WASHINGTON, DC, USA, June 27, 2007.
The U.S. Senate has passed the National Energy & Environmental Security Act of 2007, which includes a mandated increase for ethanol and new fuel-efficiency standards.
By a vote of 65-27, the legislation will require an increase in fuel economy standards for automobiles from today's average of 25 miles per gallon to 35 mpg by 2020. It also includes a boost in annual production of biofuels to 36 billion gallons in 2022 from the current production of 6.3 billion.
However, a US$32 billion tax package that would have extended production tax credits for wind and other green power facilities was dropped from the final version. The package, previously approved 15-5 by the Senate Finance Committee, also included a repeal of tax credits for major oil companies.
The package would direct $29 billion in additional taxes on oil companies to pay for the new subsidies for renewables, and would have introduced numerous new financial incentives and offsets.
“It is unfortunate that in passing this bill, the Administration and most Senate Republicans blocked an effort to require more of our nation's electricity to come from renewable sources as well as incentives to spur the production of more renewable fuels right here in America,” said Senator Harry Reid (Democrat-Nevada), the sponsor of the bill.
“National security and climate change must be the principal drivers of this century’s energy policy,” adds former senator Timothy Wirth, now head of the UN Foundation. “By passing this legislation, the U.S. Senate acknowledged the need for change. This legislation will enhance the nation’s energy efficiency, modernize the electric grid, spur the intelligent development of renewable fuels, and promote investment in technology for the capture and storage of carbon dioxide emissions from power plants.”
The energy bill is the first passed since the Democrats took control of Congress in January. Media says opposition from Republican senators threatened passage until the final hours, and Democratic leaders delayed a vote until senators were called back to assure the votes needed to overcome a threatened filibuster.
The legislation calls for price gauging provisions that make it unlawful to charge an ‘unconscionably excessive’ price for gasoline and other oil products, and gives the federal government new authority to investigate oil industry market manipulation. It also includes new appliance and lighting efficiency standards and a requirement that the federal government accelerate use of more efficient lighting in public buildings.
The legislation also failed to include a provision that would require electric utilities to produce at least 15% of their electricity from wind, biomass or other renewables after Republicans refused to allow the measure to come up for a vote. Observers say the tax package was defeated not because of overwhelming opposition, but because several senators who could have been swing votes were not present when it came time to vote.
Reid says he will take up the tax package again this year, and there is a chance that some of the tax incentives be attached to other legislation.
