Energy bill stalls in US Congress
Senate Democrats searched for a compromise on energy legislation as Republican leaders made clear they will oppose oil industry taxes and a mandate for utilities to use more wind and solar-generated electricity.
By Agencies |
WASHINGTON: Senate Democrats searched for a compromise on energy legislation as Republican leaders made clear they will oppose oil industry taxes and a mandate for utilities to use more wind and solar-generated electricity.
The sharp divisions within the Senate over the taxes and renewable fuels mandate surfaced when Democrats fell seven votes short on a procedural vote, 53-42, on Friday as the Senate began considering an energy package approved by the House on Thursday.
``I would hope this sends a signal,'' said Republican Sen. Pete Domenici after the test vote.
Majority Leader Harry Reid acknowledged the House-passed bill will require some surgery and he said he planned to return to the legislation next week. Whatever changes are made would then have to be approved by the House.
Much of the legislation, including the first increase in automobile fuel economy requirements in 32 years, has ``near universal support,'' said Senate Republican leader Mitch McConnell of Kentucky.
But he said the House-passed bill ``won't become law'' unless the ``twin millstones of utility rate hikes and massive tax increases'' are removed. Democrats acknowledged they don't have the 60 votes needed to overcome Republican delaying tactics with the bill as it stands.
Republican lawmakers, as well as the White House, have been most critical of $13.5 billion (euro9.2 billion) in taxes imposed on the five largest oil companies under the House-passed bill. It is part of a broader $21 billion (euro14 billion) tax package that senators are trying to rework.
Finance Committee Chairman Max Baucus, a Democrat, said Friday while ``some modest changes'' could be made in the tax provisions, the taxes are ``an essential, necessary component'' because they pay for a wide range of clean energy programs, from capturing carbon dioxide from power plants to extending short-term tax credits for solar and wind energy plants and commercial development of cellulosic ethanol.
Democratic leaders were leaning Friday toward dropping divisive requirement for utilities to produce 15 percent of their electricity from renewable energy sources such, wind, solar or biofuels.
The sharp divisions within the Senate over the taxes and renewable fuels mandate surfaced when Democrats fell seven votes short on a procedural vote, 53-42, on Friday as the Senate began considering an energy package approved by the House on Thursday.
``I would hope this sends a signal,'' said Republican Sen. Pete Domenici after the test vote.
Majority Leader Harry Reid acknowledged the House-passed bill will require some surgery and he said he planned to return to the legislation next week. Whatever changes are made would then have to be approved by the House.
Much of the legislation, including the first increase in automobile fuel economy requirements in 32 years, has ``near universal support,'' said Senate Republican leader Mitch McConnell of Kentucky.
But he said the House-passed bill ``won't become law'' unless the ``twin millstones of utility rate hikes and massive tax increases'' are removed. Democrats acknowledged they don't have the 60 votes needed to overcome Republican delaying tactics with the bill as it stands.
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Republican lawmakers, as well as the White House, have been most critical of $13.5 billion (euro9.2 billion) in taxes imposed on the five largest oil companies under the House-passed bill. It is part of a broader $21 billion (euro14 billion) tax package that senators are trying to rework.
Finance Committee Chairman Max Baucus, a Democrat, said Friday while ``some modest changes'' could be made in the tax provisions, the taxes are ``an essential, necessary component'' because they pay for a wide range of clean energy programs, from capturing carbon dioxide from power plants to extending short-term tax credits for solar and wind energy plants and commercial development of cellulosic ethanol.
Democratic leaders were leaning Friday toward dropping divisive requirement for utilities to produce 15 percent of their electricity from renewable energy sources such, wind, solar or biofuels.
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