Analyst says energy bill hampers energy production

Analyst says energy bill hampers energy production

A conservative commentator says the energy bill President Bush is expected to sign is another "big government" attempt to address the nation's energy situation, but laments that it "does nothing" to encourage more exploration for oil and natural gas.

By a vote of 86-8, the Senate has passed an amended energy bill that raises fuel-efficiency standards for cars, light trucks, and SUVs, and increases production of renewable fuels like ethanol. Senate Democrats failed to garner the 60 votes necessary to include in the bill a House-approved provision that would have imposed billions of dollars in new taxes on oil and gas companies.

Carrie Lukas, vice president for policy and economics at the Independent Women's Forum, says government mandates are the wrong method to motivate automakers to build more fuel efficient vehicles.

"There's a lot of desire for more fuel-efficient vehicles -- and that's because, when gas prices go up, we all wish that our cars got better mileage. That's the way to encourage more fuel-efficient cars; it's through the marketplace," she said. "And of course, the automakers are responding and trying to create more affordable hybrids and cars that get better mileage, out of response to consumer demand."

Lukas also believes the bill does nothing to increase domestic energy supply in the short-term.

"We all agree that it would be wonderful for there to be alternatives to oil and gas, but creating these mandates -- that we have to be using ethanol, a given quantity of ethanol in 20 years -- just really isn't realistic," Lukas said. "We need to let the marketplace figure out what's [sic] the best alternative fuels, instead of these government dictates.

"There's a lot of unintended consequences to these big government mandates and," she concluded, "unfortunately, that's what a lot of this energy bill is about."

The bill calls for the first major increase by Congress in required automobile fuel efficiency in 32 years, something the auto companies have fought for two decades. The automakers will have to achieve an industry-wide average 35 mile per gallon for cars, small trucks, and SUVs over the next 13 years, an increase of 10 mpg over what the entire fleet averages today. And it would boost use of ethanol to 36 billion gallons a year by 2022, a nearly sixfold increase, and impose an array of new requirements to promote efficiency in appliances, lighting, and buildings.

Since the tax increases on oil and gas companies were dropped, President Bush has pledged to sign the bill, which awaits a vote in the House this week.