A group of Democrats in the U.S. House of Representatives has introduced new legislation that would extend a number of incentives for wind power and other forms of renewable energy while stripping subsidies for fossil fuels.
The bill – Investing to Modernize the Production of American Clean Energy and Technology (IMPACT Act) – introduced by Reps. Ed Markey, D-Mass.; Henry Waxman, D-Calif.; John Larson, D-Conn.; Earl Blumenauer, D-Ore.; and Bill Pascrell Jr.; D-N.J. – proposes an eight-year extension to the production tax credit (PTC) for wind, solar, geothermal, biomass, landfill gas, hydropower, and marine and hydrokinetic power production.
Notably, however, the bill specifies that if a renewable electricity standard or similar measure – such as the clean energy standard proposed most recently by Sen. Jeff Bingaman, D-N.M. – were to become law, the PTC would be phased out within 12 months.
The legislation also would renew the Section 1603 renewable energy cash-grant program – which expired at the end of last year – for another two years.
Among the provisions of the bill is a specific carve-out for offshore wind energy. Under the legislation, the first 3 GW of offshore wind power projects would be eligible for a 30% investment tax credit.
The IMPACT Act is not only pro-renewables, but also pro-manufacturing, as it provides for $5 billion in tax credits under the Section 48C program for the construction of new and modified clean energy technologies.
The bill also contains provisions to extend tax credits for energy-efficient appliances, electric vehicles and natural-gas trucks, as well as to encourage the development of more pumping and charging stations for alternative-fuel and electric vehicles.