One way or another, US energy policy affects climate issues. Through government restrictions or subsidies, fossil fuels and the greenhouse gases they produce will rise or fall depending on what Washington lawmakers do about energy for power production and transportation.

Before it skedaddled for its August break, the US House "approved $16 billion in taxes on oil companies, while providing billions of dollars in tax breaks and incentives for renewable energy and conservation efforts," reports the Associated Press.

"The bill would repeal for oil companies a tax break given in 2004 to help domestic manufacturers compete against foreign companies, and another tax break pertaining to income from foreign oil production. The ... bill also includes an array of loan guarantees, ... grants and tax breaks for alternative energy programs."

House Speaker Nancy Pelosi, who managed to corral fellow Democrats cool to some parts of the bill, called it "a momentous decision on energy and global warming," even though, as the San Francisco Chronicle reported, it wasn't a total victory for her.

"Democrats didn't get everything they wanted in the bill – including a big increase in federal fuel economy standards for all cars and trucks. Pelosi supports the proposed increase, but she yanked it from the bill in the face of ... opposition from auto state Democrats."

One contentious issue is a proposal to require that investor-owned utilities generate at least 15 percent of their electricity from renewable sources. As The Washington Post reported:

"Democrats … had to contend with opposition to the renewable electricity mandate by lawmakers from Southern states, where officials say they lack the wind or hydropower resources to meet those standards."

Environmental groups welcome the bill. But traditional producers and distributors of energy warn of adverse economic impact, reports The New York Times.

"Thomas Kuhn, president of the Edison Electric Institute, which represents investor-owned utilities, called the House vote 'very disappointing' and said it would bring big rate increases to electricity customers."

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