To encourage conservation at home, Locke proposes energy-efficient lighting, appliances and other items be exempt from state sales taxes. The equipment could help the plants operate longer. And beginning in July 2004, Locke wants to create a tax incentive to encourage some industrial customers, including aluminum plants, to generate their own electricity. The tax break would be tied to maintaining jobs at the plants. Lawmakers from both sides of the aisle pledged support for much of the package, and they put it on a fast track.
Hearings are to begin next week.
Still, Republicans balked at the plan to require utilities to draw from alternative power sources, saying the state shouldn't tell utilities how to run their business. Crouse also said Republicans want incentives to bring new power generation online quickly. Back again this year is a bill vetoed by Locke last year that would grant a tax exemption for construction of new plants. A coalition of environmental and citizens groups praised Locke's emphasis on conservation but called for him to go further. The coalition wants a law requiring utilities to spend at least 3 percent of their revenues on conservation, low-income energy assistance and weatherization.