National Energy Strategy legislation got a setback last week when the Senate energy committee could not agree on increasing the corporate average fuel economy (CAFE) standards for new U.S. cars.
The panel rejected 14-5 as too tough an amendment similar to the bill by Sen. Richard Bryan (D-Nev.) that would increase CAFE to 40 mpg by 2001.
And it rejected 13-6 as too weak a compromise by Chairman Bennett Johnston (D-La.) calling for a 37 mpg CAFE by 2006.
Johnston had counted on getting a CAFE provision in the NES to counterbalance environmental opposition to provisions in the bill allowing leasing of the Arctic National Wildlife Refuge Coastal Plain.
The Senate commerce committee has approved the Bryan bill, which is expected to be considered separately on the Senate floor.
A BOOST FOR FTA
Meanwhile, the proposed U.S.-Mexico Free Trade Agreement (FTA) got a big boost when the House ways and means and the Senate finance committees voted to put the FTA on a legislative fast track.
Failure to do so would have spelled doom for the trade treaty, which has yet to be negotiated, because it would have been open to crippling amendments and delay in Congress.
Although a treaty would not allow U.S. oil companies to explore for oil in Mexico-foreign investment in petroleum is banned by the country's constitution-it would aid U.S. service and supply companies.
Ways and means defeated 27-9 a resolution that would have denied a fast track, and finance similarly voted 15-3.
Under current law, fast track authority will go into effect June 1 unless the full House or Senate votes this week to overturn the committee action.
Then the FTA can be negotiated during a 2 year period and submitted to Congress for an up or down vote, without amendment.
Sen. Lloyd Bentsen (D-Tex.), finance committee chairman, said Mexican President Carlos Salinas de Gortari wants closer ties with the U.S. "That's an opportunity we must seize," Bentsen said. "If we don't, we'll regret it well into the next century."
The Bush administration avoided a potential defeat on fast track authority with an adept about-face.
It had insisted on fast track approval from Congress with no strings attached.
But to facilitate passage, it finally pledged to Congress it would fund special programs to assist workers who lost jobs as a result of the FTA.
U.S. labor unions claimed FTA would cost about 550,000 American jobs. The administration said the pact would add 64,000 U.S. jobs in 10 years.
ENVIRONMENTAL IMPROVEMENTS
And the administration agreed to press Mexico, as part of FTA negotiations, for environmental improvements along the U.S. border.
Mexico helped assuage environmental fears by pledging it would not allow American companies to move south of the border to escape tougher environmental laws in the U.S.
To underscore its point, last month Mexico ordered 156 polluting industrial plants to shut down until they comply with environmental rules.
Copyright 1991 Oil & Gas Journal. All Rights Reserved.
