Renewable Energy Recieves Federal Support

With mixed feelings, the environmental community celebrates the signing of the Energy bill by President Bush. This new legislation addresses the long neglected fuel efficiency standards for automobiles, and provides "$6.5 billion in energy research, development, and demonstration (RD&D) funding the bill appropriates for the next decade, including $1 billion for renewable energy programs and $2 billion for carbon capture and sequestration RD&D, both spread over the next 5 years."

There is some concern as to what effect the doubling of corn based ethanol production as mandated in this legislation will have on the environment and agricultural markets. The new energy bill does however provide significant support for second generation bio-fuels. Another bone stuck in the craw of renewable energy advocates was the failure to reduce tax breaks for oil and gas companies while ending tax breaks that support for solar and wind energy projects. When all is said and done, it seems this new energy bill is equal parts status-quo and progress.