US congressional leaders say they remain focused on energy policy issues this fall but concede it will be hard to predict what the final legislation will look like.
Senate Republican leaders last week said they want a pending Senate economic stimulus package to include leasing of the Arctic National Wildlife Refuge coastal plain. That's a political nonstarter to the Senate Democratic leadership.
The Republicans also want other energy-specific legislation in the stimulus bill, although it remains unclear whether their proposal will be a version of the approved House bill (HR 4) or a draft energy security plan being circulated by Sen. Frank Murkowski (R-Alas.).
The House energy bill reaches further. It streamlines pipeline permitting and royalty collections and grants $8 billion in tax incentives for marginal producers. But even the White House has signaled the House bill may be a hard sell because of the cost of the tax breaks. A more politically palatable option may be the latest Murkowski draft.
The ANWR leasing provision is controversial, but other portions of the bill have bipartisan support. It would urge the secretaries of Energy and the Interior to fill the Strategic Petroleum Reserve, authorize more government fossil energy research, and give more money to state energy programs.
Compromise sought
Senate Democratic leaders are preparing their own energy bill, which would exclude ANWR drilling but may contain federal incentives to encourage construction of a gas pipeline from Alaska to the Lower 48. Democrats say they still want to work out a compromise with Republicans over a larger energy bill that would include provisions related to oil, gas, and electricity.
"This collaborative process holds the best chance for us to get an energy bill considered and passed by the Senate," said Jeff Bingaman (D-NM), chairman of the Energy and Natural Resources Committee. "I'm pleased that we're moving forward in this way, and I look forward to working with all my colleagues when we take up this legislation."
But with no specific adjournment date in sight, it is difficult to predict what energy legislation, if any, could win consensus, lobbyists note. Senate Democrats say Congress may stay in session until the yearend US holidays. Another option may be to recess for the holiday season, subject to recall by the leadership.
Senate Republicans so far have resisted calls by their Democratic counterparts to take ANWR off the negotiating table to speed up the process. ANWR drilling supporters argue public support is growing to open the coastal plain to drilling, and there are a majority of senators who would vote for leasing if a vote was offered.
But for now Republicans face an uphill battle.
Spending bills' role
Senate Majority Leader Tom Daschle (D-SD) last week said there was "no" chance that the Senate would accept a comprehensive energy bill that was added to the stimulus package (OGJ Online, Nov. 1, 2001). A $100 billion economic stimulus plan bill passed by the House includes a plan to extend through 2003 a key marginal well tax provision due to expire this year.
But beyond that small provision, there is little in the bill that is energy-specific. However, larger oil companies would see large tax benefits from a retroactive change to the alternative minimum tax.
The pending Senate bill would provide $70 billion in economic incentives. It also may include some $20 billion in "critical" infrastructure spending. About $2 billion of that total would go to the energy sector for homeland security upgrades.
An energy bill could still be added to a spending bill or be voted on as freestanding legislation. But all sides agree time and patience are running short, even with no specific deadline in place.
