Pelosi Softens Offshore Drilling Stance
By IAN TALLEY
August 16, 2008 12:28 p.m.
| By CrashingBashley - Aug 16th, 2008 at 2:32 pm EDT |
WASHINGTON -- In one of the clearest signs yet that the Democratic leadership is softening its stance towards expanded domestic oil production, the U.S. House Speaker outlined an energy bill Saturday that includes new offshore exploration.
The policy shift follows a similar move in recent days by Democratic leaders in the Senate and by presidential candidate Barack Obama in the face of a public angered by high energy prices.
In remarks prepared for the Democratic Radio Address Saturday morning, Speaker Nancy Pelosi (D., Calif.) said a new "bipartisan effort... will consider opening portions of the Outer Continental Shelf for drilling, with appropriate safeguards."
Just a few weeks ago, the Speaker said Republican calls for a vote just on drilling was "a hoax on the American people."
According to people familiar with the Speaker's proposal, Ms. Pelosi's plan borrows from a bipartisan plan proposed by a "Gang of Ten" senators -- five from each party -- that allows several east-coast states to opt into drilling off their shores. It doesn't allow drilling off the California or eastern coast of Florida, the people said.
In a teleconference Friday, Senate Majority Leader Harry Reid (D., Nev.) also indicated he would allow a drilling vote -- possibly a version of the "Gang of Ten" proposal -- though his highest priority is implementing long-term tax credits for renewable energy production and investment.
While Ms. Pelosi's proposal may offset frustration by voters who've made a pointed statement in recent polls supporting more offshore drilling, the Speaker is likely dooming the election-year effort to failure by including a number of provisions Republicans have balked at, such as tax increases for oil companies.
In her attempt to outmaneuver Republicans, Ms. Pelosi may be using some of the same tools that Mr. Reid used in the recent Senate energy bill debate. Before the August recess, the majority leader offered the Republicans a vote on drilling, but conditioned it on Republican support for renewable energy tax credits, and the chamber failed to pass any energy legislation. Neither side appears to want to actually reach a compromise, but are simply using energy as an election-year bat with which to beat their opponents.
"Raising taxes will ultimately hurt consumers by forcing them to pay even higher gas prices, and Republicans will oppose them," Kevin Smith, spokesman for House Minority Leader Rep. John Boehner (R., Ohio) said in an email.
Mr. Smith said Ms. Pelosi's plan was "largely more of the same failed proposals they've been trotting out for months," and is "designed to give political cover to vulnerable Democrats who are losing ground," he said.
Ms. Pelosi had already signaled the new tack in the battle over energy policy earlier this week, saying in a CNN interview she may allow a vote on drilling if it was tied to renewable energy incentives.
The Speaker's new comments make her planned energy bill explicit, though aides say discussions over the final package are continuing. The draft proposal includes several measures that Republicans have already blocked in Congress: releasing oil from the strategic petroleum reserve and a renewable electricity standard that would require a rising percentage of power to come from sources such as wind and wave generation.
The biggest "poison" provision for the GOP is the proposed repeal of tax breaks to Big Oil, such as the manufacturing and foreign-earned income credits.
Republican leadership, presidential candidate Sen. John McCain (R., Ariz.), and President George W. Bush have all made clear the tax issue is a deal-breaker.
"The Democratic leadership should bring up a clean bill, give the members a chance to vote up or down on whether or not we should proceed with offshore drilling, and not insert any legislative poison pills," Mr. Bush said earlier this week after Pelosi indicated she would allow a vote on drilling. "Those would be provisions that they know will never be enacted and are added only for the purpose of killing the effort to open up the...Outer Continental Shelf to drilling," Mr. Bush said.
Patrick Creighton, a spokesman for Rep. John Peterson, R-Penn., a key drilling proponent in the House, said the the plan "rehashes washed-up garbage that didn't have the ability to pass this House, and they're going to try to couple that with limited offshore production."
Pelosi's bill would also include an anti-speculation provision that seeks to rein in what many lawmakers believe is "excessive" speculative trading, giving the commodities futures regulator greater powers to set trading limits, particularly in the over-the-counter markets.
The Speaker also plans to recoup royalties on faulty 1998-1999 leases that many lawmakers believe oil companies should pay, a proposal that a substantial number of Republicans have opposed.
The GOP has been trying to use a swell of public support for increased petroleum exploration -- including in areas currently closed on the Outer Continental Shelf -- and Democrats' prior opposition to lifting a decades-old drilling moratorium as a key election-year strategy. Since Congress recessed at the beginning of August, House Republicans have staged a revolt on the floor of the chamber, demanding the Speaker reconvene to allow a vote on drilling.
Falling oil prices may take steam out of the political pressure cooker with voter outrage over high energy prices tempered by falling prices at the pump. Crude has plummeted around 23% to $113 a barrel from a high in July of nearly $148, and gasoline prices are following suit.
