A Huge Day for the U.S. Energy Future

The end of the week probably set the stage for U.S. energy policy for the coming decades. Here’s the summary:

While Congress partisans fought bitterly over oil drilling, a group of ten moderates in the Senate (five Dems, five Republicans) came up with compromise plan. It would allow more drilling on the East Coast. In turn, oil companies would lose about $30 billion in tax breaks. Those breaks would go to fun investment tax credits for the renewable industry.

The plan also includes tax breaks for electric cars.

So almost everyone gets something. The Republicans claim a victory on drilling and the Democrats and ethanol and solar state representatives get money for new industries. Detroit, the bumbling boneheads of the U.S. economy, get incentives for people to buy new cars. (Granted, Japanese manufacturers will probably benefit more because of the cars they sell, but Detroit will get some benefit.). It’s not perfect, but compromises rarely are.

The compromise even prompted Barack Obama to state that he would support limited drilling if it meant getting renewable bills passed.

But not everyone is happy. Under the drilling plan, Virginia, the Carolinas and Georgia state governments would have the option to allow drilling or not. Florida would not. Drilling goes forward in the plan. State Democrats and Republicans aren’t happy. (Drilling crosses partisan lines when it is in your backyard.)

And in other notes, California utilities may not make their goal of getting 20 percent of power through renewables by 2010. Growth in demand and tax credit uncertainty to blame.

Oh, and Andy Karstner, the friend of the renewable industry in the White House, earlier in the week resigned. Well, it will be an new administration soon anyway.