WATCHING WASHINGTON SHARP'S NES SCHEDULE

With Patrick Crow The House energy and power subcommittee will begin marking up National Energy Strategy legislation early in July, Chairman Phil Sharp (D-Ind.) announced last week. The full Senate may be debating its omnibus NES bill in July (OGJ, June 17, p. 15). Sharp said his subcommittee will consider natural gas regulatory reform, Strategic Petroleum Reserve provisions, energy efficiency, and Clean Coal Technology bills before Congress takes an August recess. Other energy legislation is

June 24, 1991

3 min read

The House energy and power subcommittee will begin marking up National Energy Strategy legislation early in July, Chairman Phil Sharp (D-Ind.) announced last week.

The full Senate may be debating its omnibus NES bill in July (OGJ, June 17, p. 15).

Sharp said his subcommittee will consider natural gas regulatory reform, Strategic Petroleum Reserve provisions, energy efficiency, and Clean Coal Technology bills before Congress takes an August recess.

Other energy legislation is to be considered in September, and a bill will be sent to the full committee in the fall.

NO FAST TRACK

Sharp told a meeting of the National Energy Resources Organization in Washington not to expect quick action from Congress on NES legislation.

"I suspect on the last day of this session next year, at 3 a.m., we will be voting on the energy bill.

But it will pass."

Sharp became angry when asked about one aspect of the bill: his proposal for filling the SPR.

Under his plan, oil importers would be required to place 3% of their imports in the SPR. They would continue to own the oil and receive revenues when it was sold.

Although the Senate energy committee soundly rejected a similar proposal, Sharp is undeterred. "I don't intend to let the issue drop."

He said all projections agree U.S. oil imports will rise, but the administration and Congress are loath to curb the increase.

Sharp said as imports climb, the SPR shrinks from the equivalent of 90 days of domestic supply to 80 or 70 days.

"So we should continue to fill the SPR to 1 billion bbl. And we've got to find a way to pay as we go. Just last week the House appropriations committee decided there is no money (for the SPR). And under the administration's budget proposal it would take us 23 years to fill the SPR."

ANGRY RESPONSE

Sharp exploded when asked about arguments that his SPR fill plan, which would increase the price of domestic and imported oil, is unduly expensive for consumers.

"For God's sake, is half a penny on a gallon of gasoline too much to pay in this country for a little security? I mean, that is absurd, folks. Is half a penny on a gallon of fuel oil too much for the people of New England, who have enormous gains from this SPR?"

Referring to the partial drawdown of the oil reserve during the war against Iraq, Sharp asked, "in January, how much money was saved on everybody's bills-on gasoline, on heating oil-by not having that go up? I'll bet you (it would take) at least 10 years of pennies on payments for the SPR to equal what was saved in January by having a reserve and using it and curbing speculation. It is absurd we are so chicken in this country."