With the new year fast approaching, so too comes new
ideas. The Democrats are about to control both chambers of
Congress and bring with them their legislative priorities
that include an emphasis on renewable energy programs and
clean air proposals.
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Ken Silverstein
EnergyBiz Insider
Editor-in-Chief |
It's a philosophical question as to whether the nation
ought to channel its finite resources into sustainable
energies that comprise a fraction of the overall energy
mix or into making conventional and prevalent fuel sources
such as coal, natural gas and nuclear cleaner and safer.
Under the leadership of a Republican-controlled Congress
and White House, the emphasis has been on the latter. But,
now that a power shift has occurred, it is expected that a
higher priority will be placed on the former.
Those of the liberal persuasion say that the results of
the 2006 midterm elections were driven by environmental
and energy concerns -- or the desire to curb emissions and
to promote the use of green energy. Simply, big energy has
had too much influence on the policy agenda during the
Bush years and the time has come to give more breaks to
alternative energy sources.
"The American people's vision of an energy future that
is very different from current policies is the winner, and
Big Oil is the big loser," says League of Conservation
Voters President Gene Karpinski, in a formal statement.
"Energy independence and the creation of a new energy
economy was the singular domestic issue that cut across
partisan, geographic and demographic lines."
No doubt, there's plenty of room for compromise. A
bi-partisan group of U.S. senators that is led by the
now-Independent Joseph Lieberman of Connecticut have
authored a bill that aims to cut oil use in half over 30
years by motivating the utility industry along with
businesses and retail consumers with a series of
incentives. The same bill would follow the lead of many
states by requiring utilities to get 10 percent of their
fuel from renewable energy forms by 2020.
Other lawmakers that are mostly from the farm states
have bills in the hopper to require 25 percent of the
utility mix to come from green energy, with an emphasis on
ethanol that is derived from corn and soybeans. The aim,
to be achieved by 2025, is that home grown fuels can
offset some of the country's foreign oil dependence. One
proponent of the measure is Democratic Representative John
Salazar of Colorado who says that the technology exists to
manufacture vehicles that could totally run on ethanol. To
get there, though, he says that the Big Three carmakers
must be persuaded that the demand exists to buy such cars.
"If you give consumers an option, success will follow,"
says Salazar, in a speech. "If America were
energy-independent, politics in the Middle East would be
totally different. The only way I can ever see peace is to
devalue the only resource they have in the Middle East,
which is oil."
The Agenda
The trend toward the use of more bio-fuels is already
underway. Volatile energy prices in combination with a
provision in the Energy Policy Act of 2005 requiring the
use of more ethanol has been a shot in the arm for such
manufacturers. The result is that increasing numbers of
ethanol refineries are in the works, all to contribute 1.4
billion gallons of capacity in the coming year -- a
progression supported by the American Farm Bureau
Federation as well as the National Wildlife Federation.
Clearly, the power shift in Congress means that
Midwestern lawmakers who represent farm interests will
control key congressional committees while the southern
Republicans who represented oil concerns will now take a
back seat. Beyond that, more pronounced changes in energy
policy may be coming and namely those related to carbon
dioxide emissions that are tied to global warming.
Some Republicans and Democrats have split over the
issue of whether the United States ought to join the
global warming pact called the Kyoto Protocol. While
Republicans acknowledge the phenomenon, they have argued
that the technologies to curb carbon dioxide emissions are
not mature and the country will join the cause when such
tools become commercially available. Many Democrats
counter that proactive legislation is not only healthy for
the environment but also for the economy, noting that
mandates would bring about new technologies while creating
new job opportunities.
Canada, Europe and Japan are all signatories of the
Kyoto Protocol that requires 5 percent cuts in greenhouse
gas emissions from 1990 levels. Others such as Australia,
China and India are waiting to see what the United States
will do and particularly as the second phase of the global
warming pact that begins in 2013 is negotiated.
Environmental advocates will be pushing the new U.S.
Congress to make plans for the next phase and to get on
board in the next two years.
Indeed, many new members of Congress were elected on
promises to help build a new energy economy. While a wide
swath of bi-partisan lawmakers have paid lip service to
wind energy, the so-called production tax credit that
makes the power source more cost competitive with
fossil-fired generation has been allowed to lapse in the
past. That, in turn, has created uncertainty in the
sector. Democratic leaders have vowed to give more
attention and more resources to renewable energy and just
helped push through another yearlong extension of the
production tax credit given to wind producers.
"Following the election, prospects for more action on
issues such as climate change, clean air, a national
renewables portfolio standard, an incentive for
residential wind-energy systems and a long-term extension
of the production tax credit will be stronger than
before," writes the American Wind Energy Association.
Coal and natural gas will still dominate the country's
energy mix and will continue to get their fair share of
federal tax incentives even as the political winds change.
But, more attention and more resources will now be devoted
to ushering in the technologies to increase the use of
green energy. That is what the voters have demanded.
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