Washington (Platts)--24Sep2008

Eleven senior US Senate Republicans have asked the House of
Representatives to pass a $17 billion, bipartisan package to extend renewable
energy tax breaks that overwhelmingly cleared the upper chamber.

The House was expected to vote on its energy tax credit measure Thursday.

"The House is trying to play games with extenders and tax relief," said
the Senate Finance Committee's top Republican, Charles Grassley, the Iowa
senator who co-authored the legislation.

"The House can't ignore the fact that if they approve the Senate package,
it will become law. All other machinations and maneuvers won't," he added.

Following the Senate's 93-2 vote in favor of the energy tax credit bill,
H.R. 6049 Tuesday, the House Democratic leaders unveiled a different version
using the Senate's same budget offsets.

The Senate had rejected eight other attempts to renew credits for wind
and solar power that are set to expire at the end of 2008.

The Senate Energy and Natural Resources Committee's senior Republican,
Pete Domenici of New Mexico, urged the House to leave "this
carefully-negotiated agreement in place" and "refrain from placing the
renewable energy industry in jeopardy."

"Either this bill is sent to [President Bush] or the House Democratic
leadership can explain why America is not developing more renewable energy,"
said Senator John Ensign of Nevada, who worked on the renewable energy
credits.

Revenue-raisers in the Senate-passed bill and the House proposal would
freeze oil and gas companies' income deduction at 6%, prevent understatement
of international oil and gas extraction income in determining tax credits and
extend and increase the per barrel tax for the oil spill liability trust fund.

--Cathy Cash, cathy_cash@platts.com