Sen. Inhofe opposes energy bill that could help Oklahoma City manufacturer

Jul 30, 2010 — The Daily Oklahoman

Chris Casteel

Jul. 30, 2010 (McClatchy-Tribune Regional News delivered by Newstex) -- WASHINGTON -- Though a new Senate energy bill includes provisions that could help an Oklahoma City manufacturer and others to boost natural gas vehicles, Sen. Jim Inhofe says other parts of the bill would hurt energy producers.

Inhofe, R-Tulsa, has been speaking out against the legislation, even though it contains a proposal that he and T. Boone Pickens have been touting to give tax credits for the production of natural gas vehicles.

The bill also includes Home Star rebates -- which have been called "cash for caulkers" -- that could boost production at M-D Building Products in Oklahoma City. The company makes a host of weatherization products used by contractors and people who do their own home improvements. The bill offers rebates up to $8,000 for homeowners who do retrofits.

Sean Mossman, vice president of marketing for those products, was in Washington this week and said the main intent of the rebates was to jump-start the construction industry. If there was enough demand, Mossman said, the company could add jobs at its 400-employee plant in the city.

Pickens and natural gas interests have been pushing hard for the natural gas vehicle incentives, but Inhofe has said the objectionable things in the bill outweigh the positives.

Inhofe said the bill would give the federal government authority over hydraulic fracturing and ensure that only the world's biggest energy companies could drill offshore.

The bill does not give the Environmental Protection Agency the authority to regulate hydraulic fracturing under the Clean Water Act, as some lawmakers want. It would require companies that use hydraulic fracturing to report to the federal government what chemicals are used.

Hydraulic fracturing is the process by which sand, water and chemicals are injected into rock formations to break them up and release gas or oil.

Matt Dempsey, Inhofe's spokesman on environmental issues, said Inhofe believes that requiring the federal disclosure would be the first step toward regulating the process, which is already overseen by state governments.

The Senate bill also would remove the $75 million cap on liabilities for oil spills. Inhofe and other lawmakers contend that removing the cap altogether would prevent independent oil and gas drillers from getting the insurance necessary to drill in federal waters. Some insurance companies have sent letters to the effect that their rates would skyrocket if the liability cap was removed.

The Senate may take up the bill before leaving next week for their summer recess. But there are numerous questions about whether it will have enough support to get past the first procedural hurdle.

Monty G. Humble, who works on energy issues for the law firm of Alston and Bird, said Wednesday, "It's not clear whether (the Senate) is trying to pass energy legislation or score political points before the election."

Denise Bode, the former Oklahoma Corporation Commissioner who now heads the American Wind Energy Association, said the legislation lacks a provision that could boost economic development around the country by requiring more renewable energy.

Bode said more than 60 senators would support an amendment to the energy bill that would set a national standard for how much renewable energy, like wind, utilities must use in power production.

The lack of a national standard, she said, has caused the wind industry to stall out in the first half of this year. Approving one, she said, would create manufacturing jobs around the country.

"The place we are right now is in distress," she said.

Dempsey said Inhofe would not support a national renewable energy standard; the senator believes those standards should be set by states, Dempsey said.

Oklahoma is one of 30 states that has a renewable energy standard.

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