tobedawg
18 Nov 2003, 12:23 PM
From CNN.com ..
Congress close to approving major energy bill
House expected to take up legislation Tuesday
Tuesday, November 18, 2003 Posted: 9:08 AM EST (1408 GMT)
WASHINGTON (AP) -- After months of sometimes bitter wrangling, Congress is on the verge of approving a far-reaching energy bill that would provide billions of dollars in tax breaks for oil, gas and coal industries and bring an economic boon to farmers who grow corn for ethanol.
House and Senate negotiators finished the bill late Monday after rejecting a string of amendments from Democrats who criticized the GOP-crafted legislation as a "hodgepodge of subsidies" for traditional energy industries and harmful to the environment.
Republicans countered that the bill, including $23 billion in tax incentives, provided a blueprint for diversifying the nation's energy sources and improving the reliability of electricity transmission systems.
Senate conferees approved the measure on an 8-5 vote after House negotiators approved it by voice vote. Sen. Byron Dorgan, D-North Dakota, joined the seven GOP senators in supporting the legislation.
The House moved quickly with plans to take up the legislation Tuesday. The Senate could finish the bill by week's end, sending President Bush legislation on one of his top domestic priorities.
"This is a solid agreement," Sen. Pete Domenici, R-New Mexico, chairman of the energy conference, said as he urged colleagues to reject any amendments that would significantly alter a bill that was cobbled together during two-and-a-half months of closed-door negotiations.
"I don't think we can take a risk of undoing this," Domenici said.
In a series of amendments, Democrats tried unsuccessfully to block liability protection for makers of MTBE, a gasoline additive that contaminates drinking water; require utilities to use more renewable fuels to make electricity, and strengthen laws against Enron-related power market abuses.
The bill would cost the government an estimate $32 billion over 10 years, according to estimates by the Congressional Budget Office and the Senate Finance Committee staff, including $22.9 billion in tax incentives and $9 billion in direct spending and revenue losses.
Major provisions in the bill
• Tax incentives totaling $14.5 billion for oil, natural gas and coal industries over 10 years.
• More than $5.2 billion in tax credits and other tax benefits for developing renewable energy sources, including tax breaks for corn-based ethanol.
• Doubling the requirement for ethanol in gasoline, a boon to farmers that is widely supported by both Republicans and Democrats.
• Tax subsidies of about $1.5 billion over 10 years for energy efficiency and conservation, including tax credits for energy efficient homes, appliances, use of solar panels, and purchase of hybrid gas-electric cars.
• Federal reliability rules and standards for high-voltage power lines to lessen the likelihood of cascading power failures like the one that produced the huge Northeastern blackout in August.
• A $1.8 billion research project to develop clean coal technology and tax breaks for a new generation of nuclear power plants to ensure diversity in energy sources for electricity production.
• Provisions to speed up permits and ease environmental rules to develop oil and gas resources on federal land.
• Loan guarantees of $18 billion for a pipeline to carry natural gas from Alaska's North Slope to the Midwest.
Wyden: 'Tax goodies'
"We provide billions of dollars in dozens of ways to reduce our dependance on foreign oil," Rep. Billy Tauzin, R-Louisiana, chief of the House negotiators, said.
Domenici said the bill's conservation measures would be enough to replace 100 power plants between now and 2020.
But Democrats argued the legislation would not do nearly enough to redirect the nation's energy priorities or reduce the country's reliance on oil imports.
And they argued that some provisions, such as repealing a 1935 law that limits activities of large utility holding companies, could produce "merger mania" and harm consumers. Those supporting the repeal said the law inhibits investment in electricity infrastructure, including power lines.
Sen. Jeff Bingaman, D-New Mexico, said the bill lacked enough incentives to promote domestic energy production or foster energy conservation and fell short of what may be needed to get Wall Street to invest in a $20 billion pipeline to bring natural gas from Alaska's North Slope.
"The tax goodies go to huge energy conglomerates, and most subsidize things that the companies already are doing," complained Sen. Ron Wyden, D-Oregon, another of the conferees. He described the bill as "a hodgepodge of subsidies for the politically well-connected."
