Senate Passes Improved Energy Bill

By December 14, 2007Energy

From CQ Politics (a thorough story):

The Senate confidently passed a pared-down energy bill Thursday, stripping out a $21.8 billion package of tax incentives that drew a presidential veto threat and failed to pass the chamber just hours earlier.

Senators, however, preserved the first increase in corporate average fuel economy, or CAFE, standards in 30 years as well as a mandate to infuse 36 billions of gallons of ethanol and other biofuels into gasoline by 2022.

And to comply with pay-as-you-go rules, they also salvaged about $2.1 billion in offsets to pay for the loss in gasoline tax revenue from using less fuel.

The roll call vote tally is here. Five of the no votes were market-oriented Republicans; the other was Sen. Stabenow (D-MI).

Unfortunately, the improved bill still fails to encourage domestic production of the energy foundation upon which the economy stands.

And a statement from the American Petroleum Institute:

API is pleased that the Senate did the right thing by removing a tax title that would have threatened U.S. energy production and jobs.

There are provisions promoting energy efficiency in the legislation that will enhance our nation’s energy security. However, we remain concerned by the unrealistic biofuels mandate.

We look forward to a new, collaborative process to produce a truly balanced energy policy to strengthen America’s energy security.

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