Omnibus energy bill stalls in US Senate

Nov. 21, 2003
Supporters of legislation that gives limited liability protection for the fuel additive methyl tertiary butyl ether failed to stop the US Senate Friday from cutting off debate on the controversial plan.

By OGJ editors
WASHINGTON, DC, Nov. 21 -- Supporters of legislation that gives limited liability protection for the fuel additive methyl tertiary butyl ether failed to stop the US Senate Friday from debating the controversial plan. MTBE supporters fell two votes short of ending a threatened filibuster on HR 6, the huge 1,100-page energy bill that includes the MTBE language.

Republican leaders vowed to continue forward with other legislative options so that the entire bill, which includes tax incentives for domestic production, could still get to President George W. Bush next week. But time is running short. Congress is due to end its session by early next week, and not expected to return until January. But that schedule could change if there is enough political support to get a compromise on the legislation.

Six Republicans voted with a block of Democrats outside of oil-producing states to keep debate going, which gives any senator the option to talk the bill to death. GOP members opposed to the liability provision include New Englanders Sens. Lincoln Chafee (RI), Susan Collins (Me.), Judd Gregg (NH), Olympia Snowe (Me.), and John Sununu (NH). John McCain (R-Ariz.) also opposed the provision, as does Sen. James Jeffords (I-Vt.)

Leaders of the Republican-controlled Congress still have options to get the bill passed. They could seek another vote to cut debate or insert the entire bill into other legislation, most likely the omnibus spending bill that funds a part of the annual federal budget.

Less likely options include, referring it back to committee, cannibalizing parts and moving them separately, or setting it aside until January.

Two Democratic presidential candidates, Sens. John Edwards (D-NC), and John Kerry (D-Mass.), did not vote. Neither did Ernest Hollings (D-SC).

Government, stakeholder reactions
Sec. of Agriculture Ann M. Veneman spoke on behalf of President Bush when she issued a statement sharply critical of the Senate's action.

"The Senate missed a tremendous chance today to create jobs, reduce the nation's dependence on foreign oil, help protect air and water quality, and foster growth in rural areas," she said. "Once again, politics has gotten in the way of providing new opportunities for America's farmers.

"The bill would have created significant new economic opportunities for farmers and rural workers to produce clean, renewable energy while at the same time ensuring that users of energy will have secure and reliable supplies to run their operations.

"The energy bill included a Renewable Fuel Standard that would have increased corn used in ethanol production to nearly 2 billion bushels by 2012. The boost in ethanol production would have created new jobs in plant construction and operation in rural areas and helped to expand the demand for soybean oil and soybean oil-processing facilities. This would have increased US net farm income by an estimated $2 billion by 2012," Veneman said.

The American Petroleum Institute's view mirrored that of the Bush administration's.

"The Senate today missed out on an important opportunity to alter the energy landscape for our country and begin to move the nation away from some of the uncertainty and volatility that have strained consumers' budgets in recent years.

"This bill addresses a problem created by the continued requirement that every gallon of reformulated gasoline contain an oxygenate. In states such as California, New York, and Connecticut, which have banned oxygenate MTBE beginning Jan. 1, this means ethanol will be required to be put in every gallon of RFG. This mandate-ban juxtaposition will play havoc with consumers, API said.

"As the Energy Information Administration has warned, having the MTBE situation addressed on a state-by-state level, as it is currently being handled, 'could mean years of supply readjustments and associated increased price volatility.'

"Although not perfect, this legislation would enhance investment and flexibility in production and distribution and provide consumers with a more reliable and affordable energy supply. It also includes significant conservation and renewable initiatives, as well as much-needed streamlining of the oil and natural gas lease permitting process and other provisions designed to diversify and increase our supplies of energy.

"We urge the Senate to reconsider its vote and pass the energy bill before the end of the year," API said.

Environmentalists, meanwhile, praised the Senate decision not to end debate.

"Today's action by the Senate is a victory, and an important opportunity to redouble our efforts in defeating, once and for all, this terrible energy bill, said League of Conservation Voters (LCV) Pres. Deb Callahan.

"This legislation is bad for the environment, bad for public health, and bad for American taxpayers. In fact, it may be the most antienvironmental piece of legislation in modern history.

"It puts the nation's largest corporate polluters and special interests first and the American public last with another generation of dirty air, polluted water, and no sound solutions to our long-term energy needs," Callahan said.