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New Oil Spill Legislation May 13, 2010

Posted by Jamie Friedland in Congress, Offshore Drilling, Politics.
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***UPDATE***

It looks like I missed one relevant Senate bill in my sweep yesterday: S. 3309.  On May 6, Sen. Lisa Murkowski (R-AK) cosponsored legislation with Sen. Mark Begich (D-AK) that would raise the tax on oil producers that feeds the Oil Spill Liability Trust Fund to 9 cents/barrel (ooooh, 9 whole cents!).

Then, having made her token gesture of rebellion against her oil industry sponsors, Murkowski (R-OIL) single-handedly blocked the vote for Sen. Menendez’s bill that would raise oil company spill liability from $75 million to $10 billion.  Way to look out for everyday Americans/Alaskans, Lisa.

For a second there I thought I might actually have to praise Murky for taking a small step in the right direction.  Dodged that bullet.

Original Post:

As slowly as Congress acts, 11 relevant pieces of legislation have been introduced since the Deepwater Horizon rig sank on April 22, 4 in the Senate and 7 in the House of Representatives.  I have compiled a list of these bills and their stated purposes beneath this post (legislative text is not yet available).

The most significant bills are the three House bills seeking offshore drilling bans, one to protect the entire Pacific coast, one to protect all of the Atlantic and [whatever will be left of] the Gulf of Mexico, and one to prohibit new offshore drilling anywhere in U.S. waters.

Three more bills (2 Senate, 1 House) attempt to raise the liability cap on what oil companies can be made to pay for the oil spills they cause.

Two more bills fall under the “disaster response/assistance” category (the latter being sponsored by Sen. Landrieu to aid cleanup because that is the only aspect of this disaster that matters to the Senate’s “Handmaiden to the Oil Industry”.

Two more bills essentially penalize the oil industry.  I could phrase that more delicately, but I think it’s justified (and, given their current, monstrous subsidies, Big Oil still comes out way ahead).  One bill proposes a fee on all oil leases to create a fund that will be used for pollution control and “to reduce our dependence on oil” which presumably would fund research or renewable energy.

The other, called the “USE IT Act,” puts a “production incentive fee” on idle leases that oil companies hold but don’t drill on.  This seems like a great idea and has been suggested before 75% of all offshore leases lie unused. Between 2004 and 2008, oil and gas companies received 28776 permits on public land.  They drilled 18,954 of them. During Bush’s second term, Big Oil stockpiled nearly 10,000 leases.  That is why calls for more lease sales are so ridiculous; Big Oil is sitting on plenty of untapped reserves.  Each additional sale is just a land grab.  Why not incentivize them to develop the reserves we have given them?

If you’ve been counting, you know that leaves 1 remaining bill.  To paraphrase Sesame Street, “one of these bills is not like the others.”  Only one of these bills was sponsored by a Republican.  And it shows. Rep. Anh “Joseph” Cao (R-LA) introduced a slightly twisted bill on Wednesday.  In a letter explaining his bill, he calls upon Congress and the administration not to repeat Bush’s mistakes and mount an effective response to this threat:

“Five years ago, the federal government failed us during Hurricane Katrina.  I will not stand by and let the government fail us again.”

So far so good.  Then he makes a questionable leap:

“An effective response will require both short-term emergency action and long-term investment. That is why I am drafting legislation to call for accelerated oil revenue sharing with the federal government.

When he says, “sharing WITH” he really means “sharing FROM.”  Revenue-sharing is the legislative mechanism through which Big Oil buys off coastal states (with federal money) so that they will accept the now obvious risks of offshore drilling.  I understand the argument that the states, in foolishly accepting these risks, may deserve a cut of the leasing money.  That is not my primary point here.

Unless this bill explicitly stipulates that transferred oil revenues will be earmarked for disaster mitigation or preparedness, it is a pretty despicable money grab and decidedly untimely gift to the oil industry. The only definite impact of this bill will be to shore up the currently threatened political support for offshore drilling in Gulf states.

