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Don't Blame Dems For Dreadful Energy Bill

David Morris
July 25, 2005  |  13 Comments

The energy bills now before the Senate and the House may be wrongheaded, irrelevant, costly and destructive -- but that's not the Democrats' fault.

After two failed attempts in three years, Congress may be only days away from sending an energy bill to the President. Most Americans assume the bill will deal with our number one energy problem -- a growing and increasingly oppressive reliance on imported oil. Republican leaders are doing their best to nurture that assumption. "With oil prices recently topping $60 a barrel, this legislation can come none too soon," declares Senate Majority Leader Bill Frist, R-Tenn. Frist insists the bill will "make us less dependent on foreign sources of energy." President Bush agrees. We need a national energy bill because "we have grown more dependent on foreign sources of energy and consumers see the consequences of that at the gas pump on a daily basis." Those who actually read the energy bills, however, will quickly realize we've been had. For the awful truth is that, even as the price of gasoline edges toward $2.50 a gallon and Congress appropriates another $82 billion for the Iraq war, the White House and Congress may enact an energy bill that does nothing to reduce our dependence on imported oil. Much has been made of the differences between the Senate and the House versions of the energy bill. There are differences. But when it comes to oil imports, the only difference between the two is the difference between tragedy (Senate) and farce (House). Consider just one example. The Senate, apparently having screwed its courage to the sticking point, asks the President to implement measures that will ensure that our consumption of oil INCREASES by only 4 million barrels per day by 2015, rather than the 5 million barrels per day currently projected by the Department of Energy. In other words, our dependence will worsen considerably, but not as much as it could have! The House couldn't even bring itself to go that far. It flatly refuses to call for any reduction in our oil consumption. How bad is it? The most effective provision in either energy bill may be a small program to promote a technology that cuts off heavy-duty truck engines after 15 minutes of idling. Is it any wonder that the world looks at America circa 2005 and shakes its collective head? Many commentators have severely criticized the energy bills for lavishing tens of billions of dollars on companies whose balance sheets are swollen with unprecedented profits and cash. Far less attention has been given to non-monetary sections of the energy bills, the long-term social and economic costs which may be much higher. One such provision, for example, allows the federal government to impose high voltage transmission lines on recalcitrant states. Another severely limits the authority of state and cities over the siting of liquefied natural gas (LNG) terminals. Provisions stripping states and communities of their authority over private energy companies are accompanied by another that would have the same debilitating effect on federal authority. Both bills repeal the 70-year-old Public Utilities Holding Company Act (PUHCA). PUHCA was passed to clean up the mess created by massive utility mergers in the 1920s and the resulting wave of fraud and financial manipulations that helped to bring about the Great Depression. PUHCA forced utilities to refocus their corporate structure on their core obligation -- the delivery of low cost, reliable electricity. And it endowed the newly created Securities and Exchange Commission (SEC) with the power and responsibility to examine the utilities' books and evaluate any merger proposals. As people discover the appalling content of the energy bills, they naturally condemn both political parties. Progressives go further. They direct their most vitriolic remarks at the Democrats. This is wrongheaded. When it comes to national energy policy there is a stark difference between the Republican and Democratic parties. We can illuminate the differences by examining votes on specific issues (see link below). When the House voted on a provision to raise the fuel efficiency standard for new cars from the current 27.5 miles, to 35 miles per gallon by 2015, 84 percent of Republicans voted against; 70 percent of Democrats voted in favor. When the Senate voted on whether to require 10 percent of U.S. electricity to come from renewable resources by 2020, 82 percent of Republicans voted against; 93 percent of Democrats voted in favor. When the Senate voted on whether to call for a reduction in oil imports by 40 percent by 2025, 95 percent of Republicans voted against; 98 percent of Democrats voted in favor. When the House voted on whether to repeal the Public Utilities Holding Company Act, 97 percent of Republicans voted in favor; 91 percent of Democrats voted against. When the House voted on whether to preempt local and state authority over liquefied natural gas terminals, 85 percent of Republicans voted in favor; 79 percent of Democrats voted against. The energy bills now sitting in a House-Senate Conference Committee are truly dreadful -- wrongheaded, irrelevant, costly and destructive. The White House and the majority parties in the House and Senate deserve our censure. But our anger and frustration should not lead us to paint with too broad a brush. The Democrats are not to blame for this mess. About the author... David Morris is co-founder and vice president of the Institute for Local Self-Reliance in Minneapolis, Minnnesota and director of its New Rules project.