Congress close to approving major energy bill
House expected to take up legislation Tuesday
Tuesday, November 18, 2003 Posted: 9:08 AM EST (1408 GMT)
WASHINGTON (AP) -- After months of sometimes bitter wrangling, Congress is on the verge of approving a far-reaching energy bill that would provide billions of dollars in tax breaks for oil, gas and coal industries and bring an economic boon to farmers who grow corn for ethanol.
House and Senate negotiators finished the bill late Monday after rejecting a string of amendments from Democrats who criticized the GOP-crafted legislation as a "hodgepodge of subsidies" for traditional energy industries and harmful to the environment.
Republicans countered that the bill, including $23 billion in tax incentives, provided a blueprint for diversifying the nation's energy sources and improving the reliability of electricity transmission systems.
Senate conferees approved the measure on an 8-5 vote after House negotiators approved it by voice vote. Sen. Byron Dorgan, D-North Dakota, joined the seven GOP senators in supporting the legislation.
The House moved quickly with plans to take up the legislation Tuesday. The Senate could finish the bill by week's end, sending President Bush legislation on one of his top domestic priorities.
"This is a solid agreement," Sen. Pete Domenici, R-New Mexico, chairman of the energy conference, said as he urged colleagues to reject any amendments that would significantly alter a bill that was cobbled together during two-and-a-half months of closed-door negotiations.
"I don't think we can take a risk of undoing this," Domenici said.
In a series of amendments, Democrats tried unsuccessfully to block liability protection for makers of MTBE, a gasoline additive that contaminates drinking water; require utilities to use more renewable fuels to make electricity, and strengthen laws against Enron-related power market abuses.
The bill would cost the government an estimate $32 billion over 10 years, according to estimates by the Congressional Budget Office and the Senate Finance Committee staff, including $22.9 billion in tax incentives and $9 billion in direct spending and revenue losses.
Major provisions in the bill
• Tax incentives totaling $14.5 billion for oil, natural gas and coal industries over 10 years.
• More than $5.2 billion in tax credits and other tax benefits for developing renewable energy sources, including tax breaks for corn-based ethanol.
• Doubling the requirement for ethanol in gasoline, a boon to farmers that is widely supported by both Republicans and Democrats.
• Tax subsidies of about $1.5 billion over 10 years for energy efficiency and conservation, including tax credits for energy efficient homes, appliances, use of solar panels, and purchase of hybrid gas-electric cars.
• Federal reliability rules and standards for high-voltage power lines to lessen the likelihood of cascading power failures like the one that produced the huge Northeastern blackout in August.
• A $1.8 billion research project to develop clean coal technology and tax breaks for a new generation of nuclear power plants to ensure diversity in energy sources for electricity production.
• Provisions to speed up permits and ease environmental rules to develop oil and gas resources on federal land.
• Loan guarantees of $18 billion for a pipeline to carry natural gas from Alaska's North Slope to the Midwest.
Wyden: 'Tax goodies'
"We provide billions of dollars in dozens of ways to reduce our dependance on foreign oil," Rep. Billy Tauzin, R-Louisiana, chief of the House negotiators, said.
Domenici said the bill's conservation measures would be enough to replace 100 power plants between now and 2020.
But Democrats argued the legislation would not do nearly enough to redirect the nation's energy priorities or reduce the country's reliance on oil imports.
And they argued that some provisions, such as repealing a 1935 law that limits activities of large utility holding companies, could produce "merger mania" and harm consumers. Those supporting the repeal said the law inhibits investment in electricity infrastructure, including power lines.
Sen. Jeff Bingaman, D-New Mexico, said the bill lacked enough incentives to promote domestic energy production or foster energy conservation and fell short of what may be needed to get Wall Street to invest in a $20 billion pipeline to bring natural gas from Alaska's North Slope.
"The tax goodies go to huge energy conglomerates, and most subsidize things that the companies already are doing," complained Sen. Ron Wyden, D-Oregon, another of the conferees. He described the bill as "a hodgepodge of subsidies for the politically well-connected."