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Energy & Electric Utilities Committee
Transportation Committee

Energy & Transportation Update

A Service of the Energy and Electric Utilities Committee
and Transportation Committee
June 6, 2003

Previous Issues

On June 5, 2003, the Senate approved an amendment sponsored by Majority Leader Bill Frist (R-Tenn.) and Minority Leader Tom Daschle (D-S.D.) to the comprehensive energy bill (S. 14) that would establish a renewable fuels standard. The renewable fuels standard would mandate production of ethanol that would be blended into all gasoline beginning in 2005 and increase incrementally to five billion gallons annually by 2012. The renewable fuels standard would phase out the use of methyl tertiary-butyl ether (MTBE) within four years. The Senate passed Senator Diane Feinstein's (D-Calif.) second degree amendment that would allow one gallon of cellulosic biomass ethanol to qualify as the equivalent of 2.5 gallons of renewable fuel. The Senate also passed an amendment, offered by Senators Pete Domenici (R-N.M.) and Jeff Bingaman (D-N.M.), that would increase funding for the Low Income Home Energy Assistance Program (LIHEAP) from $2 billion to $3.4 billion annually and extends LIHEAP funding until 2006.

The energy debate now will likely turn to hydro-relicensing. Senators Bingaman and Daniel Inouye (D-Hawaii) plan to offer an amendment that would replace the hydroelectric title in S. 14 with language adopted by the House last year during consideration of comprehensive energy legislation (H.R. 4). Senators Bingaman and Inouye oppose the hydro title in S. 14 claiming it prevents states, consumer groups and other third parties from participating in relicensing proceedings and certain appeal procedures. Senator Domenici responded to these claims by stating the language seeks to eliminate unnecessary costs and bureaucratic delays in the relicensing process.

Senator Frist announced that there will be no more votes this week, but Senators may still offer amendments. Senator Frist is only allowing a week and a half for energy debate. Senator Domenici believes the Senate will complete the work on S. 14 and will pass the bill within the next 8 to 10 days.