When Congress reconvenes from its August recess in early September, energy promises to be on the top of the agenda in both the House and Senate. That’s a pretty easy prognostication given that energy’s been a top item on the agenda for a while now. Indeed it is one of the hottest political issues this year, with gasoline and other energy prices apparently having changed public opinion and driving politicians to appear responsive.
Of interest, since adjournment for the recess, House Republicans have continued to speak daily on the House floor demanding that Speaker Pelosi bring the House back into session for a vote on “American energy”. That isn’t going to happen of course, but Speaker Pelosi has apparently indicated that she will allow the House to vote on offshore drilling after Congress reconvenes in September – something she and congressional leadership have heretofore been unwilling to do. This is an apparent accommodation with Senator Obama’s announcement that he could support limited offshore drilling as part of a compromise package to advance a broad range of energy initiatives. It is less clear what Majority Leader Reid will be willing to do in the Senate.
The compromise package to which Senator Obama referred was apparently the proposal put together by the bipartisan “Gang of 10”. The proposal includes offshore drilling as well as renewable energy tax incentives and promotion of nuclear energy. Similar compromises are being crafted in the House by a number of groups including one led by Congressmen Peterson and Abercrombie. Of additional note, apparently Senate Majority Leader Reid and Minority Leader McConnell have agreed to hold a one-day energy summit shortly after the Senate reconvenes in September.
One thing to note about any of the compromise packages is that they will themselves be controversial. Criticism of the “Gang of 10” proposal in the Senate, for instance, includes that it only offers up limited offshore production (opening additional areas in the Gulf of Mexico only and allowing only the states of Virginia, North Carolina and Georgia to “opt in”) and that it pays for new energy incentives by increasing the taxation of (or withdrawing deductions currently allowed) oil and natural gas companies. Opening the Arctic National Wildlife Refuge to development is also unlikely to be included in any of the compromise packages that have a chance of passage.
It will be interesting to watch what develops. Part of what’s driving things besides election politics and shifting public opinion is the need for the House and Senate to pass legislation to extend tax credits to certain industries, including the renewable energy industry. The controversy lies, at least in part, with the insistence by House and Senate Democratic leadership that the extensions be wholly or at least partly offset by new revenues sources, such as the withdrawal of certain tax incentives to oil and natural gas companies. Solving this dilemma is a key aspect of the compromise proposals.
Also on the House and Senate agenda for September is consideration of a Speculation Bill to address concerns that oil market speculation has been at least partly responsible for driving up the price of energy. Efforts to come up with a bi-partisan bill failed before the recess and efforts will resume after the House and Senate reconvene. Apparently aiding this effort will be a September report due out by the Commodity Futures Trading Commission, which it is anticipated will shed some additional light on problems in need of fixing.
It promises to be an interesting autumn.
Posted on
Wednesday, August 27, 2008
by Kevin Bliss