White House sees better prospects for energy bill
Date: 08-Nov-02
Country: USA
Lawmakers' negotiations for an energy bill stalled last month, largely due to a sharp divide between Republicans and Democrats over President George W. Bush's proposal to open the Arctic National Wildlife Refuge to drilling.
Republicans generally support the Alaskan drilling proposal as a way to produce more crude oil in about seven years, while Democrats say improved fuel efficiency would offset the need for more oil.
Other contentious issues in the energy bill included boosting ethanol usage as a cleaner-burning fuel and reforming U.S. electricity markets.
"When you take a look at energy legislation to make America more energy independent, when you take a look at protecting people's pensions. Those are two of the important issues that did not get passed by the Congress that the president thinks are in the national interest that perhaps now have a better chance," said Ari Fleischer, a White House spokesman.
"There's a lot of work the American people want Democrats and Republicans to team up on that's not getting done," Fleischer added.
Wall Street analysts said the Republican control of both chambers was good for U.S. utilities, many of which have been hit by credit downgrades and slumping share prices.
For example, there should now be enough support to repeal a Depression-era law barring utility mergers. Repeal of the Public Utility Holding Company Act (PUHCA) is opposed by many Democrats who say more regulations - not less - are needed to protect consumers.
"Clearly, prospects have improved for a Republican-led energy initiative which would likely include PUHCA repeal and better access to natural resources with less exposure to more onerous environmental laws," said a report issued by energy analysts with Lehman Brothers.
A major U.S. business lobbying group said an energy bill is unlikely to be on the agenda for Congress' lame duck session later this month.
"The Republican leadership is likely to believe they would like to start over in the next Congress on that issue," said Bruce Josten, executive vice president of the U.S. Chamber of Commerce. "I'd handicap that as a 108th Congress issue."