A Democratic bill to allow more oil drilling off the U.S. coasts passed the House of Representatives, but it faces an uncertain future in the Senate and a fresh veto threat from President George W. Bush.
The House late Tuesday passed by a 236-189 vote a bill backed by Speaker Nancy Pelosi (D., Calif.) that would allow drilling in waters 50 miles from the shore along the Pacific and Atlantic coasts as long as coastal states agree — and beyond 100 miles regardless of what states want. The proposal represents a concession by Rep. Pelosi to the political success of Republican calls for more drilling.
But in contrast to proposals backed by Republicans and some moderate Senate Democrats, the bill approved in the House Tuesday wouldn’t share any royalties gained from increased offshore oil drilling with coastal states.
Depriving states of a share of royalty revenue would eliminate a critical incentive for them to allow drilling off their coasts, Republicans say.
The White House announced late Tuesday that Mr. Bush’s senior advisors would recommend he veto the House measure, should it reach his desk. The White House cited the royalty issue among its objections.
The Senate appears unlikely to pass a drilling proposal, based on interviews with lawmakers in recent days.
If members of Congress and the White House can’t agree on a drilling plan, it could lead to a showdown between Democrats and Republicans over legislation needed to keep the government running past Sept. 30, as the drilling ban is part of the expiring bill that funds the government.
The drilling debate has come down to money, reflecting the federal government’s budget squeeze.
Democrats say sharing royalty revenue with states would put pressure on lawmakers to find offsetting budget cuts, because of an opinion issued this month by the Congressional Budget Office that sharing royalties with states would count as an increase in government spending. The bill also calls for eliminating $18 billion in tax breaks for large oil companies.
House Democrats say the oil taxes are needed to pay for extending tax credits for electricity produced from wind and solar energy and to pay for energy-efficiency and conservation programs.
Wall Street Journal
9/17/8
Magnolia Tribune
