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Energy Bill Favoring Renewables Passes Senate

posted on June 22, 2007

WASHINGTON (AP) - Democrats celebrated a step toward reducing U.S. dependence on oil as the Senate approved a bill calling for more ethanol and the first boost in gas mileage in decades.

Senators late Thursday voted 65-27 to pass the first energy bill since Democrats took control of Congress in January. But it was far from a complete victory.

Resistance to the new auto fuel economy standards threatened passage until the final hours. Democratic leaders held off a vote until shortly before midnight as senators were called back to the Capitol to assure the votes needed to overcome a threatened filibuster by opponents of the tougher fuel regulations.

The bill finally passed even as Republican senators grumbled that it did virtually nothing to increase production of traditional domestic fuels such as oil and natural gas.

Democrats saw it differently.

"This bill starts America on a path toward reducing our reliance on oil," Senate Majority Leader Harry Reid proclaimed.

The legislation would require ethanol production for motor fuels to grow to at least 36 billion gallons a year by 2022, a sevenfold increase over the amount of ethanol processed last year.

And it calls for boosting auto fuel economy to a fleet average of 35 miles per gallon by 2020, a 40 percent increase over current requirements for cars, SUVs, vans and pickup trucks.

The legislation also calls for:

-Price gouging provisions that make it unlawful to charge an "unconscionably excessive" price for oil products, including gasoline. It also gives the federal government new authority to investigate oil industry market manipulation.

-New appliance and lighting efficiency standards and a requirement that the federal government accelerate use of more efficient lighting in public buildings.

-Grants, loan guarantees and other assistance to promote research into fuel-efficient vehicles, including hybrids, advanced diesel and battery technologies.

But Democrats had wanted more for renewables than they got.

Earlier in the day Reid could not hide his displeasure as Republicans blocked one of the Democrats' top priorities, a US$32 billion (€24 billion) tax package aimed at boosting renewable fuels, energy efficiency and clean energy programs. The Republicans didn't like the US$29 billion (€21.6 billion) in additional taxes on oil companies that the plan required to pay for the new alternative energy subsidies.

"Big Oil seems to do pretty well here on Capitol Hill," Reid told reporters, making no effort to hide his sarcasm.

Democrats also failed to get a provision that would have required electric utilities to produce at least 15 percent of their electricity from wind, biomass or other renewables after Republicans refused to allow the measure to come up for a vote.

Tags: biofuels Congress energy policy government news oil renewable fuels