update Senate Compromises with 2002 Energy Bill: What does it
Really Mean for Energy Policy?
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The Senate With a
Loaded Docket
A closely divided U.S.
Senate attempted to handle a caseload of controversial judicial
nominations and a pair of precedent-setting international trade
agreements—all in the week before August recess.
Oh, and did
we mention they were also trying to pass a comprehensive bill to
create a national energy policy?
The Energy Policy Act of
2003, S.14, was, in the estimation of most in the
environmental community, a thoroughly bad bill. From having no
mention of a Renewable
Electricity Standard (RES) to help foster a clean energy market,
to increased subsidies for the nuclear industry, to regressive
language holding back any meaningful addressing of fuel economy
standards, S. 14 promised nothing but increased dependence on fossil
fuels and decreased regulation of the energy
industry. Fuel
Economy Amendments Take Center Stage
Senate Majority Leader Bill Frist
(R-Tenn.) and Energy and Natural Resources Committee Chair Pete
Domenici (R-N.M.) publicly stated that they fully intended to finish
consideration of all amendments and have a final vote on the energy
bill by the August recess. However, few amendments were acted upon
that week. Two were of particular note to energy security
advocates:
- An amendment offered by
Senator Richard Durbin (D-Ill.) that would increase Corporate
Average Fuel Economy (CAFE) standards for cars, SUVs, and light
trucks to 40mpg by the year 2015. This forward-thinking bill
touched off a retrograde debate on the Senate floor reminiscent of
the first CAFE debate some thirty years ago. "What about choice?
This is still America," said Senator Trent Lott, (R-Miss.). He
brought to the Senate floor a picture of a European mini-car,
declaring, "I don't think we should be forced to drive that
automobile." Of course, the European car he was touting is
designed to get 70mpg, not 40, and as Senator Durbin pointed out
repeatedly, the technology already exists to make even today’s
large American SUVs and pickups get significantly better fuel
economy. Unfortunately, the amendment was defeated 65-32.
Find out how your senator voted: vote list.
- An amendment offered by
Senators Kit Bond (R-Mo.) and Carl Levin (D-Mich.) that would
leave the decision on increasing the standard entirely up to the
National Highway Traffic Safety Administration (NHTSA).
Undermining NHTSA’s ability to craft a reasonable standard,
Levin/Bond also added a laundry list of criteria that NHTSA would
be forced to consider before proposing increased fuel economy
standards-essentially an attempt to red tape any changes out of
existence. The amendment, unfortunately, passed by 66-30.
Find out how your senator voted: vote list.
Surprise Compromise
Means Mixed Bag for Energy Security
However, the overburdened
Senate schedule and many amendments made the chances of completing
S.14 before recess very slim. Then, in a surprise move, Senator
Frist proposed a last-minute compromise. He accepted an offer by
Minority Leader Tom Daschle (D-S.D.) to revert to the 2002 energy
bill that was brokered under Democratic control of the Senate. Frist also gave a guarantee that bipartisan bills on
curbing greenhouse gas emissions and strengthening enforcement of
energy market manipulation would receive separate votes later this
year. An amendment that was to be offered by Senators McCain and
Lieberman would be brought up for a vote this fall. The
McCain/Lieberman amendment—the Climate Stewardship Act—would require
real reductions in greenhouse gas emissions. The
compromise gave both Republican and Senate leadership an opportunity
to "claim victory" and leave town for recess. The final bill was
passed by a resounding 84-14. See how your senator
voted: vote list.
The end result of this
debate represents a mixed bag for those seeking a sensible energy
policy. Among the positive aspects of the final Senate Energy Bill
Are:
-
National Renewable Electricity
Standard: A federal RES that requires major electric
companies to obtain a minimum of 10 percent of their electricity
from wind, solar, geothermal, and other renewable sources by 2020;
this provision, along with an extension and expansion of tax
credits for renewable electricity, should lead to a doubling of
the amount of renewable electricity that would otherwise have been
generated in 2020.
- Strong Tax Credits
for Clean Vehicles: Performance-based tax credits for
hybrid, fuel cell, and true alternative-fuel vehicles; this will
help consumers purchase vehicles that will be better for the
environment and save them money at the gas pump.
- Addressing Climate
Change: A continuation of the voluntary reporting of
greenhouse gas emissions for an additional five years, but
creating a trigger mechanism making the registry mandatory if
after that time it accounts for less than 60 percent of total U.S.
emissions.
- Clean School Bus
Funding: A $300 million grant program for school
districts around the country to replace older, high-polluting
buses with clean-burning buses powered by alternative fuels or
low-sulfur diesel.
Flaws in the
Senate energy bill include:
- Duel Fuel
Loophole: Despite the increased production incentives to
the ethanol industry, the bill does not address a key barrier to
increased use of the fuel by extending a loophole that allows
automakers to claim credit toward meeting fuel economy standards
for vehicles that can—but almost never do—run on alternative fuels
like ethanol.
- Big Hit on Fuel
Economy: Not only will the regressive Levin/Bond
amendment as passed last year be included on this legislation, but
the bill represents a permanent rollback on the fuel economy
standard of pickup trucks to the current light truck standard of
20.7 mpg—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.
- Nuclear
Subsidies: The Senate continued to provide the industry
with significant liability protection, and authorized the
aggressive pursuit of a new nuclear plant by 2010.
Next Up: The
House-Senate Conference
Senators Frist and Domenici are
already saying that the House-Senate conference committee will work
quickly upon their return in September and will carve out what the
Majority Leader said, "will be, in essence, a Bush-Domenici-Tauzin
energy bill." Despite the reputation of "closed door bargaining" of
conference committee deliberations, we will be coming to you soon
with actions to help you effectively weigh in with particular
members of the energy bill conference to express your support for
the few good elements of the bill and opposition to provisions drawn
up primarily for the benefit of polluting energy
industries. |