Energy bill sends new tax breaks to oil, gas, coal industries

WASHINGTON -- Two-thirds of the $23 billion in tax breaks in the Republican-drafted energy bill would go to the oil, gas and coal industries. Democrats slammed the legislation, one describing it as "a hodgepodge of subsidies for the politically well-connected."

Congressional estimates released Monday put the cost of the package, the first overhaul of the nation's energy priorities in a decade, at $32 billion over 10 years, including about $9 billion for nontax-related measures and revenue losses.

A House-Senate conference began considering a string of Democratic amendments, but few if any were expected to survive. GOP conference leaders said they were determined to complete the legislation so the House could take it up as early as today.

"This is a solid agreement," said Sen. Pete Domenici, R-N.M.

He said the GOP bill, which includes 1,148 pages, was the product of delicate compromises between the House and Senate, and changes could jeopardize the package.

"I don't think we can take a risk of undoing this," said Domenci.

Democrats argued the legislation falls short of what is needed.

Rep. Jeff Bingaman, D-N.M., said the bill lacks enough incentive to promote domestic production or foster energy conservation to reduce America's reliance on oil imports or guard against problems in the electricity industry that led to soaring power prices in the West two years ago or the blackout last August.

"The tax goodies go to huge energy conglomerates, and most subsidize things that the companies already are doing," complained Sen. Ron Wyden, D-Ore., another of the conferees.

Only about $1.5 billion in tax breaks over 10 years is earmarked for energy efficiency.