SENATE FINE TUNES ALTERNATIVE FUELS IN NES

The Senate energy committee, marking up National Energy Strategy (NES) legislation, has rebuffed a tough proposal that would have required U.S. refiners to provide alternative fuels as a percentage of their gasoline sales. The oil industry had lobbied hard against the provision, filed as a bill by Sen. James Jeffords (R-Vt.) and introduced as an amendment in the Senate energy committee markups by Sens. Larry Craig (R-Idaho) and Conrad Burns (R-Mont.)

May 20, 1991

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The oil industry had lobbied hard against the provision, filed as a bill by Sen. James Jeffords (R-Vt.) and introduced as an amendment in the Senate energy committee markups by Sens. Larry Craig (R-Idaho) and Conrad Burns (R-Mont.)

The committee then turned to amendments proposing to raise automakers' corporate average fuel efficiency (CAFF) standards for new auto fleets. After that, it was due to consider leasing of the Arctic National Wildlife Refuge Coastal Plain in northern Alaska.

FUELS ISSUE

The Jeffords bill would have required refiners to offer alternatives such as alcohol fuels, natural gas, and electricity equal to 10% of their gasoline sales in 1998. That level would increase to 30% by 2010.

The Department of Energy had objected to the amendment, saying inclusion could prompt President Bush to veto the entire NES legislation.

The American Petroleum Institute argued against such a fixed schedule, saying, "The costs to consumers have not been adequately considered, nor has the ability of the marketplace to respond.

"The amendment would excessively burden the fuel industry as it responds to substantial requirements enacted in the Clean Air Act amendments of 1990 and may make it more difficult to meet the act's emission requirements."

The committee accepted a substitute amendment by Chairman Bennett Johnston (D-La.).

His plan would give the energy secretary powers to require alternative fuels production if his department determines alternative fuels supplies are not meeting market demand.

After such a finding, the secretary would be required to ask refiners to voluntarily produce alternative fuels. If that were unsuccessful, the secretary would submit a plan to Congress requiring refiners to make alternative fuels available. If Congress did not reject the plan within 60 days, it could be implemented.

FLEET REQUIREMENTS

Earlier, the committee approved 15-5 a Johnston proposal to require 10% of new vehicles bought in 1995 for federal fleets of 100 or more to run on alternative fuels. That percentage would rise to 90% in 2000.

The committee rejected another Johnston amendment that would have required 30% of new vehicles bought in 1998 for state and private fleets of 100 or more to use alternative fuels. That would increase to 50% in 1999 and 75% in 2000.

Complaining the approach was too weak, the committee voted 14-6 to require fleets of 50 or more vehicles to meet the schedule if at least 20 of the cars can be refueled at the same site.

It rejected 7-11 a proposal by Sen. Malcolm Wallop (R-Wyo.) to exempt diesel trucks of more than 8,500 lb from the requirements.

The committee approved a Wallop amendment that would require DOE to prepare an inventory of U.S. fuel resources, including fossil fuels, renewable energy sources, and energy efficiency technologies, and select the least costly mix for the country to use.

The inventory would take into consideration economic factors such as the costs of managing waste by-products, environmental damages, and the cost of maintaining access to imported oil.

The committee also accepted 11-5 a Wallop substitute removing a provision by Sen. Tim Wirth (D-Colo.) that would have set a national goal of reducing carbon dioxide emissions 20% by 2005.