JAN
29

Political Roundup: Let’s get something done

 

As January comes to a close, President Obama has unofficially kicked off his reelection campaign with the State of the Union Address, and Congress is back in full swing Has the time has come for some real progress on energy policy?

The major news this week has been President Obama’s “all of the above” energy strategy, one which encompasses renewables and alternatives as well as expanded production of oil and gas. The most notable part of the President’s plan is a strong emphasis for natural gas as a transportation fuel, supported by tax credits to offset part of the cost of upgrading medium and heavy duty trucks to run on natural gas, federal help to spur creation of natural gas corridors on heavy duty trucking routes, and incentives for conversion of city bus and truck fleets. A 2009 report from the Massachusetts Institute of Technology indicated that an optimal application of natural gas in transportation could be to replace diesel as the primary fuel for heavy-duty vehicles.

In the Senate, Jeff Merkley (D-OR) announced on Thursday at the Washington Auto Show that he will be introducing a bill to encourage fleet purchases of electric vehicles. So far, it is understood that the bill will include incentives for public and private purchases, creating a larger market for EVs enabling automakers to produce the cars less expensively.  We will be staying tuned for news about this important legislation.

Additionally, both chambers are preparing for the renewal of the nation’s surface transportation bill, which expires in March. Senate Environment and Public Works Chairman Barbara Boxer (D-CA) and top Republican Jim Inhofe (R-OK) have developed a bipartisan, 2-year bill which was voted out of committee 18-0. Politico reports Transportation Secretary Ray LaHood has praised “extraordinary leadership” of the committee, and described the unanimous committee vote as “unheard of in the halls of congress.” The House Transportation and Infrastructure Committee is also working on a less bipartisan bill, partially paid for through opening the Arctic National Wildlife Refuge (ANWR) to oil exploration. This provision is a non-starter for Obama and most Democrats. Nonetheless, we are optimistic for longer-term, surface transportation legislation with the essential fuel savings provisions necessary to improve energy security and reduce fuel waste. Some ideas can be found in SAFE’s report, Congestion in America: A growing Challenge to U.S. Energy Security, released earlier this week.

 

The legislative and executive branches are off to a running start this year, but actions speak louder than words, and we are eager for some legislative achievements. As SAFE President and CEO Robbie Diamond was quoted in the Wall Street Journal earlier this week, “Now that President Obama and Republicans say they are on the same page with an all of the above energy strategy, let’s get something done.”