Senate Passes Scaled Back Energy Bill

Bill Calls For Higher Mileage Car And SUVs, Dems Drop Effort To Tax Oil Companies

(CBS/AP)  The Senate passed a trimmed-back energy bill Thursday that would bring higher-gas mileage cars and SUVs into showrooms in the coming decade and fill their tanks with ethanol.

The measure was approved with strong bipartisan support 86-8 after Democrats abandoned efforts to impose billions of dollars in new taxes on the biggest oil companies, unable by one vote to overcome a Republican filibuster against the new taxes.

The bill now goes to the House, where a vote is expected next week. The White House issued a statement saying President Bush will sign the legislation if it reaches his desk, as is expected. Bush had promised a veto if the oil industry taxes were not removed.

The bill calls for the first major increase by Congress in required automobile fuel efficiency in 32 years, something the auto companies have fought for two decades.

The car companies will have to achieve an industrywide average 35 mile per gallon for cars, small trucks and SUVs over the next 13 years, an increase of 10 mpg over what the entire fleet averages today.

And it would boost use of ethanol to 36 billion gallons a year by 2022, a sevenfold increase, and impose an array of new requirements to promote efficiency in appliances, lighting and buildings.

This bill "will begin to reverse our addiction to oil. It's a step to fight global warming," said Majority Leader Harry Reid of Nevada.

The increased auto efficiency by 2020 will save 1.1 million barrels of oil of a day, equal to half the oil now imported from the Persian Gulf, save consumers $22 billion at the pump, and reduce annual greenhouse gases emissions by 200 million tons, said Sen. Daniel Inouye, D-Hawaii., whose committee crafted the measure.

"It demonstrates to the world that America is a leader in fighting global warming," he said.

Sen. Carl Levin, D-Mich., a longtime protector of the auto industry that is so important to his state, called the fuel economy measure "ambitious but achievable."

For consumers, the legislation will mean that over the next dozen years auto companies will likely build more diesel-powered SUVs and gas-electric hybrid cars as well as vehicles that can run on 85 percent ethanol. They will push engineers to develop new technologies to save fuel.

"Automakers can meet the new standards with today's technology," said David Friedman, research director at the Union of Concerned Scientists Clean Vehicle Program. "Cars and trucks will be the same size and perform the same way they do today."

But they may be using a different fuel.

The energy legislation would require that ethanol use as a motor fuel be ramped up at an unprecedented pace to 36 billion gallons a year by 2022. And at least 21 billion gallons will have to be ethanol from feedstock other than corn such as prairie grasses, switchgrass and wood chips.

About 6.5 billion gallons of ethanol were expected to be used as a gasoline additive this year, according to the Renewable Fuels Association, which represents ethanol producers.

The legislation also would increase energy efficiency requirements for appliances and federal and commercial buildings and require faster approval of federal energy efficiency standards.

These measures, said Sen. Jeff Bingaman, D-N.M., "will eventually save more energy than all our previous energy efficiency measures combined."

Tax breaks for a wide range of clean energy industries, including wind, solar, biomass and carbon capture from coal plants, were part of the tax package that was dropped. Senate Democrats earlier also abandoned a House-passed provision that would have required investor-owned utilities nationwide to generate 15 percent of their electricity from solar, wind and other renewable sources.

While many environmentalists viewed almost certain approval of the automobile fuel economy increase as a major victory, some were critical Thursday of the Democrats' inability to push through taxes on major oil companies, which have been making huge profits in recent years.

"The Senate Democrats should show some backbone," said Brent Blackwelder, president of Friends of the Earth. "If Republicans want to block progress on clean energy and global warming, they should be forced to mount a real filibuster — for weeks if necessary."

Republicans had made it clear they would require the Democrats to find 60 votes on the oil taxes and the White House had said repeatedly the $13.5 billion in taxes on the five largest oil companies over 10 years would assure a veto.

On the 59-40 vote that failed to overcome a GOP filibuster, Sen. Mary Landrieu, D-La., whose state's economy is dominated by oil and energy activities, was the only Democrat to break ranks. Nine Republicans supported the tax measures.

The White House has said the taxes would lead to higher energy costs and unfairly single out the oil industry for punishment. A Democratic analysis showed that the $13.5 billion over 10 years amounted to 1.1 percent of the net profits that five largest oil companies would be expected to earn given today's oil prices.

