Energy Policy: Optimism times 3

Congress has moved toward one of the breakthrough moments the country will need in abundance if it is going to rationalize its energy policies, combat global warming and build its economy. The prospects for a good energy bill are far higher than usual.

The challenge will be to make the best of the two quite different measures passed in June by the Senate and last week by the House of Representatives. It will be a test of leadership in both parties to see whether they can look ahead or get bogged down in the temptation to settle for the worst. That would be to provide a little more money to alternative energy without touching the existing system of subsidizing coal and oil without confronting the auto and utility industries over the efficiencies.

The hope lies in a Senate and House conference committee, which could decide to put together two bold moves passed by each body. The critical elements are car efficiency standards, passed by the Senate, and the House's utility energy-source portfolio rules requiring more renewable power.

Along with strong incentives for investments in renewable energy and plug-in hybrid vehicles, on which Washington's Sen. Maria Cantwell did considerable work, the Senate bill would create the first dramatic increases in fuel-efficiency standards in years. New cars and trucks would have to average 35 mph by 2020.

In the House bill, there's no mention of the so-called CAFE standards for vehicles. But there is a resource portfolio provision for utilities that Rep. Jay Inslee of Bainbridge Island helped develop based on a similar provision for utilities here. By 2020, investor-owned utilities would have to receive 15 percent of their energy from renewable sources, such as wind, solar and biomass. The bill also requires big energy improvements in buildings, appliances and lighting fixtures.

Inslee, a longtime advocate of energy efficiency, said he is optimistic about progress on both high-tech energy solutions and global warming, as long as Congress and the president set the right economic incentives. He has been working on an upcoming book, "Apollo's Fire: Igniting America's Clean Energy Economy" with a co-author, Bracken Hendricks. Talking about the book research, Inslee said, "I was optimistic when I started that we could (transform America's energy picture). I am probably three times more optimistic now."

As he noted, though, China already has adopted stronger car efficiency standards. Congress and President Bush need to get America moving on car, utility and appliance efficiencies while retargeting the tax incentives to the future rather than the past of oil and coal.