House Dems have new energy bill, adding renewable electricity standard and tax credits

(Photo of Speaker Nancy Pelosi from Flickr and Talk Radio News Service)

Washington Report: Rallying back after being caught off-guard on offshore drilling, Nancy Pelosi and the House Democratic leadership plans to bring a new energy package to the floor when Congress returns next week. Emphasizing renewable energy, green jobs and efficiency, the Democratic package will include some expansion of offshore drilling, because it has become so popular with the public. But most of the emphasis will be on renewables. One important element will be the oft-tried extension of renewable tax credits, due to expire the end of the year. Large wind and solar projects are at risk because of the delay in extending the credits, held up by Republicans in the Senate (with John McCain refusing to vote many times, including once when a yes vote from him would have done the trick). While the new House bill is a work in progress, it is expected to include:
• A renewable electricity standard (RES), which has passed the House but not in the Senate.
• An energy efficiency standard
• Repeal of big oil tax breaks
• Help for mass transit
• Some relaxation of the off-shore drilling ban, with safeguards
• Extension of renewable and efficiency tax credits
Republicans are already calling the bill a gimmick and say the RES (which would mandate a percentage of electricity come from renewable sources) is a deal-breaker. A vote could take place as early as Sept. 12.

And in the Senate
Majority Leader Harry Reid (D-Nev.) says he will call for a vote on the “Gang of 10” bipartisan energy bill soon after Congress reconvenes. Over the August break, six more Senators signed on – Republicans John Warner (Va.), John Sununu (N.H.) and Norm Coleman (Minn.) and Dems Tim Johnson (N.D.), Ken Salazar (Colo.) and Tom Carper (Del.) Their proposal, which environmentalists says is too reliant on old fossil fuels, would:
• Allow off-shore drilling up to 50 miles off Florida in the Gulf of Mexico
• Allow the Carolinas, Georgia and Virginia to decide if they want drilling 50 miles from their shore and giving them some of the royalties.
• Repeal billions in tax breaks for oil companies to help fund renewable energy and conservation
• Set a goal to wean 85% of autos off oil-based fuels in 20 years
• Extend renewable and efficiency tax credits until 2012
• Give tax credits for extremely efficient vehicles
• Fund next-generation biofuels and loan guarantees for coal-to-liquid plants that can capture carbon dioxide.

How they differ
The Senate “Gang of 10” proposal (details still unknown) would not include a renewable energy standard (RES) or energy efficiency standard. The House proposal (also few details) would include no coal-to-liquid provision. Presumably the Senate proposal will do less for renewables than the House package and will allow more offshore drilling. Once the details are known it will be more clear what the differences are. Original sponsors of the “Gang of 10” proposal are all pro-drilling. They are Sens. Kent Conrad (D-N.D.), Saxby (R-Ga.), John Thune (R-S.D.), Ben Nelson (D-Neb.), Lindsey Graham (R-S.C.), Blanche Lincoln (D-Ark.), Mary Landrieu (D-La.), Johnny Isakson (R-Ga.), Bob Corker (R-Tenn.) and Mark Pryor (D-Ark.).

The White House view
A spokeswoman for President Bush said Friday he wants Congress to give him a "clean" energy bill (not to be confused with "clean energy" bill) that expands offshore drilling, removes limits on oil shale leasing and extends the renewable tax credits. Apparently his idea of a "clean" energy bill is one that doesn't have all that other stuff in it.

The urgency
If agreement isn’t reached soon, renewable tax credits will expire, putting a stop to many wind and solar projects. Also the moratorium on offshore drilling will die if it’s not renewed by Congress. But more important, going into this election season, is that the voters are worried about gas prices and want to see some action taken. Will Republicans be able to win out with their “drill now” mantra? Or will Democrats prevail with an emphasis on renewable energy and green jobs? Both claim their plans will further energy independence. The maneuvering will be interesting – and disturbing – to watch. Whatever they do won’t help gas prices and – more important – won't do as much as is needed to fight against global warming.

How you can help
Join the Sierra Club, Physicians for Social Responsibility and other groups Tuesday, Sept. 9 for National Call-in Day. Call your senators and representatives (Congressional switchboard is 212-224-3121) and tell them the emphasis should be on renewable energy, efficiency and green jobs, not offshore drilling and more fossil fuels. Also write a Letter to the Editor to that effect. Help shape the debate.

(Sources: Greenwire, E&E PM, Sierra Club)