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Republicans Block Anemic Energy Bill for Oil Industry July 28, 2010

Posted by Jamie Friedland in Climate Change, Congress, Offshore Drilling, Politics.
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1 comment so far

Despite the weakness of the pending oil spill/“energy” bills introduced in the House and Senate this week, Big Oil and their Congressional allies are doing everything they can to make sure we do not learn from BP’s unforgiveable mistakes.

100 days after the Deepwater Horizon spill began, Republicans oppose each of the small shuffles down the right path that these bills contain.

For example, anti-science champion Sen. Inhofe (R-OK) takes exception with a provision that requires natural gas drillers to merely disclose which toxic chemicals they are injecting into the ground near our drinking water supplies during the controversial practice known as “hydraulic fracturing” or “fracking.”

Why does Inhofe oppose the simple disclosure of that information?  Because Inhofe and the industry claim that the dangers of toxic chemicals in drinking water are overblown.

Comprehensive energy reform is already dead, and even these bills, which could only euphemistically be called “half-hearted”, have a slim chance because Republicans claim that there is little room for compromise. That is a disgusting claim.  These bills are already grotesquely compromised.  They were so thoroughly watered down in hopes of attracting the necessary supermajority that they are scarcely progress at all.  To demand more compromise calls to mind a limbo player lying on the floor.

Republicans most vehemently oppose lifting the liability cap on oil companies that defile our nation’s environment.  They say that expecting oil companies to pay for the full consequences of the damage they cause will drive “mom and pop” oil companies out of business.  That is hardly a defense of limited liability: if that claim is true, perhaps mom and pop should pursue less risky projects.

Republicans are fighting to preserve the apparent right of every oil company, big or small, to remain blameless for the oil spills they continue to cause in American waters. That is senseless.

With midterm elections approaching, Republicans are pretending to have solutions of their own; toward that end, they are circulating an even bigger joke of an energy bill.  Their “alternative” bill contains energy “solutions” such as lifting the deepwater drilling moratorium and preventing the administration from blocking offshore drilling again. You know, the change we need.

However, the Republican bill does contain a provision that unfortunately may influence the Democratic bills.  Instead of unlimited liability for oil companies that cause spills (making them pay for all the damage they cause), Republicans have a different idea: ironically, the party of limited government wants to make the Department of the Interior set liability limits on each individual rig based on 13 different criteria, including a company’s safety record and the estimated risks involved with the specific location.

This is just another way to protect Big Oil and make sure that taxpayers are the ones who have to pay to clean up oil spills. Oil state Democratic Senators Mary Landrieu (D-LA) and Mark Begich (D-AK) are attempting to broker a compromise on oil spill liability.

There is one additional point that must be mentioned.  Many Republicans are trotting out this line in various forms:

“This is a serious subject and it deserves consideration by the United States Senate on behalf of the American people.  We are ready for a serious debate, but it appears the Majority Leader is not.” –Sen. Lamar Alexander (R-TN)

This complaint is not just about the bill’s expedited timeline.  It is true that Sen. Reid is trying to have an energy bill passed by the August recess.  Yet perhaps more importantly, Sen. Reid is unlikely to allow any amendments to be added to this bill.

Such a parliamentary maneuver is necessary because Sen. Jay Rockefeller (D-WV) is poised with his amendment to delay the EPA’s authority to regulate carbon dioxide under the Clean Air Act; the final regulatory bulwark of climate action in the United States.

Rockefeller’s amendment, about which I will write more soon, is similar to Sen. Lisa Murkowski’s (R-AK) “Dirty Air Act” amendment that was narrowly defeated in June.  If amendments were allowed, she too would certainly poison this bill with something similar.  Indeed, Murkowski is considering adding the amendment to an unrelated small-business bill as she tirelessly does the bidding of Big Oil in the U.S. Senate.

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“Energy” Bills Drop and Big Oil Plays Doctor July 27, 2010

Posted by Jamie Friedland in Congress, Offshore Drilling, Politics.
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3 comments

Early this week, the House and Senate unveiled their minimalist energy bills.

Far from the comprehensive energy reform our country desperately needs, these bills are largely just a direct response to the oil spill (an approach with which I strongly disagree).

Both bills are amalgamations of other, smaller oil spill/energy bills that have already passed out of their various committees.  The House and Senate bills differ slightly (which was bound to happen even if the House bill wasn’t 238 pages compared to the Senate bill’s 16), but here’s a summary of the Senate bill’s provisions:

  • Lift the $75 million oil spill liability cap (retroactively, to apply to BP)
  • Increase the per-barrel tax on oil producers that feeds the Oil Spill Liability Trust Fund
  • Restructure the Department of the Interior to remove conflicts of interest and increase drilling oversight
  • Lopsidedly incentivize electric and natural gas vehicles ($6 billion for natural gas, $400 million for electrification)
  • Finally enact the HomeStar home retrofit program

A full 24-page “draft” summary is available here but subject to change, especially as this bill is likely to move quickly ahead of the looming August recess.  Debate on this bill is scheduled for Friday.

