Wisconsin Ag Connection - National/World News - Senate Passes Energy Bill, Measure Goes to House

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Senate Passes Energy Bill, Measure Goes to House
USAgNet - 06/25/2007

Congress is a big step closer to its goal of tipping national energy policy away from oil and gas development and toward alternative energy sources such as wind, geothermal, and biomass. With the Senate's passage of an energy bill last week, action this week shifts to the House, where Democrats will be rolling out their own plan for America's energy future.

Rifts within their ranks, however, are forcing House Democrats to postpone some tough issues until fall – a move that could complicate coming to terms with the Senate once an energy bill clears the House.

At the heart of the House struggle over energy policy is a standoff between Speaker Nancy Pelosi and Rep. John Dingell (D) of Michigan, a powerful committee chairman with long-standing ties to the auto industry.

Speaker Pelosi wants this year's energy bill to mark a clean break with energy policy of the past, when Republicans controlled the Congress and enacted financial breaks for oil and gas producers. Representative Dingell worries that new regulations could sink already-battered U.S. automakers and cost more industry jobs.

Additionally, the bill calls for studies on the feasibility of ethanol pipelines, higher blend levels and the optimization of flex fuel vehicles; a 20 percent greenhouse gas (GHG) reduction standard for conventional biofuels that allows existing plants to be grandfathered in to the law; establishment of a 50 percent GHG reduction standard for advanced biofuels; corporate Average Fuel Economy (CAFE) standards for automobiles to increase to 35 miles per gallon by 2020; establishes a goal of increasing the nation’s flexible fuel vehicle fleet by 50 percent; and studies relating to the impacts of expansion of biofuels production on various industrial sectors, as well as an environmental impact study.

Meanwhile, the House Ways and Means Committee is proposing $16.1 billion in tax incentives. These include a $4,000 tax credit for people who drive hybrid cars and a $20-a-month credit for people who bike to work, as well as incentives for producers of alternative energy. As did the Senate, the House would pay for the package by raising taxes on oil companies.

With the most controversial issues off the table for now, the energy legislation is shaping up to be "extremely modest," says Tyson Slocum, director of Public Citizen's energy program.