Full Senate to tackle coal-friendly energy bill today

new york (Platts)--13Jun2005

The Senate begins debate on its coal-friendly energy bill today, two weeks
after the Energy and Natural Resources Committee approved the legislation.

Sens. Pete Domenici, R-N.M., and Jeff Bingaman, D-N.M., who successfully
pushed the legislation through the committee, are optimistic about the bill's
passage, although they expect vigorous debate.

The bill authorizes $200-mil annually, or $1.6-bil, for the Clean Coal Power
Initiative for research in coal-based gasification and combustion
technologies. It amends several provisions of the Mineral Leasing Act
regarding lease modifications to avoid the bypass of coal and requirements for
mining units, payment of advance royalties and deadlines for coal lease
operation and reclamation plans. It also includes a proposal for a coalbed
methane study.

Development of clean coal-fired plants across the country, including one for
Alaska and the Upper Prairie Region of North Dakota, South Dakota, Nebraska,
Kansas and Oklahoma, would get a boost, as would integrated gasification
combined-cycle technology.

The cost of the bill could be a factor in the floor debate. The Senate bill
comes in at $11-bil while the House version is $8-bil. President Bush has said
he wants a bill that costs no more than $7-bil. 

This story was originally published in Platts Coal Trader
http://www.coaltrader.platts.com

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