Looking to address possible price spikes in US natural gas markets, policymakers on Capitol Hill and at the White House retrained the spotlight on energy issues early this month.
Senate Republican leaders, for example, sought to dispel persistent rumors that the chamber will not consider energy legislation this summer. Senators also heard testimony from Federal Reserve Chairman Alan Greenspan, who largely reiterated comments made to the House last month (OGJ Online, June 11, 2003). In his testimony July 3 before the Senate Energy and Natural Resources Committee (ENRC), Greenspan said high natural gas prices are liable to hurt the economy. But one way to avoid that problem is to expand LNG imports into the US, he said. LNG, the chairman suggested, is an efficient and safe way to help keep US gas supplies abundant and prices moderate.
In a nod to Greenspan, and to industry analysts that have been warning about gas supplies over the next decade, the White House in the past month has rolled out several policy initiatives. The Department of Energy, for example, said it is planning another natural gas summit for later this year; this time LNG exporters will be invited. Sec. of Energy Spencer Abraham last month held an "emergency" meeting of the National Petroleum Council; NPC is coming out with a natural gas market policy paper in September.
The Bush administration also is responding to congressional critics and environmental groups that maintain that the White House just wants to drill its way out of energy imbalances, ignoring the contribution conservation can make.
On July 3, DOE unveiled a "Smart Energy Campaign Tour" that calls on Americans "to conserve energy in their homes and businesses to help ease pressure on the nation's supply of natural gas." The tour is part of an interagency energy education initiative; state governments also have been asked to participate. Additionally, the department started a new web site last month, www.energysavers.gov, that includes conservation tips.
And regulators at the Department of the Interior are gearing up to streamline energy permits in the gas-rich Rocky Mountain region through a new interagency group called the Rocky Mountain Energy Council that will include various state and government agencies. A public meeting is planned for the fall. Members include representatives of state land permit offices, federal regional offices of DOI's Bureau of Land Management, Environmental Protection Agency, and Department of Agriculture's US Forest Service.
House sees crisis looming
Meanwhile, House leaders have formed an 18-member task force to respond to the "pending natural gas crisis."
Task force cochairs will be House Energy and Commerce Committee Chairman Billy Tauzin (R-La.) and House Resources Chairman Richard Pombo (R-Calif.).
"With a natural gas crisis looming on the horizon," Tauzin said, "people are losing their jobs, and factories are faced with closures. Supplies are tight, and natural gas prices have doubled since last year. Yet our country has not run out of natural gas. We have the natural gas to heat our homes and fuel our economy, but it remains padlocked and guarded by the government. The Speaker of the House has asked the members of this task force to work on finding solutions to eliminate this crisis before it occurs. We intend to deliver."
Along with Chairmen Tauzin and Pombo, Speaker Dennis Hastert (R-Ill.) named 16 additional lawmakers to serve on what Republicans have named "The Task Force for Affordable Natural Gas." Vice-chairs include House Republican Conference Chairman Deborah Pryce (R-Ohio), Energy and Air Quality Subcommittee Chairman Joe Barton (R-Tex.), and Energy and Mineral Resources Chairman Barbara Cubin (R-Wyo.).
Additional members include Reps. Bob Beauprez (R-Colo.), Henry Bonilla (R-Tex.), Mary Bono (R-Calif.), Chris Chocola (R-Ind.), Tom Cole (R-Okla.), Tom Latham (R-Iowa), Butch Otter (R-Ida.), Steve Pearce (R-NM), John Peterson (R-Pa.), George Radanovich (R-Calif.), Rick Renzi (R-Ariz.), John Shimkus (R-Ill.), and Heather Wilson (R-NM).
After a series of nationwide hearings, they will report back to House Republican leaders by Sept. 30 with possible legislative remedies. Within the same timeframe, House and Senate leaders hope to finalize an energy bill conference.
The House passed its own energy bill earlier this spring. It includes tax provisions designed to encourage more domestic oil and gas production. The bill also expands existing and pending royalty relief measures overseen by DOI, and would open a small portion of the 1003 coastal plain area of the Arctic National Wildlife Refuge for leasing.
Senate action
Senate Majority Leader Bill Frist (R-Tenn.) twice this month said that it was his intention to finish the bill before the August recess.
"This month we will complete consideration and passage of the energy bill. Both consideration and passage will be before the August recess. I am committed, along with [Senate Energy] Chairman [Pete] Domenici [R-NM] to pass an energy bill that will enhance our country's national energy security," Frist said July 7.
"There are many remaining amendments, as we all know, to debate and dispose of, but I do want to be clear. We must pass a bill as soon as possible to establish a clear national energy policy which will reduce our dependence on foreign oil."
The energy committee spokesperson said that Frist affirmed that commitment in a meeting early July 3 with Republican senators.
"The Senate will resume consideration of a comprehensive energy bill, S. 14, the last week in July," an ENRC spokesperson said.
"And to those who have asked if Chairman Domenici is serious when he says he expects the Senate to finish the energy bill before recess—even if that means delaying recess—I would note that committee staff have been instructed not to schedule vacations during the first week of August," said Press Secretary Marine Funk in an e-mail to reporters.
Road ahead
Funk said that restructuring the wholesale electricity market is a key issue committee staff members are now spending a lot of time on, hoping to reach a consensus on contentious items such as market manipulation and merger review. Major floor amendments also are expected regarding a renewable portfolio standard, automobile fuel efficiency, and climate change.
"Obviously, one of the great challenges we face in completing work swiftly on the energy bill is the number of amendments some senators have indicated they intend to file. Right now, we have 393 placeholders," the spokesperson said.
Funk said that Chairmen Domenici and Tauzin "look forward to a swift, focused, and productive conference on the House and Senate energy bills. The two chairmen have spoken frequently and at length regarding what they want to accomplish in conference."
