Congress Close to Passing Energy Bill

Click here to write a Letter to the Editor.

he House approved an energy bill Thursday packed with $14.5 billion in tax breaks and incentives for energy projects, and the bill could become law by this weekend, news services reported.

The bill was approved 275-156, the Associated Press reported and next awaits action by the Senate, probably on Friday, AP said.

President Bush has indicated he will sign the energy bill, which he called one of his top priorities in 2005, AP reported.

The tax package would award 58% of the total benefit over 10 years to traditional energy industries including oil, natural gas, coal, electric utilities and nuclear power, the Washington Post reported Thursday. About 36% would go to renewable sources of energy, energy efficiency and cleaner-burning vehicles.

The Senate had sought considerably more in tax incentives for conservation and alternative sources of energy in its version of the energy bill approved last month, the Post said.

Some environmental and consumer groups criticized the legislation as a giveaway to an industry enjoying record profits with crude oil prices near $60 a barrel, while spending little on ways to curb demand or encourage renewable energy, Reuters reported.

Some Republicans acknowledged the bill would not cut oil imports in the near term, Reuters said. The United States imports 60% of the 21 million barrels of oil consumed daily.

The bill also requires doubling U.S. ethanol use to 7.5 billion gallons by 2012, Reuters reported. Ethanol, refined from corn, is added to gasoline to make it burn more cleanly.