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National Energy Bills Headed for Debate
Conservation groups have reason to worry that the Arctic National Wildlife Refuge (Arctic) could be opened to oil exploration during the final round of this year's national energy debate. Senate Republican leaders announced May 2 the makeup of the conference committee puts the majority in the drilling camp. The committe will reconcile two different bills passed by the Senate and the House . Nine of the 17 senators appointed voted to open the refuge to oil developers.
The Senate adopted the energy bill late last month, minus the Arctic drilling amendment, after a full six weeks of robust debate. The bill now faces a House version, passed last year, including $33 billion in tax incentives for nuclear and fossil fuel development and drilling in the Arctic.
The Senate bill includes $16 billion in tax breaks to promote both production and conservation, including boosts to "clean coal" development and incentives to purchase energy efficient equipment. But it falls short of providing meaningful incentives for renewables and conservation.
Other highlights in the bill:
- A last minute amendment to the Senate bill increases Bonneville Power Adminstration 's borrowing authority by $1.3 billion. President Bush is pushing for an increase of $700 million and BPA wanted $2 billion (see story page 6).
- Under the bill, utilities are required to provide 10 percent of their customer needs with renewable energy resources by 2019. A last minute amendment to that provision cut the maximum price for renewable credits in half to 1.5 cents per kilowatt hour.
- The bill repeals the Public Utility Holding Company Act (PUHCA) , stripping consumer protections aimed at big holding companies, such as utilities with unregulated subsidiaries.
- Environmental groups unsuccessfully fought an amendment from Idaho Senator Larry Craig weakening fish protections in the dam relicensing process.
— Corinne Hollister