OVERNIGHT ENERGY: Gas prices, fuel labels in focus

By Ben Geman - 05/24/11 08:05 PM ET

Wednesday’s Big Story I: House Republicans will continue their campaign to tether the White House to high gasoline prices Wednesday.

The House Natural Resources Committee will hold a hearing titled “Harnessing American Resources to Create Jobs and Address Rising Gasoline Prices - Part III: Impacts on Seniors, Working Families and Memorial Day Vacations.”

Witnesses will include representatives from a conservative think tank called the National Center for Public Policy Research and the 60 Plus Association, a conservative seniors group.

A panel of the House Oversight and Government Reform Committee will aim for a slightly different target with a hearing Wednesday titled “How Federal Reserve Policies Add to Hard Times at the Pump.”

Witnesses will include American Enterprise Institute senior fellow Vincent Reinhart, who is the former Director of the Division of Monetary Affairs for the Board of Governors of the Federal Reserve System.

Condolences: Rep. Doug Lamborn (R-Colo.) will lead the House Natural Resources Committee hearing because committee Chairman Doc Hastings’ (R-Wash.) mother passed away Sunday night.

Wednesday’s Big Story II: The Environmental Protection Agency and the Transportation Department are expected to roll out redesigned fuel economy labels for cars and light trucks, according to sources familiar with the plan.

Last August the agencies floated draft plans for labels they said would represent the biggest overhaul in three decades. The proposals included greenhouse gas information and making other changes to keep pace with technologies like electric vehicles.

But the redesign coming Wednesday is not expected to include a proposal that would give each vehicle a letter grade.

EPA Administrator Lisa Jackson and Transportation Secretary Ray LaHood have scheduled a morning announcement on fuel economy at Transportation Department headquarters.

NEWS BITES:

CFTC brings oil manipulation case

This case should boost arguments by Democrats who are arguing that market speculation and manipulation – not GOP bills to expand drilling – should be the focus of energy debates.

The New York Times reports:

“United States authorities are suing three companies and two individuals for reportedly manipulating the crude oil market in early 2008, when supplies were tight and the world oil price was cracking $100 a barrel.”

The story notes that the Commodity Futures Trading Commission alleges the defendants “also invested in large positions in the oil futures market, and profited when their expansive buys in the physical market pushed the oil futures higher.”

“They then bought short positions in the futures market and dumped their holdings of physical oil, most of it in the course of one day, making money again when the oil price fell,” the story notes.

Green groups push for expanded oil sands pipeline review

More than two dozen environmental groups – including big national players like the Sierra Club and Natural Resources Defense Council – are pressing for an expanded review of the proposed Keystone XL pipeline that would bring more crude from Canada’s oil sands to Gulf Coast refineries.

The groups wrote to EPA Tuesday urging the agency press the State Department – which is reviewing TransCanada Corp.’s proposal – for a wide-ranging round of hearings. Their letter states:

“We ask that the EPA request the State Department to hold field hearings in every state through which the pipeline would pass, in order to publicly present the information contained in the review and give the public a forum to voice their concern for this major project. The timeframe for public comments should be adjusted as necessary to allow these field hearings to take place with sufficient notice.”

Oil industry group welcomes royalty overhaul, wants 'open dialogue'

The American Petroleum Institute isn’t often a fan of Interior Department policies these days. But API policy adviser Allison Nyholm had this to say about the department's preliminary plan to streamline the royalty collection process:

“Today’s announcement is welcome news for a struggling economy. The multi-billion dollar royalty management program effectively ensures that Americans receive fair compensation for development of federal resources. The industry has been looking forward to an opportunity for open dialogue with the agency on this issue for many months so that uncertainties in the process can be effectively addressed.”

ON TAP WEDNESDAY:

Senate committee to vet nuke regulator

The Senate Energy and Natural Resources Committee will hear Wednesday from William Ostendorff, a Republican member of the Nuclear Regulatory Commission that President Obama has nominated for another term on the body.

Chu, Bingaman to headline ‘energy frontiers’ summit

Energy Secretary Steven Chu and Sen. Jeff Bingaman (D-N.M.), who leads the Senate’s energy committee, will be featured speakers are DOE’s inaugural Energy Frontier Research Centers Summit and Forum.

White House energy adviser, Sen. Alexander to appear at efficiency forum

The National Journal will host a summit on “Next Steps Toward Fuel Efficiency” that includes top White House climate adviser Heather Zichal, industry officials and Sens. Lamar Alexander (R-Tenn.) and Ron Wyden (D-Ore.).

State Department climate official to face House panel

The House Foreign Affairs Committee will hold a hearing on United Nations climate-change talks that’s slated to include Todd Stern, the State Department’s special envoy for climate change.

Hertz goes electric

Hertz will hold an event to celebrate the introduction of electric and hybrid vehicles into its Washington fleet. Former CIA director — and energy security advocate — James Woolsey will be on hand, as will Senate Energy and Natural Resources Committee Chairman Jeff Bingaman (D-N.M.).

IN CASE YOU MISSED IT:

Check out these E2 items posted Tuesday . . .

-- Salazar alleges ‘coercion’ from Vitter on drilling, asks Senate to nix pay-raise bill
-- Republicans eye summer vote on bill to expand scrutiny of EPA rules
-- US hits Venezuela’s state oil company with sanctions over Iran
-- Obama calls on agencies to transition to alternative vehicles
-- Democrat scolds Republicans during testy Oversight hearing on gas prices
-- Interior plans oil royalties overhaul
-- Experts expect gas prices to fall, but volatility possible
-- Netanyahu hopes to ‘change history’ by ending oil ‘addiction’