The bill, designated HR6, was intended to be comprehensive, to improve supply (conventional and alternative), and trading standards, encourage efficiency, economy and emissions reductions and promote energy independence. Its supporters are delighted with it but its opponents say the bill gives short shrift to energy conservation and development of renewable energy sources and is full of unneeded subsidies for energy companies. Democrat attempts to increase fuel economy measures and ban oil drilling in the Arctic National Wildlife Refuge (ANWR), and failing that, to derail the bill altogether, were defeated.
The bill's principal supporters, energy secretary Spencer Abraham and its sponsor House energy and commerce committee chairman Billy Tauzin, welcomed the bill's passage with elation. Tauzin described a "... sweeping energy bill ... that will ensure that all Americans have access to more efficient, affordable, and environmentally friendly energy." Abraham spoke of "energy independence day ... to free us from ... harmful emissions and lessen our dependence on foreign oil".
The bill launched a programme to enable hydrogen fuel cell cars to compete in the market by 2020. The package authorises expenditure of $1.5 billion to expand the strategic petroleum reserve's capacity to one billion barrels. In addition it encourages more nuclear and hydropower production, advances oil and gas exploration and deep drilling in the Gulf of Mexico.
With the pro-drilling vote, the House set up a likely confrontation with the Senate, which last month rejected drilling in the Arctic National Wildlife Refuge by a vote of 52-48. Even pro-drilling Senate Republicans have indicated they have little stomach to take on the issue again in an energy bill that Democrats have sworn to filibuster over the drilling issue.
Drilling opponents argued more oil could be saved with higher auto fuel economy requirements than the refuge could produce. Earlier, the House turned back a proposal to require a 5 per cent reduction in fuel used by motor vehicles, including sport-utility vehicles and pickup trucks, within seven years. Opponents to the measure said it would 'force Americans to ride around in minicars'.
The bill includes $18.7 billion in tax subsidies to increase energy production and supply over 10 years; and gives the Federal Energy Regulatory Commission new authority to stop anti-competitive market activities and round trip trading to prevent fraud and unjust electricity rates.
During the debate, House lawmakers ploughed through 22 amendments to the bill, which is a compilation of pieces of legislation passed in April by the Energy and Commerce, Resources, Ways and Means, and Science committees.
None of the amendments dealt with the renewable fuels standard, which requires the supply of 5 billion gallons of 'renewable' fuels (mainly ethanol) by 2015, and therefore the provision remained intact. However, that does not mean that everyone is in agreement over RFS. Some Democrats complained that the House Rules Committee unfairly limited the amendments offered, effectively eliminating the prospect of trading among states in 'ethanol credits'.
Among the amendments introduced were measures that would: · Introduce regulations to reduce by 5 per cent the amount of gasoline consumed by cars and light trucks in 2010. The amendment was defeated 268 to 162.
· Prohibit drilling in ANWR; The amendment was defeated 228 to 197.
· Limit to two the fuels that states can choose from in their state implementation plans. One would be a clean-burning gasoline, with 6.8 Reid vapour pressure and one would be a low Rvp gasoline (7.8 Rvp); the amendment was accepted.
The Senate is currently processing R & D programmes and the less contentious issues of hydrogen fuels, non-vehicle renewable energy, and energy efficency programmes. A climate change provision is to be dealt with entirely on the Senate floor. The next stage is to create a consensus bill to present to the White House, but the House and Senate will have to thrash out a number of differences, most likely on electricity, ANWR, and renewable energy.
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