Senate Considers New Energy Package

JIM LEHRER:

Now, the lobbying war over the energy bill. Judy Woodruff begins with some background.

JUDY WOODRUFF:

As Americans pump up for summer with gas prices near record highs, the Senate began debate this week on a wide-ranging energy bill aimed at curbing the nation's addiction to oil. The legislation includes a number of controversial proposals that mandate improved vehicle fuel efficiency and greater use of renewable energy.

North Dakota Democrat Byron Dorgan.

SEN. BYRON DORGAN (D), North Dakota: Much of what we get — where we get our oil, rather, is in very troubled parts of the world. And we could one day wake up with terrorists attacking a refinery somewhere and a shut-off of the oil to this country from foreign sources. And this country would be flat on its back; this country would have its economy in tatters.

JUDY WOODRUFF:

Idaho Republican Larry Craig.

SEN. LARRY CRAIG (R), Idaho: It is not a complete package. It's way out into the future. It's not about tomorrow. It's not about national security. It's not about production. And if we don't have those factors in a bill, this Senate will not serve its public and the American consumer in a responsible way in sustaining and building a great nation.

JUDY WOODRUFF:

The proposal in the sprawling Senate bill expected to spark the biggest fight is the increase of corporate average fuel economy, or CAFE standards, for cars and light trucks to 35 miles per gallon by 2020, an increase of about 10 miles per gallon over current levels.

Other main provisions in the Senate legislation: ramp up the production of renewable fuels for cars and trucks to 36 billion gallons a year by 2022 — the current standard sets a goal of 8.5 billion per year in 2008; increase the production of coal-to-liquid fuels; and require utilities to have 15 percent of their power come from renewable sources by 2020.

A wide variety of industries are lobbying for and against the bill, since the outcome would affect automakers, electric utilities, oil companies, ethanol producers, and many others.

TELEVISION COMMERCIAL NARRATOR:

America's enemies understand that oil is the lifeblood of our economy…

JUDY WOODRUFF:

This week, the Energy Security Leadership Council, a group of large energy-consuming companies, launched this TV ad to support the legislation.

TELEVISION COMMERCIAL NARRATOR:

Support bipartisan energy security legislation.

JUDY WOODRUFF:

Last week, auto industry executives told lawmakers on Capitol Hill the provision to raise fuel economy standards could hurt them. Rick Wagoner is the CEO of General Motors.

RICK WAGONER, CEO, General Motors:

It's time for us to move beyond exclusive reliance on historical regulatory approaches like CAFE that clearly have not solved these critical problems and move forward to embrace solutions that will yield the results that Americans expect and deserve.