Many Key Elements of Pickens Plan Included in Legislation; Nation Now Needs to Shift Focus to Develop Serious Energy Policy

Dallas, TX, February 10, 2009 – T. Boone Pickens offered the following comment today on the passage of the U.S. Senate version of the economic stimulus plan and the progress made on energy policy and investment:

“The Senate has taken another important step forward with the energy provisions in the stimulus bill that include investments in renewable energy, encourage conservation and provide funding to rebuild our nation’s transmission grid, all of which are critical elements of the Pickens Plan and all of which create jobs. While the House and the Senate will begin efforts to reconcile their legislation and present a bill to President Obama, we need to make sure that we remember that this is only the start of the effort on energy.

“There is much more to do on real energy policy reform. We need to shift our focus to a serious energy bill that addresses the real goal – to reduce our dependence on foreign oil – which will have significant benefits for America by removing one of the greatest threats to our national security and making us more economically secure. The only way to accomplish that goal is to use our abundant supply of domestic fuels in transportation. The Senate and House stimulus legislation still fall short of capitalizing on the potential of natural gas and so I will continue my efforts to focus our government on the benefits of natural gas as Washington further tackles energy policy in the coming months.”

Among the key elements of the U.S. Senate economic stimulus bill that are a part of the Pickens Plan are several important provisions to promote renewable energy including:

  • A 3-year extension of the Production Tax Credit for wind projects and an option to choose an Investment Tax Credit in lieu of the Production Tax Credit
  • $8 billion to find a new renewable loan guarantee program, potentially providing loan guarantees to over $80 in new renewable project and transmission project loans
  • A new investment tax credit for renewable energy manufacturers
  • An additional year of bonus depreciation for 2009
  • Targeted provisions to encourage renewable transmission

While the Senate economic stimulus bill makes some progress, there remain some additional actions that should be taken in conference with the House of Representatives on their legislation including:

  • Include the House passed provision enabling renewable developers to exchange their investment tax credits for grants of equal value from the Department of Energy, but extend the program through 2011
  • Provide direction to the Department of Energy to improve the loan guarantee program so that it provides an efficient process for applying for and receiving loan guarantees