House clears drilling, renewables bill but huge hurdles remain
Posted on September 17th, 2008By Ben Geman
The House voted 236-189 last night to widen offshore oil and gas exploration and expand renewable energy incentives, a measure Democrats called a “comprehensive” approach while Republicans alleged it would not increase production.
The bill, H.R. 6899, relaxes coastal leasing bans to allow drilling greater than 100 miles from the Atlantic and Pacific coasts, and within 50 to 100 miles if coastal states agree to it. It retains current prohibitions that cover much of the eastern Gulf of Mexico.
It also rolls back roughly $18 billion in oil industry tax breaks to fund an array of renewable energy and conservation programs, such as tax credits for wind and solar projects, efficient homes and plug-in hybrid cars.
Fifteen Republicans joined 221 Democrats supporting the bill, while 13 Democrats joined 176 Republicans in opposition. Before the vote, members turned back a GOP substitute that contained more aggressive coastal production measures.
The GOP alternative — in the form of a motion to recommit — was a bill sponsored by Reps. John Peterson (R-Pa.) and Neil Abercrombie (D-Hawaii) that allows leasing as close as 25 miles from state coastlines, although states could pass laws pushing that boundary to 50 miles. It gives states with offshore production a share of revenues.
The Abercrombie-Peterson bill, H.R. 6709, also contains alternative energy and efficiency tax credits and funding. The vote against the motion was 191-226.
Democratic leaders have long opposed weakening of current leasing bans but softened their opposition amid signs if increased public support and a strong GOP push for even more aggressive measures.
In prodding their caucus to accept the plan, Democratic leaders have noted that current leasing bans are set to expire at the end of the month, and their supporters likely lack the votes to renew them through the appropriations process this year.
“For many of my colleagues, I know that drilling is the most contentious part of this compromise, but we have worked hard to find common ground,” said House Majority Leader Steny Hoyer (D-Md.). “Drilling will come with strong new environmental protections. It will take place well offshore, as opposed to the 3-mile zone that will go up for grabs in 15 days if we vote this bill down and do nothing.”
Rep. Gene Green (D-Texas), a cosponsor who is strongly pro-drilling, cast the bill as a launching point for working with the Senate, and said Democrats had never put forth such a broad mix of new oil and gas development and renewables.
Green said in an interview yesterday the measure could help replace the current moratorium or even be adopted as part of the upcoming continuing resolution.
But the plan faces major hurdles toward becoming law. The White House yesterday threatened a veto over repeal of oil industry tax breaks, a national renewable electricity mandate and other provisions.
“[T]his bill purports to open access to American energy sources while in reality taking actions to stifle development,” the White House said, alleging the bill does not provide enough new access or incentives for states to allow offshore production.
Many Republicans want a much wider expansion of offshore drilling, alleging the Democratic plan keeps too much acreage off limits. They said coastal states would have little incentive to allow leasing, because they are not offered a share of the offshore royalties if they opt-in to leasing in the 50-100 mile range.
“How much new drilling do we get out of this bill? Zero,” said Minority Leader John Boehner (R-Ohio) on the floor last night. “This is nothing more than political cover on the eve of an election.”
Democrats countered that the promise of new job-bearing industries that come with offshore development would be reason aplenty for some coastal states to allow leasing.
Abercrombie — who voted for the Democratic bill and against the motion to recommit — implored colleagues to see the House bill as a way to keep the issues alive in this Congress, even though it is less expansive than he would like. “This gives us an opportunity to move it along,” he said, calling the bill a “work in progress.”
The Democrats’ bill also requires power companies to provide 15 percent of their energy from renewable sources by 2020, although about a fourth of the mandate can be met with efficiency measures.
Other provisions include sale of 70 million barrels of oil from the Strategic Petroleum Reserve; removal of a ban on commercial oil shale leasing in Wyoming, Colorado and Utah if those states decide to allow it; expanded conservation and mass transit programs; provisions to ensure royalties from late 1990s deepwater Gulf of Mexico leases; and language to improve ethics at the scandal-plagued Interior Department agency in charge of royalty collections.
Speaker Nancy Pelosi (D-Calif.) assembled the broad package with an eye toward keeping members representing a spectrum of views — and varying political pressures — in the fold.
The bill in turn attracted fire from industry — the American Petroleum Institute called the bill a “dry hole” with only an “illusion” of increased offshore access — as well as some criticism from environmental groups (see related story).
In the Senate
In the Senate, Democrats plan to bring energy bills up for debate after moving what appears to be a bipartisan agreement on extension of renewable energy tax incentives that are currently set to expire at year’s end (see related story).
Energy and Natural Resources Chairman Jeff Bingaman (D-N.M.) is preparing a Democratic measure expected to include new offshore drilling among its provisions. He said yesterday that the plan is still being developed.
“We have not decided what we are going to offer,” Bingaman said. He also said he wants to see what a bipartisan Senate group called the Gang of 10 — which has grown to 20 — comes up with for their formal plan.
The group has been working on a measure that expands leasing in the eastern gulf and also allows four southeastern states — Virginia, Georgia and the Carolinas — to authorize leasing 50 or more miles off their shores. These states would also receive a substantial share of offshore production revenues if they opt-in to leasing.
Reid has also pledged to allow votes on a GOP alternative. It remains unclear if Congress will reach any broad energy deals in the short period before the planned adjournment.
But Reid pointed out yesterday that some resolution is needed on the leasing prohibitions. “There is no way we can avoid having the decision being made legislatively on the moratorium,” he said yesterday.