US lawmakers have pledged that energy legislation will be high on the agenda when Congress returns from a month-long recess Jan. 24.
But since energy prices have returned to comfortable levels for consumers, if not oil and gas producers, there is concern whether legislators will have the political will to pass the energy bill, which is sure to create controversy. Industry lobbyists and congressional sources also say election-year politics will make it harder for lawmakers to tackle divisive topics such as large energy tax breaks, expanded access to public lands, and tougher fuel efficiency standards.
Meanwhile, the White House may be in a less generous mood to accept energy tax credits, given budget pressures caused by a weak economy and expanded military spending related to the campaign against terrorism. The sudden collapse of Houston-based energy marketing giant Enron Corp. may dominate the legislative and administrative agenda this spring. Several congressional committees have held or plan to hold hearings.
Seeing consensus
Policy-makers on Capitol Hill and in the White House plan to seek consensus on key energy issues such as tougher derivatives trading rules and tougher overall regulation of energy futures markets.
They also may agree on expanded research and development for marginal oil and gas production, reform of pipeline safety rules, and expansion of federal energy efficiency programs.
The Republican-controlled House passed a sweeping energy reform bill last August that included two controversial provisions supported by industry and opposed by environmental groups. The bill would allow limited leasing of the Arctic National Wildlife Refuge coastal plain in Alaska and would give the oil industry $8 billion in tax credits over 10 years to expand economically marginal production.
A bill drafted by the Senate Democratic leadership, S. 1766, does not have an ANWR provision but is expected to be amended to include tax incentives, although not as generous as the House proposal. Senate supporters of exploration say they have the 51 votes needed to pass an ANWR leasing bill, alone or part of a larger package, but not the 60 votes needed to end the filibuster expected if a bill containing ANWR goes to the floor.
Other energy policy issues that could be considered are auto fuel efficiency standards, stationary source pollution rules, and electricity industry reforms.
