House Passes Bill to Expedite U.S. Drilling Permit Decisions
The Republican-led House passed legislation that would require U.S. decisions on drilling permits within 60 days, rejecting Democratic complaints the measure may weaken safety rules in place since BP Plc (BP/)’s spill.
The House voted 263-163 on the bill, among three proposals Republicans are pushing to increase offshore production as gasoline prices reach about $4 a gallon. The bill was backed by 28 Democrats. A separate Republican bill to force the Interior Department to open offshore areas to oil and gas companies may be voted on as early as tomorrow.
Permits would be automatically approved if the U.S. failed to act by the deadline. Democrats said the bill passed today would weaken environmental and safety protections. Republicans said it would create jobs and cut fuel costs by encouraging companies to drill.
“For over a year, communities along the Gulf of Mexico have suffered through a real and then de facto moratorium on offshore drilling imposed by the Obama administration,” said Representative Doug Lamborn, a Colorado Republican and chairman of the House Natural Resources Committee’s energy and mineral resources subcommittee, as debate began yesterday. Lamborn said the bill requires drillers to meet safety standards.
The average gasoline price was $3.962 yesterday, up from $2.901 a year earlier, according to AAA’s daily fuel report.
Last week, the House passed a bill requiring lease sales in parts of the Gulf of Mexico and off of Virginia’s coastline.
Expand Offshore Leasing
A third bill would open areas along the Atlantic, Southern California and Alaska coasts to increase offshore production to 3 million barrels a day in 2027 from 1.7 million barrels a day in 2010. The administration said it opposes all three measures, without issuing a veto threat.
The legislation must pass the Senate to become law, and the chamber isn’t considering similar bills.
“This is the wrong response to the largest oil spill in U.S. waters,” said Representative Rush Holt, a New Jersey Democrat.
House Minority Leader Nancy Pelosi, a California Democrat, told reporters Republicans were pushing “drill-only bills” that wouldn’t lower gas prices.
Democrats introduced legislation that would increase fees on oil companies if they don’t produce in areas where they hold leases. The bills also would require new safety standards for drilling and promote natural-gas powered trucks with tax credits.
Drilling Moratorium
President Barack Obama halted deep-water drilling on May 27 in response to BP’s spill, a moratorium he lifted in October. The Interior Department has approved 51 permits for shallow- water drilling and 12 for work in deep waters since the spill, the administration said in a May 5 statement opposing the permit bill.
The administration estimated the ban cost as many as 12,000 jobs in the Gulf region.
In the Senate, Democrats are focusing on repealing about $21 billion in tax breaks in the next 10 years for Exxon Mobil Corp. (XOM), Chevron Corp. (CVX), ConocoPhillips (COP), BP and Royal Dutch Shell Plc (RDSA), including a $13 billion tax deduction for manufacturing.
A bill supported by Democratic leaders would use the revenues to reduce the deficit.
“If we’re serious about reducing the deficit, this is an easy place to start,” Senate Majority Leader Harry Reid, a Nevada Democrat, said on the floor yesterday.
Pelosi said some of the revenues should support clean- energy innovation.
To contact the reporters on this story: Jim Snyder in Washington at jsnyder24@bloomberg.net.
To contact the editor responsible for this story: Larry Liebert at lliebert@bloomberg.net.
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