ANGER TO FUEL NEW ENERGY?

“Sometimes I wonder…” Mark Twain once mused. “…if the world is run by smart people who are putting us on, or imbeciles who really mean it.”

If this NY Times reporter is right, congressional imbeciles think they are putting voters on but may find out next November the voters really mean it when they say (in every poll) they want New Energy and they want action on climate change.

Senator Jeff Bingaman, (D-NM/chairman, Senate Energy and Natural Resources Committee: “There’s a general perception outside of Washington that we haven’t done near what we could to move the country to a more acceptable energy mix…Congress has been slow to act, and the administration has been slow to act, and the public is way ahead of us on these issues.”

The politics of energy are about partisanship and money. Practical, progressive and populist advocates of renewable sources of electricity and renewable fuels in both parties are opposed by fossil fuel and utility allies in both parties. When energy bill legislation is driven by public outcries against gas pump and heating oil prices, one side calls for More Drilling (a short term answer) and the other for New Energy (a long term answer).

In conjunction with this article, consider Coulda, Woulda, Shoulda in which Tom Friedman argues for a gas tax and quotes energy economist Phil Verleger: “It’s called the America wins program…instead of the petro-states win program.”

Vote Anger May Free Up Energy Bills
John M. Broder, November 13, 2007 (NY Times)

WHO
Congressional leaders.

It used to be kind of funny...

WHAT
Consumer frustration with rising gas pump and heating oil prices may drive congressional action on the energy bill despite the fact that both consumers and lawmakers know nothing Congress does will affect oil prices.

WHEN
- The Senate passed its version of the energy bill at the end of June. The House version passed at the end of July. Partisan and special interests politics have kept a final bill from being formulated and sent to the President ever since.
- Insiders are now predicting a compromise bill by the Christmas break.

...but it's getting ugly.

WHERE
Many expect gas to be over $4/gallon at the pump by Spring 2008.

WHY
- $100/barrel oil is a certainty. The new question is when will it get to $120/barrel.
- Leaders in both houses are now predicting “scaled-down” measures in the compromise energy bill that will include a compromised mileage requirement and compromised incentives for New Energy.
- President Bush, inclined to the More Drilling side but an advocate of renewable vehicle fuels, will veto a bill that takes tax breaks away from the oil and gas industries to finance New Energy. He is also inclined to protect automakers’ interests on auto mileage requirements.
- Democrats want a national Renewable Electricity Standard (RES) and a higher Corporate Average Fuel Efficiency (CAFÉ) standard but may need to compromise on them to get financing for New Energy incentives like Production Tax Credits (PTCs) and Investment Tax Credits (ITCs) for New Energy producers.

In D.C., nobody's laughing. They're playing hardball.

QUOTES
- Senator Pete V. Domenici (R-NM/ranking member, Senate Energy and Natural Resources Committee: “It’s incredible…You would expect us to be much more excited about these high prices, that we’d have a committee working day and night on the problem of oil dependence.”
- John C. Felmy, chief economist, American Petroleum Institute: “It’s very ironic the way this legislation is playing out…Everyone agrees that we’re in a very tight energy situation, so why are they writing legislation to make it even tighter?”
- Karen Harbert, assistant secretary, Energy Department: “There’s not one single reason for the increase in oil prices and there is not one single solution…We need to diversify our sources of energy beyond just hydrocarbons and accelerate the development of alternative fuels…And of course we have to increase efficiency — of appliances, industries, homes and cars.”
- Gene Karpinski, president, League of Conservation Voters Education Fund: “Clearly, these record high oil prices should be a final wake-up call that we need a new energy policy in this country…and lead us to make sure the next president has significant policies in place and has campaigned on those promises to reduce our dependence on foreign oil.”