An Energy Bill Compromise? Sure, Yeah, Uh Huh

By July 30, 2007Energy

Congress Daily PM is reporting that House Speaker Pelosi will be revealing an energy bill today with plans to vote on it this Friday. Intraparty negotiators softened the restrictions on drilling on federal lands just enough to get a few more oil-patch Democrats to sign on. Meanwhile, Congress Daily says, Pelosi plans to push hard for the 20 percent renewable fuels standard (which we blogged about here).

NAM President John Engler sent a letter to House members today raising several objections to the renewable standard.

We are deeply concerned that a mandatory federal RPS could raise electricity prices for all consumers. Electricity costs are a significant factor for U.S. businesses. Affordable and reliable electricity is essential to the long-term health of the U.S. economy and its citizens. Lower energy prices mean greater take home pay for American workers, and access to affordable energy enables domestic producers of chemicals, plastics, fertilizers, paper and wood goods, glass, metals and food products to effectively compete in the global economy.

Almost half of the states have already implemented renewable portfolio standards based on their available renewable energy resources. These state programs set percentage requirements and timelines that the states believe are achievable. We are deeply concerned that the 20 percent federal RPS amendment will preempt, or conflict with, many of these state programs. At the same time, other large regions of the country are not rich in renewable resources. A federal RPS mandate will result in a huge wealth transfer from those regions to other areas or, even worse, simply result in utilities paying significant sums of money to the U.S.

You can read the full letter (in .pdf format) here.

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