Related Links

  • Energy Bill Votes
  • Institute for Local Self-Reliance
  • New Rules

13 Comments

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Wayne Bostick
Wayne Bostick
August 3, 2005
Reply to Charles Butterfield:

With all due respect, I do not believe you have calculated all the costs and evaluated the practicality of hydrogen in the current enviornment. Take a look at just the capital cost to generate hydrogen using wind turbines, compress it, and store it. Then take into account the cost to modify engines and store it on board a vechicle, safely, and then do it in quantities and with a distribution system to allow more than "around the block" travel.

As I originally stated, hydrogen will have a role, but it is not for mass transit in the short or medium term.
Neal Van Milligen
Neal Van Milligen
July 29, 2005
It is such a shame that this forum promotes the agenda of a political party rather than advocating the issues.
Charles Butterfield
Charles Butterfield
July 29, 2005
Reply to Wayne Bostick:

Hydrogen is not a net energy consumer. Hydrogen is a very efficient way to store electrical energy until you need it.

Electricity generated by wind power can be used to produce hydrogen electrolytically from water. The equipment to produce hydrogen electrolytically is available now, you can buy it off the shelf. The equipment can be located in exisitng gasoline stations to generate hydrogen on site. The hydrogen can be compressed and stored in tanks for later use to fuel vehicles or for any other use requiring energy.

The cost, even without subsidies, is comparable with gasoline and diesel fuels for the same energy content.

Existing gasoline and diesel motor vehicles can be retrofitted to run on hydrogen at a cost of less than $10,000 per vehicle with equipment that is currently available off the shelf.

Thank you,
charles Butterfield
Wayne Bostick
Wayne Bostick
July 28, 2005
I agree that the revewables bill does not address any of the issues but the article and most of the responses just "parrot" the left wing diatribe against Bush with no suggestions for improvement other than silly talk of conservation, a sure "loser"! You have to produce your way out of the issue you can't "save" your way out of the problem. WHAT DID CLINTON AND GORE (the supposed enviornmental guru) DO THE PREVIOUS 8 YEARS IN OFFICE IF WE JUST WANT TO THROW STONES!? Sort of the pot calling the kettle black.

Let's do something with biomass, coal, etc.. all of which are here and able, rather than blathering on about Hydrogen whose time will come but currently is a net energy consumer with no distribution system.

Let's put aside politics, roll up our sleeves, take the lead from the politicians (who don't know their upside from their backside re the technical alternatives) and DO SOMETHING POSITIVE!
Wayne Bostick
Wayne Bostick
July 28, 2005
What we really need is a simple and comprehensive NATIONAL RENEWABLE ENERGY PORTFOLIO without pork barrel incentives and detailed technical requirements (which just encourage lobbyists and pork barelling).

All we need to say is that all utilities need to supply 'X" percent of their energy by "Y" years from renewables and make these realistice and achievable. Clean coal should also be included. That is all government need do. No money, pork barreling, etc.. Just provide the incentive and get out of the way.

