Washington, 27 July (Argus) — Senate Democrats today will introduce a $15bn energy bill that includes measures aimed at reducing US oil consumption and improving energy efficiency of homes.

The bill will include incentives to promote the use of natural gas as a transportation fuel, establish a Department of Energy (DOE) program to encourage development and deployment of electric vehicles and provide rebates for homeowners who install energy-saving products, according to a draft of the bill released by Senate Majority Leader Harry Reid (D-Nevada). A final version of the bill is to be introduced later today, Reid spokesman Jim Manley said.

A vote on the legislation could take place early next week, Manley said.

The natural gas provisions are based on legislation introduced by Sens. Robert Menendez (D-New Jersey) and Orrin Hatch (R-Utah), but instead of using tax credits to spur the deployment of natural gas-fueled vehicles, the bill will provide $3.8bn for rebates of up to $64,000 per vehicle, depending on its size. It would also provide grants of up to $50,000 for new refueling units and loans for new natural gas vehicle manufacturing facilities in the US.

The electric vehicle program is based on legislation by Sen. Byron Dorgan (D-North Dakota) directing DOE to establish a program to encourage development and deployment of new vehicles. It also includes $400mn to help local governments implement plans to facilitate the use of electric vehicles and loan guarantees for companies that purchase automobile batteries for non-vehicle uses. The Senate Energy and Natural Resources Committee approved the Dorgan bill last week by a 19-4 vote.

The bill also includes about $5bn for rebates of up to $8,000 to homeowners that install energy-saving products such as energy-efficient windows, insulation and heating systems. Senate aides said they believe these provisions, based on “Home Star” legislation, could create about 150,000 new jobs.

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