LONG, LONG WAIT FOR BETTER FUEL STANDARDS
As the first session of the 110th Congress was coming to a close, President Bush signed into law a new energy bill that increases automobile fuel efficiency standards—the first president to do so since Gerald Ford did it in 1975. While this represents progress that was long overdue, the legislation was watered down quite a bit to secure passage.
The new law requires an industry-wide average fuel efficiency standard of 35 miles per gallon (mpg) by 2020 for cars and light trucks. A more aggressive goal of 40 mpg was blocked by Rep. John Dingell (D-MI), a close ally of the auto industry.
The new law also mandates using 36 billion gallons of biofuels by 2022 and increases energy efficiency requirements for some household appliances.
Dropped from the bill, in part due to a veto threat, was a provision that would have required utilities to get 15 percent of their energy from renewables, and a tax package that would have invested billions of dollars in renewable energy while reducing tax breaks and subsidies to the oil and gas industry.
A ROCK AND A HARD PLACE
Another long-overdue accomplishment was House passage of legislation reforming the 1872 Mining Law.
That ancient law, signed into law by Ulysses S. Grant, cheats taxpayers out of royalty revenues, allows the giveaway of the public estate at 19th century prices (a puny $5 per acre), and fails to impose strong environmental performance or reclamation standards on hard rock mines.
The Hardrock Mining and Reclamation Act of 2007 would impose a royalty—8 percent on new claims, 4 percent on existing operations— for the extraction of hardrock minerals (gold, silver, copper etc.) from federal lands. The bill, which passed 244-166 (see Proud to Praise ‘Em!), would also establish a permanent moratorium on patenting (buying) federal lands and establish a fund to help cover the costs of cleaning up toxic water or other contamination left behind by abandoned mining operations.
The legislation faces an uphill battle in the Senate. Senate Majority Leader Harry Reid (D-NV) opposes the measure, as do Senator John Ensign (R-NV) and Senator—and presidential candidate—Barack Obama (D-IL). On top of that, President Bush has threatened to veto the measure.
CLIMATE HEATING UP
The Warner-Lieberman climate bill—which we reported on in the fall Green Elephant—America’s Climate Security Act of 2007 (S. 2191), is on the move. In addition to Senator John Warner (R-VA), the bill is co-sponsored by three other Republicans, Elizabeth Dole (R-NC), Norm Coleman (R-MN) and Susan Collins (R-ME). It passed out of committee and should see a floor vote very soon.
America’s Climate Security Act is a cap-and-trade bill to reduce greenhouse gas (GHG) emissions almost 20 percent below current levels by 2020, and result in a more than 60 percent reduction by 2050.
It also establishes a Carbon Market Efficiency Board to observe and report on the national GHG emission market and provide cost-relief measures if it determines that the price of carbon poses significant harm to the U.S. economy.
While many senators are withholding support to gain leverage in shaping the bill as it moves to a vote, it does stand a good chance of getting the 60 votes needed to pass.
The bigger question is whether or not President Bush will sign it. REP is working to encourage him to sign such legislation before he leaves office. It’s his final opportunity to improve his stewardship legacy.
