The Republican-written bill would encourage increased long-term production of domestic oil, natural gas, coal, nuclear and other forms of energy. It aims to reduce American dependence on foreign energy sources.
President George W Bush said the House energy legislation was consistent with the key objectives of his national energy policy which included increasing conservation and efficiency, expanding domestic production in environmentally responsible ways, diversifying energy supplies with more renewables and clean fuels, and modernising energy infrastructure.
“For more than a decade our nation has not had a sensible, balanced and comprehensive energy strategy. An energy bill will help us make better use of the energy supplies we have and will make our supply of energy more affordable and more secure for the future. I look forward to swift senate action so that I can sign a bill into law by August,” Bush said.
Before becoming law, the measure has to be reconciled with the energy bill being developed by the Senate Energy Committee, which expects to finish writing its bill in May, followed by a vote in the full Senate.
Republican chairman of the Senate Energy and Natural Resources Committee, senator Pete Domenici, said Thursday he was readying a draft of comprehensive energy legislation to circulate to the panel's members.
Domenici met with committee Republicans this week to discuss a short-list of unresolved issues and will meet with them again next week.
The draft legislation is a bipartisan effort that Domenici has worked on with Democratic member Jeff Bingaman and other committee Democrats.
Tax breaks and subsidies of $US12 billion will mostly benefit traditional energy providers though there are some incentives for the development of renewable energy.
Controversially, the energy bill contains a so-called safe-harbor provision for manufacturers of methyl tertiary butyl ether (MTBE), a fuel additive. At least 80 lawsuits involving MTBE have been filed related to the contamination of drinking water sources.
The bill also calls for phasing out the use of MTBE by the end of 2014. Domenici has promised to not include MTBE-liability protection in the Senate version.