The drilling, taxes and renewables proposal may help to take more of the sting out Republican attacks. Based on her prior history, Pelosi won't likely allow Republicans to amend her proposal, or a straight vote just on drilling.
A Democratic leadership aide said the Speaker hadn't yet decided if she would allow amendments.
The policy shift follows a similar move in recent days by Democratic leaders in the Senate and by presidential candidate Barack Obama in the face of a public angered by high energy prices.
In remarks prepared for the Democratic Radio Address Saturday morning, Speaker Nancy Pelosi (D., Calif.) said a new "bipartisan effort... will consider opening portions of the Outer Continental Shelf for drilling, with appropriate safeguards."
Just a few weeks ago, the Speaker said Republican calls for a vote just on drilling was "a hoax on the American people."
According to people familiar with the Speaker's proposal, Ms. Pelosi's plan borrows from a bipartisan plan proposed by a "Gang of Ten" senators -- five from each party -- that allows several east-coast states to opt into drilling off their shores. It doesn't allow drilling off the California or eastern coast of Florida, the people said.
In a teleconference Friday, Senate Majority Leader Harry Reid (D., Nev.) also indicated he would allow a drilling vote -- possibly a version of the "Gang of Ten" proposal -- though his highest priority is implementing long-term tax credits for renewable energy production and investment.
While Ms. Pelosi's proposal may offset frustration by voters who've made a pointed statement in recent polls supporting more offshore drilling, the Speaker is likely dooming the election-year effort to failure by including a number of provisions Republicans have balked at, such as tax increases for oil companies.
In her attempt to outmaneuver Republicans, Ms. Pelosi may be using some of the same tools that Mr. Reid used in the recent Senate energy bill debate. Before the August recess, the majority leader offered the Republicans a vote on drilling, but conditioned it on Republican support for renewable energy tax credits, and the chamber failed to pass any energy legislation. Neither side appears to want to actually reach a compromise, but are simply using energy as an election-year bat with which to beat their opponents.
"Raising taxes will ultimately hurt consumers by forcing them to pay even higher gas prices, and Republicans will oppose them," Kevin Smith, spokesman for House Minority Leader Rep. John Boehner (R., Ohio) said in an email.
Mr. Smith said Ms. Pelosi's plan was "largely more of the same failed proposals they've been trotting out for months," and is "designed to give political cover to vulnerable Democrats who are losing ground," he said.
Ms. Pelosi had already signaled the new tack in the battle over energy policy earlier this week, saying in a CNN interview she may allow a vote on drilling if it was tied to renewable energy incentives.
The Speaker's new comments make her planned energy bill explicit, though aides say discussions over the final package are continuing. The draft proposal includes several measures that Republicans have already blocked in Congress: releasing oil from the strategic petroleum reserve and a renewable electricity standard that would require a rising percentage of power to come from sources such as wind and wave generation.
The biggest "poison" provision for the GOP is the proposed repeal of tax breaks to Big Oil, such as the manufacturing and foreign-earned income credits.
Republican leadership, presidential candidate Sen. John McCain (R., Ariz.), and President George W. Bush have all made clear the tax issue is a deal-breaker.
"The Democratic leadership should bring up a clean bill, give the members a chance to vote up or down on whether or not we should proceed with offshore drilling, and not insert any legislative poison pills," Mr. Bush said earlier this week after Pelosi indicated she would allow a vote on drilling. "Those would be provisions that they know will never be enacted and are added only for the purpose of killing the effort to open up the...Outer Continental Shelf to drilling," Mr. Bush said.
Patrick Creighton, a spokesman for Rep. John Peterson, R-Penn., a key drilling proponent in the House, said the the plan "rehashes washed-up garbage that didn't have the ability to pass this House, and they're going to try to couple that with limited offshore production."
Pelosi's bill would also include an anti-speculation provision that seeks to rein in what many lawmakers believe is "excessive" speculative trading, giving the commodities futures regulator greater powers to set trading limits, particularly in the over-the-counter markets.
The Speaker also plans to recoup royalties on faulty 1998-1999 leases that many lawmakers believe oil companies should pay, a proposal that a substantial number of Republicans have opposed.
The GOP has been trying to use a swell of public support for increased petroleum exploration -- including in areas currently closed on the Outer Continental Shelf -- and Democrats' prior opposition to lifting a decades-old drilling moratorium as a key election-year strategy. Since Congress recessed at the beginning of August, House Republicans have staged a revolt on the floor of the chamber, demanding the Speaker reconvene to allow a vote on drilling.
Falling oil prices may take steam out of the political pressure cooker with voter outrage over high energy prices tempered by falling prices at the pump. Crude has plummeted around 23% to $113 a barrel from a high in July of nearly $148, and gasoline prices are following suit.
The drilling, taxes and renewables proposal may help to take more of the sting out Republican attacks. Based on her prior history, Pelosi won't likely allow Republicans to amend her proposal, or a straight vote just on drilling.
A Democratic leadership aide said the Speaker hadn't yet decided if she would allow amendments.
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