Washington, Still on the Wrong Track

June 23, 2007 – Vol.12 No.13

WASHINGTON, STILL ON THE WRONG TRACK.

Perhaps because I’m stuck all too often in its horrendous traffic; perhaps because of the money-grubbing, pandering politics, I’m tired of all things Washington, DC.

Nothing meaningful, nothing bold, gets done in the so-called capitol of the free world.

The US Senate has passed a compromise energy bill. For now their action doesn’t mean much until the House cobbles together their version. But the House threw their hands in the air and gave up debate. Who knows what changes they’ll make when they get up the courage to begin talking again.

In the future the Senate bill may not mean much either. There’s no national Renewable Portfolio Standard (RPS) and no big funding or tax package to help build more wind, solar and whatever. What remains in the bill is an increase in the Corporate Average Fuel Economy to 35 miles per gallon on gasoline by 2020.

One hundred and thirty-five miles per gallon would be more like it.

If the nation’s vehicular fleet continues to grow (as it will) the total amount of gasoline we consume may not drop with such a small increase in fuel economy. (The larger fleet could gobble up all the savings.) If overall national petroleum consumption doesn’t drop, neither will greenhouse gases and other emissions attributed to cars and trucks. A much higher fuel economy standard would force adoption of other technologies such as plug-in hybrids, which by the way, the automakers, including the US Big Three, seem willing to build.

Also in the energy bill is an increase in the amount of ethanol production to at least 36 billion gallons per year by 2022. (Unless an alternative to ethanol-from-corn is available by then, this provision could make a tasty, summertime ear of corn-on-the-cob a thing of the past.)

There are also new appliance and lighting efficiency standards. There are grants, loan guarantees and other financial assistance, too, for research into vehicular fuel efficiency such as hybrids, better batteries for hybrids, plug-in hybrids and pure electrics as well as technology research for advanced diesels.

Yet there’s a silver lining in the lackluster Senate bill.

Without a federal renewable portfolio standard, the states can continue theirs (which in some cases are tougher than what the Senate proposed.)

The lack of a federal RPS also lets southeastern states off the hook. Without good wind resources and little water, the region would have tough time generating renewable power from two of the cheapest sources.

And, quite frankly, an increase in federal fuel economy standards may not be needed anyway.

High fuel economy vehicles from Japan, Korea and Europe are forcing US automakers to offer them also. Further, there’s a groundswell movement of concerned-about-oil consumers willing to buy them.

There are also the well-financed upstarts offering exceptional fuel economy (the equivalent of that 135 miles per gallon) with technologies such as all-electric vehicles and plug-in hybrids. While upstarts, like Tesla Motors with its all-electric vehicles in development, aren’t a threat to the traditional automakers right now, they ARE run by a different generation of people that run the major car companies. This new generation is tech-savvy, well-healed financially, and is well aware of the problems associated with our addiction to fossil energy.

They want something totally different and seem willing to build it: Without the help of stuck in the past, stuck in traffic, Washington.