On January 18, the House passed H.R. 6, a Democratic bill sponsored by Natural Resources Committee Chairman Nick Rahall (D-WV) that shifts billions of dollars in royalties and tax incentives from the oil and gas industry to alternative energy sources. House Republicans tried unsuccessfully to block passage of the bill, arguing they were cut out of debate and maintaining the legislation is bad economic policy and does nothing towards moving the nation to energy independence. The bill is the last of six initiatives on the leadership's early agenda for the 110th Congress.
The bill steers new revenues into alternative energy development through a new reserve fund, called the "Strategic Energy Efficiency and Renewables Reserve," and would raise an estimated $14 billion in new revenues, leadership aides said. It does not specifically say how the money in the reserve fund is to be spent, but says the money will offset the cost of subsequent legislation to speed up the use of renewable energy, alternative fuels, energy efficient products and conservation.
While Senate Democratic leadership has said it wants to move a similar bill, that effort will likely take a slower and more deliberate track given the slim Democratic majority.