Election aftermath

Patrick Crow
Washington, D.C.
[email protected]

The recent congressional elections will have very little effect on U.S. energy policy decisions.

Of course, the surprising Democratic rally dashed Republican hopes that they would win a filibuster-proof 60-vote majority in the U.S. Senate. It appeared the Republicans would keep their 55-45 majority.

Notably absent next session will be Sen. Alfonse D'Amato (R-N.Y.), defeated by Rep. Charles Schumer (D-N.Y.). D'Amato had kept pressure on the Clinton administration to block U.S. oil companies from investing in Iran.

Others in Congress will continue to work that issue, but without D'Amato's fervor.

It appeared Democrats would pick up five House seats for a total of 211, reducing the Republican majority to 223. Incumbents fared even better than usual, with voters rejecting only 6 of the 401 incumbents.

For the past 50 years, in the second year of a President's term, his party has lost an average of 27 House and four Senate seats. This election broke that trend.

Boxer's boon

The Environmental Protection Agency gave a last-minute boost to the campaign of Sen. Barbara Boxer (D-Calif.).

At the time, Boxer-an ultraliberal senator who loves to hate oil companies-was in a tough reelection fight with Republican Matt Fong. She won.

One of Boxer's recent issues has been to get methyl tertiary butyl ether removed from California gasoline, because service station leaks have resulted in MTBE contaminating some drinking water supplies.

EPA has maintained, rightly, that the solution is to repair the leaking tanks, not to remove MTBE from gasoline (OGJ, Oct. 5, 1998, p. 34).

But, a few days before the election, EPA notified Boxer it would name a task force to study if MTBE use in gasoline is safe. It is due to report back to EPA in 6 months. The agency also told Boxer it would fund a $1 million project to determine how to clean contaminated California drinking water supplies.

EPA's flipflop was in the time-honored political tradition of helping your friends remain in office. Too bad it cost taxpayers $1 million.

Royalties

Federal oil royalties are the major energy policy concern this fall.

In its final hours, Congress prohibited the Minerals Management Service from issuing its controversial oil royalty rule until June 1, or until it can negotiate an agreement with industry.

Similar industry-MMS talks failed last summer, because MMS balked at changes that industry said would make the rule more reasonable.

That attitude has not changed. An MMS spokeswoman said, "In all likelihood, we'll have some meetings (with industry). We're not really willing to move off our position."

Ben Dillon, with the Independent Petroleum Association of America, said a bipartisan approach no doubt could resolve the three or four major remaining issues.

Another oil lobbyist said, "The industry has got to figure out on how to close these discussions soon and get a rule in place. Stretching this rulemaking process out for months is not good for anyone."

Some observers think the recent retirement of Assistant Interior Sec. Bob Armstrong may facilitate the talks.