As an aside, it is interesting to note that a lot of anaerobic digesters for large farms are now being designed to just flare off the biogas rather than use it because no one wants it contrary to all the "hand wringing" in the press. A real disgrace. A renewables bill could be putting this energy to use as we speak. Let's put politics aside and do something practical!
Laurel Duran
Laurel Duran
July 27, 2005
The roots of the road to a cleaner energy future lie far deeper than political wars in the U.S. And that's a good thing. The more focus each of us places on what works, the more positive neighborhood attention Renewable Eergy attracts. Everybody on the planet is deeply affected by oil addiction. But by removing some personal energy from fighting and expending that personal energy on strengthening healthy, already-available alternatives, we begin to change the world one day at a time. Things really change when each person makes a healthier choice about how to spend their personal energy each day. Our Republican and Democrat neighbors DO respond positively to cheaper, cleaner renewable energy usage. I see our current energy climate as a combination of the 70's bumper sticker: "If the people will lead, the leaders will follow" and today's "Show me the money". "Act locally, change globally" is a magnet for gaining support at the neighbordhood level where the REAL power lies.
Christel Bieri
Christel Bieri
July 27, 2005
Solar Investment credit valid after December 31, 2005! What will this do for business over the next 5-6 months?
Stall it.
Kenneth Bossong
Kenneth Bossong
July 26, 2005
Looking at the voting pattern of most congressional Democrats versus most Republicans, there is a clear line in the sand with the Democrats overwhelmingly favoring policies more sympathetic to efficiency and renewables. In that regard, David's analysis is correct. However, even if the Democrats had been able to incorporate all of their major recommendations, the end result would still be a bill that does not sufficiently alter the nation's energy policies. The U.S. needs to embark on a path that drastically reduces greenhouse gas emissions (e.g., 80% by mid-century) while phasing out nuclear power and most energy imports. Few Democratic proposals would do more than make baby steps in those directions. So while the Republicans, in the main, are advancing energy policies that are dangerous to the environment, public health, the economy, and national security, the Democrats are only putting forth alternatives that - while significantly better - are still completely inadequate.
Jim Duncan
Jim Duncan
July 26, 2005
The US doesn't need a thrd party, it needs a second party.
While the Democrats in Congress cannot be blamed for all the crap in the energy bill, it is only because so much of the negotiations have been done in secret, avoiding input or oversight from non-supportive members and the public.
Jim Duncan
Charles Butterfield
Charles Butterfield
July 25, 2005
Wind energy can be used to produce hydrogen at a cost competitive with gasoline and diesel today!

Existing gasoline and diesel internal combustion engines can be retrofitted to run on hydrogen at a cost of less than $10,000 per vehicle. You do not need to wait for improvements and cost reductions in fuel cell technology.

Existing gasoline stations can add hydrogen to the gasoline, diesel and propane vehicle fuels they now offer. You do not need to build new specialized fueling stations.


I recommend:

Retrofit existing vehicles to run on hydrogen, use wind energy to produce the hydrogen, and you dramatically reduce our dependence on imported oil.

You can do that today. You do not need to wait 10 or 20 years from now.

Let's get going! Do it now!

Thank you,
Charles Butterfield
Charles Butterfield
Charles Butterfield
July 25, 2005
With respect to natural gas usage:

Solar thermal water heaters on the roof tops of all buildings would drastically reduce the need for natural gas to heat water and heat the buildings.

The cost of solar thermal is competitive with natural gas. Solar thermal is easy and inexpensive to add to existing buildings. Solar thermal collectors can also be built over parking lots at relatively low cost.

The reduction in the demand for natural gas will result in price reductions for natural gas. There will also be little need for LNG storage sites for imported natural gas.

I recommend:

Solar thermal installations on the rooftops of all buildings, residential and commercial to dramatically reduce the need for natural gas to heat water and heat the buildings.

Thank you,
Charles Butterfield
Lynn Hargis
Lynn Hargis
July 25, 2005
While your comments about the House Democrats, particularly Congressmen Dingell and Markey, who have fought valiantly for PUHCA, are correct, the Democrats in the Senate sold PUHCA out. They gave FERC a few additional crumbs of merger jurisdiction to justify killing the 70-year old protections of PUHCA. Once huge oligopolies control all the utilities, they will have no interest in renewables.
Eric Husman
Eric Husman
July 25, 2005
When Jeffords defected and the Democrats ran the Senate, Bingaman included a provision in the DEMOCRATIC energy bill that paid BP a few million to run a natural gas pipeline down from Alaska. It isn't the party, it's the pork - both parties agree with it in principle but squabble over are the recipients. If you don't like pork, then stop supporting it even if that means sacrificing *your* favorite pork programs.

We should get rid of the Energy Department, the Ag Dept because they defend the status quo (like PUHCA) and the corporations making money on it, like ADM and your local power monopoly. Imagine if your local electric company had to compete with a windfarm or PV co-op.

As far as The Depression, remember that FDR got the REA and TVA passed. Those two steps killed a nascent renewable (wind) energy source while subsidizing inefficient rural lifestyles and building dams.

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