The Oilspot
Wednesday, December 19, 2001 VOLUME 6 ISSUE 50  



FRONT PAGE



Hollings Seeks Background Checks
Daschle Energy Bill Does Not Include Re-refiner Language
DOT to Consider Diamond-Shaped Warning Sign


OSHA Issues Compliance Directive


OPEC To Hold Decision on Cuts


Interstate Food and Fuel Program Draws Fire
Air BP Adds Former Texaco Dealers
BP Brings Low-Sulfur Product to Oregon
Hy-Vee Hy-Permarket
Indiana AG Wants Higher Gouging Penalties
UDS Adds 22 Retail Units


CSB Gets Increased Funding in VA-HUD Bill


Shell, Saudi Refining, Move Forward on Equilon, Motiva
ExxonMobil Exec to Lead Imperial Oil
Daschle Energy Bill Does Not Include Re-refiner Language
Unlikely to pass muster with Senate Republicans

WASHINGTON -- In the seemingly never-ending debate over energy security, Senate Majority Leader Tom Daschle (D-ND) (pictured) has introduced a comprehensive energy bill that does not appear to pass muster with Senate Republicans and is unlikely to pass in its current form. The “Energy Policy Act of 2002” (S. 1766) was released by Sen. Jeff Bingaman (D-NM), Chairman of the Senate Committee on Energy and Natural Resources on December 5.

Although Daschle has referred to S. 1766 as a “comprehensive balanced” bill, Republicans have not embraced it, and even some Democrats have expressed concern that it does not address all of their key issues, such as CAFE standards for passenger cars and light trucks. Daschle has said that he would schedule floor debate sometime after January 22, 2002, when Congress returns from its winter recess.

The Daschle-Bingaman bill does not address tax cuts for certain lubricant re-refining activities. Earlier this year, Sen. Bingaman introduced an energy bill that would provide a 10 cents-per-gallon tax credit for producing re-refined lubricating oil. The provision has been omitted in S. 1766. However, the Senate Finance Committee is expected to add a package of tax incentives to the energy bill, so this provision may be considered at a later date.

The House of Representatives passed a comprehensive energy bill – the “Securing America’s Future Energy Act of 2001” (H.R. 4) – by a vote of 240-189 on August 2. The bill had significant support from Democrats, and would provide billions of dollars in tax incentives and cuts to encourage both production and conservation of oil, gas, clean coal and nuclear energy; ease restrictions on energy production on federal lands; increase funding for home energy assistance and weatherization programs for low-income families; and fund nuclear energy research. President Bush repeatedly has asked for speedy passage of an energy bill, but Bingaman, with the approval of Daschle, has dragged slowly behind without a sense of urgency.

Part of the problem centers around a provision of H.R. 4 which would allow for oil exploration in the Arctic National Wildlife Refuge (ANWR). The White House supports the proposal, as does the Alaska Congressional delegation, and organized labor. Environmentalists are violently opposed to the provision, however, and Daschle does not want to allow a vote on the Senate. As an alternative, S. 1766 contains language that would boost domestic energy production without touching ANWR. Daschle also supports construction of a massive natural gas pipeline in Alaska that arguably would create the jobs that organized labor is seeking without opening ANWR.


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