WASHINGTON, D.C.— Karen Harbert, president and CEO of the Institute for 21st Century Energy at the U.S. Chamber of Commerce, today told lawmakers that while targeted tax incentives can play a role in fostering deployment of clean energy, there are other instruments that may prove to be more impactful and less expensive over time.
In testimony before the House Ways and Means Committee hearing on Energy Tax Incentives and the Green Job Economy, Harbert noted that in light of the nation’s ballooning deficit, in addition to fiscal policies, other tools in the policy arsenal should be used to tackle our energy challenges.
“As we examine energy policy, it is more important than ever that we look to options that don’t further burden the taxpayer or jeopardize energy security and offer the greatest return on investment to our economy,” Harbert said. “It is important to realize that tax incentives are only one avenue to foster the deployment of clean technologies, and there are other instruments which, in some situations, may prove more impactful and less expensive over time.”
Harbert advocated for policies that do not single out certain industries for incentives at the expense of others, and discussed alternatives that would benefit a wide spectrum of energy projects. These include regulatory streamlining to overcome siting burdens, concessionary financing through institutions like the proposed Clean Energy Development Administration, and greater energy efficiency gains, especially in the residential and commercial sectors.
“Once a technology has realized the milestone of commercial deployment, it is incumbent on the government to allow American consumers, through the market, to determine whether such technology merits their purchase or not,” Harbert said. “Subsidizing a technology in perpetuity is a wasteful use of tax dollars and does not ultimately further the country’s energy security.”
Harbert cited the Chamber’s longstanding support for renewable energy tax credits for eight years, followed by a scaled phase out over four years. Such an approach would be far more effective than the current “boom-bust” intervals that inhibit private capital from being invested.
She also called for an expansion of nuclear power, as well as more access to offshore oil and gas resources as ways to boost jobs and increase America’s energy security.
Earlier this week, the Institute released a new report shining a spotlight on the need for greater energy efficiency. “Increasing Energy Efficiency: A Key Step in Securing America’s Energy Future” examines action to date to spur investment in energy efficient technologies and makes additional recommendations to the Obama Administration and 111th Congress.
The mission of the U.S. Chamber’s Institute for 21st Century Energy is to unify policymakers, regulators, business leaders, and the American public behind a common sense energy strategy to help keep America secure, prosperous, and clean. Through policy development, education, and advocacy, the Institute is building support for meaningful action at the local, state, national, and international levels.
The U.S. Chamber is the world's largest business federation representing more than 3 million businesses and organizations of every size, sector, and region.