Apr 28 - McClatchy-Tribune Regional News - Matt Nauman San Jose Mercury News, Calif.

Continued congressional delays over extending tax breaks to solar, wind and other renewable-energy companies are starting to affect 2009 deals being made now by Silicon Valley companies, San Jose Mayor Chuck Reed said this morning.

"I've got my finger on the panic button," Reed said while participating in a high-profile panel at The Tech Museum of Innovation, "and I'm about to push it. We're going to put our industries in a stall."

The investment tax credits and production tax credits, which expire later this year, are viewed as necessary for renewable-energy companies to compete against traditional energy sources and to make major deals for new projects. They cut the costs for companies to add photo-voltaic solar, wind turbines and other projects.

The issue remains in stalemate between the U.S. House and Senate over how the country will pay for them.

Tom McCalmont, who runs REgrid Power in Campbell, said he's "frustrated" by what is happening in Washington. "It just seems like Congress doesn't get it."

In testimony given earlier this year, Applied Materials' Blair Sweezey said the extension of the renewable tax credit could create 55,000 jobs and generate $45 billion in economic investment in the solar industry across the country. But, if the credits weren't renewed, 40,000 jobs could be lost through 2009.

Two lobby groups, the American Wind Energy Association and Solar Energy Industries Association, put the potential job loss

if the credits aren't renewed at 116,000 U.S. jobs.

This morning's forum, titled "How Going Green Saves Money, Jobs and Improves Lives," was staged by U.S. Rep. Zoe Lofgren (D-San Jose) to let big local companies have a forum about their environmental progress and challenges. Representatives from Sun Microsystems, Google, Intel, Applied Materials and others participated.

Fellow Silicon Valley Congressman Mike Honda (D-Campbell) joined a second panel. About 100 people attended the two-hour session.

Lofgren said House Speaker Nancy Pelosi is committed to getting the credits extended. Lofgren called it "must-do" legislation.

"Here's our dilemma: The Senate just wants to borrow more money, and we (the House) want responsible tax policies," she said. "It's sort of game of chicken between the spendthrifts in the Senate and the responsible House approach."

A temporary, one-year extension of the credits might be the result, she said.

In comments that echoed what the top environmental executives of Silicon Valley business leaders said, Adobe System's Randall Knox noted that the company's downtown San Jose headquarters has achieved the highest rating for meeting green building standards.

And, he said, Adobe keeps 87 to 90 percent of its waste out of landfills and 20 percent of its employs telecommute, compared to 4 percent for a typical valley company.

"We're now going global with it," said Knox, senior director of global facilities services at Adobe. The company is adding more efficient lighting and make similar moves at facilities in India and Canada.

Contact Matt Nauman at mnauman@mercurynews.com or (408) 920-5701.

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