At a time of continued high unemployment and global competition in the energy industry, failing to extend renewable energy incentives will stall investment in critical energy projects like wind, leaving many project developers and turbine manufacturers with no choice but to lay off workers.

The production tax credit (PTC), in place since 1992, has proven to be one of the most effective tool for expanding the supply of American-generated, clean energy. Extending the PTC, which has a long-term track record of creating American jobs, is essential to reaching our goals of bringing down energy prices for consumers, encouraging investment, strengthening our energy security and enhancing our global competitiveness.

It’s also essential we understand what the PTC is, and what it is not. It is based solely on the performance of a given project, not the discretion of government officials. In the case of wind power, a wind project developer doesn’t receive the credit until a project is up and running – actually generating power for America’s families and businesses.

The PTC, which is currently scheduled to expire in 2012, must be extended as soon as possible. Wind projects often require several years to complete, making long-term market signals necessary for investors and developers alike. When the PTC has been allowed to expire in the past, installations of wind projects have dropped between 73 and 93 percent, resulting in corresponding job losses.

The U.S. wind energy industry now supports approximately 80,000 jobs across the country, and has had an average annual growth rate of 35% over the past few years. There are more than 400 facilities across 43 states manufacturing products for the wind energy industry. Since 1980, the price of American wind power has dropped over 90% and is very close to being competitive with more traditional forms of energy – a win for consumers as well as utilities. However, according to the Energy Information Administration, if the PTC is permitted to expire very little, if any new wind projects will be built in 2013. This could cost as many as 40,000 jobs. A failure to extend the PTC would strike a serious blow to a growing and vibrant sector of the American clean energy economy.

Due to its structure and its success, the PTC has had strong bipartisan support since its inception. There is widespread agreement that U.S. policymakers should do everything in their power to increase both the diversity and domestic supplies of American energy, and ensure the United States competes in the global energy industry. We hope that that bipartisan support for this proven program continues.

Certainty about the future is a luxury that Americans have not enjoyed in recent years. From the wild swings on Wall Street to Congressional stalemates, it seems the financial outlook changes so much from week to week that everyone is playing it safe by holding back.

Yet amid all the uncertainty surrounding our economy and legislative processes, the emergent American clean energy industry has proved to be a viable driver of growth and innovation. From 2003-2010, the clean energy sector grew an average of 8.3 percent, nearly double the growth rate of the overall economy during that time. This new industry has the power to transform American manufacturing and unlock the $2.5 trillion global clean energy economy.

Now, however, the potential expiration of key clean-energy tax support for wind and solar companies threatens to spoil the consistent growth that the industry has experienced. In this risky investment climate, it comes as no surprise then, that many would hesitate to invest in young industries still proving themselves. But time and again, these incentives have leveraged tremendous private investment for every $1 of support. For example, since the enactment of the Section 1603 Treasury Program for renewable energy development, the program has leveraged over $22.8 billion in private sector investment to support over 22,000 projects representing over a dozen clean energy industries in all 50 states. Similarly, the wind industry has grown 12-fold due in part to the production tax credit. These programs have put clean energy on a more level playing field with fossil energy, although fossil energy continues to enjoy huge subsidies that never seem to expire. Failure to renew these job sustaining renewable energy financing programs would erode any incentive to invest in emerging technologies like wind and solar power.

As the expiration date of these essential programs approaches, and Congress ponders their renewal, it is useful to count the truths on which we can rely in these times of uncertainty. Without renewing these tax credits, clean energy cannot achieve its potential as a viable, cost-effective power source.The tax credits increase certainty for investors looking to make cost effective investments in renewable energy technology. When similar tax credits have expired in the past, installations have dropped between 73 and 93 percent, with corresponding job losses. Moreover, the impended expiration of these financial incentives has created unnecessary pressures on agencies responsible for permitting these projects. Predictable fiscal conditions enable sound, defensible decisions.

The lapse of the clean-energy tax credits would create unnecessary burdens on a promising industry and those who work in it. That much is certain. It is important to secure the credits, not only for 2012, but to promote long-term investment and sustained industry and job growth in the years ahead. Without the incentives to invest in renewable energy, we can count on more of the same: status quo dirty energy, a stagnant economy and job market, and an uncertain future.

Support for renewable energy brings together a diversity of stakeholders: business leaders, workers, environmentalists, and defense experts. That’s because investing in our budding clean energy businesses doesn’t just create jobs, it also curbs our dependence on foreign oil and creates the market certainty that fuels growth in the renewable energy sector. Even though we are now exporting more refined oil products than we import, we’re still importing 51% of the oil that we consume. We account for about 22% of global oil consumption but only 10% of oil production. It is far more strategic for our country to invest in renewable sources of domestic energy than by improving access to finite sources of fossil fuel energy resources.

