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Saturday, June 27, 2009
House OKs Landmark Energy Bill
By Michael Coleman And John Fleck
Journal Staff Writers
WASHINGTON — The U.S. House narrowly approved a landmark energy bill Friday that would slash carbon emissions and spur the development of clean energy technology while increasing household energy costs.
Democratic leaders, who spent the week lobbying reluctant members of their caucus, watched anxiously as the bill passed on a razor-thin 219-212 vote Friday night. The legislation needed 218 votes to clear the 435-member House. The bill now goes to the Senate.
The legislation would establish caps on greenhouse gas emissions and require regulated entities, such as power companies, to acquire permits to cover all their emissions. A trading system would allow companies that could inexpensively cut their emissions to sell their emissions permits — an attempt to harness market forces to find the most cost-effective greenhouse gas reductions.
The legislation is a response to global warming, which most climate scientists say is caused by increasing levels of heat-trapping greenhouse gases, primarily carbon dioxide from fossil fuels like gasoline and coal.
Scientists say the resulting climate changes are likely to lead to increased droughts and decreasing water supply in New Mexico.
According to an analysis by the Congressional Budget Office, the energy and climate bill would cost the average U.S. household $175 per year by 2020.
New Mexico's three U.S. representatives, all Democrats, voted for the bill. Each of them also put his imprint on the measure.
Rep. Martin Heinrich of the Albuquerque-based 1st District inserted an amendment designed to encourage federal agencies to buy energy from local renewable power producers.
"This legislation will transform our nation," Heinrich said after the vote Friday evening. "From this day on, we will create our own clean energy, and the jobs we reap will revitalize our nation's economy. This piece of legislation represents no less than a new Apollo project for American energy independence."
Rep. Harry Teague, who represents the 2nd Congressional District in southern New Mexico, said he would have voted against the bill but House Democratic leadership gave him concessions that helped small oil refineries and rural electric co-ops.
Teague said he had "reservations" about the bill but supported it anyway.
"I do recognize that it provides opportunities to further develop the renewable energy industry and create jobs in southern New Mexico without seeing skyrocketing prices at the pump or jeopardizing existing jobs in small and rural communities," Teague said.
Rep. Ben Ray Luján, D-N.M., added language to the bill directing the U.S. energy secretary to give special consideration to Hispanic or tribal colleges when creating so-called Energy Innovation Hubs called for in the bill. The hubs comprise university and private research groups, national laboratories and others with the goal of energy innovation.
"For too long, we have accepted the status quo on energy," Lujan said of the overall bill in a floor speech Friday. "Now ... we can put America on a path to energy independence, make America the global leader in energy technology, cut costly and harmful pollution, create new jobs and save billions in the long run."
The legislation is likely to hurt New Mexico's oil and natural gas producers, said Bob Gallagher, executive director of the New Mexico Oil and Gas Association, by driving up their cost of doing business.
"I think it's a sad occasion," Gallagher said Friday evening after the votes were counted.
New Mexico's largest coal consumer, electric utility PNM, supported the legislation.
"This is a positive step down what is a very long road," said Jeff Sterba, the company's chief executive.
Sterba acknowledged that the bill will increase customers' bills, but said that is inevitable anyway as a result of climate change. "In one way or another, climate change is going to effect our customers' bills. The question is when, or how much."
The bill has created a split among New Mexicans who back greenhouse gas reductions. John Fogarty, head of New Energy Economy, a nonprofit organization, said the cuts called for in greenhouse gas emissions do not go far enough.
"It's not going to get the job done," Fogarty said.
Fogarty also complained that the bill offers too many giveaways to industry at the expense of consumers.
But Jake Horowitz of Environment New Mexico praised the legislation. "While the dramatic shift we need in our energy policy and the dire scientific predictions regarding global warming demand that we do much more," Horowitz said in a statement, "the first step is always the hardest, and Congress should be applauded for taking it."
Now the Democrat-controlled Senate will take up climate change legislation, one of President Barack Obama's key domestic initiatives. Passage won't come easy in the Senate, either.
It takes 60 votes to cut off debate and force a vote in the Senate, and Democrats right now have only 59 votes. Furthermore, some Democrats from coal-producing states may oppose the legislation.
Senate Majority Leader Harry Reid has said he would like to bring a climate change bill to the Senate floor by mid-September.
— Michael Coleman reported from Washington and John Fleck reported from Albuquerque.
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