Energy Bill; First Glance Looks Good!

House Democrats outlined some points of the new energy bill that featured raised fuel economy standards for U.S. cars and trucks to 35 miles per gallon by 2020. The bill also contains language that would require all nonpublic utilities to use solar, wind or other renewable energy to produce 15 percent of their electricity.

The auto industry and labor finally signed on to the legislation after some language was added that would likely keep 17,000 jobs in the U.S. producing small cars. Another piece that helped usher the deal through was an extension of credits for flexible-fuel vehicles through 2014, with a phase-out through 2020. Speaker Pelosi said:

"This landmark energy legislation will offer the automobile industry the
certainty it needs, while offering flexibility to automakers and ensuring we
keep American manufacturing jobs and continued domestic production of smaller
vehicles,"

Michigan Rep. John Dingell and Speaker Pelosi have been working on this “compromise” for months. Dingell said the deal "prescribes standards that are both aggressive and attainable."

I have very briefly touched on the UAW and Rep. Dingell’s previous stance against raising CAFÉ standards and I am thrilled that they are both finally coming around. It is my opinion that by doing the big 3’s bidding (fighting CAFÉ standards for 32 years) the UAW and Dingell have done the big 3 a disservice. Had higher fuel standards been in place as recent as even a decade ago the big 3 would have been forced to address the giant gap in their lack of fuel-efficient cars. Looking at the current push by GM alone to develop fuel cell, hydrogen, hybrid and electric vehicles one can only wonder what they could have done with a mandate from congress.

Of course the Bush administration has promised a veto of this landmark legislation because it would cut into oil companies gouging of the American people. Thanks Dubyah! Without you who would stick up for big oil?