Federal energy tax incentives assure the deployment of American clean energy at a time when competitors like China and Germany are aggressively expanding manufacturing, research, and deployment of these technologies. Beyond providing direct support for renewable energy manufacturers, programs like the production and investment tax credit and the 1603 Treasury Grant Program help clean energy companies leverage millions of dollars in private investment as well. Since its enactment, for instance, the 1603 program alone has leveraged $22.8 billion in private-sector investment for 22,000 projects in all 50 states across the clean energy industry.

These incentives support jobs around the country. In 2010, wind-related manufacturing employed roughly 20,000 people and the industry supported 75,000 direct and indirect wind-related jobs across the country. More than 100,000 Americans work in the solar industry, double the number since 2009. In the last year, solar grew by 69 percent, making it one of the fastest growing sectors in the economy. This innovation leads to new jobs. In my district, SoloPower is building a plant to manufacture lightweight, flexible high-power solar panels in Portland to open in May – to start with 170 workers, and likely grow to 500. Seven facilities in Oregon currently manufacture components for the wind energy industry and two more have been announced, supporting thousands of jobs. There are examples like this across the country.

It is critically important that Congress act to extend these programs. The construction for clean energy projects is planned months if not years in advance, and financing of those project depend on the certainty of the tax code. Construction efforts will collapse if these programs are not extended in a timely manner. It’s time to extend these enormously successful programs so American know-how can keep producing domestic clean energy and jobs across the country. Even in today’s divisive political climate, clean energy is something that members of both political parties should agree on.

(These comments were submitted by Tom Simchak, Senior Associate of Policy & Research at the Alliance to Save Energy.)

An often overlooked, but critically important part of national energy policy, energy efficiency is the most cost-effective, clean, and secure way to address growing demand for energy. While many energy efficiency improvements pay for themselves (that is, consumers save more on energy costs than they paid for the efficiency improvement), the up-front cost of implementation remains the primary barrier to most energy efficiency upgrades. That’s where tax incentives for consumers and manufacturers play an important part. Yet nearly all of the federal tax incentives for energy efficiency are set to expire at the end of this year.

A manufacturer tax credit for production of energy-efficient appliances drives development of efficient models while bringing down the cost of those models for consumers. As this tax credit is available only for appliances produced in the United States, it protects domestic jobs as well. Similarly, a credit for builders of energy-efficient new homes both encourages residential energy efficiency when it is most cost effective (when a building is being first built) and assists a struggling sector of the economy. And it’s been a success—the number of homes that achieve 50% energy savings to qualify for the credit has quintupled even while the overall housing market crashed.

Consumers directly benefit from a credit for home energy efficiency retrofits. This credit -- for certain equipment like water heaters, air conditioners and furnaces, as well as for building components like insulation, windows and doors -- helps consumers afford to make their homes more energy efficient.

Two energy efficiency- related transportation incentives also are about to expire. They are a credit for alternative-fuel vehicles’ charging and refueling equipment, which encourages electric cars, trucks and motorcycles, and an increase in the amount of pre-tax mass-transit benefits that employers can provide to their employees.

Rather than simply extending these incentives in their existing form, however, it is important to increase the energy savings and decrease the cost to the Treasury by ensuring that energy efficiency tax incentives are driving the cutting edge of the market. Rewarding purchases consumers would have made anyhow achieves little, so the Alliance to Save Energy recommends raising the technical eligibility requirements for several of the credits. This has already been done several times over their history, including in last year’s tax extenders package.

At a time when so many consumers are grappling with numerous economic hardships, energy efficiency must be a central part of policies that not only help consumers meet rising energy costs and make their homes more comfortable but also create jobs and protect the environment. Energy efficiency measures almost always mean real, skilled jobs here in the United States: installation and retrofit jobs cannot be exported abroad.

Energy efficiency must be a central pillar of our nation’s energy policy, and we urge Congress to strengthen and renew for 2012 and beyond the about-to-expire efficiency incentives that are an important way to help consumers become more energy efficient.

This Thanksgiving, I visited my mother at her retiree community in Florida. When she moved there I remember people walking, or getting around by tram. This time, I saw an army of golf carts. Government-subsidized golf carts.

The Emergency Economic Stabilization Act of 2008 included a low-speed electric vehicle tax credit, applying to vehicles purchased in 2009. More than 20 companies got approval for golf cart-like vehicles that year; many were specifically designed to receive credits up to the full purchase price of the vehicle. That means some folks got free golf carts, courtesy of Uncle Sam. Talk about waste.

