The Only Abomination In Town

That's the endless gas battle "I never thought," said Senator Russell Long, in an appropriate tone of disbelief, "the conferees could take a House bill favored by the consumers, and a Senate bill favored by the producers, and work out a fiasco opposed by both. But they have clearly succeeded in doing so."

The object of Long's contempt and ridicule was the celebrated "compromise" on deregulation of natural gas, which emerged from a Senate-House committee three weeks ago and seemed to herald the passage of Carter's long-stalled energy bill. That, in turn, seemed to permit Carter to take off for a vacation in the Rockies. But the compromise, which would increase the price of most natural gas by 15% immediately and then continue raising prices each year until controls end in 1985, has many enemies. Consumer groups oppose the price increases as excessive, while the gas industry wants immediate deregulation to stimulate new production. Indeed, the compromise had scarcely been issued before it was denounced by a collection of 18 Senators ranging from the liberal Ted Kennedy of Massachusetts to the conservative John Tower of Texas. Said Ohio's Howard Metzenbaum, a leader in the fight against gas deregulation: "It's really an amazing coalition we have put together."

The prospect of such a major Administration program going to its doom prompted Carter to cut short his vacation by two days and hurry back to the White House for some intense lobbying. He summoned a group of eleven Governors and warned them that the energy package must pass. "The entire world," he said, "is looking at our Government to see whether we have the national will to deal with this difficult challenge. If this legislation is not enacted, it will have a devastating effect on our national image, the value of the dollar, our balance of trade and inflation." The Governors were impressed. Said Julian Carroll of Kentucky, new chairman of the Governors' conference: "It would be catastrophic if this energy bill did not pass."

That same afternoon, Carter called a conclave of 125 business leaders from around the nation, gave them a similar warning, and asked them to lobby Congress. The businessmen generally supported him but without glowing enthusiasm. Said R.P. Simmons of Allegheny Ludlum Steel: "The bill may be an abomination, but it's the only abomination in town."

The key battle now lies in the Senate, which is expected to take up the bill late this week. Here, powerful opposition forces include Senator Long of gas-producing Louisiana, who argues that the Administration plan would "tie up producers and investors in a morass of endless paperwork, hearings, litigation and bureaucratic red tape."

Apart from the merits of the issue, a number of Senators were irritated by the Administration's tactics in getting the compromise approved. Specifically, Senator James McClure, an Idaho Republican, signed the conference report only after Energy Secretary James Schlesinger promised him that the Administration would support a $1.5 billion appropriation for the development of a fast breeder reactor on which most of the research would be done in Idaho. That deal angered Tennessee Senators Howard Baker and James Sasser, who support the Clinch River breeder reactor in their state--a project Carter has opposed. Oregon's Mark Hatfield and Arkansas' Dale Bumpers, who oppose any breeder reactor at all, were also soured by the arrangement with McClure. Schlesinger, however, dismissed Senate criticisms of the bill as "twaddle" and predicted that the Administration would get the support of enough of some 30 undecided Senators to pass it.

But the gas bill is not the President's only concern on Capitol Hill as Congress gets back from its Labor Day recess. The House this week will vote on whether to override his veto of the military authorization bill. His civil service reform legislation also faces House floor action. By most counts, Carter should win both tests, but he cannot take that for granted. Ironically, he is also supporting a bill that would require court approval of any wiretapping done for national security reasons, but it is under heavy fire from conservatives, who feel that the Executive Branch should be free to wiretap in such cases without asking a judge for permission.

In the Senate, the Finance Committee will begin this week to mark up its version of the House-passed tax bill. Once again Carter has to deal with opposition from Committee Chairman Long, who is expected to push for a larger tax cut than the $16.3 billion approved by the House and may try to reduce the maximum 35% capital gams tax rate in the bill to 21%. The President has warned that if the changes are too drastic, or too much in favor of the rich, he will react with the ultimate weapon at his command: a veto.

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