Comprehensive energy legislation has gained momentum on Capitol
Hill, with House passage of a package of policy changes and
tax breaks that include measures aimed at speeding construction
of natural gas pipelines and electricity transmission lines,
boosting nuclear power and opening a portion of the Arctic
National Wildlife Refuge to oil and gas drilling. The vote
on April 21 was 249 to 183.
Barton
was bill's prime mover (Photo by House Energy and Commerce
Committee)
House Energy and Commerce Committee
Chairman Joe Barton (R-Texas), the bill's prime mover, said
the legislation "will lower energy prices for consumers, spur
our economy, create hundreds of thousands of jobs and take
unprecedented steps to promote greater energy conservation
and efficiency."
President Bush urged lawmakers
to act on the legislation. In an April 20 speech, he said,
"Members of Congress can send an important signal that they
are serious about solving America's energy problems by getting
a bill to my desk before the summer recess."
The next step would be action
in the Senate, where Energy and Natural Resources Committee
Chairman Pete Domenici (R-N.M.) says he plans to have his
panel vote on an energy bill in May and hopes to have floor
action by early summer.
Bush has sought an wide-ranging
energy bill almost since the start of his first term, but
has been unable to get lawmakers to close the deal. In late
2003, the House and Senate had approved bills but a final
compromise version failed to pass in the Senate. Factors behind
the measure's downfall included Senate opposition, including
from some Republicans, to liability relief for makers of the
gasoline additive MTBE and to the overall size of the bill,
estimated at about $30 billion.
Before passage of the bill, the House defeated a proposal
from Rep. Lois Capps (D-Calif.) to strip out the measure's
liability protection for MTBE producers. Capps' amendment
failed on a 219-213 vote.
But this year's version is slimmer
than the 2003 model, partly because legislators stripped off
some tax breaks and other provisions and attached them to
other bills that passed last year.
Environmentalists continue to
criticize the bill, because of its ANWR provision and also
because they feel its $8 billion in tax breaks over 10 years
lack enough conservation incentives. But those groups may
find a more receptive audience in the Senate and could get
an assist from the administration. In an April 20 statement
that is generally laudatory about H.R. 6, the House bill,
the Office of Management and Budget notes, "The administration...is
concerned about the significant direct and potential cost
of H.R. 6."
OMB says the House bill's tax
breaks exceed the $6.7 billion Bush proposed and adds that
the legislation lacks "the President's proposed tax credits
for renewable power sources such as wind and landfill gas,
for businesses that invest in combined heat and power property,
or for hybrid and fuel-cell vehicles."
The tax provisions also include
reducing the depreciation period for natural gas distribution
lines to 15 years, from 35 years now, and cutting the period
for writing off "electricity transmission assets" to 15 years
from 20. The legislation also expands the five-year writeoff
for powerplants' pollution-control facilities to cover plants
built before 1976.
Among other key construction-related
provisions, the House measure has several incentives for nuclear
power, including an extension of Price-Anderson Act indemnification
for nuclear contractors through 2025. The liability protection
now is slated to expire at the end of 2006.
In the electric utility area,
the measure sets mandatory standards for electricity reliability.
It also would allow federal officials to issue permits to
build transmission lines in "national interest electric transmission
corridors." The Dept. of Energy would issue a single environmental
review for transmission projects. In addition, the bill would
repeal the 1935 Public Utility Holding Company Act.
The legislation also establishes
new energy-efficiency standards for federal buildings.
The House version would open a
portion of ANWR to energy exploration. Bush said that the
Interior Dept. estimates that one section of that Alaska refuge
could provide more than 10 billion barrels of oil.
Although gasoline prices have
risen sharply in recent months, Bush conceded that the measure
"wouldn't change the price at the pump." But he contends,
"It will make our supply of energy more affordable and more
secure for the future."