Senators Baucus and Tester applauded for work on Senate Energy Bill

June marked the U.S. Senate’s passage of the new Energy Bill for the nation that requires the first big increase in fuel mileage requirements for passenger cars in more than two decades, marking an important first step toward changing America’s energy future. It also includes important energy efficiency and clean energy provisions.

The bill, officially called the ‘‘Renewable Fuels, Consumer Protection, and Energy Efficiency Act of 2007’’, but known as “The Energy Bill”, calls for improving the fuel efficiency for cars and trucks to 35 miles per gallon by 2020.  These higher mileage requirements could eventually reduce American gasoline consumption by more than 1 million barrels of gasoline a day, which equals 42 million gallons. (New York Times, June 26th, 2007)

The vote on final passage of the bill, 65 to 27, came after a fuel economy compromise was reached with a small coalition of Midwest Senators who sought a smaller increase in standards favored by the automobile industry.  Still, the compromise signaled a defeat for the auto industry, though they managed to eliminate a provision calling for further incremental increases after the year 2020.  According to one analysis, Montanans will save $75 million at the pumps if fuel economy standards are raised to 35 mpg by 2020.

Although the passage of higher fuel economy standards is a major, long sought victory by conservation organizations and several congressional leaders, some key conservation measures failed.  Unfortunately, lawmakers failed to pass a plan that would have raised taxes on oil companies by approximately $32 billion and utilized the money on tax breaks for wind power, solar power, and plant-based renewable fuels. 

Similarly blocked was both a provision that would have required electric utilities to greatly increase the share of power they get from renewable sources of energy, known as the Renewable Portfolio Standard (RPS).  Twenty-four states and the District of Columbia have now passed RPS bills, and Montana established a RPS provision in the 2005 Legislature that mandates that 15% of electricity comes from clean and renewable sources by 2015. 

Though there is still a long way to go to reduce our dependence on foreign oil and increase U.S. use of cleaner homegrown, renewable fuels, this bill is a significant step forward to that goal.  Please contact Senator Jon Tester and Senator Max Baucus and thank them for their support of this legislation – and for helping lead the way on fuel efficiency!

This bill now moves House of Representatives in July.  Please contact Representative Dennis Rehberg and urge him to support the forward-looking, higher fuel efficiency standards passed in the Senate!

For More Background Information, also see:
“Senate Adopts Energy Bill Raising Mileage for Cars" (New York Times, June 22, 2007)
“In Congress, A Boost for Alternative Energy" (Christian Science Monitor, June 25, 2007)