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Slimmer $14 Bln Energy Bill Unveiled
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USA: February 16, 2004


WASHINGTON - Senate Republicans last week formally unveiled a slimmed-down, $14 billion energy bill after cutting a deal with Democrats for a swift vote on the stalled package when lawmakers return from a week-long holiday later this month.


But Republican leaders in the House of Representatives - especially Majority Leader Tom DeLay - have promised a fight over their Senate colleagues' decision to drop legal liability protection for makers of a water-polluting gasoline additive.

In a bid to break an impasse on the first major overhaul of U.S. energy policy in more than a decade, Senate Majority Leader Bill Frist introduced a stripped-down bill on Thursday, which sets the stage for a vote some time after Feb. 23.

Progress came after Frist struck a deal with Minority Leader Tom Daschle to limit the number of amendments Democrats will offer to the bill.

The new bill, which would double the use of corn-distilled ethanol in gasoline, replaces a proposed $31 billion bill laden with energy industry incentives that stalled in the Senate late last year.

Republicans unveiled the text of the $14 billion, 1,242-page bill last week. It is largely similar to the previous draft they fashioned in November.

The bulk of the savings in the bill's tax breaks come from delaying their effective date by a year.

Republicans also sliced about $6.7 billion by dropping programs for energy efficiency, deep-water drilling and coastal restoration in Louisiana and other oil-producing states.

The bill retains tax incentives to boost crude oil and natural gas production in the Gulf of Mexico and on federal lands, as well as federal loan guarantees to build a pipeline to carry natural gas from Alaska to the lower 48 states.

House Republicans have accused Senate party members of walking away from a compromise reached in a House-Senate bargaining session last year on lawsuits over the gasoline additive MTBE, which is said to pollute ground water.

"This was a carefully crafted deal and now they're trying to rip it up," said Frank Maisano, a lobbyist for some makers of MTBE. "You don't negotiate from a negotiated position."

Provisions in the bill that would mandate a doubling of annual use of ethanol to 5 billion gallons (19 billion litres) over the next 10 years have given much of the impetus needed to keep the bill in play thus far.

Daschle has supported the energy bill despite opposition from other Democrats because of the ethanol provisions, which would be a boost for corn growers in his home state of South Dakota. Daschle faces a tough race against former Republican Rep. John Thune for his Senate seat in the November elections.

Opposition by Democrats and moderate Republicans to the MTBE legal protection - as well as budget-busting concerns in light of the bill's original $31 billion price tag - kept the bill stalled after Republicans failed by two votes in December to block a filibuster of the measure.


Story by Chris Baltimore


REUTERS NEWS SERVICE

Reuters



© 2008 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Reuters.
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