NCGA News














House Begins Energy Bill Mark-Up, Notes NCGA (4-07-05)

The House Energy and Commerce Committee began its mark-up yesterday on the House version of the comprehensive energy bill. Following brief opening statements, the committee began the mark-up process, which will run through next week. It is expected the bill will make its way to the House floor the week of April 18.

The House Resources and Ways and Means committees also are expected to have completed their energy mark-ups by then so their provisions may be added to the final product.

While the House Energy and Commerce Committee had hoped to work through amendments to at least the first three titles of the bill, it adjourned before completing work on amendments to Title II. The ethanol and fuels provisions are in Title XV.

Committee Chair Joe Barton (R-Texas) said he expects between 70 and 80 amendments to be introduced with debate focusing on the legal protections for producers of the fuel additive methyl tertiary butyl ether (MTBE); language that gives federal regulators authority over siting liquefied natural gas (LNG) import terminals; and plans to strike provisions that would require transmission customers who benefit from upgrades to the nation's power grid to pay for those upgrades themselves.

In related action, National Corn Growers Association (NCGA) President Leon Corzine, in a letter to Barton on Tuesday, applauded the committee’s efforts to pass comprehensive energy legislation as a matter of energy, national and economic security. He urged the committee to act expeditiously.

Citing that oil prices have climbed to more than $58 a barrel and the national average price for gasoline has now soared to $2.21, up from $1.89 one month ago, Corzine asked the committee to include in the energy legislation provisions that will: increase the production and use of domestic renewable fuels; expand domestic production and construction of infrastructure for natural gas and other energy resources; and provide federal loan guarantees and other incentives for the retrofitting of existing natural gas-fired facilities with the new integrated gasification combined-cycle and other advanced clean coal technologies.

The letter also notes that ethanol, a renewable fuel, is not the only solution to ending the U.S. dependence on foreign oil, but is playing an integral part in finding a long-term energy security solution. “Approximately 30 percent of the nation’s gasoline is now blended with ethanol, stimulating all sectors of the U.S. economy, bringing desperately needed jobs to rural America, and contributing to a ‘greener’ way of living,” said Corzine.

The letter also addresses another key issue--natural gas prices--which are having adverse affects on energy and U.S. farmers. Corzine notes increased natural gas prices are negatively impacting farmers through higher production costs and will continue to do so in the future. He said reasonably priced natural gas is essential to grower profitability.

“Congress needs to enact a comprehensive energy policy now that provides an enhanced role for renewable energy sources, further development of all energy resources for a more diverse portfolio, and environmentally sensitive production of adequate domestic supplies of natural gas,” the letter concludes.

Last reviewed April 7, 2005

 



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