WATCHING WASHINGTON MORE ACTION ON ENERGY POLICY

with Patrick Crow Energy policy legislation continues to evolve in Congress. The House energy and power subcommittee last week quickly reported out the first of its energy policy bills. One measure would allow gas pipeline construction projects to hire outside firms to prepare environmental documents. That should speed the permitting process at the Federal Energy Regulatory Commission. A second bill would toughen safety requirements for oil and gas pipelines.

July 15, 1991

3 min read

Energy policy legislation continues to evolve in Congress.

The House energy and power subcommittee last week quickly reported out the first of its energy policy bills.

One measure would allow gas pipeline construction projects to hire outside firms to prepare environmental documents. That should speed the permitting process at the Federal Energy Regulatory Commission.

A second bill would toughen safety requirements for oil and gas pipelines.

It requires the Transportation Department to fund development of instrumented inspection pigs for pipelines"smart pigs"-that could detect seam failures.

Transportation also would identify all gas pipeline facilities, hazardous liquids lines, and gathering lines in high density pipeline areas and require their periodic inspection by smart pigs.

Transportation would study whether excess flow valves are needed in gas distribution systems and, if so, would issue rules within 3 years requiring their installation.

The bill toughens testing and certification for pipeline operating personnel, requires the National Academy of Sciences to study whether standards for hazardous liquid pipeline routing would enhance pollution prevention, and require the National Transportation Safety Board to investigate pipeline accidents when there is significant environmental damage.

The subcommittee will continue markups this week, focusing on energy efficiency bills and ways to streamline gas pipeline permitting at FERC. More controversial issues will be deferred until after an August recess.

Also this week, the Senate energy committee will examine ways to inject some strategy into the pending energy legislation.

The administration originally promised to draft an energy strategy, but Sen. Jeff Bingaman (D-N.M.) complains the resulting proposal contains projections, not concrete goals.

He has drafted a bill that sets three broad goals: to reduce oil imports from the current 40% to 33% of total domestic petroleum consumption by 2010, increase the energy efficiency of the economy 20% by 2000 and 40% by 2010, and increase renewable energy's share of the energy mix from 8% today to 14% in 2010.

SUPPORT FOR IPAA STANCE

Last week the Independent Petroleum Association of America, which wants to ensure that Canadian gas imports don't enjoy a competitive advantage, got some support from the Bush administration.

Robert Grady, an Office of Management and Budget official, offered substitute language for a provision IPAA won in the Senate energy committee's energy policy bill.

He wrote, "IPAA and its members make the point that rate structures can bias natural gas purchasing decisions in favor of imports from Canada at the expense of domestic production. We in the administration agree with IPAA on this point.

"Differing rate structures pose a problem that needs to be corrected."

The administration proposal would have FERC determine if differences in rate regulation or terms of service favor imported natural gas and make adjustments if needed.