Washington (Platts)--11Jun2007

The Democratic leadership in the US Senate could be in for a tough fight
to get comprehensive energy legislation passed and signed by President George
W. Bush this session, Senate Majority Leader Harry Reid acknowledged Monday.

     Reid, Democrat-Nevada, noted that raising fuel efficiency standards may
turn into the single biggest battle.

     The full Senate is slated to begin debate later Monday on the energy
bill, which would attempt to reduce US consumption of crude oil by increasing
fuel economy standards and promoting renewable fuels. The bill would also
impose stiff penalties for price gouging, increase energy efficiency
standards, fund new carbon-capture technologies, and improve US diplomatic
relationships with energy producers.

     The first hurdle, Reid said would be to get enough Republican votes to
proceed with action on the bill. A total of 60 votes are required to limit
debate on the bill and allow it to move forward. The Democratic caucus has 51
members -- 49 Democrats and two Independents that vote with the Democrats.

     Asked if he was concerned that Bush would veto a comprehensive energy
bill, Reid acknowledged he was not "nearly as worried about him vetoing
it as I am about our passing it."

     Reid said, however, that if the bill were to pass both chambers of
Congress, it would be unlikely that Bush would veto the bill, given that he
has only vetoed two pieces of legislation in his presidency. But if he did,
Reid said, "it would be another blight on his presidency."

     One of the most controversial measures of the legislation is a provision
to raise the Corporate Average Fuel Economy, or CAFE, standard for all new
cars and truck to 45 miles per gallon by 2020, with another 4% improvement
thereafter, Reid said. 

		--Cathy Landry, cathy_landry@platts.com