Senate Passes Energy Bill

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he Senate Tuesday approved an energy bill that encourages more efficient uses of energy and the development of renewable fuels such as ethanol, though it would do little to immediately ease gasoline, diesel and crude oil prices that are at or close to record highs, Bloomberg reported.

The legislation, approved 85 to 12 with bipartisan support, does aim to reduce U.S. dependence on oil from other countries, putting in place policies that will eventually ease prices for consumers, though not in the near term.

The legislation now goes to a conference with the House, which passed its own version of an energy bill in April. (Click here for previous coverage.)

That measure contained a lower spending level than the Senate and included liability protection for makers of the gasoline additive methyl tertiary butyl ether, a measure rejected by the Senate. Disagreement over the issue of MTBE liability contributed to the failure of a 2003 energy bill.

Senator Jeff Bingaman (D-N.M.), who co-sponsored the bill, said the bill will not immediately bring down gasoline pump prices, but over the long term will put in place policies to benefit U.S. consumers, Bloomberg reported.

The bill gives incentives for new nuclear power plants and would require that 10% of electricity produced by utilities be generated from renewable sources, such as wind, solar or biomass, by 2020, Bloomberg said.