Very unlikely refinery measure will pass Congress this session

 

The US Senate Environment Committee failed to pass a Republican-backed refinery and fuels bill Oct 26, making passage this session of legislation to address soaring gasoline prices in the wake of recent Gulf hurricanes exceedingly unlikely.

Panel members voted 9 to 9, and therefore rejected the bill sponsored by committee chairman James Inhofe (Republican, Oklahoma) that would have streamlined refinery permitting processing by setting a deadline of 270 days for the Environmental Protection Agency to approve or deny permits for new refineries and 90 days for refinery expansions.

The Inhofe bill also would have authorized the Economic Development Administration to allot funds for building refineries at recently closed military bases, and make refineries a priority within the EDA's Defense Economic Adjustment program, which provides funds to communities with closed bases to help diversify their economic base.

The bill also sought to reduce the number of boutique fuels by authorizing EPA to prevent other states from using a particular fuel blend if one state stops using it.

Liberal Republican Lincoln Chafee of Rhode Island joined all the panel's Democrats, as well as the Senate's sole Independent, Jim Jeffords of Vermont, in opposing the bill.

Prior to the vote, the panel rejected, by a margin of 10 to 8, a bid by Jeffords to replace Inhofe's refinery bill with a substitute that would have established a federally owned refinery to be used in emergency situations.

That substitute amendment, supported by the committee's Democrats, would have set up an EPA-run strategic refinery reserve, which would have operated like the government's Strategic Petroleum Reserve.

The House earlier this month narrowly approved a refinery bill that contained many of the same provisions as the Inhofe measure. That bill was approved in a 212-210 vote, but only after the vote deadline was extended an extra 40 minutes while Republican leaders twisted arms to get fellow party members to support the legislation.

Inhofe's bill, while not a companion piece of legislation to the House refinery bill, was considered the vehicle Republican's would use to work out a negotiated refinery bill between the two chambers in an effort to get a final bill passed.

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