Senate Democrats propose bill to boost nonoil energy

Nick Snow
Washington Correspondent

WASHINGTON, DC, May 18 -- Forty-three US Senate Democrats proposed energy legislation on May 17 that would accelerate development of nonpetroleum motor fuels, make price-gouging a federal crime, and provide emergency energy assistance to low-income families and emergency energy loans to farmers and small businesses.

Called the Clean Energy Development for a Growing Economy (Clean EDGE) initiative, the legislation also would revoke subsidies for major oil companies and transfer the money to renewable energy and energy efficiency programs.

Senate Minority Leader Harry Reid (D-Nev.) declared, "With this bill, and under our leadership, America will be energy-independent by 2020."

Maria Cantwell (D-Wash.), the bill's lead sponsor, said, "I'd rather invest in American ingenuity than rely on the future goodwill of Middle East regimes."

She said the US can't afford, and Democrats won't accept, current levels of dependence on foreign oil.

"It's time that we stop talking about energy independence and start running with a plan that also makes America more secure and more economically competitive," Cantwell said.

Senate Republicans immediately criticized the measure. Energy and Natural Resources Committee Chairman Pete V. Domenici (R-NM) called it "a sprinkling of good ideas, a heavy helping of bad ideas, and a pathetic absence of any effort to increase American energy supplies."

House Republican energy leaders also were critical. Energy and Commerce Committee Chairman Joe Barton (R-Tex.) said the Senate Democrats' proposals at least were an alternative to simply opposing Republicans' bills.

"Bills pending right now, some already passed by the House, include legislation to streamline refinery permitting so we can produce adequate amounts of gasoline without negating a single environmental provision," he observed. "I hope the Democrats who are complaining today will not again vote no or just filibuster legislation to build the first new refinery in 30 years."

The Senate Democrats' bill would:

-- Accelerate vehicle conversions by mandating that 25% of new vehicle sales be flexible-fuel capable by 2010, rising to 50% by 2010. The bill also would set a goal of installing alternative fuels at 10% of the nation's gasoline stations by 2015 by providing support to retailers and local governments. It also would accelerate and extend initiatives to encourage the manufacturing and purchasing of hybrid and other advanced-technology vehicles.

-- Make gasoline "price-gouging" a federal crime, extend federal authority to prevent and prosecute supply and market manipulation, and make petroleum markets more transparent. The bill also would help low-income families and individuals by providing flexibility in Food Stamp and Section 8 public housing programs and give a refundable tax credit to households eligible for Low Income Home Energy Assistance Program help. Emergency energy loans for farmers and small businesses would be administered through the US Agriculture Department and Small Business Administration, respectively.

-- Revoke federal subsidies to major oil companies and more aggressively monitor federal oil and gas royalty payments. The bill would use money previously earmarked for oil and gas programs for alternative fuel and energy efficiency efforts.

-- Require the federal government to reduce its petroleum consumption by 20% in 5 years and 40% by 2020 and increase electricity from renewable sources' share of total federal consumption to 10% by 2013. The bill also would enhance state and local governments' authority to issue bonds for projects to reduce oil consumption and greenhouse gas emissions, to develop nonpetroleum fuels, and to "invest in efficient vehicles, alternative infrastructure, and transit."

-- Diversify energy sources by requiring that 10% of the electricity consumed in the US come from renewable sources by 2020. The bill also would create an Advanced Research Projects Agency for Energy to develop new technologies, a clean-energy investment administration to help deploy "new, on-the-ground solutions," and education programs to develop a skilled advanced-energy-technologies workforce.

Contact Nick Snow at [email protected].