ENERGY BILL: COMPROMISE MAY BENEFIT POLS

The net result of partisan squabbling: It will probably be impossible to do anything significant anyway so some are beginning to think it might be smart to do little and claim much. The administration is thinking about the President’s legacy. Congressional leaders are thinking about the party’s so far quite dissatisfied base. The President has to decide how much fossil fuel industry support he will compromise on to provide for his legacy. The Democrats have to decide whether they want an energy bill or a veto to run on in 2008.

White House, Congress may find rare agreement on energy bill
Jim Snyder, October 16, 2007 (The Hill)

WHO
Lobbyists and insider privy to the Capitol Hil negotiations, U.S. President George W. Bush, Democratic congressional leaders (Speaker of the House Nancy Pelosi, D-Calif., and Senate Majority Leader Harry Reid, D-Nev.

Nothing but this at stake... (click to enlarge)

WHAT
Energy legislation, currently running the gauntlet negotiations between the Senate, the House and the White House, may offer opportunities for compromise that would make the provisions less important but leave the politicians with something to campaign on.

WHEN
A resolution to the back room negotiations is promised by congressional leaders for before the end of the year.

WHERE
The legislation is expected to impact all sectors of the US energy industry.

WHY
- There has been little the Democrats and Republicans have come to terms about this fall. The recent childrens’ health insurance debacle is just the most recent in a series of dogfights between the Republican White House and Democratic Congress.
- The energy legislation is has several areas of abject contention: (1)The Senate has a new auto efficiency (CAFÉ) standard that the White House and some House Democrats reject. (2) The House has a national Renewable Electricity Standard (RES) that the White House and many Senate Republicans reject. (3) The White House rejects all increased tax burdens on the fossil fuel industries. (4) Congressional leaders want to incentivize renewable energies. (5) Many Democrats want to make it possible to sue OPEC and gas price gougers.
- The President may get an increase in the production of renewable transportation fuels in he is willing to compromise on the mandate for corn-based ethanol, allowing Democrats to claim they have blocked the worst impact on food prices.
- Democrats may get weakened though higher CAFÉ standards and even a weakened RES if they give in on the lawsuit provisions and cut back taxes and limitations on fossil fuels.

...and this, of course. (click to enlarge)

QUOTES
- Martin Edwards, lobbyist, Interstate Natural Gas Association of America: “The administration would like a couple of domestic policy wins at this point…And this is an achievable win.”
- Unnamed utility lobbyist: “It’s like a Turkish bazaar…You can negotiate a number on CAFE. You can negotiate a number on RPS…[Democrats have to decide] whether they want a bill or a veto.”