Foam Insulation – Gov. Arnold Schwarzenegger Urges Congress to Support Energy Independence Act

California Gov. Arnold Schwarzenegger (R) and California Public Utilities Commissioner Michael Peevey both urged the California congressional delegation to enact H.R. 5206 and S. 2677, companion bills aimed at extending the solar tax credit for eight years.

In a letter sent Tuesday to Sens. Dianne Feinstein (D) and Barbara Boxer (D), as well as the entire California caucus in the House, Schwarzenegger called on Congress to "seize this promising opportunity to innovate and lead the way toward clean energy."

The "Securing America's Energy Independence Act" would extend solar energy and fuel cell investment tax credits for homeowners and businesses through 2015. The credits are currently set to expire next year. It would also change the credit cap on residential solar from $2,000 per system to $2,000 per kilowatt, and allow consumers to take the tax credits against the alternative minimum tax (AMT).

The bill was introduced in the House by Reps. J.D. Hayworth (R-Ariz.) and Michael McNulty (D-N.Y.) and currently has 52 additional House cosponsors. In the Senate, Sens. Gordon Smith (R-Ore.) and Robert Menendez (D-N.J.) are behind a companion effort.

SEIA estimates that a long-term credit extension would create approximately 55,000 solar industry jobs by 2015 and encourage states to invest billions of dollars in renewable energy infrastructure. Solar energy would displace 4 trillion cubic feet of natural gas under the bill, saving U.S. consumers $32 billion over equipment lifetimes.

Schwarzenegger and Peevey both argued that the passage of the legislation is key to helping the state's own solar program. Early this year, the California Public Utilities Commission approved a $3.2 billion program that would provide incentives for solar panel installation to residents and businesses. Over the next 11 years, the program aims to add 3,000 megawatts to the state's grid. It represents a victory for the governor, who had proposed the program as the Million Solar Roofs Bill a year earlier.

"Passage of S. 2677 would be particularly beneficial to California's many solar initiatives, including our industries that invest in and create these new technologies," Schwarzenegger said in the letter. "Continuing these credits would leverage even further the ratepayer funds already committed to solar power investments ... [and] would stimulate the investments needed to drive down the industry costs, so that ultimately these subsidies can be eliminated."