Comprehensive Energy Legislative Package Introduced to Senate

A major legislative package addressing energy issues, including the Strategic Petroleum Reserve (SPR) and oil and gas drilling in the Arctic National Wildlife Refuge (ANWR), has been submitted to Senate Majority Leader Trent Lott. The package, developed by the energy task force led by Senator Frank Murkowski, aims to resolve energy problems confronting the nation. The task force's deliberations, which began in March, have resulted in a comprehensive plan addressing multiple facets of energy policy, including weatherization programs and renewable energy initiatives.

Key Takeaways:

• The legislative package reauthorizes the Strategic Petroleum Reserve (SPR) without the controversial baggage of the SPR bill, H.R.2884, which would have required the creation of a heating oil reserve in the Northeast and authorized the purchase of oil from stripper wells.
• The package opens up parts of the Arctic National Wildlife Refuge (ANWR) for oil and gas drilling, despite a previous Senate vote to strip out contentious language from the fiscal 2001 budget resolution.
• The package incorporates the marginal well tax incentive bill, introduced by Senator Kay Bailey Hutchison, which provides a $3/barrel tax credit to marginal well producers when oil prices fall to between $14-$17/bbl.
• A rift exists within the task force over the ANWR provision, with key members opposing its inclusion in the package.
• The package also addresses weatherization programs and renewable energy initiatives.

Statistics:

• Oil price range for the marginal well tax credit: $14-$17/bbl
• Tax credit amount: $3/barrel
• Senate vote to open up ANWR: 51-49
• Fiscal year: 2001
• Number of task force members: 10

Sources:

• Senate Majority Leader Trent Lott
• Energy and Natural Resources Committee Chairman Frank Murkowski (R- Alaska)
• Sen. Kay Bailey Hutchison (R-Texas)
• H.R.2884, The SPR bill
• Fiscal 2001 budget resolution
• Senate energy task force