The underfunding of state governments is not what will make this disaster so catastrophic.  BP has claimed it will foot the bill and all available state and federal resources are already being brought to bear to do what can be done.  I could be reading this wrong, but this seems pretty low.

Finally, I have not yet written about the new Senate climate bill, but I would be remiss not to mention here that champions like Sen. Menendez (D-NJ) and Sen. Nelson (D-FL) made it clear that they will not support a climate bill if it supports offshore drilling.  The current draft allows states to veto federal plans within 75 miles of their shores.  It also allows neighboring states to veto the project IF a government study concludes that an oil spill could cause them “significant adverse ecological harm,” which looks pretty likely now, doesn’t it?  This, at least, is a good sign.  (Source: E&E Climate Wire, subscription required).

Also, Gov. Crist is calling for a special session to discuss a proposed constitutional amendment to ban offshore drilling off Florida’s coast.  This move is part of his recent dive to the left now that he is running as an independent, but it would be an important move regardless of his motivations.


These are the bills that have been introduced so far:

Drilling Bans:

  • West Coast Ocean Protection Act of 2010” (H.R. 5213): to amend the Outer Continental Shelf Lands Act to permanently prohibit offshore drilling off the coasts of California, Oregon and Washington.  Introduced by John Garamendi (D-CA) May 5.
  • No New Drilling Act of 2010” (H.R. 5248): to amend Outer Continental Shelf Lands Act to prohibit new OCS leasing for any drilling or mining.  Introduced by Frank Pallone (D-NJ) May 6.
  • H.R. 5287: to amend the OCS Lands Act to permanently prohibit offshore drilling on outer continental shelf in the Atlantic Ocean and Gulf of Mexico.  Introduced Corrine Brown (D-FL) May 12.

Raising the Liability Cap:

  • S. 3345: to remove the cap on punitive damages established by the Supreme Court in Exxon Shipping Company v. Baker.  Introduced by Sheldon Whitehouse (D-RI) May 11.
  • S. 3346: to increase the limits on liability under the Outer Continental Shelf Lands Act.  Introduced by Sheldon Whitehouse (D-RI) May 11.
  • “Big Oil Bailout Prevention Act of 2010” (H.R. 5214): to require oil polluters to pay the full cost of oil spills.  Introduced by Rush Holt (D-NJ) May 6.

Drilling Penalties:

  • S. 3343: to direct the Secretary of the Interior to establish an annual fee on Federal offshore areas that are subject to a lease for production of oil or natural gas and to establish a fund to reduce pollution and the dependence of the United States on oil.  Introduced by Frank Lautenberg (D-NJ) May 11.
  • USE IT Act” (H.R. 5102): to direct the Secretary of the Interior to establish an annual production incentive fee on onshore and offshore lands that are leased but where production is not occurring.  Introduced by Edward Markey (D-MA) Apr 27.

Disaster Response/Assistance:

  • S. 3337: to establish a program to provide technical assistance grants for use in assisting individuals and business affected by Deepwater Horizon.  Introduced by Mary Landrieu (D-LA) May 11.
  • H.R. 5241: to establish a commission to investigate the causes and impact of Deepwater Horizon and evaluate and improve the response to such disasters. Introduced by Lois Capps (D-CA) May 6.   More info here.

Republican Bill:

  • H.R. 5267: to accelerate the amount of Gulf of Mexico oil and gas lease revenues shared with States.  Introduced by Anh Cao (R-LA) May 12.

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Comments»

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2. Sen. Landrieu: The Gulf, the Gulf, the Gulf is on fire… « The Political Climate - May 21, 2010

[…] No. No.  As I explained last week when a House Republican made this same despicable proposal, “revenue sharing” is the legislative mechanism through which Big Oil buys off coastal states, […]

3. Climate Bill Skirmishes Pt. 1: The Murkowski Amendment « The Political Climate - June 15, 2010

[…] introduced an amendment to reverse the EPA’s endangerment finding.For a senator with such a proven history of representing the oil industry, it seems like a basic piece of legislation: the endangerment finding gives the EPA the authority […]

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