Washington – The Senate passed an energy bill late Thursday that includes an increase in automobile fuel economy, new laws against energy price-gouging and a requirement for huge increases in the production of ethanol.
In an eleventh-hour compromise fashioned after two days of closed-door meetings, an agreement was reached to increase average fuel economy by 40 percent to 35 mpg for cars, SUVs and pickups by 2020.
But the fuel-economy issue threatened to topple the legislation up to the last minute. Majority Leader Harry Reid, D-Nev., held off the vote until late into the evening so several senators could be called back to Capitol Hill to provide the 60-vote margin needed to overcome a threatened filibuster from pro-auto- industry senators.
Shortly before midnight, senators voted 62-32 to cut off debate, and followed by passing the bill 65-27. The measure now awaits action by the House, which is expected to take it up next week. But attempts to combine the two bills and send legislation to President Bush probably won’t be possible until later this year.
It would be the first increase in vehicle fuel efficiency since the current 22.7 mpg for cars was put in place in 1989 and the first time Congress has imposed a new auto efficiency mandate in 32 years.
Supporters said the new requirement would save 2.5 million barrels of oil a day by 2025, when large numbers of the more fuel-stingy cars will be on the road.
Republicans earlier blocked Democratic efforts to raise oil taxes by $29 billion and use the money to promote renewable fuels and other clean-energy programs.
Sen. Ken Salazar, D-Colo., inserted two of the tax-incentive provisions that did not survive. One would have provided a tax credit for small residential wind systems, and the other increased tax credits for producers of ethanol using plant material other than corn kernels.
“These tax provisions would have assisted the increasing number of Coloradans who are actively seeking ways they can single-handedly increase our energy security by generating their own power or switching to alternative fuels,” Salazar said. The tax credit for biofuels, he added, was to “provide farmers another economic resource and present a real opportunity to displace significant amounts of foreign oil.”
The legislation for the first time would establish a single fuel-economy standard applicable to not only cars but also SUVs and pickups, which currently have to meet less stringent requirement.
Fuel-efficiency requirements would vary for different classes of vehicles based on weight and size. But manufacturers would be required to meet an overall fleetwide average of 35 mpg.
“It closes the SUV loophole,” declared Sen. Dianne Feinstein, D-Calif., referring to current requirements that allow a much less stringent average of 27.5 mpg for cars and 22.2 mpg for SUVs and small trucks. The car standard has not changed since 1989, though the truck requirements have been increased slightly by the Bush administration.
“This compromise is a significant step to keeping this legislation moving forward,” said Sen. Ted Stevens, R-Alaska.
Denver Post staff writer Anne C. Mulkern contributed to this report.
Key points of the bill
An increase in vehicle fuel-economy requirements to 35 mpg by 2020, and 4 percent annual increases after that, from the current requirements of 27.5 mpg for cars and 22.2 mpg for SUVs and small trucks.
A requirement to produce 36 billion gallons a year of ethanol, as a substitute for gasoline, by 2022, a sevenfold increase over production in 2006; ethanol would be made from corn and cellulosic sources such as prairie grass and wood chips.
Price-gouging provisions that make it unlawful to charge an “unconscionably excessive” price for oil products including gasoline and give the federal government new authority to investigate oil-industry market manipulation.
New appliance and lighting efficiency standards and a requirement that the federal government accelerate use of more efficient lighting in public buildings.
Grants, loan guarantees and other assistance to promote research into fuel-efficient vehicles, including hybrids, advanced diesel and battery technologies.
Support for large-scale demonstrations that capture carbon dioxide from coal-burning power plants and inject it into the ground.
