Wind not covered by flood insurance

WASHINGTON — A Gulf Coast-backed effort to add wind coverage to the National Flood Insurance Program was defeated Wednesday in the Senate amid concerns it would be too costly.

The drive to add the amendment to the flood-insurance bill failed, 73-19. Opponents said they were leery of the cost and opposed federal intervention in private markets.

Gulf Coast lawmakers pleaded for relief, saying homeowners in their states were finding it increasingly difficult to afford, or even find, insurance.

"People who have paid every premium and have never filed a claim are simply locked out of the market," said Sen. Mel Martinez, R-Fla.

The White House has said it would veto any bill that contained the provision.

The House last fall passed legislation that would add wind coverage to the flood-insurance program.

Tax proposed for oil profits

Senate Democrats on Wednesday called for a windfall profits tax on oil companies and a rollback of $17 billion in oil-industry tax breaks as part of an energy package. The proposal also would impose federal penalties on energy-price gouging and calls for stopping oil deliveries into the government's emergency reserve.

Senate Republicans strongly oppose additional oil-industry taxes, which President Bush would almost certainly veto.

The proposed 25 percent profits tax would apply only to oil-company earnings above what would be considered "reasonable" and only if those profits are not reinvested in refinery capacity expansion or renewable energy sources, according to a summary of the proposals.

The Democrats' plan also called for a halt in deliveries of oil into the government's Strategic Petroleum Reserve until oil prices drop to $75 a barrel.

Seattle Times news services