but said they wanted to focus on passing legislation that would increase domestic oil production. With elections looming in November and fuel prices surging, Senate lawmakers had been locked in a stalemate over how to address energy issues. Republicans are pushing to pass legislation that would lift bans on drilling offshore and develop vast oil shale fields in the West. Democrats oppose opening restricted areas for production, and instead want the oil industry to use land already available. They also support selling oil from the Strategic Petroleum Reserve.
– from www.reuters.com