That’s the beauty of expiring tax credits: We get to step back and reevaluate if this is really how we want to use limited resources. In the case of energy tax credits, especially in the current fiscal climate, there’s a better way to spend government funds.

Many argue that tax credits promote economic growth in emerging markets and level the playing field with incumbent technologies. Instead, these subsidies muddy the playing field by playing favorites; growth booms in favored industries, and languishes in others. This isn’t the proper role of government. Rather than identifying those energy technologies most in need of subsidies, Congress should be working to promote vigorous competition in an open market; set tax rates that encourage growth, income, and employment; and support foundational research that will generate fodder for new innovations and technologies in the future.

Mike Pompeo’s Energy Freedom and Economic Prosperity Act, introduced last month, is a step in the right direction. HR 3308 wipes out existing energy tax credits, dedicating the savings to creating a low, flat corporate income tax. Instead of promoting existing and emerging energy technologies piecemeal, the Pompeo bill asks companies to compete – without subsidy – under a straightforward and business-friendly tax structure.

This is where government best serves the economy and the country: Setting clear, understandable terms for competition. Energy credits offer unfair advantage to a limited subset of technologies. If that funding went to support a simplified tax code and existing basic research programs, we could leave picking winners to the market. Hopefully, Congress will soon update our tax code through comprehensive reform. Till then, letting these tax credits expire is a great start.

In today’s competitive global economy, technological innovation is essential to long-term U.S. economic security, and the energy sector should be a particular priority. Failure to extend key U.S. clean energy initiatives would be contrary to U.S. interests.

Expansion in the clean energy industry will fuel economic progress and strengthen our national security. American scientific leadership has spurred innovative new energy generation and storage technologies — from solar and wind power to fuel cells and electric vehicles. These sources can be domestically produced and deployed over time. And these are the energy options that the world’s fastest-growing economies are using to support development without harming the environment.

Research by The Pew Charitable Trusts shows that the clean energy sector is growing rapidly — by more than 600 percent in the past seven years. According to Bloomberg New Energy Finance, investments in this sector eclipsed those for conventional energy last year for the first time. Additional Pew research shows that investment in the sector could total some $2.3 trillion this decade.

As the leading inventor of modern energy infrastructure, the United States should be a prime beneficiary of emerging global interest in clean energy. But we are not capitalizing on our scientific advantage. Instead, we are abdicating manufacturing and deployment opportunities to other nations. Pew’s Who’s Winning the Clean Energy Race? 2010 Edition found that China and Germany have taken the lead in the sector and that the United States is falling behind on a variety of measures.

The U.S. competitive position in clean energy is at risk because our policy environment is uncertain and capital is sitting on the sidelines. Simply put: Policy matters. Whereas China and Germany have long-term, national, clean energy policies to attract investment and spur job creation, the United States has provided limited incentives of short duration and no long-term reliability. This leaves business unable to adequately plan projects and investors searching for greener pastures.

Our research demonstrates that where national policy is strong, investment follows. Private finance and investment seek out and thrive in environments that offer market transparency, longevity, and consistency, and dry up in places that don’t. The United States lacks such a policy.

Unlike a number of conventional energy supports, some of which have been in place for more than 50 years, clean energy tax measures are more modest, and they are not permanent. The energy playing field is not level, and it is not sensible to continue to subsidize technologies of the past while inhibiting our competitive position with respect to the fastest-growing global technologies and markets.

This month, Congress has the opportunity to send a signal about U.S. determination to compete and win in the global clean energy sector. Our legislators should extend three essential tax credits. One supports production in the wind industry, and the other encourages investment in industrial energy efficiency. Further, the Treasury Department’s grant program for solar, known at 1603, should also be continued. These modest clean energy incentives should be extended to get capital off the sidelines, help U.S. industry compete globally, and contribute to a more prosperous, clean, and secure nation.

Congress is currently wrangling over extension of a temporary payroll tax cut intended to stimulate domestic spending. The tax cut will not stimulate spending if consumers are forced to pay higher prices at the pump, in their energy bills, and for everyday products because of another rise in oil prices.

Renewed economic growth and security depends on producing affordable domestic alternatives to all products that come from foreign oil. Building the biobased economy is the key, because biotechnology enables solutions to a broader range of energy challenges.

Sen. Debbie Stabenow (D-Mich.) has proposed a $5 billion extension of the Credit for Investment in Advanced Energy Facilities. This investment credit has been very successful in helping companies raise capital for construction of wind, solar, energy storage, and biofuel facilities. Renamed the “Grow It Here, Make It Here” initiative, the proposal would allow biorefineries producing renewable chemicals and biobased products to qualify. These biorefineries can reduce reliance on imported oil by creating alternatives to the entire barrel of oil. They can also revitalize domestic manufacturing and create or save good jobs.

