12-07-2002
ENERGY: Energy Debate Plugs Right Along
With Congress having failed to pass the 2002 energy bill, congressional
battles over energy policy will continue next year, this time with
Republicans controlling the action in both the House and the Senate. Some
energy lobbyists want GOP leaders to push for legislation that's similar
to last year's House-passed package, which would have provided $34 million
in subsidies to the energy industry and would have allowed oil drilling in
Alaska's Arctic National Wildlife Refuge.
House Republican staffers say comprehensive new energy legislation will be
introduced early next year. But with the Senate still very closely
divided, next year's debate will likely resurrect many of the disputes
that doomed the energy bill this year in conference committee. As a
result, Senate Republican leaders are considering tacking the Alaska
drilling project onto a budget reconciliation bill so that it could be
passed by a simple majority and thus avoid the need to have enough votes
to break a filibuster.
Electricity
American Public Power Association
This association represents 2,000 community- and state-owned utilities; it
sends mayors and other officials to twist arms on Capitol Hill. However,
the group is somewhat hampered by the fact that its membership includes
both large and small entities, which have divergent interests. As a
result, the group's organizational cousin, the Large Public Power Council,
which represents 24 large public utilities, has become increasingly
influential.
LPPC also takes a more compromise-oriented approach than does APPA. On the
energy bill, both groups will fight proposals to establish new federal
control over their operations. They also want Congress to increase
government oversight of energy-company mergers before it repeals the 1935
Public Utility Holding Company Act.
Edison Electric Institute
Despite its large war chest, EEI has been weakened by splits within its
ranks. Some of the 200 electric utilities that belong to the group want
Congress to push electricity competition; others prefer the status quo.
Late this year, the institute was jolted into action because it believed
the proposed energy bill included too many restrictions on competition. On
the plus side for the group, President Thomas Kuhn is personally close to
Bush. Expect EEI to push for repeal of the Public Utility Holding Company
Act, which restricts the business activities of some large
companies.
Electric Power Supply Association
This group has been weakened by the collapse of Enron and other
independent power producers and by the public perception that some of its
members ripped off consumers during the 2001 California energy crisis. But
the organization plays an important role in countering the arguments of
utilities that oppose electricity competition. The association will
continue to push for greater access to utility-owned electric-transmission
lines.
National Association of Regulatory Utility Commissioners
This sleepy group recently got active when the Federal Energy Regulatory
Commission floated a plan to federalize some responsibilities currently
handled by the state regulators who constitute NARUC. The group opposes
proposals to give FERC more power over the electric grid and efforts to
give the federal government eminent domain power when building
electric-transmission lines.
National Rural Electric Cooperative Association
Despite its modest resources, this association punches above its weight.
That's because rural states have disproportionate sway in the Senate. The
association represents 860 electric cooperatives, many of which are small
operations serving rural areas-companies that are easy to sympathize with.
The group opposes federal legislation that would speed up electricity
deregulation at the state level. When Senate Majority Leader Thomas A.
Daschle, D-S.D., becomes minority leader, the group will lose some of its
power on Capitol Hill.
Southern Co.
As the "ultimate vertically integrated utility," in the words of
one Hill aide, Southern Co. leads the electric utility firms that oppose
electricity competition. The company's clout comes from close ties to
Mississippi Republican Trent Lott, who will soon regain the title of
Senate majority leader, and to incoming Senate Banking, Housing, and Urban
Affairs Committee Chairman Richard C. Shelby, R-Ala., whose panel oversees
some aspects of energy policy.
Nuclear Power
Nuclear Energy Institute
The sole voice of the nuclear industry in Washington, the Nuclear Energy
Institute has been called highly partisan since it shifted to a strongly
pro-GOP stance in 1994 and fired Democratic staffers. Democrats say the
institute, which has 260 corporate and research member organizations, must
win the support of moderate Democrats if it is to accomplish anything in
the Senate. The institute supports renewal of the Price-Anderson Act,
which provides disaster insurance for nuclear power plants, and will lobby
for federal tax incentives and subsidies for the industry.
