In Congress, a boost for alternative energy

The House bill will look a lot like one that cleared the Senate last week, but it will omit issue of fuel-economy standards.

from the June 25, 2007 edition

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What House Democrats are planning

On the House side, 11 committees are developing aspects of an energy bill to be drafted by House leadership. The bill is expected to help boost the production and use of renewable vehicle fuels via $16.1 billion in tax breaks. It is likely to set new standards for appliances and give incentives for "green" buildings, smart-grid technology, renewable fuels, and plug-in hybrid technologies. The final package will probably also include a mandate for utilities to use more renewable energy sources.

A key difference will be how each chamber deals with fuel-economy standards for cars and light trucks. While the Senate has voted to impose higher fuel-economy standards on the US auto industry for the first time in 22 years, the House won't take up the issue until it crafts global-warming legislation in the fall.

For that delay, credit the clout of Michigan's Dingell, chairman of the Energy and Commerce Committee. A strong backer of US auto manufacturers, he says any fuel-efficiency standards must "note the competitive realities of what is a brutal global automotive market," especially the impact on American jobs.

After a bitter intracommittee fight, the panel opted to proceed only with the issues on which there is consensus, Dingell said.

Rep. Edward Markey (D) of Massachusetts, the No. 3 ranked Democrat on the energy panel, says Democrats aren't taking on the tough energy issues fast enough, including fuel-economy standards for cars and SUVs. Pelosi has tapped Representative Markey to chair a House Select Committee on Energy Independence and Global Warming – an indicator of her rift with Dingell over energy policy.

Credits for energy savers

The House Ways and Means Committee, meanwhile, is proposing $16.1 billion in tax incentives. These include a $4,000 tax credit for people who drive hybrid cars and a $20-a-month credit for people who bike to work, as well as incentives for producers of alternative energy. As did the Senate, the House would pay for the package by raising taxes on oil companies.

With the most controversial issues off the table for now, the energy legislation is shaping up to be "extremely modest," says Tyson Slocum, director of Public Citizen's energy program. "Oil companies aren't getting grandiose subsidies, which is a break from recent history. But it's other industries [that are] hogging the benefits, such as the biofuels industry and coal, with little trickling down to consumers and families."

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