Energy Bill Heads For Home

Tax Package Is Final Hurdle For Long-Delayed Legislation

(AP) 
Responding to a Chinese company's recent move to buy California-based Unocal, the conferees including a provision to require the government to wait for completion of a 120-day security review by the Pentagon and other agencies before the government's Committee on Foreign Investments in the United States can trigger its formal review.

"I think we ought to slow things down," Sen. Byron Dorgan, D-N.D., said, joining House conferees in strong support of the measure.

The provision, opposed by the White House, reflected the serious concern by many in Congress over China's attempt to buy California-based Unocal, or other U.S. energy companies.

Working well past midnight, the conferees addressed dozens of amendments to the wide-ranging bill.

Separately, congressional tax writers were expected to finish an energy package expected to cost about $11.5 billion in tax breaks for both energy production and conservation. The tax discussions have been behind closed doors and no details were available.

Some lawmakers said the bill should have included more to promote energy savings.

Dorgan tried to include a Senate-approved measure that would have required the president to develop a program to reduce future oil use by 1 million barrels a day. It was rejected.

An attempt by Markey to strip from the bill loan guarantees for new energy technologies, including development of the next generation of nuclear reactors also failed.

The conferees approved a White House proposal to provide "risk insurance" against regulatory delays for companies that want to build a new nuclear power plant. The measure, highlighted by Bush in a speech last April, would apply for the first six reactors built.

The requirement for an inventory of offshore oil and gas resources was criticized as a prelude to drilling in coastal waters now off limits including off Florida.

"This is the first step to oil drilling in areas now off limits," said Rep. Henry Waxman, D-Calif. Supporters of the measure argued the government and industry should know what resources are available even if drilling isn't planned.

One of the most contentious environmental issues of past energy debates, whether to drill for oil in an Alaska wildlife refuge, became a non-issue this time. The House approved such drilling, but the Senate ignored the issue. It was not included.

Another thorny issue, involving product liability protection for makers of the gasoline additive MTBE, was resolved when House conferees abandoned the measure.