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NRDC BACKGROUNDER
March 5, 2002
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Industry Attempting to Cripple
Senate Energy Bill
Today the Senate began debating a comprehensive energy bill
(S. 517, "The Energy Policy Act"), sponsored by Sen. Tom
Daschle (D-S.D.), that would increase vehicle fuel efficiency;
reduce our dependence on foreign oil; and encourage
development of cleaner, more efficient energy sources. But big
oil companies, electric utilities and automakers are trying to
eviscerate the bill with crippling amendments, many sponsored
by senators beholden to them for campaign contributions. NRDC
(the Natural Resources Defense Council) has identified some
likely amendments and their sponsors, and has connected them
with their campaign contributors. Some key senators to watch
include Thad Cochran, Larry Craig, Jon Kyl, Carl Levin, Frank
Murkowski and George Voinovich. They collectively received
hundreds of thousands of dollars from special interests, and
reporters should scrutinize their amendments with this in
mind. (Note: All campaign contribution information below is
from the Center for Responsive Politics, http://www.opensecrets.org/.)
An amendment killing the proposed higher standard for
fuel efficiency
As drafted, the Senate bill would
require automakers to boost average vehicle fuel efficiency to
35 miles per gallon by 2013, a significant effort to reduce
our nation's dependence on foreign oil. Carl Levin (D-Mich.)
is expected to offer an amendment that would give the National
Highway Traffic Safety Administration the responsibility for
deciding what to do about CAFE (corporate average fuel
efficiency) standards. NHTSA likely would embrace the Bush
administration's goal of increasing average fuel efficiency
less than 1 mile per gallon. Sen. Levin's fifth top
contributor between 1997 and 2000 was the automotive industry,
which gave him $42,800. During that time period, General
Motors ($24,000), was his top individual corporate
contributor. The senator also received $19,900 in PAC money
from the transportation sector in 2001-2002.
An amendment opening the Arctic National Wildlife Refuge
to oil development
Frank Murkowski (R-Alaska)
surely will attempt to attach his pet project -- drilling in
the Arctic Refuge -- to the Senate energy bill. The senator
received more money from electric utilities ($221,056) and the
oil and gas industry ($157,779) than any other industry
between 1997 and 2000. His top 10 individual contributors,
which collectively gave him $155,723, were all energy
companies or energy trade groups, including the Edison
Electric Institute, American Electric Power (the largest
utility in the country) and Chevron Texaco. In 2001-2002, the
senator also received $22,000 in political action committee
(PAC) contributions from energy and natural resource sources,
three times more than he received from any other sector.
An amendment weakening a new efficiency standard for air
conditioners
Thad Cochran (R-Miss.) is pushing an
amendment that would undermine a new standard for air
conditioner efficiency by replacing it with a lower standard.
The new standard would save more than 60,000 megawatts (MW) of
peak electricity demand by 2030 -- the rough equivalent of 204
mid-size power plants; save consumers billions of dollars in
electric bills; and cut millions of tons of carbon dioxide
emissions. Many utility companies support the new standard,
but apparently it's not in the interest of Sen. Cochran's
campaign contributors. From 1997 to 2000, electric utilities
($26,500) and oil and gas companies ($25,500) were among the
senator's top 10 industrial contributors. His top 10
individual contributors included Southern Co., a major coal
company ($8,000), and the National Rural Electric Cooperative
Association ($7,000). The senator also received $49,000 from
energy and natural resources PACs in the 2001-2002 election
cycle.
An amendment weakening a new "renewable energy"
portfolio standard
Renewable energy sources, such
as wind, biomass, geothermal and solar power, could supply as
much as 20 percent of our electricity by 2020. Regardless,
Frank Murkowski (R-Alaska), Larry Craig (R-Idaho) and Jon Kyl
(R-Ariz.) likely will attempt to weaken a market-based
mechanism requiring utilities to gradually increase the
portion of electricity they produce from renewable energy
sources to 10 percent by 2020. Sen. Murkowski's funding
portfolio is discussed above. Sen. Craig's top 10 industrial
contributors between 1997 and 2000 included electric utilities
(No. 1 at $76,550), the oil and gas industry ($48,000) and the
mining industry ($38,123). His top individual corporate
contributor over that time period was the FPL Group ($12,000),
an energy company whose main holding is Florida Power &
Light. Two other energy companies, Chevron Texaco and the
Entergy Corporation, each anted up $7,000, tying for the tenth
spot. In the 2001-2002 election cycle, Craig was the third top
Senate recipient for money from the coal industry and fourth
top recipient for mining industry contributions. During the
last election cycle he also received $127,284 from energy and
natural resources PACs, 40 percent more than he received from
any other PAC source. Sen. Kyl's top 20 industrial
contributors between 1997 and 2000 included electric utilities
($65,750), the oil and gas industry ($63,299) and the mining
industry ($59,881). His third highest individual corporate
benefactor was Pinnacle West Capital ($25,250), whose major
subsidiary is Arizona Public Service, an electric power
company. In the 2001-2002 election cycle he also received
$3,500 from energy and natural resources PACs.
An amendment that would restrict public review of energy
projects
George Voinovich (R-Ohio) likely will
offer an amendment that would "streamline" the permitting
process for electricity transmission lines and energy
facilities on federal lands. By speeding up the process, this
amendment would limit public participation and scientific
review of energy projects on public lands. Sen. Voinovich
received $163,292 from the oil and gas industry and $99, 707
from electric utilities between 1997 and 2000. General
Electric ($25,350) was among his top 10 individual corporate
donors. During the 2001-2002 election cycle, he also received
$63,517 from energy and natural resources PACs, more than
twice what he received from any other sector.
The Natural Resources Defense Council is a
national, non-profit organization of scientists, lawyers and
environmental specialists dedicated to protecting public
health and the environment. Founded in 1970, NRDC has more
than 500,000 members nationwide, served from offices in New
York, Washington, Los Angeles and San Francisco.