TANNER'S COMMITTEE PASSES
ENERGY AND CLIMATE BILL

Tanner-Backed Provision Adds
Tax Credits for Switchgrass Fuels

WASHINGTON – Congressman John Tanner supports “The Renewable Energy and Conservation Tax Act of 2007,” which provides tax incentives to encourage energy efficiency and more production of renewable fuels. Tanner serves on the Ways and Means Committee, which approved the bill Wednesday (June 20).

Tanner championed part of the bill that offers additional tax credits for producers of cellulosic ethanol, such as switchgrass, corn stover, cereal straws, sugar cane, sawdust and paper pulp. Tennessee is poised to be a leader in the use of switchgrass as a renewable fuel, which Gov. Phil Bredesen has named as a priority for the state. Tennessee and local governments will also receive bonds to address the energy efficiency and conservation needs of our individual communities, Tanner said.

“Gas prices are too high, renewable fuels are not yet readily available, and we are too dependent on other countries for energy and fuel – which many of us fear could have national security implications,” Tanner said. “This will help stabilize our energy market, help farmers in Tennessee grow the fuels of tomorrow and lessen our country’s dependence on foreign oil.

“A new national strategy toward energy efficiency also helps curb the global climate change trends that scientists say we have to confront in the coming years if we want to leave a better world for our children and grandchildren.” 

Some of the bill’s key provisions include, among others:

• New production tax credits, as proposed by Congressman Tanner, for producers of cellulosic ethanol produced for use as fuel.

• Extended and increased tax credits for fueling stations that install E85 ethanol pumps.

• Tax credit bonds for state and local governments to promote energy conservation in their own neighborhoods. Tennessee would receive $71.6 million toward these bonds.

• Tax credit bonds the state can issue as loans and grants for energy-efficient homes. Tennessee would receive $47.7 million for these bonds.

• Extension of tax credits for certain types of energy-efficient property and appliances.

The bill, which will next be considered by the full House, adheres to the House’s recently reinstated “pay-as-you-go” rules that say all bills should be paid for instead of relying on borrowed money that would add to the $8.8 trillion national debt.

Tanner represents Tennessee’s 8^th Congressional district in West and Middle Tennessee. He serves on the Ways and Means Committee, on the Committee on Foreign Affairs and as chairman of the U.S. delegation to the NATO Parliamentary Assembly.

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Contact: Randy Ford, 202.225.4714