what's up

With gas prices hovering at the $3 mark and clean energy in the ascendency, energy policy is a perennial target in Congress these days.

Last year lawmakers passed a bill that hiked up gas mileage standards, gave an extra boost to ethanol production and phased in other efficiency standards - but a few green measures which didn't make it through may be back on Congress' plate in '08.

green tax incentives

The Senate blocked a measure last year that would extend and expand incentives for green energy; the sticking point being that it would've been paid for by rollbacks on tax breaks for big oil.

The House passed a similar bill in February '08 - with the same deal-killer oil tax hikes. The bill is expected to have a hard time making it through the Senate and avoiding a presidential veto. Below is a snapshot of what's in the bill.

Tax credit would include:

• $6.5 billion to extend tax credits for wind and other renewables for three years;
• $1 billion for those who buy plug-in hybrids;
• $1.5 billion in credits for energy efficient homes;
• $2 billion for green community programs;
• $2 billion for transportation projects in New York.

They'd be paid for by:

• $13.5 billion (over 10 years) in rollbacks on tax credits for big oil;
• $4 billion by switching up how oil companies can claim foreign tax credits.

Updated March 2, 2008