Senate Passes Energy Bill But End Product is Far From Comprehensive

Energy bill passes Senate with renewable fuels standard and fuel economy provisions but lacks important tax provisions and a renewable energy standard.

In what can at best be considered a partial victory for clean energy advocates and the Democratic leadership, the Senate passed a stripped down energy package last Thursday night. Shortly before midnight, the Senate voted 62-32 to end debate on the bill, HR 6, and then quickly passed the bill with a 65-27 vote.

While a compromise was reached that preserved a 35 miles per gallon (mpg) by 2020 increase in fuel economy standards, the first major increase in fuel economy standards in two decades, the final energy bill was far from the ‘comprehensive’ energy package Senate leaders had originally promised.

The bill ultimately excluded an important tax package that would have shifted $32 billion in tax incentives from the oil and gas industry to support alternative and renewable energy and energy efficiency. It also left out a renewable energy standard requiring electric utilities to obtain at least 15% of their electricity from renewable energy sources (see previous post).

In a parliamentary maneuver to block more controversial proposals, Senate Republicans required cloture votes on nearly every amendment offered to the energy package as well as on the final vote to approve the bill itself, meaning that any amendment needed 60 votes to pass (enough to block a threatened filibuster).

Thus, while both the tax package and the renewable energy standard had support from a majority of senators, both provisions were left out of the final bill.

“Republicans continue to pander to the big oil and energy companies,” Senate Majority Leader Harry Reid (D-NV) complained after conceding defeat on those issues. “Republicans repeatedly demonstrate that they do not care about the priorities of the American people, throwing up roadblocks at every turn instead of working with us…”

Here’s the synopsis of which major energy provisions ended up in and out of the bill (I’ve posted a much longer detailed post here):

Fuel Economy IN: 35 mpg by 2020 fuel economy improvement required, a 10 mpg increase in 10 years. Closes the “SUV loophole” by establishing fleet-wide average fuel economy standard - no separate, lesser standard for SUVs and light trucks anymore.

Renewable Fuels IN: Includes a 36 billion gallon by 2022 renewable fuels standard. Specifies that 60% of the final fuels standard must be met by “advanced biofuels” - i.e. not corn-based ethanol.

Clean Energy Tax Package OUT: A $32 billion tax package that would have shifted subsidies from the oil and gas industry to support biofuels, renewable energy and energy efficiency.

Renewable Energy Standard OUT: A renewable energy standard that would have required large electric utilities to obtain at least 15% of their electricity from renewable energy sources by 2020 (or by 2022 in a later compromise version)

Coal-to-Liquids Synthetic Fuel Support OUT: Two proposals that would have provided financial incentives for coal-to-liquids (CTL) synthetic fuel production and established CTL fuel production standards [this is one victory! see previous post].

The House will likely take up energy legislation next week, so stay tuned…

About Jesse

Jesse is a graduate of the Clark Honors College at the University of Oregon (Class of 2006). While at the U of O, Jesse worked on a number of campus sustainability initiatives, including helping kick-start the Campus Climate Challenge at the UO and starting an initiative to bring clean wind power to UO dorm students. Jesse is currently the co-director of the Breakthrough Generation fellowship program at the Oakland, CA-based Breakthrough Institute (check out the Breakthrough Generation blog here). Before joining Breakthrough, Jesse spent two years as a renewable energy policy analyst and advocate with the Renewable Northwest Project, a Portland, OR-based non-profit promoting renewable energy development in the Pacific Northwest. Jesse is still an active youth climate activist and helped found the Cascade Climate Network, the first ever, region-wide effort by Northwest youth to launch a coordinated campaign for climate solutions and a sustainable, just, and prosperous future in 2007. Jesse is also a veteran blogger, having maintained the energy and climate change news and commentary blog, WattHead for the past two and a half years.

1 Response to “Senate Passes Energy Bill But End Product is Far From Comprehensive”

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1 Ethan Nuss Jun 25th, 2007 at 3:53 pm

I applaud many of the provisions in the new energy bill. I’m pleased to see that, though imperfect, our federal government is starting to move on renewable energy. A 10 mph increase in CAFE is historic!

However, I remain frustrated by last week’s Republican obstructionism in the Senate. I agree with Sen. Reid that their actions are clearly counter to the will of the American people. In short, Americans hate the oil industry. They know that the oil industry is making record profits from their pain at the pump. A recent Gallup polls shows that a majority of Americans blame high gas prices on oil industry greed http://www.galluppoll.com/content/?ci=27709. The Republican obstruction of the $32 billion tax package to shift subsides from oil to renewable energy is an indication of who has been “subsidizing” their campaigns.

The grand irony with this Republican position is their blind faith in “technology” as the panacea to the climate crisis. If you truly believe in technology and private sector innovation then it is time to offer up the proper economic incentives. How are small renewable energy companies going to stay afloat when pitted against the Goliath forces of the coal/gas/oil industries? Industries who make staggering profits AND are subsidized with our tax dollars!

To be fair the senate Republicans are partially right. Technology is a big part of the answer to the climate crisis, though not the only one. We have the technology RIGHT NOW to make significant cuts in our carbon output. It’s a matter of political will that prevents us from the implementation.

I trust that with the growing national consciousness of global climate change that Americans will demand more from their elected officials. We must let them know that we don’t want our tax dollars to fund our own demise. We want our money to promote small business, green jobs, smart innovation, and a sustainable future.