US House Panel Resumes Writing Energy Bill
USA: April 13, 2005


WASHINGTON - With US gasoline prices at a record high for the fourth week in a row, a House committee is set to resume debating on Tuesday a broad energy bill that aims to boost long-term petroleum supplies.

 


The chairman of the House Energy and Commerce Committee, Rep. Joe Barton of Texas, said he hopes to wrap up work on the bill and send it the House floor for a final vote next week.

"We're not leaving any energy source off the table," Barton told C-SPAN Television. "If it will create energy, we are looking at it."

However, Democrats are unhappy with many parts of the bill and will try to modify it at the committee level.

In particular, Democrats want to strip language from the bill that would give the Federal Energy Regulatory Commission sole authority to approve sites for new liquefied natural gas (LNG) import terminals.

States argue they should be able to block LNG projects that could present a risk to local citizens, but FERC says it should have authority to approve LNG facilities that are needed to meet US natural gas demand. Two LNG proposed projects in Rhode Island and Massachusetts are opposed by local citizens' groups and state politicians.


REINING IN GAS-GUZZLERS?

Democrats are also expected to try to add a provision to the energy bill that would require higher fuel efficiency standards for new US cars, trucks and gas-guzzling sport utility vehicles. The average fuel economy of American vehicles has steadily dropped since 1988, and was 20.8 miles per gallon for all 2003 model vehicles.

With gasoline use accounting for 40 percent of US oil demand, many Democrats and environmental groups see more efficient vehicles as the only significant way to cut US dependence on oil imports.

Democrats will also try to eliminate a provision in the bill that shields major oil companies such as ConocoPhillips and Exxon Mobil Corp. which make the gasoline additive MTBE from water pollution lawsuits.

House Majority Leader Tom DeLay of Texas has insisted that the MTBE liability waiver be part of energy legislation, even though the Senate soundly rejected an energy bill last year due largely to the MTBE protection. The MTBE makers face an estimated $29 billion in cleanup costs for the pollution.


ANWR DRILLING, TAX BREAKS

Two other House committees will vote on other portions of the energy bill later this week which will be folded into much broader legislation on the House floor.

The House Resources Committee is scheduled to vote on Wednesday on allowing oil companies to drill in Alaska's Arctic National Wildlife Refuge.

Separately, the House Ways and Means Committee will also vote Wednesday on several billion dollars in tax breaks and financial incentives to boost US energy infrastructure and encourage the use of certain energy technologies.

Rep. Bill Thomas, who chairs the Ways and Means panel, told reporters last week that the value of the tax breaks is more than the $6.7 billion limit requested by the White House and less than the $23 billion included in last year's energy bill.

Any energy package passed by the House will have to be reconciled with the Senate's version, which has yet to be written.

 


Story by Tom Doggett

 


REUTERS NEWS SERVICE