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The Senate last week kicked off debate on an energy bill that includes a controversial cap-and-trade provision to limit carbon emissions, summoning four top Obama administration officials to testify before the committee that will craft the Senate version of climate change and energy policy legislation.

The European Union last week imposed tariffs on biodiesel imported from the United States to counter low prices it said were caused by subsidies, but a spokesman for the U.S. Trade Representative denied subsidies were the main reason for the growth of U.S. sales in Europe and that the United States would review the tariffs “closely.”

Diesel prices dipped slightly for the second week in a row but, according to truckers and analysts, have yet to reflect the full effect of falling crude oil prices, record diesel surpluses and one of the worst freight recessions in trucking history.

Grocery retailer Safeway Inc. said it will begin inflating its truck and trailer fleet tires with nitrogen instead of compressed air.

A leading Democrat on the House Transportation and Infrastructure Committee proposed taxing speculative oil trades to kill two birds with one stone: Boost highway funding and reduce the effect of speculation on fuel prices.

In a vote divided largely along party lines, the House last week narrowly passed an energy bill that calls for the United States to reduce its greenhouse-gas emissions by 17% from 2005 levels by 2020 and includes a controversial cap-and-trade provision. The vote sends the measure to the Senate, where it likely faces a tough and long battle.

The Environmental Protection Agency last week approved California’s request for a federal waiver, allowing the state to immediately implement restrictions on greenhouse gas emissions from new cars and light trucks and reversing a Bush administration decision.