Senate OKs 'green' energy bill

WASHINGTON — Heading toward a collision with the House and White House, the Senate sought Thursday to put an environmentally friendly stamp on its energy legislation as lawmakers and President Bush struggle to agree on an elusive national power policy.

In an effort to strengthen their hand in looming negotiations with the House, senators voted, 52-48, to require power companies to use more renewable fuels such as wind and solar power to generate electricity. At the same time, the Finance Committee approved a $14 billion tax incentive package that rewards alternative fuels and energy efficiency.

"Renewable energy will power our homes and businesses without polluting the air we breathe or the water we drink," said Sen. Harry Reid of Nevada, the Democratic leader.

But the Senate did not go as far as he and other Democrats had urged, rejecting, 53-47, a Democratic proposal to establish a goal of a 40 percent reduction in oil imports within 20 years. Critics had called the target unattainable and pointed to a provision in the measure that calls on the president to try to reduce oil consumption by 1 million barrels a day.

Yet the direction the Senate is taking on energy policy is putting it at odds with the House, where longtime oil industry allies have already produced a measure favoring traditional fossil fuels. The Bush administration also opposes the utility requirements approved by the Senate as well as the provision encouraging the drop in oil usage.

Lawmakers acknowledged that the contents of the tax package, which provides an array of tax breaks for alternative power, hybrid vehicles and energy-efficient appliances and home construction, was purposefully written to provide a sharp contrast with the House, where the weight was on tax breaks for the traditional power industry.

"It was the greenest energy tax bill that the Finance Committee has ever done," said Sen. Charles E. Schumer, D-N.Y., about the tax plan expected to be incorporated in the overall energy legislation next week. "If it comes out in the middle, it might be all right."

With the approval of the utility requirements, leaders of both parties said it is becoming more likely the Senate will pass its legislation in the days ahead, though potential fights remain over climate change provisions, offshore oil drilling and where to locate facilities to receive imports of liquefied natural gas.