With the May
17 release of President Bushs task force report on energy
policy, the issue has moved to the front burner. Bush moved
quickly to implement some of the panels 105 recommendations,
and Congress is beginning to wrestle with legislation dealing
with other parts of the plan. The drive to produce an energy
bill this year seems to have some steam on Capitol Hill, but
Democrats strong position guarantees the President wont
get all he wants from Congress. Moreover, decisions on many
issues that affect constructionsuch as siting and financing
more refineries, powerplants, transmission lines and pipelinesrest
more with local officials and the private sector than the
federal government.
Things are beginning to move.
On May 18, Bush signed two executive orders recommended in
the task force report. One directs agencies to expedite reviews
of permits for "energy-related projects." The other
mandates that a "statement of energy effects" be
included in all new major federal regulations.
The congressional debate has begun.
The Senate Energy and Natural Resources Committee was scheduled
to start hearings May 23 on the Bush program. Panel Chairman
Frank Murkowski (R-Alaska) hopes to have a broad-based energy
measure out of committee by mid-June and on the Senate floor
soon after that. "Were going to mark it up. Were
going to move it out," he says.
In the House, Energy and Commerce
Committee Chairman Billy Tauzin (R-La.) plans to work on several
smaller bills, each focusing on a piece of the energy program.
He wants to begin with an energy conservation measure.
CHALLENGES. The task force sees
major problems. "America in the year 2001 faces the most
serious energy shortage since the oil embargoes of the 1970s,"
it says. Among the nations key challenges are using
energy "more wisely," fixing and expanding infrastructure,
boosting energy supply without harming the environment and
promoting U.S. energy security.
Besides the executive orders Bush
signed, the panels recommendations include many other
items that affect construction (see table). Engineers and
constructors are strongly upbeat about the plan. "This
is the first time that weve had the opportunity to have
public debate in the U.S. about what the policy should be,"
says Leonard Rodman, chairman, president and CEO of Kansas
City-based Black & Veatch.
Rodman welcomes the attention
to the electricity grid. "The transmission system in
the U.S. is really a weakness," he says. Noting that
President Eisenhower pushed the Interstate Highway System
to ease troop movement for national defense, Rodman sees a
need for a national transmission system to secure the countrys
power supply.
"The transmission infrastructure
throughout the U.S. has not been kept up," agrees William
S. Skibitsky, CEO of myr Group, Rolling Meadows, Ill., a builder
of power-delivery systems. As the system was neglected, the
market for transmission-line equipmentpullers, tensioners
and sheave blockscontracted, he says. "Theres
going to have to be a rebirth in the equipment industry."
CRITICISM. Environmental groups
criticized the plan. David M. Nemtzow, president of the Alliance
to Save Energy, says the program "provides lip service
to energy efficiency and saves all its heavy lifting for increasing
energy supplies."
It is clear that some of Bushs
recommendations are too controversial to make it into a final
legislative package. Senate Minority Leader Tom Daschle (D-S.D.)
says the proposal to drill in the Arctic National Wildlife
Refuge is dead on arrival and contends the Bush plan doesnt
provide enough relief for short-term problems. Fellow Democrat
Harry Reid of Nevada says eminent domain for transmission
lines is "a non-starter."
Nevertheless, lawmakers see areas
where both sides agree. "Im optimistic that we
can pass something," says the Senate energy panels
top Democrat, Jeff Bingaman of New Mexico. Glenn English,
National Rural Electric Cooperative Association CEO, agrees:
"I dont think theres any question that theres
going to be a bill." English, a former 10-term congressman,
thinks the big question is whether Congress will focus on
specific industry needs and what it "can actually pass
that the President will sign into law. And that starts narrowing
it down very rapidly to a few very key points." One such
point, he says, will be "tax incentives to encourage
conservation."
Alden Meyer, the Union of Concerned
Scientists government relations director, foresees "a
lot of Sturm and Drang" in Congress, adding: "In
the end, they may well produce a mouse."
Skibitsky admits that "there
are a lot of roadblocks and hurdles, and its not going
to happen in the short term." But on the whole, the Bush
proposal balances emphasis among different types of energy
infrastructure, he says. "It looks to me like a blended
strategy," Skibitsky says.
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