Matthew Engel

Today marked a significant milestone in the course of American history. The single largest non-military expenditure ever in US taxpayer dollars was approved by Congress and the President allocating $700 billion for funds aimed at refinancing the banking and lending industries. On Monday, a bill proposed by the Senate failed in the House by a margin of 228-205, with the majority of Republicans voting against. I must commend the Congress for not flashing a green light on first blush, as they wisely held out for key incentives which were included in today’s revision, passing 263-171 in the House. The initial legislation was denied by a majority of Republicans who could not acknowledge such a massive government intervention in the financial industry. This would go against their core beliefs in free markets and probably upset most of their constituents just a month before elections. In it’s essence, the bill will give taxpayers equity stake in potentially risky ventures.

However, on the bright side, the final allocations included several sweeteners which will give new life to the wind and solar energy industries, at least for the near future. Wind power subsidies, in the form of tax credits, are extended for one year. I found this slightly unhelpful, as wind energy producers will have to lobby again during the next budget hearing and redouble their efforts annually. For a government who is supposed to show strong leadership in the energy sector, this is a feeble accomplishment, compared to all the hoorah surrounding offshore oil drilling. But more positively, solar energy subsidies were extended for eight years, pledging support to homeowners who install these electricity generating systems.

As the dust clears between Senators and Congressional leaders in the House, it is fairly obvious that improvements in alternative energy have garnered enough support to make or break critical decisions on the floor. It is also obvious that the House is far more supportive of alterantive energies. This is clearly evidenced by their original counter bill proposed on Sept. 26 which included most of the approved incentives. According to the Wall Street Journal, a modern $40,000 solar power system, which is sufficient to completely power most homes, is only eligible for $2,000 in federal credits. The new bill would give homeowners as much as $12,000 federal dollars on new installations. This is a significant milestone for personal solar energy use, and I hope to see this rise to its full potential during my lifetime as a mianstream fuel source.