Energy Policy Act of 2005
The Energy Policy Act of 2005 is a piece of legislation designed to promote a variety of alternative energy production resources other than traditional fossil fuels.
Energy Policy Act of 2005
After much debate, Congress passed the Energy Policy Act of 2005 on July 29, 2005. President Bush signed it into law on August 8, 2005 and the game was on. Although the Act has received its fair share of criticism, it does contain a plethora of economic incentives for the promotion of energy sources other than coal and oil. Combined with the State of the Union comments of President Bush and some rather ugly climate forecasts, it appears as though the economic and political forces in the country are slowly starting to move on the energy issue.
The Act is a pure example of tax relief being used to nudge businesses and individual taxpayers in a particular direction. Instead of outlawing certain acts or moralizing about environmental benefits, the entire Act bribes taxpayers. If you pursue cleaner energy resources whether you’re a business or individual, you’ll get a tax break. If you don’t, you will not. It is really that simple.
Highlights of the Act include:
- Tax credit of up to $3,400 for owners of hybrids.
- Loan guarantees for businesses pursuing innovate technologies that don’t produce greenhouse gases.
- Tripling the amount of biofuel that must be used in the gasoline sold to you.
- $200 million annually for clean coal efforts [very controversial].
- Subsidies for advancing wind power technology.
- Subsidies for advancing solar power technology.
- $50 million annually for biomass energy technology research.
- Tax breaks for home improvements incorporating energy efficient technology.
- All federal government vehicles that can switch to alternative fuels must do so.
The Act has been heavily criticized for favoring current energy companies and the promotion of nuclear energy. Undoubtedly, the oil companies are getting a break, but drilling in Alaska was not included so it is hard to call it a victory for oil companies. New technology coming out of China also suggests a nuclear energy option in which melt downs are impossible. If the information is accurate, revisiting nuclear power seems wise in light of our energy problems.
All and all, the Energy Policy Act of 2005 is the type of legislation one has come to expect from the current administration. You either hate it or love depending on your view of the President.