UPDATE - US Senate panel planning vote on energy tax breaks
Date: 11-Feb-02
Country: USA
Author: Tom Doggett
The financial package would total between $15 billion and $20 billion and would be part of a broad energy bill that Bingaman is shepherding through the Senate, Bingaman told Reuters following a speech to a conference of state lawmakers.
That would be much bigger than the $10 billion to $15 billion package previously considered by the finance panel.
The more generous package has emerged despite concerns the Bush administration's war on terrorism and ongoing American recession would make it difficult to find money for energy tax breaks.
On the list of tax breaks being considered, both Republican and Democratic lawmakers are pushing for a tax credit for small, independent well operators that would kick in when crude oil prices decline significantly.
The credit would make so-called "marginal" wells, which individually produce just a few barrels a day, profitable when energy prices are low.
Supporters of the tax credit have said such tax relief is needed because the huge number of marginal wells collectively account for 20 percent of U.S. oil production.
Bingaman said he was not sure if the marginal producer tax credit would be adopted by the Finance Committee, of which he is a member.
"I don't know what will be in that final package," he said.
The Republican-led House of Representatives included about $33 billion in tax breaks in the broad energy bill it approved last August.
STRICTER FUEL STANDARDS
Separately, the Democratic-led Senate Commerce Committee continues its work toward finalizing language by next week that would raise the fuel mileage requirements for cars, sport-utility vehicles and other light trucks.
The committee is expected to significantly boost the Corporate Average Fuel Economy (CAFE) standards, which currently require passenger cars to average 27.5 miles per gallon (mpg) and mini-vans, sport utility vehicles and light trucks to get 20.7 mpg.
Lawmakers are reviewing a proposal that would raise the combined mileage standard for cars and trucks to close to 40 mpg and at the same time require automakers to improve the safety of their vehicles.
The U.S. auto industry opposes tighter fuel standards, saying achieving them would require lighter vehicles that are less safe. Green groups and many Democrats contend the fuel conservation measure would offset the need to drill in places like the Arctic National Wildlife Refuge.
ENERGY BILL DEBATE NEXT WEEK
Both higher CAFE standards and the tax breaks will be added to a divisive energy bill that has left Senate Republicans and Democrats fighting over whether the legislation should allow drilling in the Arctic refuge.
Debate on the Senate bill is scheduled to begin next week.
Most Republicans want access to the refuge's potential 16 billion barrels of crude to help reduce U.S. dependence on foreign oil imports, while Democrats want to the keep the area closed to protect the wildlife that lives there.
Three moderate Republicans - Maine's Sens. Olympia Snowe and Susan Collins and Rhode Island's Lincoln Chafee - said Thursday they opposed drilling in the Arctic refuge and instead favored stronger fuel efficiency standards and investing in renewable energy sources as a way to cut back on foreign oil supplies.
"The fact is, drilling in the Arctic National Wildlife Refuge is not only contentious, but inefficient as well," Snowe said. "It would take 18 years after authorization before peak production is reached."
The Arctic refuge is located on Alaska's northern coast and is home to polar bears, caribou and other wildlife.
Energy Secretary Spencer Abraham and Interior Secretary Gale Norton urged the Senate last week to pass the energy bill in order to both increase domestic energy supplies and create jobs.
"Passage of a comprehensive energy package now is essential for the creation of jobs at a time when we need to be focused on the American worker," Norton said.
Abraham went further, saying that failure to pass
