ENERGY VS. ENERGY VS. ENERGY, ETC.

Competing interests add fire to fuel debate; Producers jockey to ensure federal policies are in their favor
Jennifer Dlouhy, March 6, 2011 (Houston Chronicle)

"…[A] new power struggle on Capitol Hill…[is] a battle among producers of all sorts of energy…from wind and solar to oil and gas…to get a sliver of shrinking federal subsidies and make sure they benefit from policies that could drive up demand…President Barack Obama kicked off the contest…when he asked Congress to abolish tax incentives for oil, natural gas and coal to pay for investments in "clean energy" technologies…[and proposed] a clean energy standard requiring the U.S. to generate 80 percent of its electricity from low- or zero-emission power sources by 2035.

"…[L]awmakers will decide how much (if any) clean energy to mandate and define what counts as "clean." …Their decisions will dictate what fuels [and which standard] prevail…Advocates of wind and solar power have been pushing to…[be] part of any standard…And they want renewable requirements high enough that sun and wind energy aren't pushed aside…[for] cleaner but non-renewable power sources - such as nuclear and natural gas…Coal backers, meanwhile, want…[the] still-developing technology they call "clean coal" …And supporters of natural gas, which burns with about half the carbon dioxide emissions as coal, don't want to be left out..."

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"…[A broad] clean energy standard could boost demand for natural gas. But industry leaders fear [it will not]…Electric utilities are switching from coal to natural gas already because of looming environmental regulations and because of its recent low price…But…[if] power utilities are forced to rely on renewables to generate a share of their electricity, they may seek the cheapest, already available non-renewable source for the remaining percentage…[T]hat would be coal rather than gas…

"The natural gas industry is still fighting for recognition on Capitol Hill and struggling to shed its reputation as an unreliable source of energy prone to boom-or-bust cycles and volatile prices…Coal backers already are trying to exploit natural gas' vulnerabilities while fighting looming regulations on conventional air pollutants, coal ash and greenhouse gases…[C]oal supporters have warned that natural gas prices will rise if regulators force retirement of coal-fired plants…"

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"…Oil refiners scored a victory against ethanol producers…when the House adopted a proposal that blocks the Environmental Protection Agency from spending any federal funds on allowing a higher percentage of ethanol in transportation fuels…Fossil fuels have a big edge over alternative energy producers when trying to influence lawmakers and regulators…[O]il and gas companies and trade groups spent $146.3 million on lobbying last year…[and] the wind and solar industries recorded just $6.6 million in lobbying expenditures…

"Wind and solar developers are pushing to renew expiring federal incentives…[including] a program that reimburses up to 30 percent of construction costs for renewable energy projects like wind farms and solar arrays, and a renewable energy production tax credit…Keeping these incentives could be a tough sell on Capitol Hill, where scores of lawmakers were elected on promises to cut federal spending…[To pay,] the American Wind Energy Association…isn't advocating removing [Old Energy] incentives, arguing instead that wind should be part of an ‘all-of-the-above’ energy policy."