US Senate energy panel set to begin debate on bill May 17

Washington (Platts)--10May2005

The US Senate Energy and Natural Resources Committee will begin debate May 17
on a wide-ranging energy bill that will include a provision allowing natural
gas drilling in offshore waters now off-limits to energy development, the
chief sponsor of the measure, Sen Pete Domenici (Republican-New Mexico) said
Tuesday. 

A proposal introduced in the Senate earlier this year would allow governors to
decide whether to allow gas drilling in their states' offshore waters.
Domenici told reporters he is unsure whether his bill would allow governors to
"opt in" to allow gas leasing in the Outer Continental Shelf or require them
to "opt out" to retain US drilling bans prohibiting lease sales. The moratoria
apply to the East and West coasts and the Eastern Gulf of Mexico offshore
Florida. Domenici also said Republican and Democratic members have yet to
agree on all provisions of the bill's electricity title.

Sources have said provisions under debate may include "participant
funding"--which involves how costs are assigned for transmission upgrades--a
renewable portfolio standard with requirements for more green energy supplies
and beefing up federal oversight of utility mergers. "The electricity title is
being negotiated. It is not finished yet," Domenici said. "I'm trying very
hard to solve it and I think we will." Senate Environment and Public Works
Committee Chairman Jim Inhofe (Republican-Oklahoma) Tuesday said he will
consider attaching the Clear Skies legislation to the energy bill on the
Senate floor, but not if the controversial power plant pollution bill will
sink energy legislation. "I would like to move Clear Skies, but not to
sacrifice an energy bill," he said.

This story was originally published in Platts Electricity Alert
http://www.electricityalert.platts.com

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