US senators urge five-year extension of renewable tax credit

Washington (Platts)--18Dec2006

Forty-two US senators have written President George W. Bush to urge him
to include in the administration's fiscal-year 2008 budget proposal a
five-year extension of the production tax credit for renewable energy.

In their December 15 letter, the bipartisan group, which included both
the senior Democrat and Republican chairman of the Energy and Natural
Resources Committee, called the PTC "a vital component in financing new
renewable energy projects," telling Bush that "it is crucial to our national
security that we expand and strengthen investment in renewable energy
resources. The continued development of renewable energy also will spur
significant economic development opportunities, stabilize prices by
diversifying the electric generation supply, and help reduce greenhouse gas
emissions."

The senators added that "[i]n the past, the short-term, start-and-stop
nature of the credit has not sufficiently provided utilities, developers,
manufacturers and investors with the necessary certainty to maximize the vast
potential for renewable technologies. A long-term credit of five years will
give businesses the stability necessary to plan and finance renewable energy
projects." The current PTC is due to expire on December 31, 2008.

"Tapping into our enormous renewable energy potential through a five-year
PTC extension is an important step toward ensuring our energy independence.
Moreover, it will provide a signal to businesses that we are serious about
investing in our energy future by developing new renewable energy technologies
to meet our increasing electricity demands," the senators told the president.

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