US House Oks Energy Bill After Fight Over Additive
Date: 22-Apr-05
Country: USA
Author: Tom Doggett
A surge in oil prices this year has squeezed consumers' budgets, contributed to a growing US trade imbalance and raised worries about possible inflation. The average gasoline pump price hit a record $2.28 a gallon last week.
The Republican-written bill, which passed 249-183, would encourage future production of domestic oil, natural gas, coal, nuclear and other energy sources. It would also boost output of ethanol, a corn-based gasoline additive, and allow oil drilling in Alaska's Arctic National Wildlife Refuge.
The bill has incentives for renewable energy, but its $8.1 billion in tax breaks are mostly aimed at the traditional energy industry.
Democrats said a major weakness was the legislation's failure to set stricter fuel efficiency standards for new vehicles to curb the US appetite for oil.
"The Republican bill on the floor today is anti-consumer, it's anti-taxpayer, it's anti-environment," said House Minority Leader Nancy Pelosi. "The bill is loaded with tax breaks and royalty relief for oil and gas companies."
Energy Secretary Sam Bodman said President Bush "is very pleased" with the vote. Bodman steered clear of contentious issues, such as the bill's oil and gas incentives for an industry now enjoying $50 a barrel prices.
With the House bill approved, attention now shifts to the Senate, which plans to finish writing its version next month.
POLLUTING FUEL ADDITIVE
One of the most bitter debates centered on the House bill's language protecting oil companies that manufactured the MTBE fuel additive from some lawsuits.
MTBE is a suspected carcinogen that has polluted drinking water nationwide. Clean-up costs are estimated at $29 billion by municipal water groups, a figure disputed by the industry.
Republicans narrowly defeated a Democratic amendment to drop MTBE protection from the bill. The vote was 219-213.
The bill also would give $2 billion in transition aid to MTBE makers, whose ranks include some of the biggest companies in the oil industry, such as Exxon Mobil Corp.
Pelosi called the $2 billion a "gift" that rewards an industry now racking up record-high profits.
MTBE supporters said oil companies should not be held liable because Congress required additives to make cleaner fuel, and at the time MTBE and ethanol were the only options.
Republican Joe Barton of Texas, the bill's author, said Democrats previously backed MTBE as an additive. "At one time you thought that MTBE could help clean up the air," he said.
The MTBE protection is backed by House Majority Leader Tom Delay, who has insisted it be in any final legislation. But it faces stiff opposition in the Senate, which has indicated the protection will not be in its version of an energy bill.
Barton said he was surprised by the close vote on the MTBE measure, saying it became a target for Democrats eager to attack DeLay. "This was a surrogate vote on the Democrat side on Tom DeLay," he said.
Supporters of the bill insisted that an overhaul of US energy policy was long overdue and consumers would benefit.
"It's about gas prices, gas prices, gas prices," House Speaker Dennis Hastert said. "Consumers are getting squeezed at the pumps. House Republicans want to do something now."
However, President Bush, who supports the House bill, acknowledged that it would not lower prices any time soon. "An energy bill wouldn't change the price at the pump today. I know that and you know that," Bush said in a speech Wednesday.
The House energy bill also included the following:
- Speeds up approval to build or expand oil refineries in economically depressed areas;
- Extends annual US daylight saving time by two months to save 100,000 barrels of oil a day;
- Suspends certain oil and natural gas royalty payments from firms drilling in deep-water areas of the Gulf of Mexico;
- Funds a $3 billion program to develop pollution control equipment for coal-fired pl
