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Freedom
Solar Power & Electric: Outlook
Today’s vote is a major step forward for the solar industry. It was vital
that the House energy bill included a tax title, allowing the possibility
for the Senate and House to include a tax title in the final version of
the bill.
When Congress returns from the August recess, we anticipate that the House
and the Senate will appoint conferees and start combining their respective
versions of the energy bill. We expect that leadership in both the House
and Senate will push to include a tax title in the compromise version.
Regarding the solar tax credits, FSP&E will advocate for a “best
combination” policy that combines the improved incentive structure in the
House version with the long-term extension for both commercial and
residential solar that was contained in the Senate version.
Freedom
Solar Power & Electric thanks YOU for
YOUR
INVOLVEMENT and will continue to keep YOU
informed
as developments in Congress proceed. If you have any
questions about the current outlook, please visit:
Adopted Amendments
· Renewable Electricity Standard (RES) --
Requires electric
suppliers, other than governmental entities and rural electric
cooperatives, to provide 15 percent of their electricity using renewable
energy resources by the year 2020. It would allow 4 percent of the
requirement to be satisfied with electricity efficiency measures. For
distributed generation (electric energy generated by a renewable energy
resource at an on-site eligible facility, used to offset part or all of
the customer's requirements for electric energy), including distributed
solar, the Secretary of Energy shall issue three renewable energy credits
to such customer for each kilowatt hour generated.
· Solar Energy Industries Research and
Promotion Board -- Creates a
Solar Energy Industries Research and Promotion Board to increase consumer
awareness nationwide of solar energy options and appropriate
certifications. The solar program would be funded entirely by a small
portion of industry revenues. No appropriations are authorized.
o Sec. 7304: Establishes a Strategic
Solar Reserve Program that
seeks to identify lands under the Bureau of Land Management’s jurisdiction
that can accommodate up to 25 GW of solar energy development. Provides
favorable terms and conditions for permitting, leasing and site
identification.
· Title IX – Energy and Commerce Committee
o Sec. 9072 - 9075: Authorizes the
Department of Energy, subject to
appropriation, to assist state, county, local government, schools,
universities, airports and other qualifying entities, to provide technical
assistance to increase the deployment of solar energy systems.
o Sec. 9086: Authorizes 25 year
federal power purchase agreements
for solar energy (current maximum duration is 10 years).
o Sec. 9321- 9328: Authorizes
heightened cooperation between the
U.S. and Israel on innovative energy technologies, including solar.
Solar Provisions in H.R. 3221, the New Direction for Energy Independence,
National Security, and Consumer Protection Act
· Title III - Small Business Committee Sec.
3005: Provides grants,
subject to appropriation, and authorizes technical assistance to small
businesses to assist them in evaluating the suitability of using solar
energy resources.
· Title IV – Science and Technology
Committee Sec. 4301- 4308: The
Solar Energy Research and Advancement Act of 2007, provides funds, subject
to appropriation, to support the research, development, and commercial
application of solar energy technologies. Special emphasis is placed on
concentrating solar power thermal storage research, solar lighting and
cooling and advanced photovoltaic technology development.
Title VII –
Natural Resources Committee
o Sec. 7302: Directs the Bureau of
Reclamation to inventory lands
under its jurisdiction for suitability for solar energy development
projects.
Also today, the House passed H.R. 3221, incorporating energy legislation
from several non-tax committees. A full listing of the provisions related
to solar can be found below.
Most notably, the House adopted an amendment by Congressman Tom Udall
(D-NM) to create a national Renewable Energy Standard. The RES
would
require utilities to provide 15 percent of their power from renewable
sources by 2020, allowing 4 percent of the requirement to be satisfied
with electricity efficiency measures. The RES does not pre-empt state RPS
requirements or statutes.
Freedom
Solar Power & Electric notes that eligible solar technologies
include
both solar electric and solar water heating technologies.
As
well, for distributed generation (including distributed solar), a 3x credit
multiplier
would
be issued for each kilowatt hour generated.
The
solar investment tax credit provisions in
H.R. 2776 are as follows:
Provides an eight-year extension of the existing 30 percent
Investment Tax Credit for businesses under Section 48 of the tax code
Provides the ability for corporate and personal filers to claim the
Investment Tax Credit against the Alternative Minimum Tax (AMT)
Removes the prohibition barring utilities from using the section 48
Investment Tax Credit
Provides no extension of the existing 30 percent Investment Tax Credit for
homeowners under Section 25 of the tax code, but eliminates the existing
$2,000 maximum dollar limitation
As well, the tax title provides up to $2.4 billion in bonding authority
for the issuance of Clean Renewable Energy Bonds.
Overall Energy Bill Passes with Several Key Solar Provisions
Freedom Solar Power & Electric Member NEWS,
Freedom
Solar Power & Electric: Update 8/4/2007:
Here
is the complete listing of solar provisions that can be found in H.R.
3221. For more information, go to:
solar
industry earned a major victory today.
The
House passed both H.R. 2776, the energy tax package, and H.R.
3221, the overall energy bill. We succeeded in seeing passage of our
industry’s top priority, extension and improvement of the solar investment
tax credits, in H.R. 2776.
This 11 page report will answer
a U.S government (Freddie Mac/Fannie Mae)
EEM (Energy Efficient Mortgage) for new home builders and an
EIM (Energy Improvement Mortgage)
for home re-modeling.
PLEASE READ CAREFULLY !
