By Martin Ross

A Western Illinois congressman last week urged approval of a U.S. House comprehensive energy measure that would help free up domestic oil supplies and offer potentially lower input costs for Illinois producers.

The Senate Friday was reported to be close to agreement on “principles” of energy legislation that could allow greater domestic fossil fuel exploration and use; extend key tax credits for biofuels, wind, and other renewable energy production; and provide new alternative fuel incentives.

Meanwhile, the Senate Finance Committee agreed to a package that would provide roughly $17 billion in tax incentives for renewable fuels paid for in part by freezing tax deductions for U.S. oil and gas companies.

According to U.S. Rep. Phil Hare, a Rock Island Democrat, House legislation passed Tuesday “didn’t go quite as far as I’d have liked it to go, but it did go a long, long way.”

The measure would permit oil and gas drilling between 50 and 100 miles offshore throughout the continental U.S., with approval from individual states.

Hare was hopeful state officials would be receptive to new exploration. The House bill also would roll back an estimated $18 billion in tax breaks for the largest oil companies and enforce their payment of overdue oil and gas lease royalties.

The bill would not allow drilling in the Arctic National Wildlife Refuge.

Hare suggested House incentives for renewable energy and fuel development (see pages 2 and 3) would generate “some very good green-collar jobs” throughout the state. He also sees direct benefits for corn and soybean growers.

“This bill plows a lot of the money back into renewable energy — into biodiesel, into ethanol,” Hare noted. “It also calls for the addition of E85 (85 percent ethanol gasoline) pumps — currently, we have very few of them. We’re looking also at wind and solar — a lot of money will be pumped back into those forms of alternative energy.

Hare applauded approval of limited “clean coal” provisions which would offer “an initial start” for future carbon sequestration efforts similar to the government-shelved FutureGen project and put Southern Illinois miners “back to work.”

John Mizroch, U.S. Department of Energy acting assistant secretary, was reluctant to endorse specific energy policies at an Indianapolis renewable energy forum last week. But he suggested long-term policy consistency would be “very useful for investors.”

Senate aides were uncertain whether leaders could pass energy legislation this week. Matt Hartwig, spokesman with the national Renewable Fuels Association, was hopeful Congress would clear measures after the election.

“There are 13 appropriations bills congressmen have to pass to fund the federal government. There will be some work just to keep the government running,” Hartwig told FarmWeek.