Fossil Fuel Politics

 

 

How the New Congress Might Change the Mix

The 108th Congress will very likely resurrect the comprehensive energy and environmental legislation introduced in the 107th Congress, again raising questions about the effectiveness of market intervention in the area of electric generation.

The comprehensive energy proposals that passed the House (H.R. 4) and Senate (S. 517) in the 107th Congress-both of which contained proposals to extend the alternative fuels production tax credit;¹ reauthorize the Price-Anderson Act; expand the renewable energy production tax credit to additional fuels;² and create new tax credits for deploying clean coal technologies,³ combined heat and power systems,⁴ and fuel cells⁵-will serve as starting points in the new Congress, but with Republican majorities in both chambers, the new energy legislation will likely lean toward the House-passed bill from the last Congress.

The House energy bill focused more extensively on the exploration and production of fossil fuels, especially oil and natural gas, than did its Senate counterpart. Of the $35.4 billion of tax incentives proposed over 10 years in the House bill, $17 billion were estimated to benefit fossil fuels.⁶

The Senate energy bill-which emerged from a Democrat-controlled chamber, making it unlikely to be picked up by the new Congress-would have authorized energy tax incentives of $15.2 billion over the next 10 years.⁷ The bill also contained unique provisions establishing a federal renewable portfolio standard, granting loan guarantees for an Alaskan natural gas pipeline and addressing global climate change.