Energy

by Darren Goode

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The Senate agreed today to limit debate on an energy package but not on the accompanying tax incentives, while striking a deal on federal fuel efficiency standards. Senators agreed, 61-32, to invoke cloture on the energy bill but fell short of the 60-vote threshold, 57-36, to do the same on a $28.5 billion tax package that the Finance Committee approved this week. Sen. Mary Landrieu of Louisiana was the only Democrat to vote against limiting debate on both. Majority Leader Reid for procedural reasons changed his vote, casting a "no" vote on limiting debate on the energy tax title so it could be reconsidered -- a possibility with so many senators not voting. Finance Chairman Baucus said he would try to bring it up again. Ten Republicans agreed to limit debate on the tax section while 17 agreed to cloture on the larger energy package. Reid said a final vote will be Friday night. Republicans said the tax package would raise costs on oil and gas companies and in turn raise gas prices for consumers. "It raises taxes in the wrong places and then spends them in the wrong places," Energy and Natural Resources ranking member Pete Domenici, R-N.M., said. Domenici voted to limit debate on the overall bill. "It's mostly what we did," he said, referring to the Energy and Natural Resources Committee.

Defenders of the tax package said it would not reduce domestic oil and gas production and is necessary to boost renewable energy production. "We're in a pay/go environment. ...We're in a situation where we've got to provide the necessary offsets in order to get this legislation through," said Finance ranking member Charles Grassley, R-Iowa. "I hope you understand that God only made so much fossil fuel." The deal to raise auto fuel efficiency standards would eliminate the 4 percent annual increase for cars and light trucks from 2020 to 2030 while preserving the bill's mandate for the Corporate Average Fuel Economy standard to rise from 25 miles per gallon to 35 miles per gallon by 2020, according to Dan Becker, who heads the Sierra Club's global warming program. The deal would preserve current law in calling for fuel efficiency standards to increase to their "maximum feasible level" after 2020, Becker said. Commerce Chairman Inouye said a news conference has been scheduled for this afternoon.

Supporters of a plan to require utilities to produce electricity from renewable resources are now looking to the House as they acknowledge defeat in their bid to add the language to the Senate bill. Senate Energy and Natural Resources Chairman Bingaman tried to get two versions of his plan to require utilities to produce up to 15 percent of electricity from renewable energy sources by 2020 past a Republican filibuster. "We're going on to the House," said Marchant Wentworth of the Union of Concerned Scientists. He said he hoped Rep. Diana DeGette, D-Colo., will offer an amendment during next week's House Energy and Commerce Committee markup that would require utilities to produce 20 percent of their electricity from renewable sources by 2020. A DeGette spokesman said she is drafting a renewable electricity mandate to offer at the markup.