Energy Legislation Updates

There is news on energy legislation, on both the state and federal level.

According to America's Hometown, Gov. Rendell's Energy Independence Strategy (HB 1200 and HB 1202) has passed the state house.

On the federal front, Rep. Allyson Schwartz (D-13) has announced that the House Ways and Means Committee (of which she is a member) has approved Renewable Energy and Energy Conservation Tax Act of 2007 (H.R. 2776). This legislation is expected to be part of the comprehensive energy package that Speaker Nancy Pelosi will release around July 4th.

According to Schwartz's press release, H.R. 2776 would make Pennsylvania eligible for $245M in bonds. These could be used for a number of things. Some possibilities are hybrid buses for schools, the greenway along the Delaware River in Philadelphia, energy efficient buildings, and so on. Localties could decide what their own priorities might be.

A few highlights of the bill (full descriptions available as a pdf off of this Ways and Means press release) are:

I. Production Incentives
* Long-term extension and modification of renewable production tax credit.
* Long-term extension and modification of solar energy and fule cell investment tax credit.
* New Clean Renewable Energy Bonds
* Sales of electric transmission property
* Residential energy-efficient property

II. Conservation
Transportation
* Plug-in hybrid vehicle credit
* Cellulosic alcohol production credit
* Extension of biodiesel production tax credit; extension and modification of renewable diesel tax credit
* Extension and increase of alternative refueling statiosn tax credit
* Fringe benefits for bicycle commuters
* Modification of depreciation and expensing rules for certain vehicles
* Restructuring of New York Liberty Zone tax credits

Other Conservation Provisions
* Qualified energy conservation bonds
* Qualified energy efficiency assistance bonds
* Extension of energy-efficient commercial buildings
* Modification and extension of energy-efficient appliance credit
* Five-year depreciation for smart meters

III. Revenue Provisions
Denial of Oil and Gas Tax Benefits
*Denial of section 1999 benefits for income attributable to domestic production of oil, natural gas or primary products thereof
* 7-year amortization of geological and geophysical expenditures for certain major integrated oil companies
* Clarification of foreign oil and gas extraction income

Clarification of Eligibility for Certain Fuel Credit
* Clarification of eligibility for renewable diesel credit
* Clarification that fuel credits are designed to provide an incentive for United States production

IV Other Provisions
Studies
* Carbon audit of the tax code
* Comprehenvise study of biofuels

Labor Standards
* Labor standards for certain projects financed with tax credit bonds

My thanks to Rep. Schwartz's office for making so much information available. It makes my job easier.