5.2. ERMUSR 04-17-2008 - Laserfiche WebLink

Home Browse Search

Adams, Bryan From: michael nolan [mjnolan4827@hotmail.com] Sent: Friday, April 04, 2008 12:17 PM To: Jack Kegel; acrowser@rea-alp.com; dvoss@ci.anoka.mn.us; jerrym@austinutilities.com; Bill Black; theoldsalt29@msn.com; Joseph.steffel@cityofbuffalomn.org; rhs@schulteassociates.com; lorift@utplus.com; david.niles@dahlen-berg.com; cpunt@lakesnet.net; dboyce@ci.east-grand-forks.mn.us; Adams, Bryan; Greg T. Oxley; jimk@hpuc.com; Hutchinson -Mike Kum; Marshall-Brad Roos; dmc@mcgrannshea.com; Mike Nitchals; bschwandt@mpsutility.com; bjagusch@cityofmora.com; dbirgen@mrenergy.com; billy@mrenergy.com; MRES--Joe Sullivan; tomh@mrenergy.com; dalene@mncable.net; NMPA-Darryl Tveitbakk; Owatonna -Steve Shurts; Ikoshire@rpu.org; Shakopee-LouVanHout (E-mail); Iw.johnston@smmpa.org; ra.hayward@smmpa.org; Steve Downer; Susan Coe; crude@citytrf.net; Iheitke@ci.willmar.mn.us Subject: Congress is back: The next few weeks They're back. After atwo-week recess both chambers are back in session, scrambling to finish their priorities over the next 8 weeks, after which they get their next recess come Memorial Day. After that it's all an open question, since the legislative calendar is shortened in this election year. Big ticket issues that will receive attention during April and May include the housing and mortgage bills currently on respective floors; defense authorization; appropriations bill, including another supplemental; food safety; and the budget resolution. Energy topics include a tax package, climate change, high oil prices, and a major farm bill that could impact energy. Two major energy-related hearings this week are dealing with dramatically high oil and gasoline prices. The House Select Committee on Energy Independence and Global Warming heard testimony Tuesday from the five major oil companies: Democrats, led by Chairman Ed Markey, bashed the industry execs and blamed them for not doing e enough to stop climate change; not doing enough to support renewables; and opposing the energy tax package that Congress has been unable to pass. Today the Senate took testimony from a several economists about the role speculators play in the oil and gasoline markets. TAX The House has repeatedly passed an energy tax package, but the Senate has not (recall CREBs--Clean Renewable Energy Bonds--is in the tax package). Now, atwo-track process has started in the Senate - a short term fix and a long term fix. Today legislation is being introduced to try to break the logjam: Sens. Cantwell (D-WA) and Ensign (R-NV) are introducing a new "slimmed down" tax bill (the Clean Energy Tax Stimulus Act) that essentially would grant short, one year extensions to the renewable production tax credits everyone needs -including public power. CREBs is part of this package; the bill calls for a one year extension, with an additional $400 million, plus the "definitional" fix -the money would be split three ways (us, coops, and other governmental bodies). This is still not perfect (the House language remains preferable) but is a step in the right direction. While this skinny bill is creative and bipartisan (including Sens. Klobuchar and Domenici) it still faces a major hurdle: it's not paid for. It avoids the controversial "pay fors" in earlier bills (stripping the oil and gas industries of several current tax credits), but also doesn't pay for itself, and the House will clearly object. The bill's estimated cost is roughly $6-6.5 billion. The bill is a help for CREBs, but only represents half a loaf. To that end, APPA, signed jointly by LPPC, is sending a letter to all Senate offices urging support for our fixes to the CREBs program. This is warranted and necessary: while helpful, the Senate has never gotten it right and needs to recede to the better House language, if conference ever occurs. At this point most believe a tax package will pass this year ,but we will be lucky to get only the temporary fixes included in the new bill.