Tax incentives can help companies attract private investment and raise capital, but to be effective they need to be stable, long-term and technology neutral. Sens. Dianne Feinstein (D-Calif.), John Thune (R-S.D.) and Amy Klobuchar (D-Minn.) this past summer proposed to extend the production tax credit for cellulosic biofuels. While the current credit does not expire this year, renewing it today and extending it to 2016 would help companies look ahead, plan and invest to continue progress in building the biobased economy. Enabling renewable chemicals and biobased products to qualify for the same production tax credits would enhance the effort, by supporting a broader range of energy solutions.

Beyond tax credits, Congress must continue policies that support growers in the sustainable production of biomass and deployment of biotechnology to improve productivity. To build a robust biobased economy, policies should provide technology neutral support to all biobased products, renewable chemicals, and biofuels.

Congress should renew the clean-energy tax credits that support renewable electricity generation. NARUC has long supported tax credits as a way to stimulate renewable energy development. As we’ve seen across the country, States are the driving force in getting clean and renewable forms of energy developed. These tax credits are an important part of this success.

This is particularly the case in the 33 States with renewable portfolio programs that have put in place renewable portfolio programs, many of which will be ramping up in the next decade.

Expanding renewable energy will be critical as our utility sector faces new environmental regulations. Diverse fuel resources have always been an important part of our nation’s energy mix, at least at the State level, and if utilities are expected to comply with new clean-air rules, policies that facilitate clean energy development will be an important part of compliance strategies.

Although we’ve seen strong growth in renewable energy, the more we can bring on line, the better off the country will be as we transition to a cleaner energy economy. This transition will be expensive and our nation’s electricity ratepayers will bear the burden. We can make this burden a little lighter if Congress continues these tax credits.

Subsidies for all types of energy should be evaluated and considered for elimination. U.S. taxpayers have subsidized renewable energy projects in wind and solar and other renewables for more than 30 years and still they are not competitive in many cases. Given our severe federal budget pressures these subsidies should be phased out. Studies have also analyzed the impact of subsides for corn-based ethanol; many conclude that they have raised global food prices and have questionable overall environmental benefits.

Table 2 from EIA study Capital Cost Estimates for Electricity Generation Plants shows that renewable energy tends to have higher upfront costs and often has to be backed up with conventional energy sources. EIA shows that costs for conventional natural gas electricity are at $978 per kW versus $5975 per kW for offshore wind. While subsidies for basic research in energy sources may be appropriate, its not cost effective for taxpayers especially in these times of economic struggle to subsidize sources that can't survive in the marketplace without government funding. We shouldn't be raising U.S. electricity costs for the very little global environmental benefits especially given the tremendous greenhouse gas emission growth abroad.

Federal spending of any kind must be thoughtful and deliberate as we manage a looming deficit and high unemployment rates. So any discussion about tax credits needs to take into account these two key issues. I submit that renewable energy tax credits do just that. They are an investment in jobs and a down payment on our deficit.

There’s little disagreement about the need to reduce our deficit and add jobs. The disagreement is how do we do both. President Obama has it right: clean energy and energy efficiency are an investment two-fer.

If the question is where our money is best spent, I’d put clean energy incentives at the top of the list. No energy industry in our nation’s history has survived without federal support, and as the price of photovoltaics and other technologies drops, the amount of support required to make clean energy alternatives cost-competitive with their traditional counterparts drastically decreases.

To think of it another way — clean energy is here to stay, no matter what Congress does. Solar and wind will only take a little longer to root themselves in the United States without tax incentives. But if we don’t take action to foster these industries, we will have to stand by and watch while other countries reap the benefits of a new clean energy economy.

I say we commit now, and prove to the rest of the world that the United States is still the great pioneer it once was. And at the same time, we’ll create jobs and a healthier environment for generations to come.

Don't forget about offshore wind which provides an opportunity to create jobs, build the domestic energy supply and begin the needed transition from fossil fuels to clean energy. A small extension of an existing tax credit could go a long way.

Given the multiple challenges we face, Congress must act to fully support and invest in renewable energy sources like offshore wind that are clean and unlimited, and will serve as economic engines which are so critically important. Unlike most initiatives right now, there is bipartisan support in both the House and Senate for helping to stimulate the offshore wind industry. This is a promising opportunity that should not be missed.

