ON THE ENERGY BILL: A REPUBLICAN, A DEMOCRAT AND A QUESTION

Senator Lamar Alexander (R-Tenn) claims the CAFE standard in the energy bill is what Congress can do about the high cost of gas right now. Congress can’t do ANYTHING about the high cost of gas in the short run. His call for hurrying the bill along is likely a play to constituents infuriated over rising gas prices. It will be heard from many more public officials while gas prices remain high.

Like the NY Times, NewEnergyNews endorses the stricter CAFE standard (though it is far from strict enough). Not because it will have any short term impact on oil per barrel or gas pump prices but because the US auto industry’s standard is so unrealistically low it feeds the addiction.

Senator Alexander is also one of the staunchest opponents of a national Renewable Electricity Standard (RES) requiring US utilities to obtain a percentage of their electricity (15%) from renewable sources by a specific year (2020). Half the states already have RESs and they are working out well. As the Times points out, a national RES would spur economic growth without upping power costs to consumers, despite what staunchly opposed recalcitrant utilities claim.

The real grind in this energy bill is probably reflected in Congressman Charles Rangel’s (D-NY) brief interview. The question is: How much? New Energy advocates are now wrestling with fossil fuel allies in both parties to get budget allowances to fund production tax credits (PTCs) and investment tax credits (ITCs) for wind, solar, biomass and the other energies that are America’s best hope (and best bet) in the long run.

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Where’s That Energy Bill?
Editorial, November 14, 2007 (NY Times)
and
Alexander Says Energy Bill Can Help Lower Gas Prices
November 13, 2007 (The Chattanoogan)
and
Rep Rangel: Congress Discussing $17 Billion Energy Tax Package
Siobhan Hughes, November 14, 2007 (Dow Jones Newswire via Nasdaq)

WHO
Senator Lamar Alexander (R-Tenn), Congressman Charles Rangel (D-NY), the NY Times Editorial Board

WHAT
- Alexander took the classic Republican pose, promising that if leaders quickly send the energy bill to the President its increased Corporate Average Fuel Efficiency (CAFÉ) standard will immediately drive gas pump prices down.
- Rangel took the stance of a reasoned legislator, announcing compromise on provisions shifting funding from fossil fuel industry incentives to New Energy industry incentives were nearing, implying the negotiations would delay a vote until after the Thanksgiving break.
- The Times editorial points out that the delay in moving on the bill suggests partisan gridlock, calls on Democratic leaders to stand firm for quality legislation and advocates for specific provisions.

WHEN
The Senate passed its version of the energy bill at the end of June. The House passed a different version at the end of July. House Speaker Pelosi recently said she wants to send a bill to the President before the Thanksgiving break begins November16. Most observers don’t expect that to happen.

It used to be chocolate and vanilla, now it's Hummers and Hybrids.

WHERE
With gas pump prices rising sharply, the fight on Capitol Hill is starting to get the attention of citizens across the country. Not necessarily in a good way.

WHY
- The Senate energy legislation’s most contentious provision is the more rigid CAFÉ standard. It requires US automakers to raise their car and light truck fleets to an average of 35 mpg by 2020.
- Senator Alexander advocated the stronger CAFÉ standards in conjunction with testimony from Oak Ridge National Laboratory expert Dr. David Greene at a Senate Committee on Environment and Public Works hearing on America’s Climate Security Act of 2007. Dr. Greene testified a $10/barrel oil price drop would produce a 25c/gal drop in the gas pump price.
- The House energy legislation did not include a provision for a stronger CAFÉ standard. The Times called on Speaker Pelosi to fight for it.
- The House energy bill has the national Renewable Electricity Standard (RES) that the Senate rejected. The Times points out an RES would create jobs, stabilize natural gas prices and reduce emissions. It would also incentivize New Energy by establishing stability and consistency across the US marketplace.
- The biggest fight might be over how much to roll back big tax breaks to the fossil fuel industries in order to fund New Energies with research grants, production tax credits (PTCs) and investment tax credits (ITCs). Democrats in the Senate shifted $32+ billion and Democrats in the House, more vigorously opposed by “fossil fuel Democrats,” shifted only $15 billion.
- Rangel says the number is $17 billion right now and negotiations are ongoing.

It always seems to come down to the same simple question: How much?

QUOTES
- Alexander: “…the best antidote to rising gas prices is for the House of Representatives to pass this week the Senate energy bill that includes an increase in the Corporate Average Fuel Economy standards…There is something we can do about the high price of gasoline, and we ought to do it…Three dollars a gallon gasoline is taking money out of the pockets of Tennesseans who can’t afford it, and if the House acts this week, then the president can sign the bill overnight.”
- Times: “[Energy bill negotiations] have now reached a dangerous point. With both houses feeling pressure to do something — anything — to deal with high oil prices, there’s a real danger that one or more essential provisions could be dropped just for the sake of producing a bill…That’s not what the country needs. And it doesn’t have to happen if the leadership, Nancy Pelosi in the House and Harry Reid in the Senate, hold the line and insist on legislation equal to the country’s profound energy problems…”
- Rangel: "We're closing the gap between the House and Senate…We're coming together - I think, I'm not certain - it's close to $17 billion…more in line with the House…"