Energy Bill Moves Nation Toward Sounder Energy Policy, Levin and Stabenow Announce
Bill provides tax credits for advanced vehicle technologies, permanently bans Great Lakes drilling
The Senate today approved an energy bill that is aimed at diversifying our energy supply and reducing our dependence on foreign oil, U.S. Senators Carl Levin (D-MI) and Debbie Stabenow (D-MI) announced. The bill increases the federal investment in advanced technologies to increase fuel economy, permanently bans drilling in the Great Lakes, and offers short-term relief from threatened federal action against west Michigan counties whose air quality has been harmed by upwind pollution from Chicago.
"This bill is a step forward in establishing a sounder energy policy for our nation. We need a long-term, comprehensive energy plan that will conserve energy and increase our domestic energy supplies in a responsible manner, while providing consumers with reliable energy," Levin said. "We need to do much more to reduce our dependence on foreign oil and to create revolutionary breakthroughs in automotive technology. Overall, this bill can provide some modest advances toward this goal."
"I am extremely pleased that the ban against drilling for oil and gas in the Great Lakes - which I was able to put in place in 2001 - is made permanent by this bill. This important protection for the Great Lakes will benefit not only Michigan residents but all who live around the lakes," Stabenow said. "This bill also includes my request for a Federal Trade Commission investigation of possible gas price manipulation. In addition, this energy bill includes important tax credits to help make new technologies like hybrid, fuel cell and alternative fuel cars more affordable for the American public. These auto tax credits will help reduce our dependence on foreign oil and help the Big Three create jobs with these new emerging technologies."
The bill includes the following provisions that are interest to Michigan communities:
Strong provisions for the research, development, and demonstration of hydrogen and fuel cell vehicles.
Tax credits - available for five years - for hybrid, clean diesel, and fuel cell vehicles. There is a per manufacturer cap of 60,000 on the aggregate number of hybrid and clean diesel vehicles that can qualify for the tax credit, which ensures that the domestic manufacturers can benefit from the tax credit to the same extent that foreign manufacturers can.
A $200 million authorization each year for five years to fund federal and state grant and loan programs to replace older diesel technology with clean diesel.
A permanent ban on drilling in the Great Lakes. In the three previous years, Congress has passed temporary bans on Great Lakes drilling, which were sponsored by Sen. Stabenow and cosponsored by Sen. Levin.
Requirements for the Department of Energy to develop and use cost-effective procedures for filling the Strategic Petroleum Reserve, which minimize taxpayer costs and maximize total oil inventories. This Senate had previously approved this language in a bipartisan amendment by Sen. Levin and Sen. Susan Collins, R-Maine.
An investigation by the Federal Trade Commission of potential price gouging by oil companies - a provision authored by Stabenow - was included in the final bill. Only 50 percent of the price of gasoline at the pump is determined by the cost of crude oil. The investigation will ensure that Michigan residents are not being unfairly gouged by domestic gasoline producers and refineries.
Critical steps to improve the reliability of our electrical grid and promote electricity transmission infrastructure development. Given our dependency on electric power - which was underscored by the massive August 2003 blackout - the bill includes steps to ensure mandatory and enforceable reliability standards.
A short-term solution for addressing air quality issues in west Michigan, which is plagued with pollution that comes up from Chicago and other urban centers downwind.
Reauthorization of the Low Income Home Energy Assistance Program (LIHEAP) until 2007 at $5.1 billion per year, and reauthorizes state weatherization programs through 2008 at $2.1 billion per year.
A requirement for the National Academy of Sciences to conduct a study and submit a budget roadmap to Congress on what efforts and actions would be required to transition to fuel cell vehicles and a hydrogen economy by 2020.
An extension of the Corporate Average Fuel Economy (CAFE) credit to manufacturers for dual-fueled vehicles, which is intended to encourage production of these vehicles.
Strong R&D and demonstration programs to promote replacement or retrofit of diesel school buses and city transit buses with fuel cell and other advanced technology buses.
Includes provisions to promote the use of renewable fuels, including a mandate for refiners to use 7.5 billion gallons of ethanol or biofuels by 2012.
http://stabenow.senate.gov/press/2005/072905EnergyBill.htm