WASHINGTON, DC – Thursday, U.S. Senator Maria Cantwell (D-WA) spoke on the Senate floor about the need to extend clean energy tax incentives while considering any stimulus package:

 

 

 

“The downturn in the economy - caused by the combination of persistently high energy costs and the ongoing mortgage crisis - is ripping through our nation leaving people and businesses damaged.  

 

“Layoffs are accelerating, gas and home heating prices are skyrocketing, and stock markets here and abroad have seen some of their biggest declines since 9-11. People with adjustable rate mortgages are opening up their payment envelopes to see their monthly payments jump 30 percent. At times like these, the American public looks to Congress and the President for both short-term help and long-term leadership.

 

“The good news is we have all set off on a course of bi-partisanship cooperation in identifying and putting in place a set of measures that will immediately stimulate the economy and get people working and businesses profitable. 

 

“We must identify measures that are timely, targeted and – when possible – address the underlying causes of our economic troubles.

 

“Getting money in people’s pockets swiftly must be a component. I know that Congress and the Administration have reached out to a broad cross-section of economists and experts to ensure that the correct measures are selected for this cash infusion. We are considering a number of good ideas. And we should make sure that we get this financial help to as many families as possible. 

 

“We also have an opportunity to invest in stimulus measures that can alleviate some of the underlying problems that are causing Americans economic heartburn. Oil prices hovering near $100 a barrel, and natural gas prices remain at historic highs, which has been taxing family budgets when they fill up their car at the pump or attempt to pay their heating bills. The Los Angeles Times in December cited economists’ fear that high energy costs could ignite inflation. This would just aggravate our economic problems further.

 

“High energy costs also make it much more difficult for our manufacturing and agricultural sectors to make ends meet. Today the National Farmers Union came out in favor of the proposal I am about to describe. It is the opportunity to include in the stimulus package incentives that both dramatically boost economic activity in 2008 and take an important step towards reducing energy costs.

 

“I believe we should include extension of the clean energy tax incentives in any stimulus package. They meet the definition of short term stimulus package- targeted and timely. They have the desirable benefit of getting immediate short-term results- that is- significant economic activity and new jobs in 2008. And they also result in long term benefits. This is the ideal type of stimulus expenditure for us to make.

 

“The American Wind Energy Association estimates that with a two year extension of the production tax credit as many as 75,000 jobs will be added in 2008. Seven billion dollars of capital spending in the next twelve months by the wind industry alone will immediately be injected into the economy if the tax credit is renewed.

 

“Wind generation alone accounted for over 30 percent of our new power generation placed in service last year. This industry is well beyond the pilot phase and has become a significant source of new jobs in American as well as a diversified source of electricity for utilities. This is not the time to choke this industry.

 

“Likewise, the solar industry estimates that up to 40,000 NEW jobs could be LOST in the next 12 months if we don’t extend the investment credit. At this delicate time in our economy, we should not be sacrificing high-quality jobs.

 

“Included in this package are also four energy efficiency incentives for consumers. As a Deutsche Bank report released last November says, ‘gains in energy efficiency will have the effect of muting the effect of expensive oil.’ If we want consumers to go shopping why not encourage them to buy items that will reduce their energy costs. Everybody wins when this happens- consumers get lower bills, retailers get more economic activity, reduces the upward pressure on prices by mitigating demand and it helps the overall economy rebound faster.

 

“This is just the kind of economic stimulus we need- jobs, more competition in the energy industry to drive prices down and immediate capital spending. The clean energy industry is one of the few bright spots in a slowing economy, and unless these incentives are extending in this quarter, we risk a steep downturn in the industry that saw remarkable growth in 2007. We are already seeing evidence of this with declining stock prices of solar companies. Investors hate uncertainty. They equate it with risk and the price tag of these projects just goes up as result.

 

“Congress because of its delays are serving up nothing but uncertainty causing clean energy projects to become more scarce and more costly- just at a time when we need energy costs to be going down not up. History shows the devastating effect on the industry of Congress’ on again off again approach to tax incentives. The three times Congress has let clean energy tax incentives lapse we saw 73-93 percent declines the following year as well as numerous company collapses in the wind industry alone.

 

“Failure once again to extend these incentives now means the renewable energy industry is currently putting new projects on ice, delaying plans to hire new workers and facing the potential of laying off current workers. Congress has created this instability but we can act now to keep this industry on track. We should not be taking one step forward on the economy with a needed cash infusion and take two steps backwards by choking off business investments and job creation that are ready to go. Renewal of these energy incentives are the right stimulus at the right time.

 

“While the public is always happy to get cash in their pocket they do not want just quick fixes. They want real solutions to the problems draining their pocketbook. Energy costs are at or near the top of the list. 

 

“While you may lump clean energy incentives into the infrastructure bucket and think the benefits can’t happen quickly the beauty of this clean energy incentive package is that a significant share of the economic activity benefits can happen in 2008 if we act now. These energy tax incentives will stimulate billions of dollars in capital outlays and create over a hundred thousand jobs in the next 12 months if we act now. 

 

 

“An immediate cash infusion into the economy is probably necessary, but we should not lose sight of the fact that we could be putting at risk key investments in new, clean energy technologies that will not occur if Congress fails to act on tax incentives that are in the code that will expire at the end of 2008.

 

“While Exxon Mobil may be earning an extra $500 million a year for every one dollar increase in the price of oil, that money comes out of the precious disposable income of families and businesses across the nation. And that money does not get spent at the local mall, or for home improvement, or countless other products or services that keeps America employed and our economy growing. 

 

“That’s another reason why it’s so important that we make sure the clean energy industry keeps growing. The competition it creates with traditional fossil fuels is the real long term solution to today’s energy challenges. 

 

“Extension of these clean energy tax incentives provide just the short term stimulus that people and businesses immediately need. And it demonstrates the type of foresighted leadership that the American taxpayers expect.

 

“We must make sure that we pass the right stimulus. The American people and businesses are counting on us.

 

“Thank you, Mr. President, and I yield the floor.”

 

 

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