Because offshore wind will be a new industry in the U.S. it has the potential to create more than a hundred thousand new and long-lasting American jobs. Based on the National Renewable Energy Laboratory’s (NREL’s) estimates, President Obama’s goal of building 54 GW of offshore wind by 2030 would create nearly 60,000 permanent (20-25 year) operations and maintenance jobs. Additionally, it would create 2.1 million job-years of work in manufacturing, installation and construction. That’s the equivalent of another 84,000 25-year jobs, or even more shorter-term positions. During these tough economic times, the job creating potential of offshore wind simply cannot be ignored.

Besides creating jobs, offshore wind will help us achieve energy independence. The Atlantic Coast has the potential to generate at least 127 GW of offshore wind energy. And because so much of the nation’s population lives on the East Coast, offshore wind power is perfectly situated to meet our energy needs. Oceana’s report, “Untapped Wealth,” found that wind from the Atlantic coast alone could power at least half of the East Coast and NREL has suggested that even more power could come from this currently-ignored source of clean energy. Renewable energies like offshore wind will also help us minimize the costly and difficult challenges that will result from climate change.

To capitalize on this incredible energy resource and reap its economic and environmental benefits, Congress must renew the Investment Tax Credit (ITC) for offshore wind. Bipartisan legislation already has been introduced in both the House and the Senate to provide this essential tax incentive that will spur investment in and production of offshore wind energy. The Incentivizing Offshore Wind Power Act encourages offshore wind development, while limiting the cost to taxpayers, by providing investment tax credits for the first 3,000 MW of offshore wind placed into service.

The Incentivizing Offshore Wind Power Act would send a clear signal to investors that the offshore wind industry is a lucrative investment that has the support of the federal government. This can help jump-start a technology that has been proven beneficial in Europe and that can in turn help to jump-start our economy. Without that signal, offshore wind development and the economic and environmental promises of this clean energy industry might never be fulfilled.

Real tax reform is long overdue. With the one of the federal renewable energy tax programs set to expire at the end of this month, the 112^th Congress has an opportunity to change that and begin the politically difficult yet economic critical process of pruning the U.S. tax system.

These measures take tax dollars and give them to companies that only exist because of subsidies. Consider Section 1603 of President Obama’s 2009 stimulus. The provision simply gives cash to companies that develop renewable energy installations. According to the Treasury Department’s October 2011 report, this rent-seeking boondoggle has cost taxpayers $9.6 billion to date—nearly three times the $3.4 billion originally budgeted for it.

This kind of transfer payment is a clever way of stripping hard-earned cash from U.S. taxpayers and redistributing it among politically connected firms (ie. Solyndra) often incapable of competing in the marketplace.

Section 1603 is just one example of a growing trend. In a 2011 evaluation of federal subsidies for energy producers, the U.S. Energy Information Administration (EIA) found that federal energy subsidies grew by more than $19 billion from 2007 to 2010—from $17.9 to $37.1 billion. Accounting for $9 billion of that total jump, renewable energy enjoyed the biggest increase. Subsidies for these fuels (wind, solar, biofuels, etc.) now total $14.7 billion.

Just how much bang are Americans getting for their buck? A 2008 EIA report demonstrated that while all energy sources averaged $1.65 subsidy per megawatt hour (Mwh), wind and solar received nearly 15 times that—about $24 per Mwh. This corroborates findings of many technical analyses, which demonstrated that both wind and solar technologies are limited because of low power density and intermittency.

Our neighbors across the pond have already learned this the hard way. Now facing severe fiscal crises, European governments are repealing many of their “green” handouts. Spain is cutting back on the nearly €23-billion it’s doled out to its solar industry since 2002. Despite that high price, studies have shown 2.2 Spanish jobs were lost for every “green” job created Other nations like France and Germany are following suit. In the United Kingdom, economic research found renewable energy destroyed 3.7 jobs for everyone it created.

For the U.S. to extend the tax existing credits when we are faced with the most serious economic problems in decades would be an extreme example of government folly, as well as irresponsible.

Ethanol presents a similar story. Originally intended to reduce our country’s reliance on foreign oil when introduced in 1978, the ethanol subsidy became just another way for lawmakers to funnel money to special interests. In 1990, the Clean Air Act (CAA) amendments gave a further boost by writing into law a requirement for additives that oxygenate fuel—namely, ethanol. On top of existing mandates and credits, Congress in its infinite wisdom has imposed a volumetric mandate that cannot be achieved because gasoline demand has plateaued.

Though failing to meet both their energy (imports) and environmental (emissions) objectives, these subsidies now cost Americans about $6 billion annually while also impacting our vehicles’ performance and driving up food costs around the globe.

These costly wind grants and ethanol tax credit add to the list of failed federal attempts at industrial policy. The time is long past when Congress should just stop trying.

