CQ TODAY PRINT EDITION
Sept. 16, 2008 – 9:50 p.m.
Senate ‘Gang’ Pushes for Drilling
By Avery Palmer and Catharine Richert, CQ Staff
As the House passed legislation late Tuesday designed to loosen restrictions on offshore oil production, some Senate Republicans were pushing for more drilling as part of a bipartisan energy plan.
The House bill (
Democrats touted the bill as a compromise that expands domestic production and invests in alternative energy sources. After watching Republicans gain political traction in recent weeks with calls for more offshore drilling, Democratic leaders hope the legislation will provide political cover for moderate members of their caucus in competitive districts.
The bill would allow drilling beyond 100 miles offshore and give states the option to allow production beyond 50 miles from the coasts. It includes incentives for renewable energy, building efficiency and advanced technologies for coal-fired power plants.
“I don’t know why my Republican colleagues can’t take yes for an answer,” said cosponsor Gene Green , D-Texas. “If you want to drill in our country, this is the bill.”
Republicans complained that they were shut out of the process.
“We have a responsibility to defeat this bill,” said Don Young of Alaska, ranking Republican on the Natural Resources Committee. “It was conceived in the dark. Who the father is, I do not know.”
Republicans also argued that states would not opt into drilling offshore because the bill would not give them a share of revenue from energy production. The bill would leave a 125-mile buffer off the Florida Gulf Coast intact and bar drilling in the Georges Banks fishery off New England.
“This bill purports to open access to American energy sources while in reality taking actions to stifle development,” the White House said in a statement.
House Bill’s Provisions
The bill would use new royalties to offset the cost of incentives for energy efficiency, renewable energy, and carbon capture and sequestration. It would require utilities to generate 15 percent of electricity from renewable sources by 2020.
The bill would extend tax credits for wind and solar energy and create tax breaks for coal projects that capture carbon, fueling stations for natural gas vehicles and conservation. The spending would be offset by repealing tax subsidies for oil companies.
It would also establish new ethics requirements for the Interior Department agency that oversees leasing on public lands and waters. This follows an inspector general’s report that found that some federal employees engaged in sexual misconduct and illegal drug use with oil industry workers.
Senate ‘Gang’ Pushes for Drilling
An eleventh-hour addition to the bill would lift a moratorium on an oil shale leasing program for Colorado, Utah and Wyoming if those states decided to proceed with leases. This provision was a priority for Jim Matheson , D-Utah.
The Senate may take up its own energy legislation in the coming days, but prospects for reconciliation with the House appear difficult in the limited time before recess. Democrats in both chambers agree they can’t pass a continuing resolution to keep the government operating in the new fiscal year without dropping a 26-year-old ban on most new offshore drilling. That would end most restrictions on Oct. 1.
Senate ‘Gang’ Presses for More Drilling
The House action may push a bipartisan Senate “gang” to add more drilling to a compromise bill it is drafting.
“We’re trying to be more aggressive on drilling,” said South Carolina Republican Sen. Lindsey Graham , an original member of the group, which has grown to 20 senators, 10 from each party.
“There’s been a bidding war put in place,” added Tennessee Republican Bob Corker . “What we end up doing will be more rigorous than what was originally proposed.”
The group, originally convened by North Dakota Democrat Kent Conrad and Georgia Republican Saxby Chambliss , had sketched out a plan to let Virginia, Georgia and the Carolinas opt into drilling off their shores as part of a broader package including an estimated $84 billion in investments in conservation and efficiency, offset by cutting tax breaks to oil and gas companies.
Despite its bipartisan nature, the measure has competition. Majority Leader Harry Reid , D-Nev., has said he will allow a Republican-backed energy measure to get a vote, as well as provisions crafted by Energy and Natural Resources Chairman Jeff Bingaman , D-N.M.
Republican members of the gang also may seek to scale back tax offsets. Graham said there is a push for a more “balanced” approach to paying for the bill without an aggressive tax increase. That idea is unlikely to fly with Democratic members.
“It’s partly camouflage for ‘Now I don’t agree to what I agreed to before’ on how to pay for this,” a Democratic aide said.
Some Republican changes may be designed to attract support by GOP presidential nominee John McCain .
“Sen. McCain would like to see us go ahead with an all-of-the-above approach,” Graham said. “If we can do it all without a massive tax component, it’s something the whole country can be proud of.”
Chambliss says he’s not aware of specific efforts to get McCain’s endorsement. Nor has Conrad set out to get Democratic nominee Barack Obama ’s approval. “There has never been a discussion of presidential politics in our group,” Conrad said.







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