Energy Bill Update: Senate Version Coming This Week, But Pessimism Remains


solargeneric1The most important U.S. energy legislation, which will put a price on carbon emissions, could be introduced in the Senate as early as Wednesday of this week. Massachusetts Sen. John Kerry and California Sen. Barbara Boxer plan to introduce a version of the energy bill into the Senate that will look very similar to legislation the House passed back in June, according to Reuters, which quoted anonymous sources.

But despite the likely introduction of the bill this week, many policy watchers aren’t optimistic that it will pass the Senate and get signed into law before the international negotiations in Copenhagen in early December. The Senate has other issues it’s focusing on like health care, which as the Houston Chronicle notes, is being given a higher priority by “top Democratic leaders.”

Republicans as well as some conservative Democrats in the Senate also appear to be unified in opposition against an energy bill in this economic climate. If the Senate legislation looks similar to the House version, we can expect significant opposition to it, as well as a drawn-out negotiation process.

But the rub is that if the U.S. doesn’t pass this climate legislation in 2009 and before the international climate negotiations, which kick off Dec. 7, the negotiations will be seriously negatively effected. While John Holdren, White House science and technology director, tried to downplay to a group of reporters last week the effect of not passing the bill in time for Copenhagen, the situation is clearly urgent. As Al Gore explained last week at the Clinton Global Initiative’s annual meeting in New York, the success of Copenhagen hinges on the Senate’s progress on legislation that would limit the country’s greenhouse gas emissions. “The road to Copenhagen goes through the U.S. Senate,” Gore said.

Without U.S. legislation that puts a price on carbon, Copenhagen won’t have the teeth that many were hoping it would. European leaders are already upset. The European Union’s ambassador to the U.S., John Bruton, recently accused the Senate of “dragging its feet” and threatening the international negotiations. If the Senate doesn’t act on the energy bill within 2009, it “would open the United States to the charge that it does not take its international commitments seriously, and that these commitments will always take second place to domestic politics,” Bruton told the Wall Street Journal. Harsh, but true.



“A Global Green New Deal”

  1. The Need For Change In Energy Platform :

A. About two thirds of deficit in the U.S. accrue from oil import.

B. Over $1 trillion and 4,346 dead as the Iraq war is winding down. By converting this excessive military budget into a constructive foundation of 21st energy and health care, world can live in harmony for good.

C. Tremendous trade deficit with China. The most expensive premiums of health care driving buyers into Wal-Mart .

  1. The Cost Of Inaction :

    As with “Inaction” cost, $9trillion over the next decade in Medicare, Medicaid and Social Security, supposedly the same is of inaction on the 21st energy bill to determine war & peace, catastrophe & prosperity.

In this economy, fuel price is hovering around $65 to $75 a barrel, which underscores the actual value might be much the same as $145 per barrel of the peak price. Last year, the petrol price jumped from about $60 to $145 per barrel in quite a short period.

I think energy market also needs competition between sustainable and conventional one to bend the cost curve, otherwise, the global economy stays flat for some time and is plummeting into another great depression as the international stimulus package can’t last long.

  1. The Root Of Recession :

    My sense is that this great recession is ascribed to excessively higher price of petrol in recent years. This price spelled about higher consumer prices and the continued hike in mortgage rates as a way to slow inflation, which wound up with crash in financial and construction markets. In an attempt to circumvent the censure of two petrol wars, the mainstream economists put focus on the both markets, and it postponed the prompt action on the long and long overdue contemporary energy needs.

    Looking to worthless, painful and wasteful oil wars, to waste time bickering over meaningless things and drag feet on a defining energy bill are sure to shake the embryonic effect of stimulus package that is an interim measure for build-out of a new foundation.

    As the overall oil reserve in Middle East, let alone the rest of oil-producing areas, is on the decline more than known, the region blessed with affluent sun rays also needs to lay a new groundwork, particularly in this context UAE is beginning to concentrate on future energy and Iranian EV is rolling out recently, the countries in the region will never stand still on the occupation, that means no matter what the result is, the repetitious mistake at the cost of invaluable lives and gigantic spending will end up with an irreversible tragedy later on.

  2. Hope For Better Change & Job Boost :

    As a major driver, IT industry stalled and stranded in a game industry for the lack of 21st energy policy over the stretch of two wars needs to expand into the all but indefinite energy, medical, and academic industry where the investors are eagerly waiting for policy-makers to act now, which I guess is why the far-reaching and long overdue health care and 21st energy bill have come into focus.

    Thankfully and interestingly enough, 100s of Companies (with $13 Trillion) Are Demanding Strong Climate Deal in Copenhagen just like environmental activists, a coalition of more than 500 Global Businesses is also demanding ambitious new climate deal, and the report by Blair and the Climate Group, a London-based nonprofit organization, found a climate-change accord among all countries would spur economic growth and create as many as 10 million jobs by 2020.

Beyond the report, according to a new report published by the Global Climate Network of think tanks, “A Global Green New Deal” could create tens of millions of new jobs by agreeing to invest in low carbon technologies.

This research shows that while jobs will be lost in conventional, carbon-intensive sectors, more jobs will be created than lost provided that policies to promote sustainable industry are ambitious enough and it is one of the most effective means of handling rising unemployment.
It concludes that measures to creating markets for low carbon technologies will serve the dual purpose of creating extra jobs in renewable energy, information technology and service sectors, as well as helping reduce greenhouse gas emissions.

  1. Funding For Hopeful Change :

A. Converting the excessive and destructive military budget into constructive financing for the 21st energy.

B. Phasing out subsidies for carbon-intensive industries, and taxing carbon emissions.

C. For the most part, the poor regions ranging from Africa to South Asia severely affected by climate change are abundant in sun rays, and the compensation by way of placement of large solar plants as well as the other measures could generate enormous effects.

D. Cost considerably less than 1% of GDP per year in the long term, or up to $175 per household in 2020. (That’s about the cost of one postage stamp per household per day.)

Currently, a 21st energy bill has passed the House and is making its way through Senate. According to CBO, this bill would trim budget deficit by $24.4 billion of a net gain.

  1. Promising And Enough Tech In The Work :

In brief, only technology and innovation can meet the challenge, and the world of science has potential enough to get past this turbulence and for all over the globe to go along in harmony. Recently, GM and Reva that achieved a fantastic innovation of “wireless electricity”/ “instant remote recharge” have joined hands to develop Electric Vehicles.

In the near term, improving energy efficiency needs some up-front investments, though, in the long term, it promises much better future, and the current tech is sure to do better enough.

Thank You !


While America stumbles along and produces a watered down version, China will take the lead and push ahead. Dumb politics will stop America becoming the great country it used to be.

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