The Energy Council has unanimously adopted a policy statementvoicing strident opposition to congressional restructuring measuresthat would mandate states to use a specific fuel mix in thegeneration of electric power. It also said it was against federallymandated targets for states to supply power from renewable energysources.

“State legislative and regulatory bodies, currently heavilyinvolved in electric restructuring, are in the best position toevaluate fuel mix considerations. Congressional legislation shouldnot limit, through the use of mandates or otherwise, stateflexibility in addressing fuel usage in electric restructuringplans,” according to the statement proposed by Texas Sen. J.E.”Buster” Brown during a joint conference of the council and theInterstate Oil and Gas Compact Commission being held in WashingtonD.C. this week.

The electricity industry is “marked by tremendous diversity,regionally and state-to-state, with fuel usage varying widely,” thepolicy statement wrote, adding that any federal legislation that”fails to recognize fuel-diversity factors inevitably penalizes oneregion or state or another.” Likewise, renewable energy sources are”characterized by a broad range of technologies, cost efficienciesand environmental concerns,” rendering mandates impossible, thepolicy statement noted.

The council said it plans to forward the policy statement toPresident Clinton, House Speaker Newt Gingrich (R-GA), SenateMajority Leader Trent Lott (R-MS), congressional delegations andgovernors of its member states, Energy Secretary Federico Pena andEPA Administrator Carol Browner.

In a separate policy statement, the Energy Council urgedCongress to consider tax legislation to improve the odds forconstruction of an Alaskan liquefied natural gas (LNG) project.”The economics of an Alaskan LNG project could be improved byfederal tax measures similar to those passed to facilitate oil andgas development in the deep-water Gulf of Mexico,” the councilsaid.

“The region’s discovered natural gas reserves, estimated at 35Tcf, [currently] are stranded from commercial development becauseof the costs associated with providing access to markets for thatgas.” As a solution, a number of companies operating in Alaska haveexpressed an interest in financing an LNG export project to movethat gas to market “if it is economically feasible,” the councilnoted.

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