May 3, 2007 – 8:38 p.m.
The Senate leadership acknowledged Wednesday that energy legislation might not make it to the floor this month, despite mounting concerns about higher gas prices.
Majority Leader
The Energy and Natural Resources Committee has approved an energy bill focused on biofuels, efficiency and greenhouse gas management, but other panels have not marked up their own measures. Environment and Public Works Chairwoman
The delays could put Democrats in a political bind if gasoline prices continue to rise. The latest round of quarterly earnings reports by major oil companies has only increased the pressure: On Thursday, Royal Dutch Shell Plc. announced first-quarter earnings of $7.3 billion, 6 percent above the same period last year. Last week, Exxon Mobil Corp. reported $9.3 billion in quarterly profits, 10 percent higher than 2006.
Senate Democrats led by
“In my home state of California, gas prices spiked to $3.99,” Feinstein said this week. “Yet energy companies continue to reap record profits.”
Sen.
The average for a gallon of regular unleaded gas is now close to $3. High crude oil prices also have forced the Energy Department to delay efforts to fill up the Strategic Petroleum Reserve, which was tapped in 2005 after hurricanes knocked out oil production in the Gulf of Mexico. After two failed solicitations, the department announced this week that it intends to delay purchases until the end of the summer driving season.
Feinstein’s bill would give the Federal Trade Commission authority to define and prosecute price-gouging, currently handled at the state level. Numerous FTC investigations have turned up little evidence of widespread price-gouging, and the agency warned lawmakers last year that federal price-gouging legislation could be difficult to enforce and ultimately counterproductive when it comes to protecting consumers.
That did not dissuade the House from passing a price-gouging bill last year, and
As it did last year, the panel also is investigating a pipeline spill that forced British oil giant BP Plc. to close down part of the production at Prudhoe Bay in Alaska last summer, causing prices to spike briefly and spurring further ire among lawmakers already angry about record oil-industry profits.
Stupak blasted the company Thursday for allegedly withholding information regarding cost-cutting measures that might have contributed to pipeline corrosion.
Meanwhile, the biofuels debate took a twist Thursday as Boxer introduced her own bill. Environmental groups that opposed the Energy panel’s bill endorsed hers.
Boxer’s bill would require the EPA to increase the existing renewable fuels mandate to as much as 35 billion gallons annually by 2025, according to the panel.
The bill would require all renewable fuels to be at least 20 percent cleaner than gasoline in terms of greenhouse gas emissions; as more of the fuels were used, the standard would go up to as much as 75 percent. The bill also would mandate as much as a 10 percent reduction in overall greenhouse gas emissions from the nation’s transportation fuels by 2020, while requiring federal agencies to study and mitigate potential environmental impacts.
The Energy panel’s bill, sponsored by Chairman
Boxer said her panel has a key role to play in ensuring that biofuels are developed properly but downplayed jurisdictional issues. “I don’t get that excited about it,” she said. “How we get there is less important to me than making sure we do get there.”
Bingaman’s office offered the same message, suggesting that there will be plenty of time to amend the bill on the floor.
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