Real Energy Action in the U.S. Senate?
by Fresh Energyby Michael Noble, executive director, Fresh Energy
The United States Senate is on the verge of passing the most important energy legislation in decades, with emphasis on real action on global warming and reduced reliance on foreign oil. By Friday June 22, the outlines of final legislation may be clear, but at least four hot button issues are not resolved as of Wednesday. Fortune’s CNNMoney.com summaries the battle royal in its Tuesday edition. Like in Minnesota in 2007, maybe the tipping point has been reached, and old logjams can be cleared away.
Higher fuel standards for cars. Who will win this battle of the titans? American consumers fed up with high gas prices wanting higher efficiency cars or Detroit automakers? The bill calls for raising the average fuel economy of new cars to 35MPG for both cars and light trucks, up from current levels of 27.5 for cars and 22.5 for light trucks and SUVs. Philip Clapp of the National Environmental Trust call the vote “the most important vote the Senate will cast in terms of reducing the nation’s dependence on foreign oil and providing consumers with some relief at the pump.”
Renewable Electricity Standard. While RES became the feel-good vote of the 2007 Minnesota session after 6 years of teeth-gnashing, in Washington DC the gnashing of teeth continues. Democrats defeated Senator Pete Dominici’s (R, NM) effort to include nuclear power and “clean coal” in an expanded standard for “clean energy”, backed by Xcel and Senator Norm Coleman. Coleman’s emails to constituents say he intends to vote for the RES. Insiders are betting that Senator Bingaman has the ability to cobble together the compromises and the votes to pass a 15% national renewable electricity standard by 2022, with some consideration for southern states and states without good renewable resources, perhaps having a local option to substitute some energy efficiency for renewable generation. Senator Thune from SD is a critical vote, voicing support for a national renewable policy at a recent conference in SD, but heavily targeted by the electric industry to oppose the Bingaman initiative.
Shift money from oil incentives to renewables. Jumpstarting an innovative and clean energy economy requires a partnership between industry and government. We would have never had the Apollo Project if only the private sector had been involved. Federal research and development and demonstration is one traditional role, but over many years, federal renewable budgets have been increasingly squeezed. Now, Democrats want to shift $15B over the next ten years to renewable energy research by eliminating a domestic tax break for the oil and gas industry. Proponents say that with record profits the fossil industry should relinquish tax breaks; opponents argue record prices won’t last, and loss of tax incentives means reduced domestic oil production.
Coal in your gas tank? Energy independence strategy or new government boondoggle, spewing increased global warming emissions? Both? A diesel fuel technology that Hitler perfected in time for the blitzkrieg is being debated in the Senate. Presidential contender Barack Obama has received plenty of grief from his environmental supporters for stepping in front of the line (or the train, as the case may be.) Nonetheless, two coal-to-liquid amendments were defeated: one would provide $10B in government loans for coal-to-diesel refineries, and the other would require 6 billion gallons of coal-to-diesel fuel in the nation’s fuel mix by 2022. A coal fuel standard, no kidding. What will they think of next?