As Congress and the Administration move to reduce excessive federal spending and look for increased revenue without increasing taxes, it is important that they use a scalpel and not a meat-ax. The best—but also most difficult—way to deal with subsidies is complete tax reform. Individual Americans and U.S. business shouldn’t have to spend so much time and money to work with specialists to complete their tax returns. (A 2005 Government Accountability Office report found the efficiency cost of our tax system to be as much as $600 billion annually.)

In the meantime, Congress should get rid of programs that give tax dollars to politically favored companies while scrapping tax credits intended to promote politically-driven outcomes that aren’t commercially viable (ie. credits for electric cars and ethanol). Getting rid of these selective subsidies would raise government revenue without raising taxes. Voting against extending these particular subsidies is a good place to start.

Congress should extend the renewable energy production tax credit (PTC) before the end of this year. Here is why:

First, American manufacturing jobs are coming back, with tens of thousands of new jobs from wind power. But these jobs could vanish if Congress allows the credit to expire, in effect enacting a targeted tax increase, crippling an American manufacturing success story and sending our jobs to foreign countries. With a job-killing tax increase on the horizon and the PTC's future uncertain, businesses are hesitant to plan future US wind projects, American manufacturers have seen a drop in orders, and layoffs have already started. For the purposes of the American wind industry manufacturing sector, which needs lead time to make its products, the PTC effectively expires at the end of this year. To preserve tens of thousands of good-paying manufacturing jobs, the wind energy industry urgently needs Congress to take action to extend the PTC before the end of this calendar year.

Second, the PTC is a proven, effective tool to keep electricity rates low and encourage development of proven renewable energy projects. The past four years of stable tax policy demonstrate the economic security and energy diversity benefits that the wind industry can continue to provide in a stable policy environment. During those four years, the wind industry has grown at an annual rate of 37 percent. Today, over 400 facilities across 43 states manufacture for the wind energy industry, and 60 percent of a wind turbine’s value is now produced here in America, compared to 25% prior to 2005. Also, the price of American wind power has dropped by over 90% since 1980, benefiting utilities and consumers, and more than $60 billion of investment has been made since 2005.

Third, the PTC directly impacts American wind energy investment and project development. The wind industry’s boom-and-bust cycle is evidence that the PTC affects project development. When it has been allowed to expire in the past, installations have dropped between 73% and 93%, with corresponding job losses.

Finally, the PTC is a performance-based business tax credit that is supported on a bipartisan basis. It applies only to actual electricity produced from utility-scale wind turbines--a wind project developer does not receive the credit until the wind turbine actually generates power. Because it is a business tax credit, funding is based solely on project performance, not evaluation by government officials. The PTC has been supported on a bipartisan basis in the past, and continues to receive support from both sides of the aisle.

For all of these reasons, Congress should extend the renewable energy Production Tax Credit now.

Picture Fenway Park on Opening Day, as 37,000 excited fans in a sold-out stadium cheer for their beloved Boston Red Sox. Now imagine Fenway today, season over and the stadium empty, quiet and lifeless.

It’s a stark contrast, and here’s how it relates to the U.S. solar industry: That many American solar jobs – 37,000 in the next year alone – are at stake if Congress does not extend the Treasury Department’s Section 1603 Program by the end of December, according to an independent analysis. And that only includes jobs in the solar industry; many more are at risk in other energy industries.

An extension of the 1603 program also would create 2,000 additional megawatts of solar capacity across America – enough to power 400,000 homes.

Simply put, the 1603 program is one of the most successful policies ever enacted to deploy renewable energy. The program enables a dozen energy industries to take advantage of tax credits that enjoy bipartisan support in Congress. Since it became law in early 2009, the 1603 program has spurred almost $23 billion in private sector investment to help jumpstart more than 22,000 energy generation projects across every state, creating tens of thousands of American jobs.

In a cloudy national economy, solar has provided a ray of sunshine, thanks largely to the 1603 program. At a time when Americans need jobs, the U.S. solar industry is creating them seven times faster than the rest of our economy. Solar now employs more than 100,000 Americans at 5,000 companies – mostly small businesses – in all 50 states. That's twice as many solar workers as there were in 2009.

No industry in America is growing faster than solar. In the last year, the solar market grew by almost 70 percent. By 2014, solar is projected to be the largest source of new electric capacity in the U.S. And the industry is on target to reach its goal of installing 10 gigawatts of solar capacity – roughly the same as 10 coal-fired power plants – each year by 2015.

But make no mistake – if Congress fails to extend the 1603 program, this growth in solar and across many energy sectors would be threatened and American jobs would be lost. And it’s not just solar and clean energy jobs at stake.

