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Battle Looms Over Massive Energy Bill

Alaskan oil drilling dropped, but debate still assured

By Robert Longley, About.com

Despite the elimination of provisions allowing oil drilling in the Alaskan wilderness and requiring higher gas mileage for SUVs, President Bush's latest attempt at a national energy policy bill is bound to face stiff opposition in Congress.

  The soon to be introduced, 1,700 page bill will attempt to address many of America's most pressing -- and controversial -- energy issues, including shoring-up and safeguarding the nation's ageing electrical grid, increasing the use of ethanol in gasoline, constructing an Alaskan natural gas pipeline and offering massive tax breaks to energy producers.

Arctic oil drilling -- SUV fuel efficiency dropped
Notably missing from the bill are two highly contentious provisions that had virtually doomed previous attempts and a Bush national energy policy: opening the Arctic National Wildlife Refuge (ANWR) to oil and gas exploration and increasing federally-mandated fuel efficiency ratings for SUVs - sport utility vehicles.

But debate is still assured
Dropping those two items will not, however, prevent Democrats from raising hearty opposition to many of the bill's remaining provisions.

  • The ethanol mandate, which would require 5 billion gallons to be used by 2010, would significantly drive up gasoline prices in California, where ethanol must be imported from Midwestern states. Since ethanol is made from corn, Senators from corn-producing states love this provision. Other Senators on both sides of the isle have promised to fight it.

  • Tax incentives for producers of oil, natural gas, wind, clean coal and nuclear power. While no hard figures are available, estimates of the size of the tax inventive package run as high as $20 billion.

  • Another $20 billion to build a pipeline to deliver natural gas from Alaska to the lower 48 states.

  • Federally mandated requirements for reliability of high-voltage electric lines, along with an incentive package to encourage extension of high-voltage lines into currently under-served, rural areas.

  • Protecting producers of the gasoline additive MTBE (found to pollute groundwater) from environmentally-based lawsuits.

    The House may vote on the bill as early as Tuesday, Nov. 25. The Senate hopes to debate and vote on the bill before Congress is scheduled to adjourn for the year on Friday, Nov. 28.

    "Congress has crafted a comprehensive and balanced energy bill that reflects the President’s energy priorities and will be an important investment in ensuring America's energy security and economic vitality. I urge the Congress to pass this energy bill before the end of the year," said Energy Secretary Spencer Abraham, in a brief press release.

    "Special interests had special access, and the rest of us were left in the dark. ... Republican leaders have once again cooked up an old-fashioned backroom deal to benefit their special interest friends," said House minority leader Nancy Pelosi (D-California), in the San Francisco Chronicle.

    "We look forward to seeing the details,'' said Senate Minority Leader Tom Daschle (D-South Dakota), in a press release. "Until then, we'll reserve judgment.''

  • Bill Summary, Text and Status -- Energy Policy Act of 2003 -- from the Library of Congress, Thomas Legislative Information System

    Also See: President Bush Issues Energy Directives to EPA

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