[samsel3]

to commonsense1............OPEC sets the price of oil and has since the seventies. However, the administration is concerned over instability in Saudi Arabia and is seeking to take over control. These plans were formulated by members of the Council for National Policy and members of the PNAC both secretive private organisations representing some 200 of the wealthiest men in the United States. Global control of business without any worldly government interfering is there agenda. They are in control not the people.

[samsel3]

As far as Iraq is concerned the administrations efforts were a big success for BIG OIL . They no longer have to deal with Saddam charging higher prices to US oil companies than other countries like China, Russia France & Germany for Iraqi oil, or stopping supplies many times to US interests. That thorn in there side is gone. The administration has no intentions of ever leaving Iraq because oil companies like Royal Dutch Shell Oil, Conoco,Chevron, Exxon Mobile and others would be at risk of loosing their leases, manpower and equipment.The recent middle east peace summit was also covered up. The real story is the proposed oil pipeline that will be built down the coast from Turkey to Israel. Condi Rice is trying to broker this deal. BP oil, US oil interests and the Saudis all have a stake in that pipeline. Domonique Strauss- Khan managing director of the International Monetary Fund and Robert Zoellick president of the World Bank were also in attendance. Big money won''t finance the venture without stability in the region. Same as the deal with the Caspian Sea pipeline.

[samsel3]

Nothing has changed on Iran. The administrations interest in Iran & nukes is a smoke screen for their real agenda. Their true interests are Cheney''s energy policy.Condi Rice is a former board member of Chevron Oil and mouthpiece for the administrations energy policy. Part of that policy is the The Caspian Sea pipeline which will go through Turkmenistan, Afghanistan,Pakistan, to the gulf of Oman or on to India & Nepal.It will be cheaper to construct if they can go through Iran, but regime change is necessary first. The Caspian sea area holds one third of the world''s oil and south asian oil markets are their target market. This pipeline was also the reason for the Afghanistan invasion. Cheney''s energy policy is the root of all these middle east wars, a federal court judge sealed all documents associated with it for the administration, and the national media are not allowed to discuss or comment on it. More troops are needed in Afghanistan to protect the contractors building the pipeline. Iran stands in the way of total control of global oil now with sales of oil to China''s Sinopec Oil,deal signed Dec.10,2007. Months ago China said there would be dire consequences if the US interfered with there direct oil contracts with Iran. Both parties in the Congress should be very concerned with China''s growing war machine and need for oil. They are the real threat & the administration doesn''t care they are in control!!! All that matters to them is BIG OIL and their corporate stock portfolios

[samsel3]

On September 14,2002 Rep. James McDermott at a Capitol Hill Briefing said that politics and oil, not fear that Iraq will use WMD are driving factors behind the presidents call for regime change. McDermott said there was an organized effort to squelch such discussions. "The political operatives in the white house have been very careful to spin it away from oil. Anytime anybody sees a connection they spin it the other way."

[afmca]

No, what you conservative can''t get through your head is that to have a functioning society everyone has to pay their fair share. The spend and defer Repubs are bankrupting this country. The oil industry has reaped enormous profits at taxpayer expense from leases that do not fluctuate with the price of the product they are pumping from the ground. So for every dollar the price of oil goes up is pure profit as the cost of pumping remains the same and the price of the lease is no different. This is Bush''s scam and now Big Oil has more money to give $200 million pensions to their execs.

[lochlan-2009]

"Dems Drop Effort To Tax Oil Comp" This is the headline. Another way of saying it is, Democrats voted in to change the blatantly obvious corruption of the GOP, fail their constituency in their attempt to take back even a little from the very people who stole from us.

[tejasdemo]

Yea, you be sure to tax the hell outta me but dont tax those poor poor oil companies. What a joke.

[godseyesore-2009]

35mpg by 2020 is humiliating, cowardly, self-serving, embarrassing, and just more of same from head-in-sand republicans.
I have a 90 Toyota that STILL gets 33.25 mpg in everyday driving. US ''Repuglicans'' should be ashamed.

[underdogus]

When the chickens come to roost they''ll be c o c k a doodle doing all aver the hood of your 5000lb SUV

[samsel3]

The Bush administration has rejected reduction of fossile fuel burning citing severe economic impacts.The Cheney energy policy expands US interests in The Caspian Sea region where one third of the world''s oil remains untapped. Big Oil does not want alternative energy because they are profit motivated. Big Oil & Corporate America dictate US policy not the people. We are just pawns in their game.