By Matthew Donohue
September 29, 2008

In an effort to address the rising cost of energy and to reduce America’s dependence on foreign oil, the U.S. House of Representatives passed sweeping energy legislation on September 16. Proponents of the bill called the legislation a “very comprehensive” approach to American energy policy and a “bold step” towards energy independence.

H.R. 6899, which is titled the Comprehensive American Energy Security and Consumer Protection Act, passed the House by a vote of 236-189. The bill addresses the contentious issue of domestic oil production and promotes the development of renewable energy sources, such as wind, solar, biomass, and geothermal power. The legislation, however, does not include funding for the Energy Efficiency and Conservation Block Grant program, a top Conference of Mayors priority.

Under the bill, states would have to the option of relaxing restrictions on offshore oil exploration and drilling. Oil drilling between 50 to 100 miles off state coastlines would be permitted if states pass legislation allowing offshore oil production. The legislation also allows offshore oil drilling beyond 100 miles from both the Pacific and Atlantic coastlines.

“This energy legislation is the result of reasonable compromise that will put us on the path toward energy independence by expanding domestic supply, protect consumers with strong action to lower the costs of energy and to protect taxpayers by making Big Oil pay for its fair share of our transition to a clean, renewable energy future,” said House Speaker Nancy Pelosi (CA).

The bill was opposed by a majority of Republican lawmakers whom argued that the legislation was unlikely to increase domestic oil production since states would not receive royalties from oil drilling off their coastlines.

House Minority Leader John Boehner accused Democrats of trying to seek “political cover” in an election year by passing an oil drilling bill. “Democrats are going to pretend to ‘open up’ a large portion of the outer continental shelf for energy exploration -- but without giving states any of the revenue for the oil and gas off their coasts,” said Rep. Boehner (OH).

Legislation includes incentives for energy efficiency, new renewable electricity standards, and funding for public transportation.

The bill extends tax credits for wind power generators until January of 2010, and extends tax credits for solar power generators until January of 2016. Current tax credits for renewable energy sources are set to expire at the end of the year. Additionally the bill provides financial incentives to consumers who buy energy efficient homes and buildings, and other energy consumers who reduce their energy consumption.

Tax subsidies for oil companies would also be repealed, under the House bill. Revenue from the elimination of the tax subsidies for large oil companies drilling in federal waters wound fund investments in renewable energy and energy conservation.

The legislation also requires electric utilities generate 15 percent of electricity from renewable energy sources like wind and solar power by the year 2020. This provision would save consumers between $13-18 billion in lower utilities prices, according to supporters of bill.

Lawmakers also made efforts to support public transportation. The legislation authorizes $1.7 billion in funding for public transportation systems over the next two years in an effort to expand public transportation services and reduce fairs.

Despite the bill’s passage in the House it is unclear if the U.S. Senate will approve similar energy legislation before Congress adjourns for the November elections.

The complete text of the bill can be found at the U.S. Conference of Mayors website at: www.usmayors.org/energy/