Washington (Platts), June 20, 2005

The top Republican and Democrat in the US Senate June 20 reiterated their commitment to finish work on comprehensive energy legislation by the end of the week and encouraged senators to offer amendments for debate.

Majority Bill Frist (Republican-Tennessee) and Minority Leader Harry Reid (Democrat-Nevada) lamented the dearth of amendments offered to the bill.

Reid noted some senators appear to be waiting until more senators are available to vote before offering amendments. "The convenient times are over," Reid said on the floor. "We will not have 100 senators [on the floor] any time this week" because of a series of base closure hearings being held across the country. There is no reason to wait to offer amendments, he said.

Both leaders suggested a "finite list" of amendments be drawn up soon. Frist said he would like to close debate by the end of the week. Reid responded he would be "totally opposed" if it appeared to be an effort by the majority to limit" the debate on amendments, although he said "that does not appear to be the case."

Three competing amendments on US global warming policy are expected to be offered the week of June 20 and take up much of the Senate's time. There has been discussion about amendments on fuel efficiency, the tax provisions in the bill and federal oversight of LNG facilities, but they have not yet been submitted.

Reid said there is "no way" the Senate will compromise on the issue of MTBE liability. Asked at a press briefing if he would filibuster any attempt to include MTBE liability language in the bill, Reid replied, "We will do whatever it takes" to keep it out.

The House-passed energy bill includes a provision shielding MTBE manufacturers from defective product liability lawsuits, while a majority of senators is opposed to the measure. Differences between the House and Senate on the issue were a factor in Congress's failure to pass energy legislation in the last session.

Reid said the opposition remains bipartisan and "Republican members are with us every bit as strongly this time." The House Republican leadership appears just as adamant about including MTBE liability in the energy bill.

Senator Ron Wyden (Democrat-Oregon) offered an amendment on June 20 that would prevent the energy secretary from filling the Strategic Petroleum Reserve if prices exceed $58.28/bbl and remain above that level for 10 consecutive trading days.

Wyden chose the $58.28/bbl price because, prior to June 17, it had been the previous front-month high for sweet crude traded on the New York Mercantile Exchange. That record was broken June 20.

Under the amendment, SPR fills would be suspended until the NYMEX price dropped below $40/bbl. Wyden said the amendment "prevents the Energy Department from taking oil out of the market when prices are at record levels and driving up the price even higher."

The House-passed energy bill includes a provision suspending SPR fill until the price drops down below $40/bbl. The issue of filling the SPR regardless of price levels may be moot. The 727-mil bbl capacity stockpile is nearly full, holding 695.6-mil bbl as of June 20. However, language in the House and Senate energy bills directs the Energy department to expand and fill SPR to 1-bil bbl.