Bill to lift solar power halted by Republicans
Jun 18 - McClatchy-Tribune Regional News - John G. Edwards Las Vegas
Review-Journal
The solar energy industry is poised to pump billions of dollars into the
Nevada economy and create thousands of jobs -- but advocates say the Senate
on Tuesday shot down a bill needed to give the sun power industry a
jump-start.
Republicans for the second time in a week prevented the Senate from taking
up a tax bill providing more than $50 billion in renewable-energy credits
and tax breaks for families and businesses.
The vote Tuesday to move to the legislation was 52-44, eight short of the 60
votes needed. Only five Republicans voted to end the filibuster against
action on the bill; others objected to the Democratic plan to pay for the
tax relief by making some hedge fund managers and multinational corporations
pay more taxes.
Opponents argued that tax relief should not be matched with what they
regarded as tax increases.
Senate Majority Leader Harry Reid, D-Nev., voted for the renewable-energy
tax credits but switched to oppose the bill because of provisions that allow
him to bring back the bill later for another vote.
"Just as they have done with every opportunity to strengthen our weakening
economy and lower record gas prices, Republicans today said no to helping
businesses invest in renewable energy," Reid said following the vote.
Sen. John Ensign, R.-Nev., said he voted against the bill because it
contained tax increases to offset the cost of the tax benefit for renewables,
and a controversial "tax earmark" for New York.
Ensign said Democrats should abandon the bill in its present form.
"The Democrats' plan has failed five times now," Ensign said. "Instead of
continuing to push a partisan bill doomed by a veto threat, we should work
together to achieve a bipartisan solution on renewable energy."
Ensign got into a fight with the solar energy industry last week when
lobbyists criticized his opposition to the Democrats' bill.
Ensign said he supported tax breaks for renewables but not in a bill that
raises other taxes to offset the costs. The bill that failed on Tuesday
raised $54 million mainly by curtailing a deferred compensation scheme
employed by financiers and hedge fund managers.
On June 10, the vote to move to the bill was 50-44, 10 short.
"The entire industry has ground to a halt waiting for the elected officials
to work this out for us," said Chris Brooks, director of the
renewable-energy division of Bombard Electric Co. and vice president of
SolarNV, a chapter of the American Solar Energy Society.
The number of Bombard electricians working on solar power projects has
dropped to 20 from 95, as clients became pessimistic about the bill.
Bombard Electric is involved in $100 million in solar power projects that
will be shelved if the renewable tax credit isn't extended beyond its
current Dec. 31 expiration, Brooks said.
Other big solar projects already are canceled, he said, because the client
didn't believe the project could be completed by year-end and qualify for a
30 percent investment tax credit.
It's not too late for homeowners to get up to $2,000 in tax credits by
installing solar panels before year's end, Brooks said.
The Bureau of Land Management has applications for proposed solar power
plants capable of generating 10,000 megawatts of electricity, more energy
than the state consumes today, according to an industry analyst who spoke on
condition of anonymity.
The projects, if all completed, would bring $50 billion in investment to the
state and create 20,000 jobs over an eight-year period.
Already announced are 22 announced solar thermal projects, ranging from
three already in operation to others planned in the desert Southwest. They
would generate 4,900 megawatts of electricity, according to the Solar
Industry Association of America.
The Associated Press contributed to this report. |