US lawmakers ponder clean energy, links to regulatory barriers

Washington (Platts)--1Feb2011/558 pm EST/2258 GMT

US congressional lawmakers are weighing whether a "clean energy" goal of 80% by 2035 -- as proposed by President Barack Obama -- should be accompanied by provisions nixing environmental regulations seen as barriers to developments needed to meet that target.

Senate Energy Committee and Natural Resources Committee Chairman Jeff Bingaman, a New Mexico Democrat, said Tuesday he would be "open" to reviewing regulations identified by lawmakers as troublesome to energy development as the committee he leads proceeds with energy policy legislation.

"I'm sure there are some barriers. I just don't know precisely what they are," Bingaman said. "To the extent they are shown to be serious problems, we'll certainly look at them."

The president's call in his State of the Union address for an 80% "clean energy" goal that included nuclear and clean coal as well as wind and solar is steering lawmakers to consider such developments and what regulations may stand in the way.

"I don't know if that helps you get votes or hurts you with getting" votes, Republican Senator Lindsey Graham of South Carolina said when asked if Congress should move a clean energy standard bill along with one that lifts environmental regulations that could inhibit development. "I don't know yet. That's a good question."

Graham said he believes the US Environmental Protection Agency should not regulate greenhouse gas emissions under the Clean Air Act, but he questioned whether "alternative" energy could thrive without certain rules in place.

A process is needed to develop more US energy supplies, reward efficiency and allow for a transition to cleaner alternative energy sources during the next 20 years, he said.

Indiana Republican Richard Lugar said he favored stopping EPA from trying to regulate GHG emissions, but would not specify what bill he could support. Packaging such provisions could make an energy bill "a lot more complex. I think these are two different subjects," he said.

Senator James Inhofe, the senior Republican on the Senate Environment and Natural Resources Committee, said he was working with House of Representatives Energy and Commerce Committee Chairman Fred Upton, a Michigan Republican, on a bill to block EPA regulation of GHGs.

Senate Committee Chairwoman Barbara Boxer, Democrat-California, has made clear her opposition to legislation to diminish EPA's authority to regulate emissions linked to global warming.

But Inhofe said he was buoyed by the new members in the Senate and believed he would find a way to get his bill to a full Senate vote.

"There are a lot of mechanisms where you circumvent the committee," Inhofe said. "I think we may surprise some people and be able to get some things done, moderate some of the over-regulation that is going on."

--Cathy Cash, cathy_cash@platts.com

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