Oil and Natural Gas Development
Arctic Power
Funded by the state of Alaska, Arctic Power is the biggest booster of
drilling in Alaska's Arctic National Wildlife Refuge. The organization
represents industry trade groups and other economic interests in the
state. The dirty little secret about ANWR is that gaining drilling rights
there is not a very high priority for the American Petroleum Institute or
for most major oil companies. However, both sides in Congress see it as a
marquee issue-one that they regularly spotlight in attacks on their
opponents. Along with Arctic Power, the other big movers on the issue last
year were labor unions, led by the International Brotherhood of Teamsters.
The unions argue that opening the refuge would create jobs-though
estimates of the number vary widely.
Independent Petroleum Association of America
This group represents the companies that do most of the land-based oil and
natural gas drilling on the U.S. mainland. Boasting more than 5,000
members, the association enjoys the support of the Western Republicans who
dominate the Senate Energy and Natural Resources Committee. More than
anything, the group wants royalty relief and tax law changes to buffer its
member companies from the price volatilities of the oil and natural gas
markets.
Ethanol
Renewable Fuels Association
Thanks to the influence of Corn Belt lawmakers in Congress, this
ethanol-industry group seems to have the upper hand in the battle over
gasoline additives. The declining clout of Daschle may hurt ethanol
supporters, but every potential presidential candidate supports ethanol,
an issue important to corn growers who vote in the Iowa presidential
caucuses. The association, which has at least 150 members (it doesn't
release a list), supported a provision in the energy bill that would have
required increased ethanol use in the United States. The most influential
ethanol producer is Illinois-based Archer Daniels Midland, which spreads
around a lot of money behind the scenes.
Oxygenated Fuels Association
This group has 13 corporate members and plans to fight congressional
efforts to ban the use of gasoline additive MTBE, which contains methanol,
a highly flammable, poisonous chemical. Its power base comes from
producers in Texas and Louisiana, who rely on House Energy and Commerce
Chairman W.J. "Billy" Tauzin, R-La., and House Majority Leader
Tom DeLay, R-Texas, to press their case. The ban is being pushed by states
that have found methanol in groundwater and by ethanol producers who want
a bigger chunk of the gasoline additive market.
Vehicle Efficiency
Alliance of Automobile Manufacturers
With very deep pockets and a powerful campaign claiming that the
government wants to take away vehicle choice, this group will continue to
fight proposals to increase fuel-efficiency requirements for vehicles. The
alliance represents the nation's 12 largest makers of cars, trucks, and
SUVs. Together, they have facilities in 35 states-a key factor in their
influence with Congress. In this year's successful campaign, the United
Auto Workers also provided crucial support.
Climate Change
Pew Center on Global Climate Change
The Pew Center, representing businesses that support aggressive action to
curb U.S. emissions of greenhouse gases, plays a key role in the debate
over climate-change issues. The group carries weight in Congress because
it has 37 major member companies and because its founder, former Clinton
aide Eileen Claussen, takes a "realistic" approach to climate
issues, according to Hill staffers.
The center supports proposals to permit companies to voluntarily report
their greenhouse-gas emissions, with a mandatory reporting requirement
kicking in if too few firms comply. Climate-change provisions are opposed
by a broad cross section of groups representing the manufacturing, oil,
and coal industries.
Environmental Groups
Natural Resources Defense Council
The Natural Resources Defense Council opposes government tax breaks for
the oil, natural gas, coal, and nuclear industries, and opposes drilling
in the Alaskan wildlife refuge. NRDC lobbyists have also pushed for higher
vehicle fuel-efficiency standards. The group has more than 500,000
members.
Wilderness Society
This environmental group is credited with leading the charge against
drilling in Alaska's wildlife refuge. The society also opposes energy bill
provisions that promote drilling on public lands in the lower 48 states.
The group has 250,000 members.
Sierra Club
The club has more than 700,000 members. However, Capitol Hill staffers say
the group's policy arm is weaker than those of some other environmental
groups. The Sierra Club is active on such issues as global warming,
nuclear power, and wilderness protection.
Margaret Kriz and Louis Jacobson
National Journal
