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New fuel standards bill gets passed in Senate but not without some compromise on other key items leaving Democrats with only a mild victory.
The Senate took a huge step toward passage of the biggest increase in fuel economy standards for cars and trucks in three decades – but it came at a major cost for Democrats.
Backers of tougher legislation were forced to give up their plan to strip $21 billion in tax breaks, mostly to oil companies, and use the money to subsidize renewable energy lost by a single vote Thursday.
It was the second defeat for Democrats, after Senate Republicans, backed by the White House, blocked an effort to require utilities to get 15 percent of their power from renewable sources. SF Gate
House Speaker Nancy Pelosi said, “We will fight another day.”
“This is a strong bill, but I’m disappointed because it should have been much stronger,” said Sen. Barbara Boxer, a California Democrat, just before the final vote.
The House probably will vote for the Senate bill early next week, and President Bush is expected to sign the measure.
Senate Democratic leaders came very close to a stronger bill when they mustered 59 votes, including nine Republicans, to close off debate on a version of the bill that included the tax credits for renewables and a rollback of almost $14 billion in tax breaks for oil companies.
But they needed 60 votes, and Majority Leader Harry Reid, D-Nev., quickly removed the tax package from the bill to secure its passage. The Bush administration had announced it would veto any bill that included what it characterized as a major tax increase on the oil industry. SJ Mercury News
“This sends a chilling signal to the industry, and adds a lot of uncertainty to our planning,” said Chris O’Brien, vice president of Sharp Solar and chairman of the Solar Energy Industries Association
Energy bills batted about in Congress this session, including one passed by the House of Representatives last week, have focused on the longer-term initiative of boosting spending on renewable energy, rather than increasing existing oil reserves by opening up new sources of drilling. The House’s energy bill includes $22 billion in tax incentives for renewable energy development, along with increased fuel efficiency requirements for cars and light trucks and a mandate that 15 percent of the power generated by investor-owned utilities come from alternative sources by 2020.
The Senate’s compromise bill drops that last provision, but still includes tax incentives and heightened fuel efficiency standards. The Senate bill also kept small-business measures requiring the Small Business Administration (SBA) to start a program aimed at teaching small businesses to become more energy efficient, and boosting funds available to help small businesses upgrade equipment to reduce energy consumption. CNN Money
