1 / 17

Charlie Kubert Environmental Law & Policy Center * * * Kansas Renewable Energy Conference

Meanwhile, back in D.C.: Update on Federal Renewable Energy Legislation. Charlie Kubert Environmental Law & Policy Center * * * Kansas Renewable Energy Conference September 26, 2007. Three Key Legislative Initiatives. Federal RPS Farm Bill Energy Title Energy Tax Bill.

edan-stevens
Download Presentation

Charlie Kubert Environmental Law & Policy Center * * * Kansas Renewable Energy Conference

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Meanwhile, back in D.C.: Update on Federal Renewable Energy Legislation Charlie Kubert Environmental Law & Policy Center * * * Kansas Renewable Energy Conference September 26, 2007

  2. Three Key Legislative Initiatives • Federal RPS • Farm Bill Energy Title • Energy Tax Bill

  3. Federal Renewable Energy Standard Legislative Drivers • 22 States already had a state RPS • RPS addresses global warming and economic development (and energy security) • RPS easier to swallow than carbon caps or taxes

  4. Federal RPS: House Version • 20% by 2020 • State policies take precedent if stronger • RECs as alternate compliance mechanism • Included in overall Energy Bill: Passed 241-172 • Boyda, Moore-yes; Moran, Tiahrt-no

  5. Federal RPS: Senate Version • 15% by 2020 • Bingaman amendment did not make it into final Senate Energy Bill • -could not overcome threatened filibuster • -opposition from Southern Senators • Next Step: House-Senate Conference in Fall? • Brownback-maybe; Roberts-no

  6. 2007 Farm Bill Energy Title Key Policy Drivers • Domestic Fuel Security • 25 x ’25 Resolution • High Energy Costs • Global Warming • Rural Economic Development • Reluctance to reduce traditional farm support • Energy vs. Conservation “Food Fight”

  7. Energy Title: House Version • Farm Bill Passed in July • Included $ 3.2 billion in new funding for Energy Title • Funded through offshore oil royalties • Heroes: Speaker Pelosi, Chmn. Peterson, Rep. Herseth-Sandlin

  8. What’s In It • Biorefineries: Loan guarantees up to $250 million • Increased funding for Renewable Energy and EE Program (up to $250 million per year) • Rebate program for small projects • Eligibility expanded to rural schools • Feasibility studies funded • Fixes PTC “Haircut”

  9. What’s In It • Bioenergy Feedstock Program (Section 9010): Expands (but doesn’t limit) eligibility to cellulosic fuels and biomass-powered plants • Biomass Energy Reserve Program: • Provides incentives to encourage farmers to cultivate and harvest energy crops if they have a demonstrated market for them. • Continuation of Biomass R&D Program

  10. Energy Title: Senate Version • Still being proposed by Chairman Harkin • Similar to House Version • Differences include: • Grant program for pilot-scale, loan guarantees for commercial scale cellulosic ethanol plants • Restriction of bioenergy program to cellulosic ethanol and bio-powered plants (GHG reduction criteria) • “Rural Repowering” grants to encourage substitution of biomass for natural gas • Energy audit and technical assistance program

  11. Section 9006: Results from 2007 • Major drop-off in funding for wind and digesters • 3 States and Energy Efficiency Dominated Awards • Iowa (grain dryers) • Mississippi (poultry farms) • Nebraska (irrigation pumps) • USDA rule changes impacted applications

  12. How Did Kansas Do? • 12 Projects ($3,800-$42,000) • Total Funding: $174,000 Note: excludes any grant/loan guarantee combinations received in first round

  13. Energy Tax Credits • Context: Baucus and Grassley on both Finance and Ag Committees • Proposed Clean Energy Tax Credits for Electricity: • Extension of PTC through 2013 • Extension/Expansion of CREBs through 2011 • Extension of solar tax credit to 2014/2019 with addition of residential small wind systems

  14. Energy Tax Credits-2 • Other Clean Energy Tax Credits: • CO2 Capture and Geologic Sequestration (clean coal) • Cellulosic ethanol production credit • “Fossil-free” ethanol production credit • Reduction in ethanol tax credit after RFS target is reached

  15. Energy Tax Credits-3 • Energy Efficiency Credits: • Energy efficient commercial buildings credit extended to 2013 • Energy efficient appliances credit through 2009 • Energy efficient homes credit through 2011 • Overall package is revenue neutral through changes in tax treatment of oil and gas production

  16. What’s Wrong with Tax Credits? • Not Assignable • Limited value for those with limited tax liability • No substitute for grants/loans for risky technology • Discourage local ownership

  17. For more information

More Related