Illegible form or record, date and subject unclear

NYC 9/11 Public Portal Document

Dems, GOP Brace for Fight Senate energy committee Chairman Jeff Bingaman (D- N.M.) argues that the Democrats’ new bill is stronger on

Next Year over Energy Bill renewable energy than the GOP plan. The Democrats would require retail power suppliers to boost the share of power from nonhydro renewables by 2.5 percentage points in 2005 ■ ast spring, energy was on everyone’s lips. California was and 10 percentage points in 2020. Nonhydro renewables now I grappling with an electric-power crisis. Natural gas and account for about 3% of U.S. electric power, a committee l■gasoline prices had shot up. The Bush administration aide says. The bill also would hike alternative motor fuels, produced a report that warned, “America in the year 2001 mainly ethanol, to 5 billion gallons a year in 2012. Current faces the most serious energy short^e since the oil embar­ capacity is less than 2 billon gals. In addition, the measure goes of the 1970s. ” But since then, energy crisis talk has near­ has loan guarantees to help launch a new gas pipeline from ly vanished, prices have turned south and the White House Alaska to the lower 48 states. It mandates revised energy-effi- has focused on the war against terrorists. ciency standards for new federal build­ The House did pass an energy measure Senate ings and extends the Price-Anderson Act on Aug. 2. But in the Senate, partisanship and its indemnification for Dept, of has reigned. Alaska Sen. Frank Murkows- majority Energy contractors. ki, the top GOP energy committee mem­ leader has ■is. / The Edison Electric Institute is ber, on Dec. 3 failed to attach an energy “pleased that the bill does include elec­ biU to a railroad retirement measure. Two committed to tricity provisions,” such as repealing the days later. Majority Leader Thomas A. Daschle (D-S.D.) introduced his party’s begin the Public Utility Holding Company Act, says spokesman Jim Owen. But EEI is con­ energy package, but was in no hurry to floor debate DASCHLE cerned about other elements. Owen says move on it He did pledge to begin the bill apparently would let the Federd debate on the measure in early 2002. on broad- Energy Regulatory Commission require The Democratic and Republican ener­ based energy legislation utilities to divest capacity even when no gy proposals cover a slew of topics, but market abuse is found. The Democrats’ when die bill hits the Senate floor the bat­ but not until early next bill also doesn’t give EERC eminent he will center on whether to permit oil and gas drilling in part of AHska’s Arctic year. domain for siting transmission lines. Murkowski says he is “absolutely dis- National Wildlife Refuge. Bush and most of the GOP want to mayed at the partisanship that has gone into putting this open ANWR. Daschle and many Democrats don’t “I think in [Democratic] bill together.” He sees little difference between the broadest sense ANWR is the big issue to be resolved the Democrats’ new bill and the one they proposed earlier. [though] certainly not the only one and arguably not the only With no deal in sight on ANWR, comments like Murkowski’s one that’s important to our company and our community,” indicate energy legislation continues to face a tough Senate says Bill Birkhofer, Jacobs Engineering Group’s vice president fight for government relations. —By Tom Ichniowski

■ Highways Rep. Young ties, including tariSs of up to 40%, but ■ Taxes Accounting rules blasts funding earmarks generally were lower than those sought eased for small firms ; I by steelmakers and the United Steel­ Leaders of the House Transportation workers of America. President Bush will The Internal Revenue Service is chang­ and Infrastructure Committee are set final penalties. He isn’t bound by ing its accounting regulations for cer­ upset at what appropriators did in the the rrc proposals. On Oct. 22, the rrc tain small construction firms. On Dec. 2002 transportation spending biU that said imports of 12 products, including 10, the IRS said that firms with annual cleared Congress on Dec. 4. The bill rebar and plate, hurt the U.S. industry. revenue below $10 million can switch has $33 billion for highways, but appro­ The steelworkers will be pushing for to the cash method of accounting from priators took $423 million that was to the high tariff levels, says Bill Klinefel­ the more burdensome accrual method. be divided among all states by formula ter, legislative and political director. Jon The change will take place for tax years and parceled it out to a variety of spe­ Jenson, chair of a steel users’ group, ending on or after Dec. 31, 2001. cific projects, says Transportation and says, “For flat-rolled [items], the effect This decision is important for small a Infrastructure Chairman Don Young will be significant and negative for the contractors, says Phil Thoden, the Asso­ S (R-Alaska) and other key members of economy and for steel-using con­ ciated General Contractors’ director of I his authorizing panel. The flap is the sumers.” Adds Emergency Committee tax and fiscal affairs. He says the cash ! latest round in the Capitol Hill turf for American Trade President Caiman method is practical because it recog­ fight over who controls highway aid. Cohen: “Traditionally these...high tar­ nizes income and expenses when cash iffs have not remedied the problems is paid to a company or by a company. i ■ Steel Panel proposes that the industry has presented.” The accrual method is often problem­ tariffs, quotas on imports (ECAT’s Chairman is Harold W. McGraw III, Chairman and CEO of The atic for small businesses because it requires taxes to be paid on money p I U.S. International Trade Commission McGraw-Hill Cos., which publishes firms have not yet received. Larger & members have called for big tariffs or ENR.) U.S. Steel LLC announced Dec. 4 firms are not affected by the rule. quotas on steel imports to help domes­ that it has had preliminary talks about tic steelmakers. On Dec. 6, the six ITC consolidation with other domestic steel­ ■—Compiled by Sherie Winston and o members proposed a range of penal- makers. Tom Ichniowski |

1 DEEMBER 17, 2001/ENR 9 J

NYC-WTC_000141880