Markey: Renewable Investment Package Puts America on Cleaner, Greener Path

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Contact: Select Committee, 202-225-4081

Markey: Renewable Investment Package Puts America on Cleaner, Greener Path

Closing Hummer Loophole, Increasing Incentives for Renewables Continues Aggressive Congressional Agenda to Create Jobs, Save Planet

WASHINGTON (February 27, 2008) – Today the House of Representatives passed a renewable investment package that continues the clean energy agenda formed by House Speaker Nancy Pelosi and pushed in this Congress by Chairman Edward J. Markey (D-Mass.) and the Select Committee on Energy Independence and Global Warming. The legislation passed today will increase incentives for wind, solar and other renewable energy sources, close a major tax loophole for the largest gas guzzlers on the road, and repeal billions of dollars in taxpayer giveaways to the five most profitable oil companies at a time of record profits from $100 per barrel oil.

“The future of clean energy is in America’s hands, but the money to fund the clean revolution is still stuck in oil companies’ pockets. Even while making record profits, the likes of which this world has never seen, the world’s top oil companies are still demanding billions in tax breaks. With the planet’s thermometer rising, we need to transition our energy production to a low-carbon economy that will cut heat-trapping pollution and create jobs. We need incentives that solve global warming, not make it worse,” said Chairman Markey, whose committee has held numerous hearings on renewable energy and other clean energy technologies and programs.

The Renewable Energy and Energy Conservation Tax Act of 2008 was approved by a vote of 236-182. The bill would extend and expand tax incentives for renewable electricity, energy and fuel, as well as for plug-in hybrid cars, and energy efficient homes, buildings, and appliances. Additionally, the bill includes solar energy tax credits that could reduce carbon dioxide pollution by 240 million tons.

The investment package arrived on the House floor today following a record price on a barrel of oil in overnight international trading, reaching $102 per barrel on international markets after closing near $101 yesterday. Gas prices have also increased to a $3.14 average on Tuesday. Despite these skyrocketing costs for oil, the President opposed a similar investment package in December, which caused it to be stripped from the energy bill by the Senate, and has opposed the current package.

“Since President Bush took office, the price of oil has gone from $30 per barrel to a record high price of $101 yesterday,” said Chairman Markey on the House floor today. “This administration’s oil-centric energy policy has proven itself to be completely bankrupt for everyone except for Big Oil. President Bush should support this bill, which helps consumers and our economy, not continue to oppose this bill for the sole benefit of the most profitable companies in the world.”

Another provision would close a long-standing loophole that allows thousands of dollars in write-offs for the largest, most inefficient vehicles on the road today. Originally intended to help businesses buy necessary heavy-duty work vehicles, the “Hummer Tax Loophole” has for years allowed write-offs of anywhere from $100,000 to the current figure of $25,000 for the purchase of the largest, most gas-guzzling luxury SUVs, even as concerns over gas prices and dependence on imported oil have grown. The change would not affect legitimate business investments in trucks or vans, such as construction site trucks or farm vehicles. Over 30 models of SUVs qualify for the loophole, including some of the least fuel-efficient vehicles on the road today. They include the BMW X5 (EPA rated 16 mpg combined), Cadillac Escalade (14 mpg), Jeep Grand Cherokee (12 mpg) and Ford Expedition (15 mpg).

"Closing this loophole creates fairness in America’s vehicle showrooms. In a time of rising oil dependence, we’re finally getting rid of an incentive that unfairly skews the market away from the more efficient, cleaner cars and SUVs American businesses and families say they want," said Chairman Markey, an original author of the provision that will close the loophole.

Here is a video of Chairman Markey on the floor today discussing the legislation:

For more information and oil cost charts, be sure and check out the Speaker's Blog.

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