WATCHING WASHINGTON WHAT'S AHEAD ON ENERGY ISSUES

Jan. 8, 1990
with Patrick Crow Although no giant issues loom, 1990 should keep the oil industry's Washington lobbyists busy enough. Congress will return from recess Jan. 23 and will hear President Bush's State of the Union address a week later. You can bet the president's follow-up budget proposals will contain no new taxes but many new "user fees."

Although no giant issues loom, 1990 should keep the oil industry's Washington lobbyists busy enough.

Congress will return from recess Jan. 23 and will hear President Bush's State of the Union address a week later.

You can bet the president's follow-up budget proposals will contain no new taxes but many new "user fees."

No. 1 on the congressional agenda is reauthorization of the Clean Air Act. The Senate will debate its bill early in the year, giving the House energy and commerce committee impetus to report out its measure. Right now, neither is likely to require methanol fueled vehicles.

This Congress, unlike recent sessions, is likely to pass the Clean Air Act reauthorization. But it also is likely to defer that action until the final days-maybe hours-of the session.

That will be in early October. Congressional leaders plan to adjourn Oct. 5 to allow members time to campaign for the Nov. 6 elections.

WHAT ELSE IS PENDING

There is little energy legislation pending other than oil spill liability bills. House and Senate conferees likely will forge a compromise bill soon, which should clear both houses with no difficulty.

Antileasing congressmen are likely to continue moratoriums against specific offshore lease sales in the fiscal 1991 budget bill.

Bills granting tax relief for oil exploration/production operations appear to have as much chance of passage as an increase in the federal gasoline tax, and some observers say each depends on the other.

This being an election year, legislators will use oversight hearings to try to stay in the spotlight. Sessions are likely on New England fuel oil price increases, offshore leasing issues, and whether Exxon Corp. should resume its oil spill cleanup in Prince William Sound.

The Department of Energy plans to issue its National Energy Strategy this year. After more hearings this month, it will release a draft in April and a final version in December.

DOE also may unveil studies soon on energy conservation options, leasing crude for the Strategic Petroleum Reserve from oil exporting countries, and helping U.S. service and supply companies obtain business abroad.

At the Interior Department, a task force will send Bush a report on three controversial offshore lease sales. He isn't expected to disclose his decision on whether to proceed until his State of the Union address or later.

In March the Minerals Management Service will release the first draft of its next 5 year offshore leasing plan, which it may stretch into a longer time frame. After MMS reviews comments, it will issue a revised plan in November. The final plan isn't due for a year after that.

GLOBAL WARMING ISSUE

The Environmental Protection Agency will devote much time to the global warming issue.

It will sponsor an international meeting at the White House in the spring to discuss the international scientific, environmental, and economic implications of climate change.

Then in the fall the White House will host an international conference to negotiate a framework treaty on the issue.

That's just the known energy agenda in Washington. You can bet that unpredictable events will add some interesting wrinkles to it.

Copyright 1990 Oil & Gas Journal. All Rights Reserved.