Save & extend the renewable energy tax credits....

Today’s post: Wednesday, 9-10-2008

On the renewable energy tax credits issue.:

Since renewable energy is clearly able to provide very nearly all the energy our economy needs once it is fully developed & both our climate & our economy totally depend on that development beginning right away, THE most important issue is to see to it that those credits are successfully renewed THIS year.

It would be very desirable to have them extended for at least 5 years instead of longer. But whether or not that's done, it's imperative that they be renewed at all THIS YEAR.

Yes, it would be nice to not add more drilling as that has less upside for lowering energy costs, causes some harm to beach areas, & is a bad idea for improving global warming & would actually be somewhat harmful to it.

Yes, since the oil companies see themselves as oil companies instead of energy companies and now have huge cash surpluses, it would be nice to tax them or cancel tax credits they have now to provide more funds for renewable energy.

But as the voters begin to see more progress in renewable energy and more harmful weather events from global warming, their support for drilling will decrease and their support for taxing the oil companies will increase.

Here's my point. If the renewable energy tax credits are not renewed THIS time, it will delay the development of renewable energy just as it is beginning to take off.

Since the credits will NOT be renewed if that's tied to taxing the oil companies because President Bush will veto the bill, we need a bill that has no such provision.

And, since the bill or bills will not pass without support from those in congress who believe in drilling, the drilling provisions need to be as close to their desires as possible.

Clearly having a state option for drilling is a good idea.

But since Alaskans apparently support drilling, it might make some sense to include some drilling in the least environmentally sensitive parts of the Arctic National Wildlife Refuge. And, since the potential for oil production is so great, it might be wise to add as much as drilling as possible in the Gulf of Mexico.

The drilling provisions need to be just enough to get the bill passed. And, since I strongly believe our economy & maybe our ability to grow food depend on allowing the renewable energy industry to get off the ground NOW, I'd rather see those legislators offered a bit more than the minimum they want to insure the bill or bills pass.

If the renewable energy industry takes off, the economies of scale & new technologies then adopted will make it cost competitive with fossil fuels very soon. And, even ordinary citizens will soon see how real it is.

At that point, & hopefully with a better informed President who actually supports renewable energy, it may work to levy a small tax on the oil companies or fossil fuels or both.

And, it can initially be a very tiny tax. The income tax started as a very tiny tax that only rich people paid. Once such taxes exist, I believe they will increase substantially over time.

But we need to wait until the voters clearly support it and for when trying unsuccessfully to get it does no harm to renewable energy now.

Today, the renewable energy industry is about to really take off. But just like an airliner on the runway having a big truck pull into its path just before take off, the congress is now sitting in its way.

Please let's offer the other side enough of what they want & avoid asking them to support things they will not, so we can pull the truck off the runway.

We can get more things they do not want later when the voters are better informed & there are more legislators who support those things in office.

But for now it's much more important and more doable to work with the current legislators to get a bill that WILL pass & which the President WILL sign that extends the renewable energy tax credits.