Originally published on the CGS blog on June 19, 2007.
The Senate is entering its second week of deliberations on a proposed energy bill (H.R. 6). Senate Majority Leader Harry Reid (D-NV) has made it clear that he wants to wrap-up the energy bill by the end of the week, so he can take another stab at moving the immigration reform bill.
The energy bill ran into trouble at the end of last week over several major sticking points: automobile mileage standards, renewable energy, and gasoline price gouging. But the real problem is a fundamental philosophical difference among lawmakers about how to solve the energy challenges facing the U.S. today. Some Senators come from the “Drill more” school of energy policy, others recognize that, in the long run we can’t drill ourselves out of the dangers posed by global warming and the geopolitics of oil, and are focusing on cutting consumption and increasing the use of renewables. (Full disclosure: In case you can’t tell, I’m with the second group).
“Our legislation would increase production of renewables,” Reid said. “We do not believe in the president’s theory, the Republicans’ theory: drill, drill, drill, more of the same. It reminds me of Iraq.” – Senate Majority Leader Harry Reid, quoted by NPR
Here’s a brief rundown on some of the bill’s trouble spots:
CAFE Standards:
The Senate energy bill currently calls for a 35 miles per gallon fuel efficiency (CAFE) standard for both cars and light trucks by 2020, with annual increases of 4% for both after that. Automakers (and their friends in Congress) are actively opposing this measure, and Sen. Levin (D-Mich) has introduced an alternative amendment that would set CAFE standards at 36 miles per gallon for passenger cars by 2022 and 30 mpg for light trucks by 2025. The auto industry claims that the bill’s efficiency standards are unreasonable and “unachievable.”
I would argue that what’s unreasonable is the fact that these standards haven’t been raised in nearly thirty years, and that as a result the United States is now ranked last in the industrialized world on energy efficiency. (My favorite little factoid on this issue is that U.S. automakers can’t sell the cars they sell here in China… because they don’t meet Chinese efficiency standards.)
Renewable Electricity (Renewable Portfolio Standard):
Republicans have blocked voting on an amendment introduced by Senate Energy Committee Chairman, Jeff Bingaman, which would require utilities to produce 15 % of their electricity from renewable sources by 2020. This renewable portfolio standard is an important first step if the U.S. is to lead a global transition away from fossil fuel sources of energy. However, Republicans have threatened to filibuster the energy bill if the Bingaman amendment is included. A coalition of major corporations and environmental groups have sent a letter to Congress urging them to support the Bingaman amendment. But it remains to be seen whether the Democratic leadership will risk defeat on the energy bill to save one of its most critical measures.
Fortunately, the Senate was able to defeat a “Clean” Portfolio Standard amendment, introduced by Senator Domenici (the ranking member on the Senate Energy Committee) which would have set a 20% standard for utilities, but would have counted nuclear and certain types of coal generation as “clean” energy.
Price Gouging:
Another measure of the bill that ran into trouble was a provision that would make oil industry “price gouging” a federal crime during times of “national energy emergency.” This provision has drawn a veto threat from President Bush, in addition to strong opposition from the oil industry.
Under the Radar: Energy Diplomacy and Security –
One of the measures tucked into the energy bill that you probably won’t hear much about this week is also one of the most critical in terms of longterm energy security. If you have been following our work on energy closely you may have noticed that we have been supporting S.193 – the Energy Diplomacy and Security Act of 2007. This bill recognizes the importance of working in partnership with other nations to enhance energy security and develop shared solutions to the energy challenges facing us today. It reforms policymaking and implementation structures, giving policymakers the tools they need to craft effective energy policy. It strengthens global energy crisis response mechanisms, and takes steps to increase developing countries’ access to renewable energy technologies. In today’s energy-independence dominated debate, it represents a refreshing (and important) effort to introduce meaningful multilateral cooperation into U.S. energy policy.
I’ll keep you posted when I hear more…
