SENATOR ADVOCATES NEW ENERGY INCENTIVES – WHAT DOES HE REALLY WANT?

The junior Senator from Nevada published a declaration of support for solar energy March 4:

“Solar energy is quickly becoming an economic engine for Nevada and the United States, creating tens of thousands of U.S. jobs. At the same time, it ensures national energy security and keeps the power on in homes and businesses…Solar energy also guarantees a diverse and balanced energy portfolio, protecting consumers from relying too heavily on any one energy source…”

Great to read this. Even better to read Ensign’s call for investment tax credit extensions:

“Legislative policies should reflect the necessity for energy diversity and our support for energy independence. The solar investment tax credit removes market barriers for solar energy, gives families and businesses an incentive to harness the sun’s energy, and encourages further innovation in this cutting-edge technology sector. This is public policy that we should all support…If we do not act soon, the sun will set on this promising source of renewable energy…”

In passing, the Republican Senator also asserts the importance of incentivizing other New Energies:

“This is a critical time to encourage exploration and development on all energy fronts, and our rapidly growing energy needs mean there is enough demand for all viable resources.”

Might this be a break in the partisan impasse keeping the Senate from extending vital tax credits to New Energy?

Maybe not. Ensign says the New Energy tax credit extensions are stalled because the Democrats have tied New Energy tax credits to tax increases. He ends his essay with a great “blame-the-Democrats” line:

“I hope my Democratic colleagues will answer the call for energy independence and join me in a serious effort to support this necessary investment in our nation’s energy future.”

Here’s the thing: Congress needs revenues from the budget to cover the cost of the tax breaks Ensign advocates. The Democrats want to eliminate tax breaks and subsidies to an oil and gas industry earning $120+ billion/year in profits in order to give Ensign his tax credit extension. Removing taxpayer subsidies to the hugely profitable oil and gas industry is what Ensign calls tax increases.

Senator Ensign is essentially saying his support for solar energy is so hollow he is unwilling to fund its growth by discontinuing tax breaks and subsidies that the NY Times called “…wholly unnecessary…” to the oil and gas industry.

If Senator Ensign considers subsidies and tax breaks to a fully mature industry with $120 billion/year profits too vital to cut, he must think incentives to the fledgling New Energy industries are a LOT more important. So how does he plan to pay for them? He either has a plan that NewEnergyNews can barely wait to read about or he’s just mouthing empty platitudes and playing politics with solar energy.

Put your plan on the table, Senator. Reasonable voters want to know if you've got a better way to pay for New Energy incentives than the Democrats. Every poll shows an overwhelming majority of the American people want New Energy, not double-talking politicians.

The Democrats say its time to pull the plug on an oil and gas industry fat with profits in favor of fledgling New Energy industries. What does the junior Senator from Nevada say? (click to enlarge)

Solar energy has bright future – if Senate acts
Senator John Ensign (R-NV), March 4, 2008 (Politico)

WHO
Senator John Ensign (R-NV), member, Energy, Natural Resources and Infrastructure Subcommittee/chairman, National Republican Senatorial Committee

Senator Ensign is right - solar assets like this should be developed. So how are you going to pay for them, Senator? (click to enlarge)

WHAT
Senator Ensign speaks eloquently and truly about solar energy’s promise and importance and about the urgent need to extend investment tax credits for it. It is, in fact, urgent to extend investment tax credits (ITCs) and production tax credits (PTCs) incentivizing a variety of New Energies, energy efficiency measures and energy innovations like plug-in hybrid electric vehicles (PHEVs).

WHEN
A proposal to extend the ITCs and PTCs is working its way to the Senate floor. The Senate refused to consider a similar proposal in 2007 and again in early 2008.

The PV array at Nevada's Nellis Air Force Base. (click to enlarge)

WHERE
Nevada – especially Southern Nevada – has solar energy assets that are about as good as anyplace in the world.

WHY
- Nevada Solar One: third-largest concentrating solar power plant in the world.
- Nellis Air Force Base: the biggest photovoltaic array in the U.S.
- Planned for Nevada: Assembly facility using robots to make solar plant components.
- The Senate’s previous refusals to consider the ITC and PTC extensions came by invoking the arcane filibuster provisions that allow a minority of Senators (in this case representing only 36.5% of the U.S. population) to block legislation.
- Polls tend to show the U.S. population favoring New Energy development by a 7-to-1, 8-to-1 or 9-to-1 majority.

Nevada Solar One. (click to enlarge)

QUOTES
Ensign: “…There will be no driving market force for solar energy without a tax credit. This would be a great loss to the future of renewable energy and our energy security. Unfortunately, a one-time, eight-year extension of the solar investment tax credit is stalled in the U.S. Senate because Democrats have politicized the issue and insisted on attaching it to politically volatile legislation…”