Advancement of the Clean Energy for America Act

On May 26, the Senate Finance Committee held a markup and vote on the Clean Energy for America Act, passing it through Committee along party lines with a vote of 14-14. The Clean Energy for America Act is a tax reform package that includes new tech-neutral energy tax credits for clean electricity, clean transportation, and energy efficiency. Since the bill passed the Senate Finance Committee, it will now move to the full Senate for approval.

Under the energy efficiency title, the bill supports expanding and extending the Sec. 179D incentive for buildings. The clean transportation title sets long-term battery and fuel cell electric vehicle (EV) incentives, and also includes a tax credit for fuels with 25% lower emissions than the current US average.

In his statement, Committee Chairman Ron Wyden (D-OR) explained that the Clean Energy for America Act will serve as an update to a current system that isn’t working. He elaborated: “The Clean Energy for America Act throws the old system in the waste bin. It replaces the old rules with a free-market, technology-neutral system in which reducing carbon emissions becomes the lodestar of America’s energy future. It can spark a wave of carbon-cutting, job-creating ingenuity all across the country.”

The new, proposed system incentivizes three goals: clean energy, clean transportation and energy efficiency. “It will level the playing field because the same rules will apply to any and all who want to compete, from the biggest fossil fuel companies on down to the smallest renewable startup. For example, if a builder puts up an efficient new home or office, or if they add to the efficiency of one that already exists, they’ll get a tax credit. The more carbon you cut, the cleaner and more efficient you are, the larger the tax break you’ll get,” said Wyden.

You can watch the hearing and read official statements here.

You can read the Clean Energy for American Act here.