Congress Works on Pared Down Energy Legislation

On July 27, House and Senate Democrats each introduced pieces of energy legislation aimed at overhauling offshore drilling regulations following the oil spill in the Gulf of Mexico. The Senate originally had intended to push a more comprehensive energy bill that included a nationwide cap and trade program to limit greenhouse gas emissions and provisions to encourage development in the renewable energy and energy efficiency sectors. On July 22, Senate Majority Leader Harry Reid (D-NV) announced that Democrats would no longer pursue such provisions and instead offered a pared-down bill in response to the oil spill.

The Clean Energy Jobs and Oil Company Accountability Act of 2010 (S. 3663) was introduced by Sen. Reid on July 28, and includes removing the $75 million liability cap on companies that own or operate offshore rigs, as well as providing incentives for natural gas and electric vehicles. Debate is tentatively scheduled before the Senate leaves for its August recess, though it may be pushed until the Senate returns in September.

On July 30 in the House, members passed H.R. 3534, the Consolidated Land, Energy and Aquatic Resources (CLEAR) Act of 2010 , removing the $75 million liability cap for oil companies and creates new "conservation" fees on oil and natural gas extracted from land or water controlled by the federal government. The bill's main sponsor, Natural Resources Committee Chair Nick Rahall (D-VA), said the legislation would end a "trust-but-don't-verify" attitude about safety in an industry that often wrote its own rules. "We want to ensure that offshore drilling is done efficiently, while protecting both the environment and our number one natural resource -- the brave men and women who help power this great nation," Rahall said after the bill passed , 209-193.