Energy Bill Plugs Oil Not Lawsuit Immunity

U.S. lawmakers struggled last week on a compromise energy bill that encourages domestic oil production and use of alternate fuels.

The legislation would create billions in tax breaks and other federal subsidies to encourage oil and gas production, cut pollution at coal-burning power plants and encourage energy conservation, the Washington Post reported Tuesday.

But in a setback to the gasoline business, lawmakers Friday decided not to protect gasoline companies from lawsuits arising from their use of methyl tertiary butyl ether, an oxygenate that was added to gasoline in response to federal environmental directives.

The industry faces scores of lawsuits by municipalities whose drinking water has been contaminated by MTBE leakage.

The bill also promotes the use, as fuel, of agricultural products like ethanol.