Arizona's Republican Senators both
voted against the Senate Energy bill. The bill passed with overwhelmingly bipartisan support yesterday, 85-12. Frankly, I'm perplexed.
In a joint statement, GOP Sens. Jon Kyl and John McCain said the bill will not solve the nation's energy problems."This bill does little to address the immediate energy crisis we face in this country," McCain said. "The handouts to big business and oil companies are irresponsible and will be disastrous for . . . Arizona."He said the bill requires the use of 8 billion gallons of ethanol by 2012, up from the current annual use of 3.4 billion gallons. Arizona, he said, does not produce its own ethanol. Analysts said the ethanol provision was critical to gaining support from farm-state senators. "I predict that if this bill is enacted, gas prices in Arizona will increase, and air quality will be impaired because of its ethanol mandates," Kyl said. "The bill does little to reduce our dependence on foreign oil and will impose huge new costs on Arizona power consumers because of the bill's national one-size-fits-all renewable portfolio standard."Of course Arizona does not produce it's own ethanol; we don't farm any corn here in the Sonoran desert. We already import every drop of gasoline we use today, regardless of formulation. How exactly is importing ethanol going to result in more- or less-expensive fuel at the pump? Details, please...
Some of our Senators colleagues
disagree:
The chairman of the Senate Energy Committee, Pete Domenici, R-N.M., hailed the legislation as "an energy bill worthy of our times." Citing incentives for nuclear power and for energy sources such as wind and solar, Domenici said, "This is a bill that could indeed be called the clean energy act of 2005."This cuts to the heart of the matter; is the point of any new Energy policy to move the nation toward greater energy independence or is it something else? If it is something else, I'd love to hear from the Senators exactly what they think that is. As the second
Republic piece puts it:
But the Senate bill sets an ambitious goal of weaning the country from its dependence on oil and contains far more provisions than the House version to encourage the production of alternative fuels. The Senate measure contains $16 billion in tax breaks over 10 years for energy producers and consumers, double what the House bill provides.Yet Senators Kyl and McCain both argue against it, claiming that the bill is a boon for big oil. I am beyond confused at this point.
UPDATE: 7/1/2005:
In an effort to clarify the McCain/Kyl votes on the Senate Engergy Bill, I give you
this from
The Arizona Republic:
To get the efficiency and renewable power that America needs, a Senate energy bill would make us choke on ethanol. For Arizona, the tradeoff is dicey....But the big fuel in the Senate bill is ethanol: a mandate for Americans to use 8 billion gallons of it annually by 2012. That's 2 1/2 times our current consumption. And it doesn't work for Arizona. We'd pay more money than drivers in many other states, which have the corn supplies to produce their ethanol close to home. And we'd have dirtier air. Adding ethanol to gasoline in warm months would contribute to air pollution. The bill actually recognizes this problem for California, which would get a summertime exemption. The Senate and House bills are loaded with goodies for individual members of Congress. Do we really need to spend $8 million to study the prospects for producing fuel from sugar cane? The ethanol requirements and the size of the tax incentives were among the reasons Arizona Sens. Jon Kyl and John McCain voted against the bill.Now, as I said in the original post, of course we'd have to import any and all ethanol. So?
I cannot speak to the point of clean air and burning ethanol in the heat of summer; I presume the position as stated is true. But when it comes to whether or not this is cheaper, I'm not sure I get the argument.
Check out this
post from April and compute the difference between $2.27 and $1.83. Having done that, please then enumerate the argument as to why mandatory ethanol use will increase the cost of fuel and energy in Arizona.
Given the current dynamics of the gas & oil markets, I have a hard time swallowing that.