The Senate is preparing for another procedural vote on the Energy bill today after removing from it the Renewable Portfolio Standard (RPS) requiring utilities to produce 15% of their electricity from renewable sources.
However, the Democratic leadership did not significantly alter the tax package, which is strongly opposed by Senate Republicans and is almost sure to draw a presidential veto. The tax package pays for incentives given to renewable energy technologies, such as wind and solar, by repealing tax breaks for big oil and gas companies.
Senate majority leader Harry Reid is hoping the removal of the RPS will garner enough support to pass a procedural vote to move the bill past debate, thereby avoiding a Republican filibuster. A similar attempt last week fell seven votes short.
The White House has said the energy bill unfairly targets the oil industry, even though some reports say the $13 billion oil companies stand to lose over ten years amounts to only a little more than 1% of the profits they would make during that period.
Even if the Senate were to change or remove the tax package, it is not certain that President Bush would sign the new energy bill. Reports today suggest the administration is considering blocking the increased fuel efficiency standard unless the bill shifts regulatory power for tailpipe emissions from the Environmental Protection Agency (EPA) to the National Highway Traffic Safety Administration.
Taking that authority away from the EPA would undermine the position of California, which has requested a waiver from the EPA to impose its own tougher vehicle emissions standards. Numerous states are poised to follow California’s leave should it receive the waiver.
The administration may be feeling even more pressure to assist the auto industry, which suffered another legal setback yesterday in its attempts to block California from setting its own tougher emissions standards.
A federal court judge in Fresno, California rejected arguments by car makers yesterday that federal law should preempt state laws on emissions.
Congress would need a two-thirds majority in both houses to overcome a veto of the energy bill by President Bush.
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