The US Senate last night passed a broad energy bill late Thursday that would, among other things, require the first big improvement in fuel economy requirements for passenger cars in more than 20 years.
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The New York Times (NYT) reported that the vote, 65 to 27, was a major defeat for car manufacturers, which had fought for a much smaller increase in fuel economy standards and is expected to keep fighting as the lower House of Representatives now takes up the issue.
But the paper noted that Senate Republican lawmakers successfully blocked a crucial component of the Democratic plan that would have raised taxes on oil companies by about $US32bn and used the money on tax breaks for wind power, solar power, ethanol and other renewable fuels.
As a result, the NYT said, Senate Democrats had to settle for a bill that calls for a vast expansion of renewable fuels over the next decade — to 36bn gallons a year of alternatives to petrol — but does little to actually promote those fuels through tax breaks or other subsidies.
The New York Times noted that the combination of breakthroughs and setbacks highlighted the blocking power of the entrenched industry groups, from oil companies and electric utilities to car manufacturers, that had blanketed Congress in recent days to defend their interests.
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By GlobalDataThe clashes and impasses also provided a pointer to potentially bigger obstacles when Democrats try to pass legislation this autumn to reduce emissions of greenhouse gases tied to global warming, the paper said.
“This bill starts America on a path toward reducing our reliance on oil by increasing the nation’s use of renewable fuels,” senator Harry Reid of Nevada, the Senate majority leader, was quoted as saying.
According to the report, environmental groups, though disappointed by the setbacks on renewable fuels, nevertheless hailed the vote on tougher fuel economy requirements as a long-sought victory that could eventually reduce American petrol consumption by more than 1m gallons a day.
If the Senate bill becomes law, the New York Times said, car makers would have to increase the average fuel economy of new cars and light trucks to 35 miles per [US] gallon by 2020, compared with roughly 25mpg today.
The paper said the car companies had lobbied ferociously for a much weaker requirement of 30mpg for light trucks and sport-utility vehicles. To muster enough votes to prevent a blocking manoeuvre, about a dozen lawmakers from both parties negotiated a deal that included the higher standard but omitted explicit requirements for further increases in efficiency after 2020.
“We are thrilled,” Kevin Curtis, a lobbyist for the Pew Campaign for Fuel Efficiency, told the New York Times. “This is the first time in decades that the senate has passed a significant increase in fuel economy standards.”
The paper noted that car industry’s main trade association, the Alliance of Automobile Manufacturers, appeared stunned by the sudden compromise and refused to comment publicly on the bill last night.
Republican opponents reportedly argued that tax increases on oil companies would reduce exploration for oil and lead to higher petrol prices.
“Republicans continue to pander to the big oil and energy companies,” Reid complained after conceding defeat on issues related to them, the paper said. “Republicans repeatedly demonstrate that they do not care about the priorities of the American people, throwing up roadblocks at every turn instead of working with us to reduce skyrocketing gas prices.”
