Top Senate Democrat against splitting energy bill

Apr 7, 2004 - Reuters Power News
Author(s): Reuters

 

(Adds failed Senate vote to limit tariff bill debate) By Chris Baltimore WASHINGTON, April 7 (Reuters) - The Senate's Democratic leader on Wednesday said he opposes a Republican plan to pull about $13 billion in tax incentives from a stalled energy bill and attach them to separate legislation on tariffs. Earlier this week, Senate Majority Leader Bill Frist agreed to include the tax portion of the energy package in a revised bill to modify corporate tax laws that would enable the European Union to lift tariffs on U.S. exports. However, the energy tax measure failed to move forward after a vote to limit debate on the tariff bill failed in the Senate on Wednesday. Senate Minority Leader Tom Daschle said this would "make it harder rather than easier to pass meaningful (energy) legislation," and urged Frist to call a vote on the comprehensive $16 billion bill. "What we ought to do is to bring the entire energy bill to the floor," Daschle told reporters.

The comprehensive package could pass the Senate with 60 votes this week if Republicans call a vote, Daschle said. Republican leaders have taken a two-pronged approach to the energy bill, hoping to secure quick passage of tax incentives meant to spur programs like a $20 billion pipeline to carry natural gas from Alaska to the lower 48 states. The move splits the stalled energy bill in two. While attaching the tax incentives to the tariff bill, it will strand provisions to boost electricity reliability rules, double the use of corn-based ethanol in gasoline and repeal Depression-era rules that limit utility mergers.

It could open the way for speedy consideration of the tax provisions originally in the energy bill, which include incentives for energy companies to build more wind, solar and clean coal generation. Republican leaders have reinserted a controversial plan to reimburse the pipeline's owners if the price of natural gas dips below $1.35 per thousand cubic feet. The White House and the Canadian government oppose the so-called price floor, saying it offers suppliers a production incentive that could distort prices.

 

 


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