Lots of Heat, Little Light
The energy bill may emerge with a big business brand
But the impact of coal to liquids on water and carbon emissions has some environmentalists viewing this as the biggest threat in the bill. Kentucky Republican Jim Bunning and coal-state Democrats are pushing coal to liquids, but most eyes are on Illinois Sen. and presidential candidate Barack Obama, who earlier this year cosponsored a coal-to-liquids measure with Bunning. Last week, Obama sent environmental groups a statement pledging that he wouldn't support development of coal fuels unless climate concerns are addressed. However, since the final proposal is certain to address carbon emissions in one way or another, the clarification left unclear how Obama would ultimately vote.
Who's going to eat all that corn—cars or cattle?
Congress is on track to expand its love affair with ethanol by mandating a sevenfold increase—to 35 billion gallons—in the amount of biofuel that refiners must use by 2022. The plan is a favorite not only of the corn industry but also of the greatly expanded ethanol industry, which now includes major Silicon Valley venture capital firms. They've made a big bet on a market for the alcohol fuel alternative, even though it costs more, delivers worse mileage than gasoline, and has debatable environmental benefits. The oil refiners have reared up against the idea of expanding the mandate, and they are being joined by a host of food companies that have seen their costs skyrocket because of the new ethanol demand for the corn used to make livestock feed. Biofuels proponents will counter that ethanol could be made from sources other than corn, like the "cellulosic" material of fast-growing weedy plants such as switch grass. Could be. As soon as someone builds a factory that can do so. There will be a push for subsidies for that, as well.
How about punishing the gougers?
Who could quarrel with a move to clamp down on any oil supplier who charges an "unconscionably excessive price" after the president declares a national emergency due to a disaster or energy shortage? Well, the president could. President Bush has threatened a veto if the legislation contains this language, arguing that it could cause chaos in the market. Which means what is probably little more than a feel-good initiative could kill the entire bill.
No matter how the Senate resolves these issues, expect the same battles in the House to occur through the summer, even as vacationing motorists are reminded at every gas station that politicians haven't yet solved the nation's energy morass.
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