That is why a SEIA-led coalition of more than 750 companies, small businesses and organizations from all 50 states and across a dozen energy technology industries have joined together to ask Congress to extend the 1603 program before it expires on December 31. This coalition includes electrical contractors, engineers and roofers, some of whom helped install the solar water heating systems on the top of Fenway Park.

Congress was smart to enact 1603 in early 2009 – it sparked investment in clean energy when capital was locked up during a recession. And the same recessionary conditions that led Congress to create the 1603 program still exist today. A July 2011 survey of all tax equity investors by the U.S. Partnership for Renewable Energy Finance estimates that if the 1603 program expires, the total financing available for renewable energy projects would shrink by 52 percent in 2012.

It’s the bottom of the ninth inning for policymakers in Washington. Congress has a clear choice: extend the 1603 program and fill the stadium with new American jobs, or do nothing and watch the stadium slowly empty.

After a year with few bipartisan victories, Congress and President Obama have a chance to win one for the taxpayers by doing something simple...nothing. By allowing 30 years of ethanol subsidies and trade protection to expire as scheduled on December 31st, government leaders will help lower fuel prices, save taxpayers money and provide Americans with greater access to advanced renewable fuels like sugarcane ethanol. In this rare case, inaction is the best action.

A Booming Industry Can Stand On Its Own

Tax credits and import tariffs likely made sense in 1980 to foster the nascent ethanol industry, and the policies have unquestionably worked. Unlike some other clean energy technologies, America’s corn ethanol industry has blossomed into a thriving business, and this year the United States solidified its new position as the world’s largest ethanol producer and exporter – shipping an estimated 900 million gallons around the globe. Half of America's exported ethanol winds up in Brazil, where it enters that country without paying a tariff. From growing production to record exports, it’s clear that corn ethanol producers are in better shape than ever to handle increased competition, and in fact they’re now welcoming the opportunity.

The Politics of Market Competition

As this industry grows stronger daily, so does the recognition that it’s time to remove the training wheels of support. In June of this year, many applauded as Congress made its intent clear when the U.S. Senate voted 73-27 to eliminate the ethanol tariff. And just last week the U.S. Chamber of Commerce sent this letter to lawmakers explaining their rationale for removing this import tax saying:

“These trade barriers prevent U.S. consumers from abundant and potentially more economical choices from friendly nations like Brazil…The elimination of the import tariff on foreign ethanol would create an open, competitive marketplace resulting in more choices for consumers, less global fuel price volatility, and perhaps most importantly, increased savings at the gas pump for U.S. drivers.”

Sugarcane ethanol producers agree that consumers win when businesses compete in an open market. Competition produces higher quality products at lower costs – a principle that holds true for renewable fuels. Allowing other alternative fuels like sugarcane ethanol to compete fairly in the U.S. will save Americans money, cut dependence on Middle East oil and improve the environment.

Corn Growers & Domestic Ethanol Producers Seem to Agree

With momentum building towards inevitable expiration, corn ethanol growers have adjusted their tune and are now speaking with one voice to embrace the tides of change for their industry. Just this week the Renewable Fuels Association President Bob Dinneen confirmed that, "The industry is in a state of evolution. We never wanted to be tied to the taxpayer forever and now is…the right time for the tax incentive to go away.”

Brazil ended government subsidies for ethanol more than a decade ago and eliminated its tariff on American ethanol early last year. As the world's top producers of ethanol, the U.S. and Brazil should lead by example in creating a free market for clean, renewable energy. Incredibly, and with no action at all, Congress is in a position to usher in a new era of energy efficiency and secure a better American for decades to come. Sugarcane producers look forward to playing an important role supplying America’s clean energy future.

The rising national debt is a critical issue that must be addressed holistically, but not at the expense of pursuing solutions to the universally acknowledged problem of dependence on foreign oil. Congress should invest in a portfolio of energy innovation policies, including tax incentives for consumers and investors, as well as public/private research and development efforts that will accelerate the electrification of transportation and help the nation establish a secure and sustainable energy future.

When calculating the price of tax incentives, Congress needs to consider the cost of our dependence on foreign oil. According to the International Energy Agency, in 2010 the U.S. spent $300 billion or 2.1 percent of its GDP, on net imports of oil and is expected to spend close to $400 billion this year. In addition, the U.S. consumes about 7.5 billion barrels of crude oil a year; every $10 a barrel increase costs the economy about $75 billion, according to the Wall Street Journal.

In addition to advancing technology solutions to a national problem, tax incentives for investment in electric drive vehicles and infrastructure also support the growth of jobs throughout the supply chain. Advanced vehicle component suppliers alone now employ some 155,000 U.S. workers.

