On April 29 the U.S. Senate and House approved a federal budget for FY2006 that will allow the Senate to proceed with drafting an energy policy bill. National energy policy, particularly legislation that furthers accessibility and affordability for electricity and natural gas to industrial customers, is the top concern of the Aluminum Association's Board Subcommittee on Government Affairs.
Among the highlights of the Senate-House budget agreement is an $11 billion tax package for energy-related incentives to be incorporated into national energy policy legislation that should help spur development of domestic energy resources, including wind, solar, biomass and nuclear. Overall, the budget provides a $2 billion reserve fund for non-tax policy provisions for an energy bill.
Inclusion of these funds lays the groundwork for the Senate Energy and Natural Resources Committee to begin crafting a bipartisan national energy policy bill this spring.
”I’m particularly pleased that the budget gives us room to put together a solid energy policy bill, with the incentives we need to begin maximizing conservation and production,” Sen. Pete Domenici, chairman of Energy and Natural Resources, said.
The House approved a far-ranging energy bill in April that would open an Alaska wildlife refuge to oil drilling and shield makers of a controversial gasoline additive from environmental lawsuits. A House proposal to require higher fuel economy for cars was rejected.
The Bush administration embraced the House bill, while expressing reservations about the size of the incentives to the oil and gas industries, especially a $2 billion subsidy for developing oil and gas in deep waters of the Gulf of Mexico.
After passage of the House Energy bill, President Bush praised it as "an important step to secure our energy future and to reduce our dependence on foreign sources of energy." Energy Secretary Samuel Bodman said the House measure was not perfect, but "we now have a bill, something to work with."
Lightweighting Urged as a Safe Option for CAFE Rules
A study released by the Aluminum Association supports lightweighting strategies as a safe, important option that should be encouraged in revised Corporate Average Fuel Economy (CAFE) standards now under consideration by the National Highway Traffic Safety Administration (NHTSA).
The study, carried out by Dynamic Research Inc., evaluated how crashworthiness and crash compatibility would be affected if a vehicle’s weight was reduced or remained constant, but its size was maintained or increased. It found that crashes involving SUVs can be reduced up to 26 percent by using aluminum or other high-strength, lightweight materials in the vehicle design and by adding slightly longer energy-absorbing crush zones.
”Our goal is to ensure no artificial barriers are created that could inadvertently create disincentives for use of innovative tools, technologies, and lightweight materials by automakers,” said Tom Gannon, chairman of the Aluminum Association’s Auto and Light Truck Group.
NHTSA is expected to propose new rules later this year and, after another commenting period, issue its final rule in 2006 to take effect with the 2008 model year.
