House Chairman says Cape Wind provision to remain in bill

House Chairman says Cape Wind provision to remain in bill

Washington (Platts)--9May2006

US House Transportation and Infrastructure Committee Chairman Don Young
said Tuesday that a controversial provision that could scuttle the nation's
first offshore wind power project will remain in a massive bill to authorize
US Coast Guard funding.

That counters the position of the administration, which told Young that
the provision, which is tucked inside the conference report on the Coast Guard
and Maritime Transportation Act of 2006, "could have a chilling impact on
continued investment" in wind energy.

When asked about the letter by Platts, Young said he had no plans to
change his bill. "They can say whatever they want to say," said Young.
"They're not doing their homework."

Young's stance places in the matter in an interesting situation. Prior to
the administration coming out against the provision that would allow the
Massachusetts governor to veto the 420-MW Cape Wind project designated in the
Nantucket Sound, two key senators vowed to block the legislation from a
final floor vote once it comes over from the US House.

"The provision in the Coast Guard conference report is absolutely
contrary to our nation's growing preference for clean, renewable energy,"
Senate Energy and Natural Resources Committee Chairman Pete Domenici,
Republican-New Mexico. Joining him was the committee's senior Democrat Jeff
Bingaman, also from New Mexico.

In outlining the administration's position to Young on Friday,
Undersecretary of Energy David Garman said the provision singling out Cape
Wind was "unwise for several reasons."

The provision would require more studies of the project, which has already
undergone five years of federal and state review, and provide the governors of
adjacent states with "unprecedented power to veto the project, notwithstanding
the fact that this project is in the federal waters of the Nantucket Sound,"
Garman said.

---Cathy Cash, cathy_cash@platts.com

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