Domenici
calls bill "formidable step forward" but House
MTBE provision presents big hurdle
A wide-ranging energy
package has advanced in Congress, with Senate committee approval
of a measure that seeks to stimulate domestic production,
promote conservation and guard against breakdowns of the nation's
electricity grid. The measure, which the Energy and Natural
Resources Committee approved May 26 on a 20-1 vote, will go
to the floor shortly after the Memorial Day recess, says panel
Chairman Pete V. Domenici (R-N.M.), where amendments are expected.
"I think this is a rather
formidable step forward," Domenici told reporters, adding
that something like the committee's version is likely to pass
the full Senate. President Bush has said he wants a final
measure on his desk this summer.
The bipartisan backing on the committee
will help Domenici in his quest. The committee's top Democrat,
Jeff Bingaman--also from New Mexico--says the legislation
encourages supply and technologies for "clean energy"
and important provisions to increase energy efficiency.
The big hurdle ahead will be working
out a compromise with the House, which passed an energy bill
in April that has significant differences from the Senate
panel's. Among the contentious issues will be whether to provide
liability relief for makers of the gasoline additive methyl
tertiary butyl ether (MTBE). The House bill has MTBE protections;
the Senate version doesn't. Domenici says all parties know
the MTBE issue is "a real stumbling block" in the
path toward a final bill. He says it's unresolved--"If
I knew how to do it, we would already do it," he says.
But he adds that "some ideas, some parameters" are
emerging from lawmakers about how to deal with the matter.
Democrats also criticize the House
bill for not doing enough on conservation. Sen. Maria Cantwell
(D-Wash.) says the Senate committee bill is "better than
the status quo and a good floor," but adds, "The
House bill represents something way below the floor."
She praises the Senate panel's version for cracking down on
electricity market manipulation, and says the House measure
falls short in that area.
Among other provisions, Committee
members from the Farm Belt praised the bill for setting a
federal standard for producing ethanol and other renewable
fuels, pegging production at 8 billion gallons by 2012. Sen.
Tim Johnson (D-S.D.) calls that mark "robust but very
doable." To placate critics from California, that state
would be exempt from the fuels standard during the summer.
The House bill sets the 2012 national standard at 5 billion
gal. Last year, domestic production totaled 3.4 billion gal.
Energy legislation has had a difficult
road in Congress. In late 2003, an estimated $30-billion package
died in the Senate, because of opposition to an MTBE provision,
the overall size of the bill and other factors. This time,
Domenici has held the legislation to limits set earlier this
year by the Budget Committee. He says it provides direct federal
spending of $2 billion, and another $11 billion in tax breaks
to be added by the Finance Committee on the Senate floor.
For electric power, the committee-passed
bill sets mandatory reliability regulations and repeals the
1935 Public Utility Holding Company Act, but gives the Federal
Energy Regulatory Commission authority to review utility company
mergers.
For nuclear power, it extends Price-Anderson
Act liability protection for Dept. of Energy contractors and
Nuclear Regulatory Commission licensees through 2016 and authorizes
construction of a test reactor at DOE's Idaho National Laboratory
to evaluate advanced reactor technology.
The bill also has measures
to spur oil and gas production, including incentives for "marginal"
wells, for natural gas in shallow waters of the Gulf of Mexico.
(Photo courtesy of Senate Energy and
Natural Resources Committee)