Still a long way to go before a final energy bill

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Even though the US House of Representatives gave up a day of its month-long summer vacation to pass an energy bill in a rare Saturday session on August 4, there's no guarantee that the bill passed will be what is laid before the president for his signature into law.
The Senate passed its own version of energy legislation in June, and it's quite a bit different than the House version.
Those differences are going to need to be ironed out since both chambers need to agree on a single bill before they vote it out and send it to the president.

The so-called conference -- the meeting of designated negotiators from both chambers and both parties of Congress -- is already shaping up to be a battle.
The Republicans leadership of both parties have made it known that they hate the energy bill crafted by the Democrats and say it would actually decrease the ability of companies to find and produce energy.
But the Republicans are the minority party, and there's only so much they can do to thwart the bill. Real blows against the bill come at the hands of Democrats, including the powerful chairman of the House Energy and Commerce Committee John Dingell, who represents Michigan, the nation's largest automaking state.
Dingell is not pleased with the Senate-passed energy bill, which raises vehicle fuel economy by about 30% in the next decade, and he's not the type to hide from a fight. House Speaker Nancy Pelosi was concerned enough about Dingell's potential reaction to a fuel-economy measure in the House bill that she punted the issue until the conference. Fuel economy provisions were not included in the House bill, nor were amendments on the issue allowed.
Another provision that could muck up the works in the conference is a controversial amendment requiring that 20% of US electricity come from renewable sources, a provision the Senate never voted on because of a filibuster threat. Like fuel economy, the renewable portfolio standard is not a partisan issue. Instead it pits states with ample renewable electricity sources against those without. Both Democrats and Republicans from some states, particularly those in the US Southeast, which lacks steady wind and solar resources, are adamantly opposed to the RPS, saying it would drive up the cost of electricity.
Yet another area of contention is an energy tax and spend package. The House, as a companion to its energy bill narrowly passed a $16 billion energy tax bill, which takes tax incentives away from oil and gas companies and directs them toward alternative and renewable energy technologies and production. Senate Democratic leaders were unable to pass its own spending measure -- nearly double the size of the House version -- because they did not have enough votes to stave off a filibuster threat. But a Senate Energy Committee Spokesman Bill Wicker said the issue isn't dead, and the Senate intends to include its tax bill in conference.
But just which bills that are going to conference is still up in the air. "At this point, the Senate and the House are 'not on the same bill,'" Wicker said. "These are two entirely different bills [from what has been passed in the Senate], and there are several actions that the Senate will have to take in order to get these two bills in sync and conferanceable. Only then will they be able to ask the House for a conference."
Congress does not return until September, and it could take a few weeks before the bills are put in sync and negotiators are named from the House and Senate. Then the hard work of negotiations will begin.
And hanging over it all is a White House veto threat. Bush's advisers are not pleased with the bill. Like Republicans in Congress they say the bill lacks provisions to expand domestic energy production. And they contend that the tax provisions targeting the US oil and gas industry could force investment overseas and drive up the price of gasoline. Moreover, they say a price-gouging provisions passed by both the House and Senate would lead to a return of gasoline allocations and gas lines and that a provision allowing OPEC to be sued in US courts for antitrust violations could lead to reprisals and less crude oil on the world market.
As a result, Democratic leaders face a tough road. They need get the bill they want, but not go too far and anger the president into issuing a veto. It could shape up for an interesting autumn in Washington.

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This entry was written by Cathy Landry and was published on August 7, 2007 11:13 AM ET.

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