TNR’s Bradford Plumer described the scope of this Senate legislation:

“All told, it’s a tiny bill—the total cost comes to around $15 billion. And it won’t do all that much for the environment: When one reporter asked committee staffers whether anyone knew how much greenhouse-gas reduction this bill would lead to, several people laughed out loud.”

Notably absent from this energy bill (aside from comprehensive energy policy) is a Renewable Energy Standard (RES): a requirement that America generate a certain amount of its electricity from renewable sources by a given date.

Could an RES pass right now?   Renewable energy advocates and former Senate Democratic leader Tom Daschle insist that they have 60+ votes for the popular, no-brainer policy.  Curiously, Sen. Reid says he doesn’t have the votes.  Someone is misinformed or lying.

Daschle, pictured above, and Reid disagree about whether the votes are there for an RES. Obviously, politicians are quite capable of the seemingly impossible feat of arguing about whether a given number is above or below 60, but Daschle doesn't really have a reason to lie; Reid could be saving the RES as a strong foundation for a subsequent, real energy bill, but he has not given any such explanation.

Both the House and Senate versions are weak as an energy bill, but the House bill does contain some additional commonsense solutions to protect America from the intrinsic risks of offshore drilling.

For example, the House bill would block oil companies with a “significant history” of violating worker safety of environmental laws from drilling in federal waters.  The legislative language, which already passed out of the House Natural Resources Committee, defines that “significant history” as a company having at least one of the following:

  • 5x the industry average for willful or repeat worker safety violations at its facilities;
  • More than 10 deaths at any facility; or
  • $10 million in fines under EPA laws within the preceding seven years.

The package includes further safety provisions that the Natural Resources panel approved unanimously, including new standards for blowout preventers.

It is worth noting that even in the comparatively more aggressive House bill, drilling regulations that were not direct responses to the oil spill were dropped.

So, what does the oil industry have to say about these moderate safety regulations?

The American Petroleum Institute (API) is the oil industry’s main trade association.  And they oppose almost all of these regulations, of course.  As far as Big Oil is concerned nothing needs to change.

In a call with reporters, API president Jack Gerard took particular umbrage at the blowout preventer regulations.  In his eyes, new blowout preventer regulations are premature because we don’t even know what caused the Gulf spill:

“We’re going into surgery without a diagnosis.  This is the ultimate in malpractice.” –Jack Gerard, President and CEO of the American Petroleum Institute.

Granted, I have never been pleased by anything these API lobbyists have said, but this is a remarkably bold statement.  We know fully well that current blowout preventer regulations and practices are not up to the job.

Hypocrisy is a familiar sight in Washington.  In the past, however, you usually had to wait until after an election before side-by-side comparisons of a single person arguing against himself began to show up a la the Daily Show.  But not anymore.

Just a few weeks ago, API spokesperson Bill Bush fought against the deepwater drilling moratorium because:

“The 33 now idle deepwater drilling rigs in the Gulf have passed thorough government inspections and are ready to be put back to work.”

Let’s continue the API’s medical metaphor: We can’t operate on (regulate) the deepwater rigs because we don’t know for sure what ails them.  But somehow, at the same time, we can pronounce them healthy and let them keep on drilling?  That does not compute.

API’s Gerard went on:

“We believe what comes out of the discussions on the oil spill should be directly related to the oil spill.”

That makes sense.  The patient was admitted only because of his inability to keep his oil down – why set his broken bones or cure any additional diseases you find during his checkup?

And remember, as I said before, needed but less directly spill-related drilling regulations have already been dropped from these bills in accordance with this oil industry demand.  Such is the price of attempting to overcome Republican obstructionism.

A brief New York Times article detailing the roll out of these bills summarized the likely resistance:

“The oil industry is expected to offer stiff opposition to some of the provisions…”

Maybe I’m reading into it too far, but this quote really irks me (because of the content, not the writing):

The oil industry screwed up, big time.  The damage to the Gulf of Mexico and its dependent economies is catastrophic.  In direct response, Congress is attempting to pass an anemic bill with long overdue and watered down regulations.

The ONLY opposition to this bill is from the very industry that screwed up in the first place and has long enjoyed a political free ride.

Are we really going to let them singlehandedly push back against the regulations they’ve so vividly demonstrated they require?  That’s like losing the bedtime argument with your young child.  This is pathetic.