WASHINGTON— Clearly, the mammoth tax-slicing package that President Obama signed into law Friday has its share of boosters and detractors on Capitol Hill.
Count Sen. Jeff Bingaman among the latter.
Before voting against the $858 billion measure, the New Mexico Democrat criticized his colleagues for allowing the wealthiest Americans to keep more of their money instead of maximizing incentives for energy efficiency.
That squandered opportunity means the chairman of the Senate Energy and Natural Resources Committee will redouble his efforts in the 112th Congress to collaborate with Maine Republican Sen. Olympia Snowe to advance fuel-saving provisions, Bingaman spokesman Bill Wicker told SolveClimate News in an interview.
Those include efforts to promote energy efficiency, clean technology manufacturing and energy independence, and reduce pollution. As well, Bingaman plans to continue pursuing his long-term goal of a coast-to-coast renewable electricity standard.
As chair of the Senate Finance Subcommittee on Energy, Natural Resources and Infrastructure, he is already mapping out next year’s hearings on clean energy.
“Failing to enhance this bill’s energy provisions will ensure that the 111th Congress will be recorded as one that failed to maximize its potential in using the tax code to promote advanced energy priorities,” Bingaman said in a floor speech.
“To be sure, the American Recovery and Reinvestment Act included many significant tax innovations that promote clean renewable energy and energy efficiency. But since ARRA’s enactment at the very beginning of this Congress, the Senate has failed to consider any legislation that would build off those innovations.”
What Bingaman and Snowe Envisioned
Back in late September, Bingaman and Snowe, a top Republican with the Finance Committee, introduced a bill known as the Advanced Energy Tax Incentives Act of 2010. Its central theme is enhancing energy efficiency, deploying renewable energy and rebuilding the country’s manufacturing base.
“For far too long our country’s energy strategy has prioritized the technologies of the past while our policy debate has languished in partisanship,” Snowe said when they rolled it out. “The world is moving ahead with bold action on innovative technologies and it is past time that we set a new course for how we use and think about energy.”
When the bipartisan measure didn’t progress as a stand-alone bill, they offered it as an amendment during the lame-duck session discussion of the gigantic tax package.
Five highlights of the amendment featured:
But the amendment’s offerings evidently didn’t resonate with many senators. For instance, the whole-home retrofit measure was severely slashed and the others were left on the cutting room floor.
Ethanol Tax Credit a Boondoggle
Though Bingaman said he is slightly encouraged that Congress opted to extend the Treasury grant program to the renewable energy industry for one year, he denounced an additional year of corn ethanol subsidies as “disappointing.”
Statistics reveal that what’s called the Volumetric Ethanol Excise Tax Credit (VEETC) of 45 cents per gallon costs taxpayers about $6 billion annually when associated income tax deductions are included. He emphasized that the ethanol tax credit subsidizes production of a fuel already mandated by Congress via the renewable fuel standard.
As well, environmental organizations have noted that these subsidies are funneled toward oil companies that blend the ethanol with traditional fuel—not family corn farmers, agro-businesses or ethanol producers.
“The House was poised to reduce the credit to 36 cents, a level that I would support,” Bingaman said, pointing out that keeping the subsidy at 45 cents costs an extra $1 billion better spent on clean energy technologies not given the market protection that the renewable fuel standard offers.