CAFE to be in US energy bill, other key provisions fight for time

Washington (Platts)--13Nov2007


Representative Rick Boucher, who is chairman of a US House energy
subcommittee, said Tuesday the ambitiousness of a comprehensive energy bill,
which is expected to be completed before the end of 2007, will depend on when
it is unveiled.

"It's a question of how much of the energy package the leadership [of the
Democratic Party] wants us to adopt," he said.

"It's a matter of balancing early action against the potential for
getting more done if more time is taken," the Virginia Democrat said. "If the
bill were to be put on the floor this week, major components of it would
simply not be part of the package."

Boucher refused to comment on rumors circulating Washington since Friday
that two key provisions of the House bill -- renewable mandates for utilities
and a $16 billion tax package that would roll back oil and natural gas tax
incentives in favor of renewable incentives -- might be dropped from the final
bill. He said that discussions on these and other controversial provisions had
not concluded yet.

Boucher did say he believes it was more likely than not that there would
be vehicle fuel efficiency language in the final bill, but would not elaborate
on what form this standard would take. Both he and Energy and Commerce
Committee Chairman John Dingell of Michigan favor a milder Corporate Average
Fuel Efficiency Standard than the one included in the contemporary Senate bill
(H.R. 6).

The Senate's version would create a fleet-wide requirement of 35 mpg by
2020. Senator George Voinovich, Republican-Ohio, is said to be pushing the
Democratic leadership to allow a longer phase-in time for light trucks to be
included in the standard, but Boucher said this may not be the only
negotiation happening.

"Additional accommodations will have to be made on all of the major
issues before legislation can be brought to the floor," he said.

--Jean Chemnick, jean_chemnick@platts.com