This is the first edition of a regular briefing on alternative energy issues for clients and others interested in renewable and alternative energy. A few states have passed legislation that allows small power producers to sell emissions credits to large producers seeking to meet pollution control standards. A separate analysis of these programs and their potential benefits for small power producers in several states has been prepared by Christine Fillmore of Rath, Young and Pignatelli. Many currently available projects are financially viable due in large part to various federal tax credits. With these credits sunsetting and their extension or replacement uncertain, alternative power producers should already be looking for other ways to offset these high costs.
Emissions credits can be a ready source of revenue.
Gore has sought to emphasize his environmental credentials as vice president and a member of both the House and the Senate. A pre-nomination policy paper reported by BNA said Gore originally recommended a doubling of these tax credits. Campaign documents posted on the Internet in early October say only that Gore supports the credits. Bush, former head of Harken Energy, a small oil company, argues for preserving existing tax advantages rather than creating new ones. His campaign white papers focus on getting the most efficiency out of traditional power generating sources instead of investing in new technologies.