Senate passes bill requiring CAFE, biofuel gains

 

The Senate passed a wide-ranging energy bill on June 21 that would slash US oil consumption by mandating the largest increase in fuel economy standards for cars, trucks and sport utility vehicles in more than 20 years. It would also require a huge amount of ethanol and other renewable biofuels -- 36 billion gallons -- to be blended into gasoline and home heating fuels over the course of the next 15 years.

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

The bill (HR 6), which the Senate's Democratic leaders cobbled together from several stand-alone measures that passed out of committees earlier this year, was approved late at night on June 21 by a vote of 65-27. But the actual margin of victory was much closer, as an earlier procedural motion to cut off debate on the bill, known as invoking cloture, squeaked by with only two votes to spare.

"Tonight's vote was a victory for the American people," said Senate Majority Leader Harry Reid, Democrat-Nevada, after the bill passed just before midnight. "This bill starts America on a path toward reducing our reliance on oil."

Many Republicans initially opposed the bill when floor debate began two weeks previous, saying it overemphasized conservation and gave short-shrift to additional oil and natural gas drilling and other forms of energy production. Some Republicans, including Senator Jim Bunning of Kentucky, maintained that position until the very end.

"The Democrats' extreme policies will make the American economy less competitive, cost many men and women their jobs, and waste more of their hard-earned money on higher gasoline and utility prices," Bunning said.

But some of that GOP resistance began to subside the morning of June 21, when Republicans managed to beat back a Democratic amendment that would have stripped large US oil companies of more than $28 billion in tax breaks over the next 10 years. The amendment, which was voted out of the Finance Committee earlier in the week, sought to re-direct the oil-industry subsidies to manufacturers of ethanol and other non-petroleum biofuels, as well as to producers of wind, solar and other forms of renewable energy.

But Republicans argued that the measure would raise gasoline prices and cost Americans jobs. "Are we never going to learn?" lamented Senator Trent Lott, Republican-Mississippi. "When you tax something, you get less!"

Democrats came very close to marrying the tax package to the underlying bill, as 10 Republicans broke party ranks and voted to do so. But they fell just short of garnering the 60 votes that were required to cut off debate on the measure, in part because Senator Mary Landrieu, a Louisiana Democrat who has close ties to oil companies that drill in the Gulf of Mexico, sided with Republicans to oppose the plan.

"It was not something she can support," said Adam Sharp, a spokesman for Landrieu. The tax package would have deprived Louisiana and other Gulf Coast states of revenues that they need to recover from hurricanes Katrina and Rita, Sharp said.

Still, top Democrats lambasted Republicans for derailing the tax provision. "We have $3-a-gallon gas, and their response is to help out big oil," said Senator Charles Schumer, Democrat-New York.

Created: June 25, 2007