Senate Passes Energy Bill

The bill, which passed the Senate 85-12, addresses a range of issues: providing more tax breaks for oil and gas production, mandating electricity reliability standards on utilities to diminish blackouts, and offering incentives for more wind and solar power. It also includes more money for technology research on clean coal and fuel cells and tax benefits for hybrid and alternative-fuel vehicles.

The measure now heads to a Senate-House conference committee, where differences between the two versions must be worked out. The House passed its bill in April. The two sides have been unable to agree on a comprehensive policy since 2001.

Sticking points include provisions in the House bill to allow oil drilling in the Arctic National Wildlife Refuge, or ANWR, in Alaska and a liability waiver protecting manufacturers of the gasoline additive MTBE from water-pollution lawsuits ? items that weren't contained in the Senate version.

Environmentalists criticized the Senate energy bill for not doing enough to cut down on pollution that causes global warming and for not raising mileage requirements on cars and SUVs.

Even President Bush, who has been calling on Congress to pass an energy bill for years, cautioned that consumers won't see an immediate effect.

SENATE BILL:

Cost: $16 billion.

Tax incentives: $18 billion, offset by $4.3 billion in new energy taxes, tilted toward conservation, alternative fuels, and renewable energy sources.

Ethanol: Requires use of 8 billion gallons annually in gasoline by 2012.

Arctic refuge: Not included.

Loan guarantees: For developing clean coal, new reactors, carbon capturing technologies.

Offshore energy: Calls for inventory of Outer Continental Shelf oil and gas resources.

Liquefied natural gas terminals: Establishes clear federal authority over siting LNG import terminals.

Oil savings: Calls on the President to find ways to reduce oil use by 1 million barrels a day by 2025.

Daylight-saving time: Not included.

Energy efficiency: Tax breaks for purchase of energy efficiency appliances, hybrid automobiles, building energy efficient homes.

Electricity grids: Mandatory reliability standards and tax incentives for grid improvements.

HOUSE BILL:

Cost: $8 billion (assumes $2.6 billion expected revenue from ANWR oil leases).

Tax breaks: $8.1 billion over 10 years, almost all for traditional fossil fuels and electric utilities.

Ethanol: Requires use of 5 billion gallons annually in gasoline by 2012

Arctic Refuge: Approves oil drilling in Alaska's Arctic National Wildlife Refuge (ANWR).

Loan guarantees: Not included.

Offshore energy: $2 billion in government support for research into ultra-deep water drilling.

Liquefied natural gas terminals: Same.

Oil saving: Not included.

Daylight-saving time: Extends it by two months.

Energy efficiency: Tax breaks for homeowners making energy-improvements.

Electricity grids: Same