Energy bill touts ethanol, tax breaks

? Congressional Republicans on Friday finished a draft of a broad energy bill that would double Americans’ use of ethanol, improve reliability of the nation’s power lines and aim billions of dollars in tax breaks to energy industries.

GOP lawmakers called it a path to “restructuring energy in this country” and said it would provide hundreds of thousands of jobs and bring greater stability into an energy sector stung by sharp price volatility, impending shortages and power blackouts.

But even as details of the massive draft bill, which is said to cover 1,700 pages, were being printed, Democrats complained about the Republican priorities. And they groused about the bill being crafted behind closed doors in negotiations among only Republican lawmakers.

“I think we’re being asked to take it or leave it,” said Sen. Jeff Bingaman, D-N.M., who led the Senate Democrats on the energy conference.

While approval of the bill is virtually assured by the House, probably next week, it is likely to provoke a dustup in the Senate.

Democrats — as well as some moderate Republicans — have strongly objected to a provision in the bill that would protect makers of MTBE, a gasoline additive that is contaminating water supplies, from product liability lawsuits.

According to lawmakers, the bill includes:

  • A doubling of ethanol production for gasoline to 5 billion gallons a year by 2012.
  • Billions of dollars in tax incentives for producers of oil, natural gas, clean coal and nuclear power.
  • Authority and financial help to build a $20 billion pipeline to bring natural gas from Alaska’s North Slope.
  • Mandatory reliability requirements for high-voltage power lines.
  • Tax incentives aimed at improving energy efficiency of homes and some appliances and at encouraging use of renewable energy sources.