It was probably inevitable that the largest financial issue Congress has faced in the past sixty years would eventually swallow up renewable energy policy as it moves to resolution.  The Senate announced that it would vote on, and likely pass with overwhelming margins on Wednesday, a tweaked version of the $700 billion financial rescue plan.  While the plan includes some changes to the bill that failed in the House, it will also contain extensions of popular Renewable Tax Credit and Production Tax Credit.As we mentioned last week, these tax extensions faced an uncertain future with the House Democratic majority because they were not “paid for” (i.e., offset by increases in revenue or decreases in spending somewhere else in the federal budget).  But by pairing the extension of tax cuts/credits with the bailout package it is possible that it will provide House Republicans with a rationale to change their votes on the $700 billion bailout.  Unfortunately, those gains could be offset by Blue Dog Democrats who voted originally in favor of the $700 billion rescue plan, but now voting against it because unpaid-for tax cuts violate their sensibilities.

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