Feb. 25

Though the Senate is still hemming and hawing, the House is forging ahead on an $18 billion energy tax package. A vote is expected this week.

What´s called the Renewable Energy and Energy Conservation Tax of 2008 repeals tax breaks to large, fossil fuel-based companies and invests the money in extending renewable energy tax credits set to expire at the end of the year.

If this idea sounds familiar, that´s because it is. Representatives passed similar aggressive legislation in their portion of the energy bill last year. But Senate Republicans and the threat of a White House veto forced it out of the compromise bill that was signed into law last December.

Basically, the same push and pull happened with the economic stimulus package passed in February. All extensions of renewable energy tax credits were left out after Senate Republicans threatened a filibuster.

"With the price of oil above $100 a barrel, this Congress is again taking action to reduce our dependence on foreign oil and support the domestic production of renewable energy," House Speaker Nancy Pelosi, House Majority Leader Steny Hoyer and Ways and Means Committee Chairman Charles Rangel wrote in a joint statement.

Negotiations in the House come at a time when oil companies are announcing record profits. Exxon Mobil reported a $40.6 billion profit in 2007.

This latest go-round will extend by three years ù through 2011 ù the production tax credit for wind energy and multiple other renewable energy projects. That price tag is estimated to be $6.57 billion for 10 years. It caps the credit at 35 percent of a facility´s cost for projects that are launched after 2009.

Industry groups for renewable energy sources say developer interest in their projects will flag further if the extensions are not approved. The legislation would make investment tax credits into solar projects available for the next eight years.

"The bill extends and expands tax incentives for renewable electricity, energy and fuel, as well as for hybrid cars, and energy efficient homes, buildings and appliances," the three Democrats from California, Maryland and New York, respectively, wrote in their joint release. "By strengthening our renewable energy sector, the bill will help create the next generation of good-paying, green collar jobs and bring down energy prices in the long term."

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