Washington (Platts)--18Jun2007

A second week of US Senate debate on energy legislation is expected to
kick off later Monday, with the Democratic leadership determined to finish
the bill by the end of the week and amendment votes due to start Tuesday.

     About a hundred amendments to the energy bill have been filed, but not
all of them will make it to the floor, as the bill's managers, New Mexico
senators Jeff Bingaman, a Democrat, and Pete Domenici, a Republican, plus the
chairs and ranking members of other committees, are culling through the stack,
Senate Energy and Natural Resources spokesman Bill Wicker said.

     The wide-ranging energy legislation seeks to raise fuel economy
standards, increase the amount of renewable and alternative fuels in the US
and penalize companies for price gouging.

     On tap this week will be amendments dealing with auto mileage standards,
Wicker said. The bill calls for an increase in Corporate Average Fuel Economy
Standards for both cars and trucks to 35 miles/gallon by 2020 and 4% annually
thereafter. 

     But lawmakers from auto manufacturing states are concerned that the
language would make it impossible for the US auto industry to compete, and
want a less stringent mileage standard for light trucks, such as minivans and
sport utility vehicles, which are Detroit's biggest sellers.

     Also on the table will be a broad tax incentive package, which the Senate
Finance Committee unveiled last week.

     That package seeks to fund $13.7 billion in tax incentives to promote
alternative fuels by clawing back around $12.5 billion in tax breaks currently
enjoyed by oil companies.

     The energy tax package includes a two-year extension of the clean energy
production tax credit for qualifying wind, biomass, geothermal and landfill
gas facilities; a 30% investment tax credit for solar and fuel cells; and a
10% investment tax credit for microturbines.

     Incentives to encourage coal-to-liquids technologies are also expected to
be debated, including an amendment to create a loan guarantee program for
equipment to control greenhouse gas emissions at industrial plants which use
coal as a feedstock.

     The so-called NOPEC amendment, to allow cartels to be sued in US courts
for collusive practices in setting the price or production of petroleum
products, should also see floor debate. The Bush administration is opposed to
the measure, and said if it is included in the energy legislation, President
Bush's senior advisers would recommend he veto the bill.

     One of the biggest battles, however, may come over a proposal offered by
Bingaman to require that 15% of electricity generated in the US by 2020 come
from alternative and renewable sources. 

     Some lawmakers think the standard would penalize states that do not have
access to wind power, and want nuclear and advanced coal-fired power to be
included in the list of qualifying alternatives.

     The House is expected to take up its version of the energy bill in July.

		--Cathy Landry, cathy_landry@platts.com
		--Cathy Cash, cathy_cash@platts.com