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White House Threatens to Veto Energy Bill | |
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THE PROGRESSIVE REVIEW - December 6, 2007
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White House Threatens to Veto Energy Bill
By Reuters
Washington - The White House on Monday threatened to veto
legislation pending in the U.S. House of Representatives
that would require the first big increase in three decades
in the country's automobile fuel efficiency.
Congressional Democrats have hammered out a complicated
deal that could result in a 40 percent boost in fuel
efficiency standards by 2020.
The White House said it opposed provisions expected to be
included in the bill that would require utilities to get
15 percent of their electricity from renewable sources by
2020, and raise taxes on oil and natural gas companies.
"It appears Congress may intend to produce a bill the
President cannot sign," top White House economic advisor
Allan Hubbard said in a letter to House Speaker Nancy
Pelosi.
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The keystone of the House energy bill - expected to see a
vote this week - would raise fuel-economy standards to 35
miles per gallon.
The White House has backed a rise in fuel economy standards
as well as a boost in renewable fuels like ethanol, which
is also expected to be included.
Playing Chicken
But by seeking to include renewable requirements for
utilities and higher taxes for oil companies, Pelosi is
"playing chicken" with the White House and the Senate,
said Kevin Book, an analyst with Friedman, Billings,
Ramsey and Co.
With primary elections in states like Iowa looming in early
2008, Democrats and Republicans alike are under the gun to
show that they are working to ease the pain of $90 oil and
$3 gasoline prices on consumers, Book said in a report.
For that reason, "We expect the House to proceed back to
a leaner energy bill" that will escape a White House veto
and a possible filibuster threat in the Senate, Book said.
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Gasoline demand accounts for about 45 percent of the
almost 21 million barrels of oil consumed in the United
States daily. Many energy experts say the most effective
way to reduce U.S. oil imports is to boost vehicle fuel
efficiency.
In a key concession to Detroit automakers, the deal sets
separate standards for cars and light trucks - a departure
from Senate-passed legislation that sets unified standards.
Sen. Pete Domenici, senior Republican on the Senate Energy
Committee, told his staff to cease negotiating with
Democrats on energy legislation. He said the renewable
electricity standard made the bill "untenable for many
in the Senate."
Where the Wind Doesn't Blow
Utilities oppose Pelosi's proposal, which would impose
penalties on those that fail to get 15 percent of their
electricity from renewable sources by 2020. The provision
has been included in prior energy legislation passed in
the House but not the Senate.
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Utilities in Southeast and Midwest states lacking the wind
needed to justify new wind turbines would have to pay
billions of dollars in penalties.
Once the House passes its energy bill, the Senate would
take up an identical measure, avoiding a bargaining session
to rectify differences that have hamstrung previous energy
legislation. But inclusion of the renewable electricity
standard could spark a Senate filibuster, which would take
60 of 100 votes to overcome.
Senate Majority Leader Harry Reid said he spoke on Monday
with Domenici and Democrat Jeff Bingaman, chairman of the
energy committee, about the House measure and he believes
there will be 60 lawmakers in the Senate for the energy
bill, even with a renewable electricity standard.
"I think yes, we do have enough votes, but time will tell,"
Reid told reporters on Capitol Hill. Reid said he expects
the House to send the Senate the energy legislation this
week.
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