A Comprehensive Energy Bill

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There is a chance, in spite of the gridlock and partisanship on Capitol Hill, that this Congress, in an election year, may for the first time in over a decade pass a bipartisan, comprehensive energy bill. But as Yogi Berra once said, “It ain’t over till it’s over.”

Senate Energy and Natural Resources Chair, Senator Lisa Murkowski (R-AK) and Ranking Member, Senator Maria Cantwell (D-WA) managed to pull together enough votes to move S. 2012, the Energy Policy Modernization Act out of Committee. Both Senators refused to allow controversial amendments to distract from the bill’s central purpose, and the bipartisan legislation was approved by the Committee by a large margin. The bill is currently being debated on the Senate floor.

The legislation addresses a broad range of energy policies that have not been reassessed and updated for over ten years. The bill attempts to resolve a number of basic issues and upgrade policies that have become obsolete. The bill includes new infrastructure rules to expedite the expansion of pipelines to ports and speed up the permitting process for LNG terminals. The bill would facilitate the permitting process for gas exports, advance energy efficiency standards for public and private buildings and permanently reauthorize the Land and Water Conversation Fund. It requires upgrades of the country’s infrastructure to provide stronger security and efficiency of the electric grid. Additional provisions in the bill would eliminate a number of outdated or redundant mandates.

The challenge for the legislation’s supporters is to keep controversial and deal-breaking amendments from being added on the Senate floor. More than 150 amendments have already been filed, running the risk that it will bog down in partisanship. Many of the amendments are constructive, but many are not. One amendment provides aid to Flint, Michigan; another attempts to resolve environmental issues in California. The challenge will be for the Senate leadership to keep the bill from sinking under the weight of possible add-ons. Both Senate Majority Leader Mitch McConnell and Minority Leader Harry Reid support the bill and will fight to keep any bill-killing amendments from being added. 

With the passage of the omnibus appropriations and tax bill last month, the controversial issues of ending the ban of crude oil exports and extending the tax breaks for renewable energy sector are no longer a hindrance. The removal of those issues will make it easier to pass the Senate bill. 

The House has already passed companion legislation. When first introduced, H.R. 8, the North American Energy Security and Infrastructure Act, had broad bipartisan support, but Democratic members abandoned the bill after a number of controversial amendments were added by Republicans. The legislation passed the House along partisan lines. House Energy and Commerce Chairman Fred Upton (R-MI) has conceded that the bill is too partisan. Anticipating a conference with Senate negotiators, Upton said, “I remain confident…that we can a get a bill that is in fact bipartisan that the President can sign.”

The game is definitely not over, but the chance of a bipartisan, comprehensive energy bill passing the Congress and being signed into law by the President has never been better. It will happen.

 
 
 
 

Michael A. Andrews
Washington, DC
+1 202 626 5609
mandrews@kslaw.com
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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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