Senate defeats move to cap climate gases

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Two years ago, the McCain-Lieberman proposal got 43 votes when it was offered as part of an energy bill two years ago.

Opponents said mandatory caps on greenhouse emissions would hurt the economy while driving the coal and other industries out of business. They also said such caps would do little to solve the climate problem because emissions are continuing to grow in China and elsewhere.

"The reason this bill can't pass is because it can't be implemented," said Sen. Pete Domenici, R-N.M.

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He said Bush is pressing for voluntary measures to rein in the growth in emissions "and I don't argue with him."

Mandatory caps would be costly
Sen. James Inhofe, one of the leading skeptics of climate change science, said, "Energy prices and the economy is what we're talking about." Inhofe, R-Okla., said the mandatory caps would be "devastating" to industry because of their cost.

When it came to imports of liquefied natural gas, many senators from coastal states objected to a part of the energy bill that says federal regulators have "exclusive" authority in the final say about where a facility is built.

"States must have a role in siting LNG facilities to protect the welfare of their citizens," said Sen. Dianne Feinstein, D-Calif.

She failed in an attempt to add proposals that would have given governors the right to veto a federal siting decision.

Shortfall of natural gas
Energy experts predict a soaring growth of LNG imports over the next 20 years to make up for a shortfall of domestic natural gas. Currently, there are only four import terminals. But some 40 new facilities have been proposed; perhaps one-third of them are expected to be built.

"Our biggest challenge is the price of natural gas. More needs to be imported," said Sen. Lamar Alexander, R-Tenn., a former governor.

Domenici said a project still would need various zoning, environmental and other permits, and that governors would have input in any siting decision.

"There is no intention in our legislation that local authorities be usurped," he insisted.

A report last year by the Sandia National Laboratory concluded that a terrorist attack on a tanker carrying liquefied natural gas would create an intense fire at a terminal. The fire would cause significant property damage and seriously burn people who were as far as a mile away from the facility.

LNG now accounts for only about 3 percent of U.S. natural gas use. The Energy Department estimates the market share will grow to more than 20 percent by 2025 because of a decline in domestic natural gas supplies.

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