Not a total waste:
Energy bill has number of good points
EDITORIAL Aug 21, 2007 - Knight Ridder Tribune Business News Aug. 21--Whether it's window dressing or a sincere recognition that our energy habits must change, this special session has already produced more than just a coal bill.
That's good. Unfortunately, the bill that was introduced yesterday after weeks of negotiation is still tilted too heavily in favor of coal over renewable energy. Lawmakers can fix that by recognizing that solar, hydro and landfill-gas projects will be smaller and less costly than the huge coal refineries about which some Kentuckians are fantasizing. If the state really wants to encourage renewable energy, the legislature should provide incentives for worthy projects, even if their price tags don't approach the millions or billions of dollars. The legislature also should greatly beef up the bill's standards and accountability for large-scale projects, such as the coal-to-gas plant proposed by Peabody Energy. It was Peabody's ultimatum -- "give us tax breaks or we'll go elsewhere" -- that inspired this special legislative session. (Never mind that Peabody needs to build near its coal, which is in Western Kentucky.) The bill's good points include: -- Tax credits for manufacturers who achieve a 15 percent reduction in energy consumption. -- $7 million for research into reducing, capturing and sequestering carbon emissions from coal, which cause global warming. -- A fund to spur the growth of innovative Kentucky energy companies. -- Several studies, including how to replace half of the state's passenger fleet with hybrids and other energy-efficient vehicles and how to make public buildings more energy efficient. -- Forgivable student loans for engineers, chemists, geologists and hydrologists. The consolation to taxpayers is that Peabody pockets its $300 million in tax breaks only if it finds investors to actually build and operate a syngas plant, and odds are that will never happen.
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