April 25, 2002

Senate Energy Bill a Good Idea Gone Bad
Contains Renewable Energy Gains and Fuel Economy Fumble

The U.S. Senate today passed an energy bill that fails to take the single most important step toward reducing the nation's oil dependence -- improving the fuel economy of America's cars and trucks. The Senate plan does diversify our electricity supply by boosting clean, renewable energy sources. But although the bill's gains make it an improvement on the Bush energy plan and the U.S. House of Representatives' energy bill -- both developed for and by polluting energy companies -- the Senate energy bill is yet another failed attempt to develop a sound energy policy.

Alan Nogee, UCS Clean Energy Program Director, on renewable energy and energy efficiency:
"One of the few bright spots in the Senate bill was setting the first-ever federal renewable energy standard, which requires that all electric utilities obtain a minimum of 10 percent of their electricity from wind, solar, geothermal and other renewable sources by 2020.

"Though utilities were able to significantly weaken Sen. Daschle's original proposal, this provision, along with expanded tax credits for renewable energy, should still double the amount of renewable energy that would otherwise have been generated in 2020. It is crucial that there be no further weakening of this clean energy provision in the conference to reconcile the Senate and House bills."

David Friedman, UCS Senior Analyst, on fuel economy and tax credits:
"The Senate plan weakens the existing fuel economy standard for cars and trucks [24 miles per gallon] by nearly 1 mpg [to 23 mpg] in the coming decade.  The Senate voted to extend a loophole that allows automakers to claim fuel economy credits for vehicles that could, but almost never do, run on alternative fuels like ethanol.  In contrast, the original Senate language would have improved the fuel economy standard to 35 mpg by 2015.  By voting to reject fuel economy language and oil savings goals, the Senate deepens our oil dependence.

"The Senate bill also freezes the fuel economy standard of pickup trucks at the current light truck standard of 20.7 mpg -- permanently saddling pickup drivers with unnecessarily high gasoline costs and miring almost 40 percent of the light trucks currently sold at an outdated fuel economy standard.

"The only glimmer of hope on vehicles will be if the Senate's performance-based tax credits for hybrid, fuel cell and true alternative fuel vehicles are not weakened during energy bill negotiations between the House and Senate. These credits will encourage marked improvements in the performance of advanced vehicles and help give them a foothold in the marketplace."