Congress approves higher fuel-efficiency targets

 

WASHINGTON (AFX) - July 19

Consumers could see more energy savings thanks to a proposal adopted by Congress on Tuesday calling for tougher appliance standards, voluntary efficiency improvements by industry, and extended daylight savings time.

But lawmakers shied away from including controversial policies that would improve vehicle mileage or dramatically cut U.S. oil demand in order to reach a compromise on one of several pieces of a broad energy bill they are trying to iron out.

The efficiency measures negotiated by a group of lawmakers will be part a broad energy bill that could hit the president's desk within weeks. Other sections of the bill still being discussed include oil and gas, coal, hydrogen, renewable energy, nuclear power, and tax credits.

The efficiency compromise draws on separate versions of energy legislation approved in the House and Senate earlier this year and comes after four years of debate and failed attempts to cobble together a bill both sides could agree on.

The final compromise garners support of energy efficiency advocates. "We're certainly very pleased," said Lowell Ungar, policy manager for the Alliance to Save Energy, adding that the compromise "will result in significant energy savings" for consumers.

The proposal would require higher standards for an array of household appliances. In some cases, lawmakers also proposed first-time standards for commercial products currently without efficiency goals. Products affected include commercial refrigerators, freezers, ice makers, air conditioners, clothes washers, and ceiling fans.

It would also extend day light savings time by two months, which means a majority of Americans would experience more daylight during waking hours, in turn cutting electricity use. The proposal would lead to daylight savings being observed from March through November rather than April through October.

Additionally, the net energy savings of the bill may increase further once lawmakers produce a final draft of the tax title of the bill they are negotiating, which could contain a number of credits for energy efficient homes and businesses.

Fuel economy, oil savings skipped

The compromise put forward on Tuesday excluded language contained in the Senate-passed energy bill that would have required the president to draft a plan to save 1 million barrels of oil a day.

But several senators said Tuesday the provision is still alive and they are working to attach a version of the measure to the final draft of the energy bill.

"It is our intention to offer it, or something else like it," said Sen. Pete Domenici, R-N.M., the author of the Senate version.

Both House and Senate lawmakers negotiating the energy bill agreed on Tuesday they would leave the efficiency section of the bill open to additional amendments in the coming days as they try to reach a deal.

The U.S. imports roughly 58% of its oil supplies today and is projected to use roughly 24.7 million barrels of oil a day by 2015, up from an estimate of 20.9 million barrels a day in 2005, according to the Energy Department.

The compromise reached on the energy efficiency provisions does not call for an increase in fuel economy standards for new cars and trucks -- an area where a jump in standards would achieve the greatest oil savings, Ungar said, since the bulk of oil imported into the U.S. goes into consumers' fuel tanks.

The one provision in the efficiency section that addresses vehicle fuel economy would create a federal education program to help vehicle owners purchase more energy efficient replacement tires for their cars and trucks.

The efficiency proposal would also authorize the federal government to sign up industrial businesses that use large amounts of energy to produce goods for voluntary agreements to reduce the energy intensity of their facilities.

The proposal would also provide $2.5 billion in funding for low-income families to weatherize their homes. These funds allow homeowners to improve the efficiency of boilers, furnaces, and windows to reduce energy use.

The bill increases the federal funds available for low income homes to pay their heating and cooling bills to $5.1 billion a year up from $2 billion.

Once the lawmakers finish negotiating a compromise on the other sections of the energy bill, both chambers of Congress will vote on the legislation. Lawmakers are trying to complete their work by August to meet a deadline set by President Bush, who has made energy policy a top agenda item.

This story was supplied by MarketWatch. For further information see www.marketwatch.com .

News Provided By