House passes energy legislation
GOP opponents criticized the measures, which would increase taxes on oil companies and provide incentives for conservation efforts.
WASHINGTON - Declaring a new direction in energy policy, the House yesterday approved $16 billion in taxes on oil companies, while providing billions of dollars in tax breaks and incentives for renewable energy and conservation efforts.
Republican opponents said the legislation ignored the need to produce more domestic oil, natural gas and coal. One GOP lawmaker bemoaned "the pure venom . . . against the oil and gas industry."
The House passed the tax provisions by a vote of 221-189. Earlier it had approved, 241-172, a companion energy package aimed at boosting energy efficiency and expanding use of biofuels, wind power, and other renewable energy sources.
"We are turning to the future," said House Speaker Nancy Pelosi (D., Calif.).
The two bills, passed during an unusual Saturday session as lawmakers prepared to leave town for their monthlong summer recess, will be merged with legislation the Senate passed in June.
On one of the most contentious and heavily lobbied issues, the House voted to require investor-owned electric utilities nationwide to generate at least 15 percent of their electricity from renewable energy sources, such as wind or biofuels.
The utilities and business interests had argued aggressively against the renewables mandate, saying it would raise electricity prices in regions of the country that do not have abundant wind energy. But environmentalists said the requirement would spur investments in renewable fuels and help address global warming as utilities used less coal.
"This will save consumers money," said U.S. Rep. Tom Udall (D., N.M.), the provision's cosponsor, maintaining that utilities would have to use less high-priced natural gas. He noted that nearly half the states already had a renewable-energy mandate for utilities, and that if utilities could not find enough renewable sources, they could meet part of the requirement through power-conservation measures.
The bill also calls for more stringent energy-efficiency standards for appliances and lighting and incentives for building more energy-efficient "green" buildings. It would authorize special bonds for cities and counties to reduce energy demand.
Republicans said the House bill did nothing to increase domestic oil and natural gas production or take further advantage of coal, the country's most abundant domestic energy resource.
"There's a war going on against energy from fossil fuels," said U.S. Rep. Ralph Hall (R., Texas). "I can't understand the pure venom felt against the oil and gas industry."
U.S. Rep. Joe Barton (R., Texas) said the bill was "a political exercise" to promote "pet projects . . . pet ideas." He predicted it "isn't going anywhere" because President Bush would veto it if it got to his desk.
The White House said the legislation made "no serious attempts to increase our energy security or address high energy costs" and would harm domestic oil and gas production. The administration's statement criticized the singling out of oil companies for tax increases.
The tax measure also would provide an array of loan guarantees, federal grants and tax breaks for alternative-energy programs. They include building biomass factories, research into making ethanol from wood chips and prairie grasses, and producing better batteries for hybrid gas-electric automobiles.