The US House of Representatives rejected the Democratic leadership's latest energy bill in a 244-173 vote on July 17 when H.R. 6515, which came to the floor under a rules suspension, fell short of the necessary two-thirds vote for passage.
The bill, formally known as the Drill Responsibly in Leased Lands (DRILL) Act, included so-called "use it or lose it" provisions from H.R. 6251, which Natural Resources Committee Chairman Nick J. Rahall (D-W.Va.) championed and the House rejected on June 26 by 223 to 195 votes. But H.R. 6515 also contained language aimed at producing crude oil quickly from the National Petroleum Reserve-Alaska while continuing existing leasing bans in the Arctic National Wildlife Refuge and on 85% of the US Outer Continental Shelf. It also would have re-instituted a ban on exporting Alaskan oil.
Oil and gas industry trade associations approved of the latest bill's defeat. "Congress was wise to listen to the American people and not move forward with this anti-consumer legislation. Polls indicate that the majority of the American people see the need to expand access to domestic oil and natural gas resources. Americans would be better served if our elected leaders made responsible, long-term energy policy instead of promoting bad ideas that will fail to secure our energy future," the American Petroleum Institute said in a statement.
"We were delighted that the bill was defeated. It was completely wrong-headed. This was not about opening access and developing oil and gas resources, but about putting oil wine in a new bottle. It was the Rahall bill reconstituted with some troubling new features," Brian T. Petty, the International Association of Drilling Contractors' senior vice president of government affairs, said on July 18.
'We're still nervous'
"Unfortunately, it was not defeated by the same margin as the earlier bill. We lost some Blue Dog Democrats, who wanted to humor the speaker, and some Republicans. We're nervous about the speaker going back at it again. The majority leader has been coy and said they're studying possible further action. We're still nervous. We're ahead of the curve, but the deal is not done yet. It hasn't been put completely to bed so these people can go home for recess," he told OGJ.
Independent Petroleum Association of America President Barry Russell was critical of both the "use it or lose it" provisions and H.R. 6515's NPR-A proposals, which he said are merely an attempt to draw attention away from areas of new production and other possible solutions. He said that House Speaker Nancy Pelosi (D-Calif.) "and her inner circle continuously make feeble attempts to fleece the American public into thinking they are working to further production of American oil and natural gas, which they are not."
Rahall insisted otherwise. "As Democrats, we are pro-drilling. And we are for drilling now, in areas that can bring near-term relief to the American public. As others put forth bumper sticker energy policies, today House Democrats are bringing forth prudent legislation aimed at unleashing the vast potential of the National Petroleum Reserve in Alaska," he said as he opened floor debate on H.R. 6515.
"Part of what we must do to bring down the price of energy to the American people is to increase domestic supply. [That] means we must remove all doubt in the minds of those who wish to drill and those who want the drilling to take place that there are 68 million acres in the Lower 48 states where drilling is allowed," said Pelosi.
"The DRILL Act speeds up the leasing process in the NPR-A. It ensures that Alaskan oil will fill American gas tanks. It calls on the president to speed up the completion of Alaskan oil and gas pipelines so the products will get to market sooner. And it tells the oil companies: 'Drill on the leases you have, or let somebody else do it, but don't just sit on them while Americans are paying $4/gal [for gasoline]. Use it or lose it,'" Majority Leader Steny H. Hoyer (D-Md.) said.
'This bill is a sham'
Republicans were equally adamant that the bill was a mistake. "This bill is a sham. It will not produce one drop of American-made oil or natural gas. In fact, there is more drilling in my dentist's office than in this bill," said Rep. Don Young (R-Ak.), the Natural Resources Committee's ranking minority member.
He said that all lands within the NPR-A that are available to be leased under current US Bureau of Land Management planning documents have been offered in the past, are currently lease or are already available to be leased. Both the oil and gas industry and the DOI say that environmental lawsuits are the only impediment to more production from the NPR-A, "and the bill doesn't touch that. In fact, the 'use it or lose it' parts of the bill create new litigation that will hold up leasing in the NPR-A," Young said.
Following the bill's defeat, House Minority Whip Roy Blount (R-Mo.) said that it was a slap in the face to millions of consumers trying to cope with record gasoline and diesel fuel prices. "But Democratic leaders didn't bring this bill to the floor with any illusions of passing it. Rather, what we saw today was a choreographed attempt to make it appear as if they're doing something to bring down the cost of [gasoline] when in reality the situation is quite the opposite," he said.
Eleven Democrats joined 162 Republicans in voting against H.R. 6515, Blunt pointed out. He said that they included Rep. Jim Costa (D-Calif.), who chairs the Natural Resources Committee's Energy and Minerals Resources Subcommittee which would have jurisdiction of the DRILL Act. "The bill, of course, was never sent through committee," he said.
"You can run from bad energy policy: We saw that this afternoon on the House floor. But you can't hide. And every American who drives past a gas station this summer will see with his own eyes how bad energy policy in Washington leads to prohibitively high gas prices everywhere else," Blunt maintained.
Contact Nick Snow at [email protected]