It’s official, after five years of negotiations and intense lobbying by special interest groups U.S. President George W. Bush has signed the Energy Bill into law.

Whoopi…

First, the limited good news:

* The production tax credit relied on by wind developers has been extended two years to the end of 2007, providing much needed stability to the U.S. wind industry and those supplying it with equipment and skills. The tax credit gives 1.9 cents (U.S.) back to wind developers for every kilowatt hour of electricity produced by wind turbines over their first 10 years of operation. The previous tax credit was set to expire at the end of 2005, so the early extension is a pleasant surprise. “This is the first time that an extension of the production tax credit for wind energy has been approved before the credit expires, and, following the past six years of boom-and-bust cycles caused by successive expirations, that is very good news for the industry,” said Randall Swisher, executive director of the American Wind Energy Association.

In the past there has been long gaps between expiry dates and renewals, causing wind projects to stop dead in their tracks. This has proven frustrating, not only for those developing wind farms, but also for the companies supplying consulting, technology and other services to the U.S. wind industry — Vancouver-based Xantrex is among those who got stung when the tax credit last expired. Investors, needless to say, weren’t happy about it either. Another bonus with this extension is that the tax credit is also being extended to other renewable energy technologies.

* Meanwhile, the solar industry got its own two-year investment tax credit. The national tax credit, which applies to solar PV and thermal technologies, gives homeowners a 30 per cent rebate on the purchase of a system within the 2006-2007 timeframe. Of course, the tax credit is capped at $2,000 (U.S.), meaning the incentive begins to decline in value once the purchase exceeds $7,000. Considering much of the cost of these systems is related to installation, electronics and battery storage, I suppose the cap is fair if applied strictly to solar PV equipment purchases. Businesses also get the two-year 30 per cent rebate but there is no cap. Once the two years pass, the rebate for businesses drops back to the pre-existing level of 10 per cent. “With the solar provisions in this Energy Bill, Washington is supporting individual Americans who make a real contribution towards U.S. energy independence,” said Rhone Resch, president of the Solar Energy Industries Association.

Great, so they have a decent rebate. But what use is it if homeowners can’t get the product? Supply problems will have to be addressed — soon.

Other noteworthy perks: tax breaks for the purchase of energy efficient appliances and hybrid-electric cars; minor policy support for ocean energy, geothermal and hydrogen fuel cells, and a doubling of biofuel production.

For a general overview, check out Renewable Energy Access.

I think the American Wind Energy Association summed up the shortfalls well:

“The final energy bill does not include the Senate provison calling for 10 per cent of the nation’s electricity to be generated from renewable sources like wind and solar by 2020, also referred to as the Renewables Portfolio Standard,” the association said, adding this comment from Swisher. “By failing to include in the energy bill this provision to boost renewable energy development over the longer term, Congress missed a unique opportunity to enact forward-looking energy, economic, security and environmental policy all at once.”

I couldn’t agree more with that comment. When are North American governments going to get some vision and set long-term policies that will have an impact? It’s shameful the lack of commitment to future generations.

Also no mandates on the auto industry to reduce vehicle emissions. In all, a vast majority of the $14.5 billion in spending provided for by the Energy Bill is going towards the same old big dirty friends of Bush: coal, oil, nuclear – or CON, as I like to call it.

Which is rather appropriate, because Americans are being conned into thinking this new law is going help them and their children breath easier, be more secure, and sever themselves from Middle East dependence. Mind you, it’s not like Canada has done any better.

I’ve got one last thing to say: $64 a barrel and rising.

This entry was posted on Tuesday, August 9th, 2005 at 10:34 pm and is filed under Main Page. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.