CQ TODAY PRINT EDITION
– ENERGY
July 22, 2008 – 8:03 p.m.
Standoff Over Amendments Keeps Energy Speculation Bill on Hold
By Coral Davenport and Aliya Sternstein, CQ Staff
Democrats and Republicans traded salvos over the blame for high gasoline prices Tuesday, but substantive progress on energy legislation eluded lawmakers as a bill to curb oil speculation stalled in the Senate.
“As it stands right now, we’ve got a standoff,” said John Thune , R-S.D.
Democratic leaders in both chambers are seeking to move bills this week that would address high energy prices, but fundamental differences between the parties over whether to open more areas for drilling have stymied progress, if not rhetoric.
Tuesday morning senators agreed, 94‑0, to bring debate to a close on a motion to consider a bill (
Republicans want an opportunity to offer more amendments to the bill, particularly amendments related to offshore drilling, than Democrats are willing to allow.
Majority Leader Harry Reid , D‑Nev., offered to allow one Republican and one Democratic drilling amendment, but Republicans rejected the plan. Minority Leader Mitch McConnell , R-Ky., said the GOP insists on “an open debate on this issue.”
Matt LeTourneau, spokesman for Pete V. Domenici , R-N.M., said it’s unlikely the GOP could support the speculation bill under conditions of just one amendment on each side, even if Republicans did get the chance to offer their drilling amendment.
“Asking us to accept a bill that we had no input on, with only one amendment — that would be really difficult for Republicans to support,” LeTourneau said.
“Without the removal of all the restraints” on energy production, “I don’t think we can have a deal,” Domenici said.
Republicans do not have a set list of amendments, according to McConnell aides. Their ideas include measures to find more fuel through drilling and offshore exploration as well as to promote conservation. One amendment would provide incentives to manufacture advanced-technology batteries for cars.
The Democrats’ amendment package, largely assembled by Jeff Bingaman , D-N.M., would also attempt to increase supply and decrease demand.
It would not touch the federal offshore drilling moratorium. Rather, it would accelerate leasing in the limited areas of the outer continental shelf where drilling is already allowed. On the demand side, it would work to install fuel economy devices in all vehicles, develop energy-saving batteries and improve building codes to reduce dependence on natural gas.
Domenici said he hasn’t closely examined Bingaman’s proposal yet, and he conceded that it has “some things that we might look at to get us to the negotiation table.” Domenici added that conservation may be the issue that ties both sides together.
Standoff Over Amendments Keeps Energy Speculation Bill on Hold
Neither the Republican nor Democratic amendments are likely to pass because of the 60-vote threshold, so Republicans don’t see Reid’s offer as a viable proposition.
Other Developments
The offshore drilling issue has also brought movement on appropriations bills to a halt as GOP lawmakers continued to propose amendments to those bills aimed at expanding offshore drilling.
House Democrats are expected to bring to the floor Thursday a measure that would release high-quality light, sweet crude oil from the Strategic Petroleum Reserve and replace it with heavy, sour crude oil. Democrats had hoped to introduce a bill that would simply release about 70 million barrels of oil from the reserve into U.S. markets, but that proposal faced criticism in light of reports indicating a possible Israeli attack on Iran, a major source of oil, later this year.
Meanwhile, T. Boone Pickens, a Texas oilman who has been underwriting a TV ad campaign promoting wind energy — coinciding with his own new investments in wind power projects — injected himself into the center of the congressional energy debate.
He was the star witness Tuesday before the Senate Homeland Security Committee, where he touted a plan centered on making a transition in U.S. transportation fuel from oil and gasoline to domestic natural gas, which he claims could reduce oil imports by up to 38 percent.
The use of the natural gas, which provides about 20 percent of the nation’s electricity, would be offset by producing massive new amounts of wind power — a proposal that dovetails with Democratic energy priorities and would also boost profits in Pickens’ new investments. Pickens made it clear that he hopes to influence the national energy discussion; he planned to meet privately with the Democratic Caucus Tuesday evening.
Domenici said Pickens’ voice was welcome in the debate but that his plan “won’t be as easy as he’s saying.” He added that Pickens, who is a longtime acquaintance, “is in it to make money. No one has a problem with him being here lobbying for himself, but you have to remember that.”


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