Flawed energy bill still step in right direction

June 24, 2005

The nation's slow journey to a new energy policy appears to be within sight of its destination, as the U.S. Senate almost wrapped up debate over the matter on Thursday. Of special note to Alaskans is the tantalizing prospect of the end of the long, contentious debate over oil exploration and drilling in the Arctic National Wildlife Refuge, which seems almost a foregone conclusion at this point.

The end of Senate debate is actually just a step toward the destination of a new energy policy -the nation's first in more than a decade. Provisions of the bill will have to be reconciled with the House version, which won approval in April. But it is still a step in the right direction, the bill's flaws notwithstanding.

Notable among the shortcomings is a lack of mandatory restrictions on greenhouse gases. Despite mounting evidence of their culpability in speeding up global warming, and the agreement of most of the world's industrialized nations to work toward limiting them, the Senate made industry compliance voluntary, in accordance with the wishes of President Bush.

Also conspicuously absent was a mandate to increase fuel efficiency in automobiles and SUVs, although drivers of fuel-efficient "hybrid" cars are slated for a tax credit under a provision of the bill.

The tax credit was among $18 billion in incentives aimed at energy producers and users. According to The Associated Press, about 40 percent of the tax breaks would go toward conservation, renewable energy sources, such as wind and solar, and programs promoting alternative fuels, such as corn-based ethanol.

As nice as this sounds, the fact that billions of dollars are going to the energy industry, already a huge beneficiary of government-sanctioned taxpayer largesse, should raise concern. An industry that is quick to sing the praises of the free market and cry foul at "excessive" big-government regulation, is more than willing to accept big-government handouts.

How big? According to the advocacy group Taxpayers for Common Sense, the nuclear power industry would benefit to the tune of $278 million over 10 years, while the coal industry would gain $2.25 billion.

Senators, the White House and energy experts agree that any version of the energy plan will do little to decrease gasoline prices or reduce America's dependence on foreign oil. At least in the short term. But so it goes.

What final form the plan takes - or if agreement can even be reached - is still to be seen. Tough negotiations remain between the House and Senate, including over the House plan to protect industry from lawsuits.

Citizens can take comfort, at least, in the fact that conservation, long an unmentioned word among administration insiders, is now part of the plan.