http://www.greeleytrib.com/article/20070409/NEWS/104080143/-1/rss02
Energy hot topic in Washington, but legislators only talking, not taking, action
WASHINGTON--A year after the president declared America was addicted to oil, the political discussion on energy has heated to a full boil. Any significant action, however, may be a year or two away.
President Bush says he wants to reduce U.S. gasoline usage by 20 percent in the next 10 years. House Speaker Nancy Pelosi declared in January she wants energy and climate legislation passed before July 4.
Leading Democratic presidential candidate Sen. Hillary Clinton, D-N.Y., introduced legislation to create a fund to support alternative fuels. Her competitor, Sen. Barack Obama, D-Ill., has introduced legislation that would help automakers pay for their health care costs if 50 percent of the savings from this action would be spent on hybrid technology.
But no energy legislation has landed on President Bush's desk since August 2005, when he signed the Energy Policy Act. And no real comprehensive legislation may be there by the end of this year, either.
"There are many bills that have been introduced and many, many hearings," said Carol Werner, executive director of the Environmental and Energy Institute, a nonprofit organization that analyzes energy policy. "In terms of what can actually pass Congress and is veto proof is another issue."
The Energy Policy Act of 2005 took four years to complete and received a lot of criticism for acquiescing to oil companies by not including emission and efficiency standards.
The legislation did establish tax breaks and incentives for alternative energy technology, such as ethanol, wind and hybrid cars. But many of these programs, such as tax credits for commercial hybrid vehicles or assistance for state energy programs, have not been fully funded or organized.
This time, Werner said, a Democratic majority and the pressing issue of "energy security" will eventually produce a more effective and comprehensive piece of legislation. And she said the issue is not going to just dissipate like it did following the late 1970s after the price of oil sky-rocketed.
"The situation in the Middle East and the war in Iraq and has made it very, very clear to people in Congress the issues in terms of oil have to be addressed," said Werner.
But most experts say it will be at least 10 years before alternative sources will begin to make a significant impact on the energy supply, as technology and the infrastructure to deliver new sources are put into place.
And while sources of energy are increasing, the appetite for energy grows. The Federal government's Energy Information Administration is predicting a 30 percent increase in energy consumption by 2030 in the U.S. alone.
If no laws or regulations change, oil and gas is expected to still provide 86 percent of America's energy consumption.
That is why policymakers need to be careful how they craft their energy legislation, said Mark Kibbe, a senior policy analyst at the American Petroleum Institute, which represents many of the leading oil, gas and coal companies.
"We just want them to be very thoughtful in their approach," said Kibbe. "When we look to the future of energy sources for a long time, we are going to need a lot of oil and gas."
Many policymakers have been critical of the oil industry as it has recorded billion dollar profits in the past couple of years, even as the price of gasoline has gone up. These record profits have made the oil companies a target as the government attempts to find a way to pay for all of these proposed tax incentives and subsidies for alternative energy.
The House already has passed a bill that would take away certain oil subsidies and would correct a loophole that companies used to avoid paying royalties in lease agreements in the Gulf of Mexico. The bill, however, is languishing in the Senate.
Oil supplies will be tighter in the future as demand increases from developing countries. Already U.S. oil companies are encountering problems with the oil supply in Venezuela and Russia, as well as the Middle East for political reasons.
What can be done legislatively, says Werner, is smaller piecemeal legislation such as tax incentives for alternative energy, especially in the reauthorization of the farm bill.
So far, Congress has taken this approach. Shortly before the Easter recess, Speaker Pelosi met with Democratic committee chairmen in charge of energy related proposals. After the meeting she said she would push her July 4 deadline to pass comprehensive energy legislation until the end of the year. She has also previously indicated that the legislation would not include any sort of climate change proposal or renewable energy portfolio requirements.
Breakout:
More than 100 bills related to energy have been introduced this session. Here is a summary of the thrust of many of them:
* Creating some sort of alternative energy fund, partially raised through taxes on oil profits and reducing subsidies for oil drilling and production. One such bill has passed the House and is waiting for approval in the Senate. Sen. Hillary Clinton introduced a bill that would create a Strategic Energy Fund.
* Reducing a percentage of oil consumption.
President Bush has advocated such a plan, known as "Twenty in ten"--reducing gasoline usage by 20 percent in 10 years. The DRIVE act that aims to save 2.5 million barrels per day by 2015 has been introduced in the House and Senate.
* Extending or creating more tax credits for investment in alternative energy --including E-85 ethanol, biodiesel, cellulosic ethanol, hybrid technology, plug-in technology, wind farms and coal-to-liquid.
* Establishment of a cap-and-trade emissions program to control carbon emissions, as urged most prominently by Sen. John Kerry, D-Mass.
* Requiring utilities to use a certain percentage of renewable energy for electricity. This copies a "renewable energy portfolio" that many states, such as California and Colorado, require utilities to use. |
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