Not just the energy committee anymore

 

While the energy committee is central to any new legislation, other panels have become more active since the US saw average gasoline prices top $3/gal in early September. In mid-November, the Commerce, Environment and Foreign Relations committees examined alternative fuels and oil supplies.

The Commerce and Environment panels heard arguments for and against a more-rapid shift to alternative fuels, while the Foreign Relations Committee continued its examination of the effect of US oil use on American diplomacy and security.

To be sure, there are congressional opponents to boosting renewable fuels and energy efficiency, whether because of cost, loyalty to industry or use of mandates, rather than market approaches. But farm-state lawmakers, including House Speaker J. Dennis Hastert (Republican, Illinois) are a powerful bunch. In addition, Bush has spoken at great length in favor of biofuels, both in the 2004 campaign and in his push for an energy bill this year.

"There is nothing in here [in S. 2025] that runs against what the administration has said ... . We see it as building on the Energy Policy Act," Lieberman said.

The oil industry was much chagrined when Congress, which had been considering a 5-bil-gal ethanol mandate, agreed to support a 7.5-bil-gal requirement this summer. "It's not as if they're not going to be able to sell their product," Bayh said of the oil companies, downplaying potential opposition. "We're going to consume all the oil that they can discover and bring to market." However, the oil industry indicated they would put up a fierce fight against new commitments to alternative fuels.

The 10 senators said they would avoid Arctic drilling and Corporate Average Fuel Economy proposals, which have drawn bipartisan opposition. "What we really tried to do with this bill is to stay away from those things," said Sam Brownback (Republican, Kansas). "You don't see ANWR in this bill -- and you don't see CAFE [corporate average fuel economy] in this bill -- because those are the issues that have divided us in the past."

Copyright © 2005 - Platts

Please visit:  www.platts.com

Their coverage of energy matters is extensive!!.