Energy Bill Update

During the past few days, there have been some positive developments as the House continues to put together its energy bill.

While Senate conservatives previously blocked [1] consideration of increased renewable electricity, Speaker Nancy Pelosi is working [2] to build enough support to include it in the House version [3].

The provision would require utilities to produce 20% of their electricity with renewable energy by 2020. Without being part of the House version, there's no chance it can part of the final legislation.

On the Senate side, Sen. Max Baucus, D-Mont., recently announced that he has enough votes to break an earlier conservative filibuster of tax credits for renewable energy [4], paid for with increased taxes on Big Oil.

The House has a similar package in the works, meaning increased investment in renewable energy has a good chance of being in the final legislation.

Regarding automobile fuel-efficiency standards, the New York Times editorial board nudges Pelosi today [5] to include an increase in the House bill. However, they overlook that Pelosi may have good reason to momentarily duck the issue. As I blogged last month:

Since CAFE increases are in the Senate bill, avoiding the issue in the House may be a positive thing. According to CQ, House conservatives tried to incorporate a weaker CAFE provision because in the words of one [6], "It’s hard to beat something with nothing." They were unsuccessful [7], meaning the Senate version has a better chance of surviving a House-Senate conference.

Finally, Blue Climate [8] notes that a new American Council for an Energy-Efficient Economy report finds the combined House and Senate bills can reduce carbon emissions by 18% in 2030. Blue Climate concludes: "a long way to go to achieve the emission reductions that are needed but it is certainly a step in the right direction."

Broader legislation that could slash carbon emissions is still expected in the fall, after Congress finishes its work on the energy bill.