WATCHING WASHINGTON NES BILL ADVANCES

With Patrick Crow Saving the controversial issues until the end, the Senate energy committee last week voted 17-3 to report out a sweeping National Energy Strategy bill. In a tense 11-8 vote, the committee approved leasing on the Arctic National Wildlife Refuge Coastal Plain. It also voted 11-8 to delete a proposal requiring oil and products importers to place 3% of their imports in the Strategic Petroleum Reserve or private storage.

May 27, 1991

3 min read

Saving the controversial issues until the end, the Senate energy committee last week voted 17-3 to report out a sweeping National Energy Strategy bill.

In a tense 11-8 vote, the committee approved leasing on the Arctic National Wildlife Refuge Coastal Plain.

It also voted 11-8 to delete a proposal requiring oil and products importers to place 3% of their imports in the Strategic Petroleum Reserve or private storage.

CAFE, OTHER ISSUES

Sen. Bennett Johnston (D-La.), committee chairman, failed to insert a moderate chapter requiring tougher corporate average fuel economy (CAFE) standards for new cars.

He had wanted that program to dissuade the full Senate from amending the NES bill with more stringent CAFE requirements proposed by Sen. Richard Bryan (D-Nev.).

The chairman had deferred a vote on ANWR, even though the votes were there for passage, to persuade senators favoring ANWR leasing to support his CAFE provisions. But it failed.

Earlier, the committee voted 12-8 to split ANWR revenues 50-50 between the federal government and Alaska. Sen. Frank Murkowski (R-Alas.) had argued Alaska should get 90% of the revenues, as provided by its statehood act.

By the same margin, the committee approved Murkowski's amendment striking a provision that would have voided the leasing provisions if Alaska attained a court ruling overturning the 50-50 split.

It rejected 15-5 an amendment by Sen. Bill Bradley (D-N.J.) to require oil companies to bid at least $5,000/acre in any ANWR lease sale. It also brushed aside, 12-7, a Bradley amendment to ban the use of gravel causeways in ANWR development.

The committee approved an amendment banning gas flaring from ANWR wells unless the Interior Department approves.

It agreed to an amendment by Sen. Tim Wirth (D-Colo.) setting up a federal oil shale research program that will include at least one field test center.

It also revised the Public Utility Holding Company Act to facilitate electric power generation by independent firms, which the natural gas industry hopes will increase use of its fuel.

The committee approved an amendment by Sen. John Seymour (R-Calif.) to ban leasing or planning for leasing off California until after 2000. The administration previously ruled out drilling until then except for 87 tracts in the Santa Maria basin and Santa Barbara Channel.

Bradley won a similar ban on drilling off New Jersey. But the committee voted against a Florida ban.

SPR SETASIDE

The 3% SPR setaside, essentially an oil import fee, pitted domestic producers against refiners without U.S. oil.

Johnston at first proposed that companies give 9% of their crude or products imports to the SPR or Defense Department.

He retreated to a program that would require companies to place 3% of their imports in the SPR or private storage. They would have continued to own the petroleum and would receive revenues should it be drawn down.

The committee did approve an amendment by Sen. Malcolm Wallop (R-Wyo.) allowing Defense to establish a 10 million bbl products reserve if it pays for it. The amendment also allows other countries to store oil in the SPR and own it. Deputy Energy Sec. Henson Moore said the U.S. is discussing deals with other governments that are neither leases nor purchases.