Congress may attach energy policy measures to budget bills

Sept. 24, 2001
The outlook for comprehensive US energy legislation grew more muddled last week as Congress focused on spending bills that will fund the government during the fiscal year that starts Oct. 1.

The outlook for comprehensive US energy legislation grew more muddled last week as Congress focused on spending bills that will fund the government during the fiscal year that starts Oct. 1.

Capitol Hill sources earlier had predicted that Congress may be forced to extend its legislative calendar, which includes con sideration of comprehensive energy proposals, well into the winter holiday season.

Congress also must complete the appropriations bills before Oct 1. Actual funding levels may also have to change, given that Congress plans to devote a much more sizable portion of the federal budget to national security and defense.

Lawmakers had been scheduled to recess in early October. But even before the Sept. 11 terrorist attacks in New York City and outside Washington, DC, House and Senate leaders predicted that long fights over domestic spending would delay the end of the session until November. The events of Sept. 11 and related security issues could put further strains on the calendar, putting off consideration of a comprehensive energy bill until next year.

Meanwhile, lawmakers eased back into energy policy, work with a hearing on federal electricity policy by the House Subcommittee on Energy and Air Quality rescheduled for Sept. 20.

Spending bills

House budget committee officials said early last week that there are no plans to wrap all 13 appropriations bills into an omnibus bill.

Lawmakers, at least publicly, have not abandoned the hope that an extended legislative session may permit passage of a sweeping energy bill.

And Congress certainly is not planning to abandon all energy-related issues before it adjourns this year. But industry officials wonder if Congress has the desire or focus to devote weeks of debate to a large energy bill.

The House passed a bill in August. The Senate is considering its own proposals.

Some lobbyists think that, instead of one large bill, lawmakers may pursue a piecemeal approach that targets specific areas of interest. Issues with bipartisan support, such as more research money for traditional and alternative fuels, may be addressed under the mandatory budget process.

Energy riders

Several energy measures already have been attached to spending bills. They include an effort to ban drilling in the Great Lakes region, in the eastern Gulf of Mexico, and in national monument areas.

Some of these provisions are more symbolic than practical. For example, the administration of President George W. Bush already had announced it would greatly reduce an eastern Gulf of Mexico sale and that it would not allow drilling in monument areas. Given what is expected to be a renewed emphasis on domestic production, there may be an effort to reevaluate those actions before the bills are sent to the White House for approval.

Meanwhile, none of the spending bills are ready to send to President Bush for his signature. That means there is still time for lawmakers to add other energy provisions to bills instead of taking a chance that Congress will be able to pass comprehensive energy legislation later this year.

Among the more controversial items lawmakers may add are allowing the US to lease a portion of the Arctic National Wildlife Refuge coastal plain to oil companies and boosting fuel efficiency standards for light-duty vehicles.

But some congressional sources caution that it is too soon to judge whether there is enough political support for such tactics.

Both ANWR leasing and fuel efficiency standards are highly controversial, and attempting to add them to a budget bill could damage the bipartisan spirit congressional leaders have maintained since the Sept. 11 terrorist attacks. Also, the influential chairman of the Senate Committee on Appropriations, Robert Byrd (D-W.Va.), opposes burdening budget bills with unrelated legislative "riders."

Energy legislation

Lawmakers began delving into issues surrounding federal authority in electricity wholesale markets on Sept. 13.

Unlike the House, the pending Senate bill sponsored by Jeff Bingaman (D-NM) considers electricity restructuring as part of an overall energy package. House leaders say they will consider electricity in separate legislation.

Both House and Senate energy bills include tax incentives for alternative and renewable energy as well as measures to encourage domestic production.

On the controversial issue of ANWR leasing, supporters will argue that recent events have highlighted the need to secure energy within the US. Opponents to drilling will say ANWR development will not stop dependence on imported oil.

Regarding the issue of higher car fuel efficiency standards, debate will be no less spirited even with the events of the past week, congressional staffers say.