Energy Incentives on Congress’ Spring Agenda

Congress is expected to return to a busy spring agenda that will include incentives to encourage energy efficiency and renewable energy projects to create jobs and reduce energy consumption and related emissions.  The House Ways and Means Committee next Wednesday is scheduled to hold a hearing on "Energy Tax Incentives Driving the Green Job Economy" to consider tax options for an energy bill that will be debated this summer.  The hearing also will examine the roughly $40 billion in energy incentives enacted in 2008 and 2009 for ethanol, biodiesel, wind, solar, electric vehicles, carbon capture, and energy efficiency activities.  Many of these incentives expire at the end of 2010 and up for possible renewal or modification.  AGC is working with a number of organizations that jointly authored a letter circulating this week to the Ways and Means Committee in support of increasing the Energy Efficient Commercial Building Tax Deduction from $1.80 per square foot to $3.00 per square foot.  In addition, AGC is supporting a legislation that would provide $6 billion in federal investment, through rebates and financing incentives, to cover about 30 percent of the cost of installing energy efficient products and/or providing energy efficiency-related services (such as energy audits) during 2010 in commercial and multifamily residential buildings.  On March 4, Senator Jeff Merkley (D-Ore.) introduced the proposal as the "Building STAR Energy Efficiency Rebate Act of 2010" (S. 3079).  It is estimated that funding for $6 billion for the Building STAR program would spur $18 to $24 billion in total spending, creating up to 200,000 jobs in the construction, manufacturing, and other related industries.  The program is designed to work quickly and includes simplified application procedures for building owners. Building STAR is the companion to Home STAR, a similar rebate program for home owners being developed by Senator Jeff Bingaman (D-NM), Chairman of the Senate Energy and Natural Resources Committee, held a hearing in March on both proposals.  A House companion bill may be introduced shortly.  AGC is a participating organization in the coalition that developed and is promoting Building STAR.