U.S. midterm elections and the fear of an end to energy tax credits
San Emidio geothermal power plant, Nevada/ US (source: US Geothermal)
Alexander Richter
9 Kas 2010
The recent U.S. midterm elections are feared to mean an end to tax credits that have helped geothermal projects off the grounds in the past. The current unstable funding environment could reduce financial support for projects.
With recent midterm election outcome in the U.S. meaning a change to the political landscape in the House of Representative sin the U.S., could “mean an end to tax credits that are designed to boost consumer demand for energy efficient heating, cooling, and renewable energy systems, some producers fear.”, as reported by Fortune Magazine.
A very good overview of the results of the midterm elections can be found here.
The magazine “solicited viewpoints from several geothermal industry executives asking whether a change in government would be bad for business. Unstable funding environment could put the damper on new projects and reduce support from venture capitalists, according to the report.
The cusp of the consternation is whether all renewable energy sources will be lumped together as wasteful spending and support trimmed from the federal budget. Several cash strapped states have already begun to renege on tax credit payouts.
“A stable funding environment over a long period of time, like four or five years, is far better than these starts and stops,” Dan Kunz, CEO of US Geothermal, told Fortune.
Clearly, proposals will need to win bipartisan support with a split legislature. But the predominate players in each party have fundamental policy differences.
Senator Majority Leader Harry Reid is a long-term proponent of renewables – especially geothermal energy –, which benefits his home state of Nevada. Nevada has the second highest number of geothermal plants in the United States. Reid favors climate change legislation.
There is speculation among the pundit class that his House counterpart will be representative Joe Barton (R-TX), who is a leading contender for the chairmanship of the House Energy and Commerce Committee. Barton, a former oil executive, infamously stated that the federal government should apologize to BP in the midst of the spring 2010 oil spill on the Gulf Coast.
Barton drafted the Energy Policy Act of 2005 (EPACT), which invested billions to extend the renewable electricity production tax credit, encourage energy conservation and efficiency, and the construction of “clean coal” facilities.”
To read the full article see link below.
Source: Smart Planet
