CLEAN ENERGY ACT: WORK IN PROGRESS

ONE LAST CHANCE for the RPS, mandating renewable energy, this week. MAKE YOUR VOICE HEARD NOW at: Power of Wind

(Today's posts, especially the first and the last two, are dedicated to Tennessee Senator Lamar Alexander who, based on his own public statements, needs to learn more about renewable energy.)

Senate energy bill reaches big; Bill calls for big increases in fuel efficiency, purchases of renewable energy, but passage far from certain
Steve Hargreaves, June 19, 2007 (CNN Money)
and
Senate approves new taxes for big oil
H. Josef Hebert, June 19, 2007 (AP via Yahoo News)

WHO
The US Senate
Choose these... (click to enlarge)

WHAT
Sent to the full Senate by the Finance Committee: $29+ billion
1. $11 billion over 10 years for development of renewable fuels and power in extensions of existing tax breaks and new tax benefits.
2. $18 billion in other tax breaks (tax credits, clean/renewable energy bonds, etc.)
3. Money obtained by ending tax benefits to oil companies and imposing new taxes, a $15 billion cost to the oil industry over 10 years:
a. increase taxes paid under an oil spill liability law
b. eliminate existing tax credits involving foreign oil production
c. collect $10.7 billion in unpaid royalties resulting from Interior Department’s wrongly written 1998-99 oil leasing contracts via an excise tax on Gulf of Mexico oil

Rejected Tuesday: Both proposals for funding for coal-to-liquids projects.

Passed Tuesday: NOPEC, instructing the Attorney General to sue OPEC for price fixing.

WHEN
Today, this week, decisions made day by day, final vote expected Friday.
...not this and...

WHERE
Senate floor, as well as the committee rooms, the cloak room, the men’s room and the clubby corners and telephone calls where the deals get made

WHY
3 major issues to be decided by the end of the week:

1. Tougher Corporate Average Fuel Economy (CAFE) standards:
- Proposed: 35 mpg, cars and light trucks, by 2020 + 4% increase yearly after. Now 27.5 mpg, cars, and 22.5, light trucks/SUVs.
- Auto industry wants: 36 mpg, cars, 30 mpg, trucks/SUVs AFTER 2025, no % rise after.
- Vote expected Wednesday. Prediction: Too close to call.
Quotes:
- Philip Clapp, president, National Environmental Trust: "It's probably the most important vote the Senate will cast in terms of reducing the nation's dependence on foreign oil and providing consumers with some relief at the pump…"
- Wade Newton, Alliance of Automobile Manufacturers: "We wouldn't know how to meet the standards and still protect consumer choice…"

2. Renewable Portfolio Standard (RPS):
Proposed: 15% of electricity from renewables by 2020.
Supporters: a predictable and national demand encourages renewables investment
Opponents (especially utilities and coal states): leave it to the states.
Vote expected Wednesday or Thursday or may be killed by threat to filibuster.
Quotes:
Jim Owen, Edison Electric Institute, a utilities advocacy group: "Every state is blessed with its own resources…The state policy makers are closer to the ground on that."
Democrat staffer: "I don't believe Sen. Bingaman is in a trading mood in regards to RPS…We're confident we're going to come up with a strategy to get across the 60 vote threshold."
...not this.

3. The $29+ billion package from oil and to renewables (see above)
Coming to floor Wednesday. A fight is expected.
Supporters: Record oil prices warrant removing tax breaks and higher costs will lead to reduced demand which will lead to lower gas prices
Opponents: taxes will cause higher gas prices and decreased production
Quote:
Kyl: "You can't raise taxes ... by $29 billion and not expect gas prices to increase…"

Also pending:
- 36 billion gallons of biofuel by 2022
- Reduction of government oil consumption 20% by 2015
- Funding research on carbon capture and storage
- Federal law on price gouging by oil companies.

QUOTES
Dave Hamilton, director for global warming and energy projects, the Sierra Club: "All the right pieces are floating around," "This Congress will be judged to a large extent on what happens at this moment."