Nick Snow
Washington Editor
WASHINGTON, DC, Sept. 9 -- Acknowledging that they have less than 3 weeks before the next recess, congressional leaders on both sides of the Capitol said they will bring energy bills up for votes soon.
The atmosphere was stormier in the House, where Speaker Nancy Pelosi (D-Calif.) and Minority Leader John Boehner (R-Ohio) still seemed far apart on their ideas for a comprehensive bill, than in the Senate, where Majority Leader Harry M. Reid (D-Nev.) mentioned three bills he plans to bring to the floor next week and Minority Leader Mitch McConnell (R-Ky.) called for extensions of renewable energy tax credits and for expansions of Outer Continental Shelf leasing.
"So far, Congress has been unable to come together on a comprehensive solution to our nation's energy crisis. But the book hasn't closed yet on the 110th Congress," McConnell maintained on Sept. 8. "There is still time to act on this issue, and we should. We must work to provide relief for Americans across the country who are struggling with the high price of [gasoline] at the pump. Congress can still show that we're responsible to the needs of the American people by doing something about this crisis now."
In remarks on the Senate floor as he opened the September work period the same day, Reid said he would continue efforts to pass comprehensive energy legislation. "I am encouraged by the work of what started as the Gang of 10, and has now expanded to the Gang of 16 and perhaps of a gang of many more by the time this process has concluded. Next week, following Friday's energy summit, we expect to vote on several comprehensive energy bills," he said.
Three proposals
Reid specifically mentioned three proposals. The first, from Energy and Natural Resources Committee Chairman Jeff Bingaman (D-NM) and Finance Committee Chairman Max Baucus (D-Mont.) would open new OCS areas for leasing, including the eastern Gulf of Mexico and accelerate leasing off Alaska's coast. It also would require diligent development of areas that are already leased; extend renewable energy, energy efficiency, and advanced alternative fuel vehicle tax incentives (which would be paid for with higher oil company taxes); repeal deepwater royalty relief; and enact strong national energy efficiency building codes.
The bill from what has become the Gang of 16 also would open the eastern Gulf of Mexico for leasing as well as other areas off southeastern coastal states (except Florida) at the states' request; extend the same alternative energy tax incentives by raising oil companies' taxes, provide additional subsidies for building coal-to-liquids plants, and increase nuclear power plant subsidies, Reid said.
"And we are open to a vote on the Republican amendment that Sen. McConnell filed to the speculation bill. This amendment opens up all coastal areas to drilling at the states' requests, except for the eastern Gulf of Mexico which stays closed until 2022," Reid continued. The proposals also would close what has come to be called the London loophole by requiring commodity traders using overseas exchanges to trade US energy futures, options, and swaps to meet the same reporting and disclosure requirements as they use in domestic exchanges.
"It should be clear to all that we are offering Republicans multiple opportunities to vote for increased drilling, which they have chosen to make their marquee legislative priority and campaign issue. We offered votes on drilling before the August recess and Republicans rejected our offers. This time, I hope Republicans will put their votes where their mouths are to pass comprehensive legislation that includes drilling," Reid said.
Nothing to fear in this
"Americans want us to act to increase offshore exploration. There is nothing to fear in this. We can and should increase domestic energy exploration even as we encourage the use of alternative energy sources and new conservation measures. There is no good reason we can't get behind a balanced approach that would allow us to find more and use less at the same time," McConnell said.
Even with such sentiments, however, it's apparent that proposals presented as compromises in the Senate could contain punitive provisions aimed at energy producers and processors. The American Petroleum Institute and National Petrochemical and Refiners Association each have said that the proposal introduced Aug. 1 by what was then the Gang of 10 goes too far on new taxes and not far enough in opening more of the OCS.
The gap looks even wider in the House despite at least three proposals to expand OCS leasing and extended renewable energy tax credits which came out before the August recess began.
Voters still want Congress to act, McConnell insisted. "One senator on the other side said that he thinks frustration over the high price of [gasoline] has peaked. But I've seen no evidence of this at all. In fact, I'm confident, after spending the past month away from Washington, that if we did little else these next few weeks but pass a serious response to high gas prices, fund the government, and protect taxpayers, the American people would view these next few weeks as extremely productive," he said.
Contact Nick Snow at nicks@pennwell.com.