Key incentives for advanced transportation includes the credit for charging (and other alternative refueling) infrastructure. As plug-in vehicles are just reaching the market, the incentive for businesses and consumers to invest in charging options is expiring. By extending the credit, Congress will help speed the adoption of electric vehicles for private and commercial uses.

Further, extending the now-expired incentive for electric drive in the medium and heavy duty fleet can also extend the U.S. lead in hybrid truck technology. Advanced technology trucks have the potential to save millions of gallons of fuel and substantially reduce air pollution emissions. These incentives will help businesses take advantage of efficient technology options and will spur greater investment in advanced vehicles and components manufacturing. By any measure – national security, economic return, environmental benefit – incentives for electric drive vehicles and infrastructure provide a critical, measurable return for taxpayer dollars.

In October 2011, the International Energy Agency warned of ballooning world fossil fuel subsidies: "Global subsidies for fossil fuel consumption are set to reach $660 billion in 2020, or 0.7 percent of global gross domestic product, unless reforms are passed to effectively eliminate this form of state aid, according to the International Energy Agency. The IEA estimated such subsidies at $409 billion in 2010, compared to $312 billion in 2009. Oil products had the largest subsidies at $193 billion in 2010 while $91 billion went to natural gas." The Union of Concerned Scientists released a report, “Nuclear Power: Still Not Viable Without Subsidies,” found that more than 30 subsidies have supported every stage of the nuclear fuel cycle, from uranium mining to long-term waste storage. Added together, these subsidies often have exceeded the average market price of the power produced. US fossil subsidies come in many forms, from oil depletion allowances and intangible drilling costs, overseas refining credits, special treatment on coal royalties, to name a few. According to one article, "During these years of negative taxation, 32 companies in the fossil-fuel industry -- from Exxon Mobil and Peabody Energy to ConEd and PG&E -- transformed a tax responsibility of $17.3 billion on $49.4 billion in pretax profits into tax benefits of $6.5 billion, a $24 billion windfall. The Environmental Law Institute reports, "estimates of the value of US federal subsidies to the domestic oil industry range from roughly $6 billion a year, to an amazing $39 billion annually. A recent comprehensive study of US energy subsidies identified $72.5 billion in Federal subsidies for fossil fuels between 2002-2008." Seven times more subsidies go to mature companies, with mature technologies, in mature markets of which 206.8 million people in the USA donate $72.5 billion annually to the petroleum , natural gas, coal, and nuclear industries. Renewable energy and energy efficiency applications such as combined heat & power, geothermal heat pumps, solar thermal and electric, wind, biomass fuels and power, geothermal electric, and water (freeflow hydropower, wave, tidal, ocean currents and thermal) comprise $12 billion of which half is for biofuels.

In order to have fuel diversity and allow the newer industries to scale to size, tax subsidies for conventional energy should be stopped which would save $1 trillion over a decade, and then over the next 25 years the clean energy subsidies should be scaled down in a dependable, predictable fashion. But to allow the traditional tax credits to stand while cutting renewable tax incentives would be a travesty of public policy, would compromise our economic and national security, and would harm the health of most Americans where chronic respiratory diseases (COPD) has moved up to the nation's third top killer now supplanting strokes due to coal and diesel fuel emissions.

Right now, there are 26 million Americans unemployed, underemployed or discouraged. This is an unprecedented number and over the last two years the unemployment rate has hovered between 9 and 10%. Allowing the Section 1603 Treasury Program, a proven jobs creator, to lapse will place unnecessary cost burdens on solar companies (large and small) and stunt their ability to hire new workers.

Why does this matter? The solar industry increased its workforce by 6.8 percent between August 2010 and August 2011 – nearly ten times faster than the overall economy. During that same time period, fossil fuel electric generation reduced its workforce by 2 percent. In other words, the solar industry is creating jobs when everyone else is cutting jobs or inching along.

According to a report my organization released in October, National Solar Jobs Census 2011, the solar industry now employs more than 100,000 Americans. That’s more than double the number of solar jobs that were estimated two years ago and the Section 1603 Treasury Program was a major driver of that growth.

Extending the 1603 Program will be integral for continuing solar job growth. When surveying employers for our National Jobs Census, employers told us they expect to hire 24,000 new workers by August 2012, but without the 1603 Program, and the continuation of other smart policies that make it easier or cheaper for companies to operate or reduce the cost of solar, it is doubtful that anticipated job growth will occur. A report by EuPD Research found that a one-year extension of the 1603 Program will create 37,000 new jobs.

It is my hope that we will not allow a proven jobs creator to become the victim of election year politics. 37,000 new jobs are at stake.