After four bruising days of intense negotiations, Sen. Orrin G. Hatch (R-Utah) secured a number of provisions in the House-Senate conference report on energy tax legislation that will make a significant impact on Utahns’ energy concerns. Hatch was one of the three Senate conferees to negotiate the tax provisions of the comprehensive energy bill that were completed early this morning.
“We’re providing good incentives that hit right at the heart of our energy problems ? lack of refining capacity and the need for more alternative sources of energy,” Hatch said. “Utah has vast and largely untapped alternative and renewable fuel resources, and the hybrid provisions will go a long way in increasing the number of high-milage, environmentally friendly cars on Utah’s highways.”
The compromise House-Senate energy tax bill includes the following Hatch-sponsored provisions:
? Clean Efficient Vehicles Resulting from Advanced Car Technologies (CLEAR ACT, S. 971): The CLEAR ACT provides tax incentives to consumers who purchase alternative-fuel and hybrid-electric vehicles, tax incentives at the pump for the purchase of alternative transportation fuels, and tax incentives for the purchase and installation of alternative fueling equipment.
? Gas Price Reduction Through Increased Refining Capacity Act (S. 1039): This provision would provide for accelerated depreciation for new refineries or for refineries that are increasing their capacity. The economics of refining are so tough that the United States has lost nearly 200 refineries since the last one was built in 1970. Domestic refineries are unable to meet American demand, so the country is currently importing refined oil products to make up the difference.
? Geothermal and Renewable Resources (S. 1156): This provision would promote geothermal energy, a domestic energy source that could provide energy to more than 22 million homes if fully developed. Experts say Utah has one of the largest underground hot water reservoirs in the nation, and Hatch’s measure would provide tax incentives for electricity produced from renewable energy facilities.