Done – New Energy Bill Passes

The Senate finally passed the latest energy bill. Many provisions remain in it including a 35 MPG CAFE standard, support for 36 Billion gallons of ethanol use by 2022 and more.

From the Detroit News Article:

Senate Democrats stripped out requirements that utilities produce 15 percent of their energy from renewable resources by 2020 and also agreed to drop $21.8 billion in new taxes, mostly on oil companies, to try get approval.

While I understand why the taxes didn’t get imposed, I’m wondering what the sticking point was with a renewable porfolio standard. This would require utilities to use a given percentage of their electricity production from renewable sources (15 to 20% seems to be popular). Many of the states contain RPS standards and are actively pushing to meet them. They are a mix of states (mostly sunny and windy ones of course). While I can understand why a federal mandate would be uncomfortable to some (particularly those who don’t really support the need for renewables). But there seems to be a significant support for it in the country. Maybe it’s just ahead of its time.

Energy Bill still has some life

[Update] Recent vote fails.  Senate not giving up though.

[Update] Senate Republicans seem to be pushing back on the proposed bill due to increases in taxes to the oil industry. ( Read CNN Article)

Senate leaders have been working hard to pass an energy bill that includes higher CAFE standards for cars.

From the Detroit News article:

Even with the changes hammered out in recent days, prospects for the bill remain uncertain. Democrats need 60 votes to end debate and approve the bill, which would require a fleetwide industry average of 35 miles per gallon by 2020. The House passed the 1,055-page energy bill last week, 235-181. The White House reiterated a veto threat if the tax provisions remain.

Issues in debate:

• Higher CAFE standards with fleet mileage of 35 MPG
• Removal of 15% Renewable Portfolio Standard for electricity production
• Continuation of renewable energy incentives (to the tue of $21.8 Billion)
• Reduction of oil company tax breaks of $1 Billion
• Tax credits for hybrid car purchases

There’s still a lot of changes that could be made before the final version. So we will see what happens today as it may go to vote.