Natural Resources Committee Home

February 26, 2008

Dear Chairman Baucus, Senator Grassley, Chairman Rangel, and Representative McCrery:

On behalf of the nation’s governors, we urge Congress to extend expiring tax provisions that encourage the development of renewable energy sources and promote energy efficiency. Continued and consistent support for renewable energy and efficiency through tax incentives are critical to the development and deployment of alternative energy technologies and energy efficiency programs. 

Renewable energy plays an important role in our nation’s energy security; and as such, governors have pioneered a wide array of innovative energy policies in their states.  To supplement state efforts, governors support the development of federal tax incentives to promote clean, secure, and affordable energy to fuel America’s future. 

We also encourage Congress to continue incentives for programs that help families and businesses use energy-efficient building techniques, materials, and equipment readily available in today’s market. Extending incentives for energy efficiency and conservation will slow the growth of future energy needs, minimize ratepayer costs, and lessen potential environmental impacts.

Governors also support the development of carbon capture and sequestration technologies. There are numerous options available including expansion of commercial scale pilot programs, tax credits and other financial incentives, and providing a federal liability guarantee for potential damages from any catastrophic event directly resulting from commercial-scale carbon sequestration.

Securing our energy future must be a priority at both the state and federal level.  We strongly urge you to partner with states by passing legislation on a bipartisan basis to extend expiring renewable energy and energy efficiency tax credits that can be enacted this year. 

Sincerely,