WASHINGTON - The House approved the first increase in federal automobile fuel efficiency requirements in three decades Thursday as part of an energy bill that also repeals billions of dollars in oil company tax breaks and encourages the use of renewable fuels.
The bill, passed by a vote of 235-181, faces a certain filibuster in the Senate and a veto threat from the White House.
Democrats characterized the legislation as "a new direction" in U.S. energy policy away from dependence on fossil fuels. But Republicans said the actions amount to government mandates that would lead to higher energy prices while doing little to spur production of more domestic oil or natural gas - fuels they say will remain essential for decades to come.
"We will send our energy dollars to the Midwest, not the Middle East," countered House Speaker Nancy Pelosi, referring to the bill's emphasis on promoting renewable energy sources, especially ethanol, which would see a sevenfold increase by 2022 to 36 billion gallons a year.
"The point of this is, are we about the past or are we about the future?" said Pelosi, D-Calif.
The bill would roll back $13.5 billion in tax breaks enjoyed by the five largest U.S. oil companies with the money to be used for tax incentives for development of renewable energy sources like ethanol from grasses and wood chips and biodiesel and for energy efficiency programs and conservation.
"There's nothing in here that's going to lower gas prices in America … nothing that is going to help American families deal with heating costs this winter … nothing to increase production," complained Republican leader John Boehner of Ohio.
The centerpiece of the bill is a requirement to boost automobile fuel economy by 40 percent to an industry average of 35 miles per gallon by 2020, the first such increase since 1975.
S.D. lawmakers vote
Rep. Stephanie Herseth Sandlin, D-S.D., voted for the energy bill, hailing its requirement to increase the amount of biofuels such as ethanol to 36 billion gallons by 2022.
"Reforming our nation's approach to energy production is more than a technological challenge, it is a tremendous opportunity for our state," Herseth Sandlin said in a news release. "The structure of this new, higher standard ensures that South Dakota will continue to be among the national leaders in the production of renewable fuels using traditional methods, but it also will drive the development of new and efficient processes to turn South Dakota's natural abundance into energy for the whole country."
Herseth Sandlin also praised the provision requiring 15 percent of electricity generated in the U.S. to come from new renewable sources, such as wind, by 2020.
Sen. Tim Johnson, D-S.D., called the House energy bill a solid compromise and praised the renewable fuels standard, which he said would double the amount of ethanol currently produced in the United States by 2015.
The bill requires that cellulosic ethanol comprise 5.5 billion gallons of the renewable fuels standard requirement in 2015 and 21 billion gallons of cellulosic ethanol in 2022.
Sen. John Thune, R-S.D., also favors increasing the renewable fuels standard and other provisions in the bill. However, he said the higher taxes on oil companies and additional requirements on electricity companies could block its passage in the Senate and draw a veto from President Bush even if it does pass.
"It is critical that Congress pass a new renewable fuels standard by the end of this year," Thune said.
He cited a study by the ethanol industry indicating certain vehicles perform better from mileage and emissions standpoints on fuel with more ethanol.
Posted in Local on Wednesday, December 5, 2007 11:00 pm
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