Washington, DC - Continuing his efforts to make New York a worldwide hub for solar energy research and development, Congressman Maurice Hinchey (D-NY) tonight helped the House pass comprehensive energy legislation that extends and expands critical tax credits and other incentives for the production, purchase, and use of solar and other forms of renewable energy.  For the past year, Hinchey has aggressively worked with Democratic leaders in the House to ensure the inclusion of the solar tax incentives contained in the bill passed today in order to dramatically grow the solar energy industry in New York, particularly through The Solar Energy Consortium (TSEC).  The Comprehensive American Energy Security & Consumer Protection Act also includes a Hinchey-authored provision to collect royalties -- or user fees -- from energy companies that drill for oil and gas on public lands.

"This bill begins to finally focus the United States' efforts on renewable energy in a thoughtful and meaningful way," Hinchey said. "By extending and expanding solar and other renewable energy tax credits, we will enable the development, construction, and consumer purchase of solar energy products to become much more affordable and mainstream.  For far too long, Big Oil and its allies in Congress and the White House have forced the American people to be dependent upon gas and oil for their cars and homes.  This bill begins to free the American people of their oil dependency and puts us on a path toward fossil fuel-free energy independence.  While Big Oil and its Washington allies have solely focused on drilling, which is a narrow aspect of the supply side of the equation, this bill addresses both the supply and demand side of the equation in a comprehensive fashion."

The Comprehensive American Energy Security & Consumer Protection Act extends and expands tax incentives for solar, wind, and other forms of renewable energy as well as for plug-in hybrid cars, and energy efficient homes, buildings, and appliances.  Investments in renewable energy create three to five times as many jobs as investments in fossil-fuel energy.  According to a new economic study commissioned by the Solar Energy Research and Education Foundation, more than 1.2 million new jobs, including 440,000 permanent jobs, and $232 billion in new investment would be generated in the U.S. by the solar energy sector alone through 2016 if Congress extends the solar investment tax credit for eight years.  That eight year extension is included in the bill Hinchey and his colleagues passed today.  Additionally, the bill also requires utility companies to generate a minimum of 15 percent of electricity from renewable sources -- such as solar, wind, biomass, wave, tidal, and geothermal -- by 2020.  A 15 percent Renewable Electricity Standard will reduce global warming emissions and lower energy prices, saving consumers an estimated $13-18 billion cumulatively by 2020. 

The measure also includes a provision that Hinchey wrote that would close a loophole that has allowed energy companies to profit on oil and gas taken from public land and U.S. coastal waters in the Gulf of Mexico without paying a royalty, or user fee, to the federal government.  The House has passed Hinchey's legislation several times, but it has been blocked by President Bush and his allies in the Senate.  Hinchey said the bill stands a better chance of being passed and enacted now since the economic situation in the country has worsened.  The bill passed today takes those new royalties from oil and gas companies and creates a Renewable Energy Reserve to invest in clean, renewable energy resources and alternative fuels, promote new energy technologies, develop greater efficiency and improve conservation.  It will also fund home heating assistance (LIHEAP), weatherization, the Land and Water Conservation Fund, and carbon capture and sequestration.

On the energy efficiency front, consumers could save at least $210 billion in energy costs through 2030 as a result of the bill's provisions regarding updating energy codes for new buildings.  Under the bill, new residential and commercial buildings will have to realize a 30 percent improvement in minimum building standards by 2010, and 50 percent by 2020. The building sector alone accounts for approximately 48 percent of all energy consumed in the United States.  The bill also provides incentives to lenders and financial institutions, including the Federal Housing Administration, to provide lower interest loans to consumers who build, buy or remodel their homes to improve their energy efficiency.   Additionally, the bill includes provisions that will help expand mass transit and reduce fares for commuter rail and buses, which have recently gone up due to higher energy prices.

Hinchey noted that the bill passed today was not perfect.  The congressman said the new drilling areas authorized in the bill are unnecessary because the oil and natural gas companies could dramatically increase U.S. energy production if they simply drilled on 68 million acres of public land they've already leased, but haven't begun to drill.  Those 68 million acres of on and offshore land -- twice the size of the State of New York -- along with approximately 20 million acres of land in Alaska's National Petroleum Reserve would dramatically increase the supply of domestic oil and natural gas.  Hinchey has repeatedly stated that Big Oil is refusing to drill on the 68 million acres of already leased land in order to artificially keep supply low and wait for the price of a barrel of oil to climb to $200 or $300 and make even greater profits at that time.  The bill passed today does repeal tax giveaways for ExxonMobil and other giant oil companies.

"Given that the U.S. owns less than 3 percent of the world's oil reserves, yet consumes nearly 25 percent of the world's oil, it's clear that we can't solve the energy crisis through increased drilling," Hinchey said. "Given that Big Oil already has access to 68 million acres of public land containing oil and natural gas, but hasn't even begun to drill on those acres, it's completely unnecessary for this bill to open up even more of the U.S. for additional drilling.  That said, this bill enables the U.S. to take unprecedented steps forward in renewable energy development as well as energy efficiency, because it's clear we cannot wait another day for that to happen.  I'm very excited for the economic boom this bill's solar tax incentives will provide New York, which is quickly becoming a leader in solar energy research, development, and use."

Hinchey said Congress must next look at ways to increase fossil fuel efficiency even further.  The congressman is also the coauthor of the Energy for Our Future Act, which is a comprehensive bipartisan energy reform bill that seeks to decrease U.S. dependence on foreign oil, protect the environment, build a market for renewable energy, and promote energy conservation.  Among other things, the bill would increase fuel efficiency standards for cars to 40 mpg by 2016.

Last year in upstate New York, Hinchey helped organize and create TSEC, which is a new industry-driven, non-profit organization that provides leadership, organization, resources, and support for the establishment of a major solar energy industry cluster in New York.  TSEC is the first organization of its kind for the photovoltaic industry, encompassing research and development, manufacturing facilities, industry promotion and market development.  Earlier this year, TSEC partnered with its first major manufacturing partner, Prism Solar Technologies, which plans to bring more than 400 new jobs to upstate New York within 4-5 years.  Last month, Hinchey announced TSEC's signing of a new solar manufacturing company, Solar Thin Films, Inc., which is expected to create an additional 400 new jobs in the next several years.  In just one year, TSEC has already created nearly 50 new jobs in the congressional district Hinchey represents.  TSEC has also partnered with six research universities throughout New York to work on the research needed to improve solar technology.