“Before we look ahead to what Congress and the President can do in 2008 to put America on a clean energy path, it is important that we look back at the progress made last year and the work that lies before us. With oil prices continuing to break records, the effects of global warming showing up in our backyards, and our continued dependence on unstable sources of energy, America needs a new energy future.
Last year Congress and the President took a great step forward by establishing stronger fuel economy standards for the first time in decades. This action, taken with a renewable fuels standard and important energy efficiency policies will make great strides in reducing America’s dependence on oil and saving energy in our homes and businesses.
To fully address our energy problems, however, we must also shift toward cleaner more renewable sources of energy to light our homes and power our businesses. Unfortunately, two crucial sets of renewable energy policies—the renewable electricity standard and the clean energy tax incentives—were stymied by filibusters in the Senate last year. The negative reaction of many Senate Republicans and the White House to these critical policies is baffling. Twenty-five states have enacted a renewable electricity standard. As a governor, President Bush signed into law a wildly successful standard that has made Texas the nation’s leader in wind energy development. It has been passed three times by the U.S. Senate and twice by the House. The RES has been endorsed by labor unions, farmers, venture capitalists and the faith community. In the end the tax incentives, which failed by one vote, fell victim to opposition from the record profit-making oil industry and their allies in the White House.
The first action Congress and the President should take on energy policy in 2008 is to include these clean energy tax incentives in the economic stimulus package. These investments would not only stimulate the economy in the short-term, but also would help solve global warming and promote long-term development and growth of the clean energy technology industry. This industry is one of the fastest growing industries in the U.S. and promises a multitude of economic benefits such as new jobs, lower energy bills, and enhanced economic development. Unfortunately many of the tax incentives that encourage this rapid growth have expired or are scheduled to expire at the end of this year. A disruption in these incentives could have dramatic effects on the industry. Renewable energy is the shining light of an otherwise lackluster American economic outlook. Congress should do everything in its power to make sure this bright light is not extinguished.
Take the wind industry as an example. Investments in the wind industry just last year totaled approximately $9 billion dollars. Around 30 percent of new energy generation came from wind energy last year. But without a timely renewal of the production tax credit, the American Wind Energy Association predicts a dramatic decline in investment and the loss of approximately 75,000 jobs. We urge Congress and the President to enact these incentives as quickly as possible to avoid layoffs and declining investment.
To fully realize the potential of our country’s vast renewable energy resources, we must establish a national renewable electricity standard. A 20 percent by 2020 standard would create hundreds of thousands of jobs, substantially reduce global warming pollution, and revitalize rural economies. Twenty-five states have already enacted this common sense policy. We will continue to work with our allies on Capitol Hill to build on the progress we have made over the past year.
Finally, the Bush administration must also uphold the goals of the recently signed Energy Independence and Security Act. We will monitor the Bush administration’s implementation of the fuel economy increases and the renewable fuels standard to make sure that America realizes the full potential of these policies to reduce global warming pollution and our dependence on oil.
