Clean Energy Update - Winter 2009

Contents

  1. Summary
  2. Work in Washington
  3. Overwhelming Success in Missouri
  4. Renewable Energy in California
  5. California Ballot Measure

Summary
Critical federal incentives for energy efficiency and renewable energy were set to expire at the end of 2008, but, with the help of Union of Concerned Scientists supporters, Congress extended them as part of an emergency economic stimulus package. We also continue to support renewable energy on the state level. Activists in Missouri helped overwhelmingly pass a renewable electricity standard requiring 15 percent of the state's energy come from clean energy sources, like the sun and wind, by the year 2021. And in California, voters successfully rejected a misguided ballot measure that could have wrought havoc on the state's renewable electricity efforts, while official support began to solidify behind legislative efforts to raise the California renewable electricity standard to 33 percent.

Work in Washington
One of the last acts of the 110th Congress was renewing the critical investment and production tax credits for renewable energy and energy efficiency, which were set to expire on December 31, 2008. Thanks to the efforts of a diverse coalition that included UCS, the credits were extended as part of the Emergency Economic Stabilization Act of 2008 that President George Bush signed on October 3, 2008

Under the new law:

  • The energy efficiency tax credits are available to:
    • People who buy efficient appliances and houses; 
    • People who make energy efficiency upgrades to their homes; and
    • Manufacturers of energy-efficient appliances.

  • The solar investment tax credit gives individuals and companies a tax credit for their purchases of solar panels or solar water heaters (for residential systems, the credit is capped at 30 percent of the system cost). 
  • The renewable energy production tax credit is available to generators of wind, geothermal, or biomass energy for the clean, renewable energy they produce.

  • The production tax credit is expanded to include energy produced from wave and tidal systems.

UCS worked with a large, diverse coalition of businesses and environmental groups to extend the tax credits. Hundreds of UCS activists called their senators and representatives, urging them to support extending the credits, which aid growth in a wide range of renewable electricity, renewable fuels, and energy efficiency sectors.

Our work isn’t finished, however. The recession has undermined the effectiveness of the credits. A firm that has little or no income can derive little or no benefit from the tax credits. So, in 2009, UCS, our allies, and renewable energy developers will be working to revise the credits to make them refundable. Refundable credits will ensure that renewable energy development will continue even when the economy slows—the very time sustained growth in renewable energy is needed most to create jobs and income.

Overwhelming Success in Missouri
The Missouri legislature has failed to pass significant renewable energy policies in the past. In 2008, UCS and our activists supported a campaign to put a renewable electricity standard requiring 15 percent of the states energy come from clean energy sources, like the sun and wind, by the year 2021 on the ballot—and then helped to pass it. UCS activists helped to gather more than the 150,000 signatures required to get Proposition C on the ballot. UCS also helped by supporting the recruitment of new renewable energy activists at fairs and on college campuses throughout the summer and fall. On Election Day, nearly two-thirds of voters supported the measure, and it received a majority of the vote in every county except one. With Missouri, there are now 28 states that have renewable electricity standards

Renewable Electricity in California
In its newly adopted scoping plan to implement AB 32, the Global Warming Solutions Act of 2006, the California Air Resources Board (CARB) committed to boost the percentage of the state's electricity generated from clean, renewable energy sources, such as solar and wind power, to 33 percent. A 33 percent renewable energy standard would set a new national precedent. When the standard is codified by the state legislature, it will be the most far-reaching renewable energy standard in the country.

UCS took a major role in the coalition effort that called for more renewable electricity in the state’s comprehensive scoping plan for AB 32. UCS developed a widely distributed fact sheet, presented testimony to CARB, and recruited other groups and clean energy businesses to make their views known. UCS activists also sent thousands of messages to CARB in support of the 33 percent standard.

UCS is working with both houses of the California state legislature to craft a strong renewable energy standard reform bill to ensure that all electric utility service providers obtain at least 33 percent of their electricity from clean, renewable sources. This is a top priority for UCS in California.

California Ballot Measure
Based on our thorough analysis, UCS urged California voters to reject Proposition 7, a loophole-ridden energy initiative that was so poorly drafted that it would have hindered the development of new clean, renewable energy sources in California, like solar and wind power. Fortunately, voters did their research and defeated Prop 7. Throughout the election season, UCS kept voters informed, with our experts appearing in public debates and in the media, and with frequent alerts to UCS activists.

Last Revised: 01/09/09