An energy bill that would create a carbon cap-and-trade program, increase vehicle fuel efficiency standards and mandate a 15% Renewable Portfolio Standard took two important steps towards becoming U.S. law before hitting a roadblock on the Senate floor this morning.
Wednesday evening the Senate Environment and Public Works Committee, led by Senator Barbara Boxer (D- CA) voted 11-8 in favor of sending America’s Climate Security Act to the Senate floor for a chamber-wide vote.
Following this action, on Thursday the House passed a version of the same bill along party lines by a vote of 235-181.
Friday morning a procedural attempt by Senate Majority Leader Harry Reid fell seven votes short of the 60 needed to limit debate on the bill before moving to a quick vote. As a result, Senate Republicans could filibuster the legislation, holding it in debate indefinitely until concessions are made to their concerns.
Of greatest concern to Republicans, including President Bush, who said he would veto the bill in its current form, is a tax package that provides incentives for renewable energy, while cutting more than $17 billion in tax deductions and breaks for oil and gas companies over the next ten years,
Other highlights of the tax package include: investment tax credits for “clean-coal” projects and taxes excise taxes on coal sales; a production tax credit for cellulosic ethanol; a $3000 tax credit for purchasing “plug-in” hybrid vehicles; and tax credit bonds for “green” community programs.
Senate Republicans and the Bush administration also oppose the 15% Renewable Portfolio Standard, which they say will unfairly penalize states with few renewable natural resources. Republicans have vowed to fight the bill on the Senate floor.
In Bali, Indonesia, where the U.N. Climate Conference is currently being held, Yvo de Boer, head of the UN Climate Change Secretariat called the earlier votes an “encouraging sign from the United States.” The legislative moves made by Congressional Democrats suggested that the U.S. may be prepared to accept Kyoto-style mandatory emissions targets–regardless of the Bush administration’s stance.
Boxer’s committee spent hours Wednesday debating more than 50-proposed amendments, rejecting most before voting on the bill, which was proposed by Senators Joseph Lieberman (I-CT) and John Warner (R-VA).
Warner joined Democrats and Independents on the committee in rejecting Republican amendments that would have allowed for natural gas offshore drilling, the opening of Yucca Mountain as a nuclear waste site, rapid development of nuclear power plants, restrictions on state and local measures to combat global warming and halting emissions reduction measures, if China and India failed to follow suit within ten years.
Amendments added include a low-carbon fuel standard that reduces carbon content in fuels 5% by 2015 and 10% by 2020; also a requirement for states to use a portion of their pollution credit to increase recycling rates.
The committee also voted down an amendment proposed by Senators Hillary Clinton (D-NY) and Bernie Sanders (D-VT) calling for more permits in the cap-and-trade plan to be auctioned off from the start of the program in 2012. At issue is whether or not the permits to be given away will create windfall profits for polluting companies at the beginning of the program.
At this point, it is unclear how or if the bill will emerge from the Senate, and certainly nothing will come of it by the end of the year. Reid has said the bill will have to be modified in order to be passed.
He told reporters, “If we can’t get it all, we’ll get part of it.”
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