House Pass Economic Package

Following hot-on-the-heels of comments from Barack Obama that the US needed to become energy independent the US House has passed the proposed $819 billion economic package 244 votes to 188.

The bill would cut taxes for people and businesses by $275bn, while pumping more than $540bn into a range of initiatives including road and bridge repair, increased unemployment benefits, investment in new technology and renovations to 10,000 schools. But there is also an investment into some carbon reduction measures, including an $11bn cash injection to the creation of a Green Electricity Grid for the US to ensure that the promised doubling of renewable energy over the next three years, with the additional benefit of 460 000 jobs being created.

Measures in the bill to reduce foreign oil dependence include;

• Reverse US dependence on foreign energy
• Review of decision to block states from setting own emission targets
• Orders the transportation department to come up with new short-term rules on how carmakers can improve fuel efficiency
• Federal buildings to become more efficient
• Double 'green' energy from wind, sun and biofuels over next three years

President Obama also ordered the transportation department to come up with new short-term rules on how carmakers can improve fuel efficiency. A 2007 law required that new cars and trucks produced by 2020 obtain 35 miles per gallon of fuel. However, then-President George W Bush did not put in place the regulations to enable the law to be carried out. The new rules Mr Obama wants to put in place would mean the new standard is reached by 2011. This introduction of a 40% improvement in energy efficiency would see a reduction in oil use of 2m barrels a day, almost equivalent to imports from the persian gulf.

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