Washington (Platts)--19Sep2008

The US Senate is scheduled to vote Tuesday on a $17 billion bipartisan
package of incentives for renewable energy -- including an eight-year
extension of credits for new solar power projects -- and separate energy
policy legislation that would allow more exploration of domestic oil and gas.

Senate Majority Leader Harry Reid, a Nevada Democrat, said he wants the
energy tax credit package, a compromise from the Senate Finance Committee and
Senate Democratic and Republican leaders, voted on before an energy policy
bill is considered. Reid has said he wants all the energy legislation
completed before the Senate adjourns for the year on Friday.

Once passed, the Senate measure would then face consideration by the
House of Representatives, which passed its own energy policy bill with $18
billion in financial incentives for renewable energy on Tuesday.

In addition to extending renewable tax credits, the House bill (H.R.
6899) would permit oil drilling between 50 and 100 miles offshore if a state
enacts a law to allow leasing off its coastline. The House bill also contains
a national renewable electricity standard that would require 15% of electric
generation to be fueled by renewable sources by 2020.

Industry observers said the Senate compromise package moved renewable tax
credits closer to the finish line, but the possibility remained that Congress
would not complete the job until a likely "lame duck" session in November.

Existing federal breaks for wind and solar power development expire at
the end of December.