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May 12, 2017

Senate Finance Committee Introduces Clean Energy For America Act

Lauren M. Graham, Ph.D.

By Lauren M. Graham, Ph.D.

On May 5, 2017, Senator Ron Wyden (D-OR) introduced to the Senate Finance Committee legislation focused on reducing carbon pollution over the next decade by incentivizing clean energy and promoting new technologies in the private sector.  The Clean Energy for America Act, which was co-sponsored by 21 Democratic Senators, provides a simplified set of long-term, performance-based energy tax incentives to promote clean energy production and storage.  The legislation would create a technology-neutral incentive for the domestic production of renewable transportation fuels based on the lifecycle carbon emissions of the fuel.  The lifecycle emissions would need to be 25 percent less than the U.S. nationwide average for the fuel to be eligible for a tax credit.  Zero and net-negative emission fuels would be eligible for the maximum incentive of $1 per gallon.  To assist in the transition, the proposed legislation would extend the current expiring clean energy provisions through December 31, 2018.