Corporate Power and Energy Policy

NYT:

Pared-down energy legislation cleared the Senate on Thursday by a wide margin after the oil industry and utilities succeeded in stripping out provisions that would have cost them billions of dollars.

The legislation still contains a landmark increase in fuel-economy standards for vehicles and a huge boost for alternative fuels. But a $13 billion tax increase on oil companies and a requirement that utilities nationwide produce 15 percent of their electricity from renewable sources were left on the floor to secure Republican votes for the package.

The tax measure and the renewable electricity mandate were included in an energy bill that easily passed the House last week. But industry lobbyists focused their attention on Republican members of the Senate and on the White House, which repeatedly threatened to veto the bill if the offending sections were not removed.

...Brent Blackwelder, president of Friends of the Earth Action, accused Senate Democrats of “capitulating” to Senate Republicans and the White House.

“When the Republican leadership and the polluter lobby have blocked important legislation, Senate Democrats have been all too willing to move in their direction,” Mr. Blackwelder said in a statement. “The result is that the two most positive provisions of the energy bill — a clean energy mandate and a tax package reining in handouts for fossil fuels and promoting clean energy — are being removed, while detrimental provisions, such as a radical five-fold increase in unsustainable biofuel use, remain.”