Clean Energy Seeks Outlet in Stimulus

That's the message from clean energy and environmental groups after hearing Bush rally for clean energy in his State of the Union address. They, along with some in Congress, want the renewal of a production tax credit, set to expire in December, to be in the economic stimulus package.

On Monday, Bush called for funding clean coal projects, increasing the use of renewable fuels and nuclear power and investing in advanced battery technology. But extending the clean energy tax credit is not part of the roughly $150 billion economic stimulus package the White House endorsed.

The energy bill Bush signed last month left out tax breaks for various clean energy industries that would have been funded by higher taxes on large oil companies. Also missing were requirements that investor-owned utilities generate 15 percent of their electricity from renewable sources.

Since the Senate just rejected the tax hike on large oil companies in the energy bill, consumer and environmental groups doubt that lawmakers can get it included in the stimulus package.

"I'm not saying it can't be done, but there's a tough road ahead," said Tyson Slocum, director of the energy program at consumer group Public Citizen.

Slocum said he's not aware of any funding plans to offset the costs of the clean energy tax credits, and the proposal already faces stiff competition from others "admittedly more directly stimulus related."

The president and House of Representatives endorse an economic stimulus package of about $145 billion, centered on tax cuts for business and rebates for individual taxpayers. But additions to the bill in the Senate could delay or derail it, Bush said Monday.

The Senate version also lacks an extension of the credits, although Senate Finance Committee Chairman Max Baucus plans to act on them later this year, an aide to the Montana Democrat said Tuesday.

The Bush administration's budget did not propose an extension of the credits because its priorities are provisions that expire in the current fiscal year, White House spokeswoman Emily Lawrimore said Tuesday.