WATCHING WASHINGTON SENATE NES LEGISLATION

With Patrick Crow The Senate energy committee has turned to marking up some critical--and controversial--chapters of its National Energy Strategy legislation. This month the panel will consider requiring tougher auto fuel efficiency requirements, mandates for alternative auto fuels, an oil import fee (by another name), and leasing of the Arctic National Wildlife Refuge Coastal Plain. Deputy Energy Sec. Henson Moore said last week the Bush administration is pleased with the Senate legislation so

May 13, 1991

3 min read

The Senate energy committee has turned to marking up some critical--and controversial--chapters of its National Energy Strategy legislation.

This month the panel will consider requiring tougher auto fuel efficiency requirements, mandates for alternative auto fuels, an oil import fee (by another name), and leasing of the Arctic National Wildlife Refuge Coastal Plain.

Deputy Energy Sec. Henson Moore said last week the Bush administration is pleased with the Senate legislation so far.

"The highwater mark of what we're going to get probably is the markup in this committee," he said. Moore said the Senate could make changes when the bill is debated on the floor, and the House of Representatives can be expected to draft a starkly different bill.

"What's in the bill so far is helpful to energy. There are things (in there) that are worthwhile that wouldn't have been handled by themselves."

BUSH ADMINISTRATION OPPOSITION

But Moore indicated the administration is not flexible on the tough remaining issues.

He said President George Bush is "absolutely opposed" to tougher auto fuel economy rules. It also will fight a bill by Sen. James Jeffords (R-Vt.) that is expected to be offered as an amendment to the Senate energy committee bill, which would require refiners to supply specific percentages of alternative fuels along with their gasolines.

Moore said that would "put the government in the business of controlling the energy industry. That would absolutely end the NES bill."

And the administration flatly opposes a proposal by Sens. Bennett Johnston (D-La.) and Malcolm Wallop (R-Wyo.) to require firms to give about 9% of the petroleum they import to the Strategic Petroleum Reserve or the Defense Department (see story, p. 69).

Moore said that scheme would do very little to increase U.S. production but would be a drain on the economy.

He said "ANWR is something the President really wants. If ANWR isn't in there (the finished bill), boy, the rest of the bill had really better be good" for Bush to sign it. He added, "I don't think the President is in a dealing mood on ANWR."

He urged legislators to be reasonable and not load NES legislation with unreasonable provisions. "if people start getting greedy, it will sink it."

IPAA SUPPORT FOR BILL

Pleased with the natural gas reform chapter of the bill (OGJ, Apr. 29, p. 36), the Independent Petroleum Association of America plans to rally support for the legislation.

Denise Bode, IPAA president, said last week the bill "will help make each segment of the natural gas industry healthy."

Meanwhile, the National Association of Manufacturers has formed a broad coalition to press for NES passage. Common goal of the coalition, consisting of more than 130 companies and associations, will be "comprehensive and balanced legislation which relies on market forces rather than regulations, taxes, and fees."