The letter also stipulates the need to clean up the electric grid and make investments in the power grid. It is expected that the power grid would operate much more efficiently on a digital system that is fully automated. Implementing these measures would reduce energy waste and green house gasses. The improvements will also make the linking of solar and wind power to the electric grid easier. The signatories to the letter included many pension funds, state treasurers and state and city comptrollers.
The House and the Senate Finance Committee bills are similar in many ways. Both bills include a 3 year extension of the production tax credit for renewable energy at an estimated 1 year cost of $13.1 billion. The two bills would also remove caps on residential renewable energy investment tax credits, allowing home owners to claim a 30% credit on small wind energy investments and residential solar and geothermal equipment. The bills includes incentives for home owners to improve the energy efficiency of their existing homes. They would extend a tax credit for efficiency upgrades through 2010 and increase it from 10% of the cost to 30% for 2009 and 2010.
