The Renewable Energy and Energy Conservation Tax Act passed the House on Wednesday by a vote of 236-182, and will next be considered in the Senate, which has failed to pass similar legislation three times since last summer.  The bill, which pledges $18.5 million in tax credits to wind, geothermal and other renewables, and renewed tax credits for individual home owners and businesses investing in renewable energy, will need all the help it can get.  

The green credits would be financed by cutting subsidies to domestic Big Oil producers like ExxonMobil, which enjoyed record profits of $40.6 last year.  It’s an unpopular idea to both the White House, which has threatened a veto, and Senate Republicans like Pete V. Domenici, of New Mexico who sits on the Energy and Natural Resources Committee. 

“Why would you tax oil when we are having troubles, when we aren’t producing enough; we are importing it all?” Mr. Domenici said this month. “A tax on oil production in the United States? It seems kind of dumb to me.”  

The bill is supported by environmental groups, who say renewable energy will bring us closer to energy independence than giving subsidies to domestic oil.  The Sierra Club’s blog Compass writes:

“The bill renews crucial renewable energy incentives that are in danger of expiring at the end of this year.  The bill will create tens of thousands of new clean energy jobs, stimulate the economy with billions in new investments, and bring affordable clean energy to American consumers.”

The conservative Heritage Foundation  argues in its blog that giving tax credits to renewable energy, an as of yet unprofitable industry, would be repeating old mistakes:        

“As it did decades ago, this approach would likely backfire and raise prices for consumers while reducing energy security. Congress should craft a new energy policy that relies on the market to meet the nation’s energy needs.”