Clean Energy In the News

Package has suffered from fighting among Democrats

By DAVID IVANOVICH Copyright 2007 Houston Chronicle Washington Bureau

WASHINGTON — The House, engulfed in squabbles over a disputed procedural vote and some malfunctioning voting machines, postponed until today votes on a two-part energy package. Despite a veto threat from the Bush administration, the Democrat-controlled House is poised to vote on legislation designed to encourage conservation and promote greater use of renewable energy sources, while also taking a swipe at the oil companies.

But House Speaker Nancy Pelosi, D-Calif., was still scrambling Friday to deal with a rebellion in her own ranks. Rep. Gene Green of Houston and other Democrats from energy producing states, dubbed "Hydrocarbon Democrats," met with Pelosi again Friday to raise their concerns about the anti-energy industry thrust of the legislative package. Asked whether Democratic leaders have the votes to push through their proposals despite the opposition from within the party, Green said: "I don't think they'd be talking to us if they had the votes."

Pelosi told reporters Friday afternoon the House would take up the energy package today — on what was supposed to be the start of lawmakers' August recess — "if all goes as planned." But precious little has gone according to plan in the House in recent days. House Republicans erupted in anger late Thursday over a highly contested vote on an agriculture bill, followed by a breakdown of the electronic voting system Friday that delayed floor action for hours.

Need a better relationship

The Democrats' primary energy bill promotes conservation and use of renewable energy sources. It includes new efficiency standards for home appliances; proposals for more energy efficient lighting; expanded use of ethanol; and tax incentives for consumers to buy more fuel-efficient "plug-in" hybrid cars, which feature batteries that can be recharged when the car is not in use.

Rep. Tom Udall, D-N.M., together with his cousin, Rep. Mark Udall, D-Colo., was busy Friday trying to rustle up enough votes for an amendment that would require utilities by 2020 to generate at least 15 percent of their electricity using renewable energy sources such as wind and solar power. To try to ensure enough votes, the proponents agreed to give utilities greater flexibility to meet the standards, including allowing them to use efficiency improvements to account for up to 4 percentage points of the 15 percent renewable requirement.

Green had raised concerns that Texas would not be able to meet such a standard and that it would prompt a huge increase in utility bills. He was trying Friday to ascertain how Texas might fare under the proposal. Green also questioned a related tax bill that would slap the oil companies with $16 billion in new taxes. Among other provisions, it would exclude the companies from a scheduled rollback in the corporate tax rate for U.S. manufacturers, increase the taxes on their operations overseas and complicate their efforts to write off exploration and production expenses.

"We need to have a better relationship between the energy companies and Democratic leadership," Green said. "That goes without saying."

Threats of a veto

The Bush administration voiced its displeasure with the Democratic proposal Friday. The White House Office of Management and Budget said the president's senior advisers had recommended he veto the bills, arguing they "fail to deliver American consumers or businesses more energy security, but rather would lead to less domestic oil and gas production, higher energy costs, and higher taxes."

White House officials argued that "repealing the manufacturing deduction for only the oil and gas industry is a targeted tax increase that puts U.S. industries at a disadvantage to their foreign competitors." The administration also criticized as "inexpensive and highly inefficient" the bill's $8 billion in tax credits for renewable energy production and conservation efforts.

'Clear that he's all talk'

Environmental groups, wanting to protect a bill they strongly support, blasted the Bush administration for its opposition. Luke Metzger, director of Environment Texas, called the veto threat "truly outrageous." "This president has told the nation that we are 'addicted to oil' and called on the nations of the world to 'improve energy security, reduce air pollution, and also reduce greenhouse gases.' With his veto threat today, it's clear that he's all talk," Metzger said.

Earlier this summer, the Senate passed its own energy package. Before any legislation could be sent to the president for his signature, House and Senate negotiators would have to work out a compromise bill. Despite all the fits and starts, at least some Democrats remained confident they will pass out energy legislation. "The energy bill is like Christmas," said Rep. Neil Abercrombie, D-Hawaii, "It's coming." david.ivanovich@chron.com