what's up

With gas prices surging over the $3 mark and clean energy all the rage, energy policy is a perennial target in Congress these days.

Last year lawmakers passed a bill that hiked up gas mileage standards, gave an extra boost to ethanol production and phased in other efficiency standards. A few green measures which didn't make it into the '07 bill may be back on Congress' plate in '08. At the same time, just 'cause ever good politician has to look like they're doing something about gas prices, Congress may vote on small measures to make a dent in prices at the pump.

green tax incentives

The Senate blocked a measure last year that would extend and expand incentives for green energy; the sticking point being that it would've been paid for by rollbacks on tax breaks for big oil.

The House passed a similar bill in February '08 - with the same deal-killer oil tax hikes. Below is a snapshot of what's in the bill.

Tax credit would include:

• $6.5 billion to extend tax credits for wind and other renewables for three years;
• $1 billion for those who buy plug-in hybrids;
• $1.5 billion in credits for energy efficient homes;
• $2 billion for green community programs;
• $2 billion for transportation projects in New York.

They'd be paid for by:

• $13.5 billion (over 10 years) in rollbacks on tax credits for big oil;
• $4 billion by switching up how oil companies can claim foreign tax credits.

The Senate is trying out the idea of passing a bill that'd raise green energy tax perks without any accompanying tax hikes for big oil. It's unclear if the House would be willing to back them up.

gas letting

With the onset of spring - which always brings an upswing in gas prices - Congressional leaders may vote on a number of measures designed to nudge gas prices down (WP), including:

• taxes on oil companies (not so much to help prices, but rather to take the sting out of the fact that the oil companies are raking in profits)
• making price gouging a federal crime
• letting the US sue OPEC for playing around with prices, and
• stopping the federal government from adding to the Strategic Petroleum Reserve, which holds an oil reserve in case of emergencies.

Republican leaders have responded with their own set of measures to ease gas prices - particularly opening up more drilling off-shore and in the Arctic National Wildlife Refuge - but they're not likely to get far in a Democratic controlled Congress.

See our Gas Prices primer for more on the debate on how to bring down prices.

Updated May 10, 2008