WASHINGTON (AP) - The Bush administration's energy task force will urge relaxing clean air requirements to help refiners meet gasoline demand, and call for tax breaks for some renewable energy such as wind and solar panels, according to government sources.
The refinery proposal is aimed at addressing a petroleum industry complaint that federal and local air quality rules often require production of slightly different blends of gasoline, putting added strain on the supply and distribution systems.
The so-called boutique blends of gasoline have been the subject of vigorous complaints from refiners, who argue that they are not needed to meet federal air quality goals, but prevent shifting of gasoline supplies where they are most needed.
It was not clear Thursday whether the proposal would assume a waiver in some cases of reformulated gasoline, which accounts for about a third of the gasoline sold nationwide. This cleaner gasoline contains an oxygen additive and is required in areas with serious pollution problems.
The energy task force is headed by Vice President Dick Cheney.
Separately, the House took its first action Thursday to try to ease California's power problems this summer, but in a subcommittee vote rejected Democratic demands for price controls on Western wholesale electricity.
The bill, approved by an Energy and Commerce subcommittee by a 17-13 party-line vote, ``will not stop blackouts,'' said Rep. Joe Barton, R-Texas, its chief sponsor, but give California some additional tools to boost supplies this summer.
In a letter to Barton, California Gov. Gray Davis said the measure ``will do little to address our current situation.'' He urged approval of price caps on soaring wholesale electricity prices. Caps were rejected by a 20-12 vote with solid GOP opposition including the three California Republicans on the subcommittee.
The Cheney task force, which will present its report to President Bush next week, also will propose regulatory relief for construction of nuclear power plants and tax incentives for development of technologies that make coal less polluting.
Both nuclear and coal, which together account for nearly three-fourths of the electricity produced, are essential to meet future energy needs, the task force will declare. While urging expanded development of natural gas, the report will warn against relying too heavily on a single energy source including natural gas.
While the energy blueprint will focus heavily on long-range plans to boost energy supplies, the administration in recent weeks has scurried to include additional conservation and energy efficiency measures.
Fearing a backlash from environmentalists, Republicans and Democrat in Congress have urged the administration to not ignore efficiency and renewable energy sources.
``We need a balanced approach. We need renewables and conservation,'' said Sen. Frank Murkowski, R-Alaska, chairman of the Energy and Natural Resources Committee, who also is an advocate for the measures to expand supplies including drilling in the Arctic National Wildlife Refuge.
The task force will urge Congress to approve drilling in the refuge.
The task force's efficiency and renewable proposals will focus heavily on providing tax incentives including tax breaks for the development and purchase of more fuel efficient ``hybrid'' gas-electric automobiles, residential solar panels, wind generation, and development of hydrogen fuel cells, according to sources who spoke on condition on anonymity.
In other energy-related developments Thursday:
Senate Democrats complained that they have been ``left in the dark'' about the administration's energy plans and should have been consulted by the Cheney task force.
Sen. Byron Dorgan, D-N.D., said he will soon introduce legislation to create a special House-Senate committee to investigate soaring energy prices. He said there are all the indications of price manipulation and a committee ``would keep the spotlight'' on the electricity and gasoline markets.
Sen. Dick Durbin, D-Ill., called for creation of a national consumer energy commission that would give a voice to consumers in the debate over energy shortages and rising prices.
©The Associated Press May 10 2001 7:03PM