A shadow over recess

Democrats will head into the August recess Friday with the shadow of gas prices hanging over them following a mix-up about whether House Speaker Nancy Pelosi (D-Calif.) had hinted that she might allow a vote on new oil drilling.

The party’s struggles to cope with the energy crisis threaten to obscure a string of victories it has racked up on other domestic issues, such as housing, Medicare, unemployment and veterans’ benefits.

{mosads}Pelosi, who has repeatedly slammed the door on new drilling as an answer to high gas prices, rushed Thursday to clarify comments to reporters that appeared to hint at new flexibility on an issue that has pitted environmental concerns against the need to respond to consumer pain with gasoline at $4 a gallon.

“It could be that in the bigger picture of things, as things go together it may be that it has a place,” Pelosi said in an end-of-session roundtable with reporters. “Whether it’s for coal, for natural gas or whether it’s for nuclear. … If it fits into the bigger picture, it may have a place.”

And, asked if she could envision a scenario where there could be a vote on new offshore drilling, she said, “Of course.”

But shortly thereafter, Pelosi’s office issued a written “clarification” stating that Pelosi was not changing her position.

“She has no plans to bring to the floor a bill to allow drilling in protected areas,” spokesman Drew Hammill said in the statement. “The Speaker was referring to the issue of expanding supply. Drilling, no doubt, will be part of the mix in transitioning to a more fuel-efficient global economy.”

Republicans have been frustrated that Democrats, while seemingly cornered on energy, still enjoy an enormous advantage heading into congressional elections.

On Thursday, they detected a shift from Pelosi’s insistence, voiced earlier this month, that “we can’t drill our way out” of soaring fuel costs.

“It’s clear her spinners are backpedaling,” said House Republican Conference Chairman Adam Putnam (Fla.). “I am heartened by the Speaker’s Freudian slip that in her heart of hearts she envisions some openness to expanding supply.”

In the Senate, Majority Leader Harry Reid (D-Nev.) said Democrats have repeatedly tried to push real solutions on energy, but were consistently blocked by Republicans and President Bush.

{mospagebreak}But Reid gave only the barest of acknowledgements that Democrats are anxious about facing voters this fall, after such failures.

“Of course I’m concerned,” Reid said. “But the Republicans have made a decision they’re going to do everything they can to maintain the status quo on energy and everything else. And maintaining the status on energy is a real big wet kiss to the oil companies.”

This week’s indictment of Sen. Ted Stevens (R-Alaska) was another blow to the morale of Senate Republicans, who may lose several seats. Yet fellow Alaska Republican Sen. Lisa Murkowski said she sees hope in the drilling issue.

{mosads}Murkowski said the public understands that Democrats control Congress and that Congress has blocked efforts to boost the U.S. oil supply through drilling.

“There is clearly a public awareness. People are connecting the dots,” she said. “They’re seeing the high prices they’re paying and wondering why supply is low. That helps us in our argument for finding more, for increased production.”

Republican staffers say Pelosi’s comments may confirm reports they’re hearing that Democrats are crafting a fall-back energy plan to satisfy vulnerable members in conservative districts who want to support more drilling. The rough outlines, as Republicans understand them, is that the measure would allow new drilling offshore, but not in the Arctic National Wildlife Refuge, and only after areas open to drilling have been more fully explored.

A Democratic aide said he was not familiar with any such proposal or concept.

The idea hints at a fall compromise that would reflect the changing balance of power as Bush’s influence fades. Last year, Democrats had to cave to Bush on Iraq and spending to get appropriations bills done, though they forced through an increase in fuel efficiency. And Pelosi said Thursday that the failure to end the war in Iraq remains her primary frustration.

Early this year, Pelosi, Republican leaders and the White House worked together as equals on an economic stimulus plan that was hailed as a model of bipartisanship. Then, starting with a stiff-arm of Bush on the Colombia Free Trade Agreement, Pelosi and Democratic leaders started asserting themselves.

They had to give up on their goal of using spending bills to change Bush’s Iraq policy, and angered their base with a surveillance bill. But they overrode or forced Bush to swallow vetoes on the farm bill, a Medicare physician’s fix, the GI Bill, unemployment and housing.

Pelosi’s comments could also reflect a desire to put the energy debate behind her and focus on other domestic economic policies where Democrats are stronger in the run-up to the election.

“The big issue is we need to work on improving the economy for the American people,” Pelosi said.

“The administration has tried to address it, but not in a robust enough way. That’s what this election is about.”

At the heart of that plan is a second economic stimulus, where Pelosi seems confident her party holds the advantage.

“The sounds I’m hearing [from Republicans] are not ‘No, never,’ ” Pelosi said, adding that a stimulus proposal put forth by Sen. Robert Byrd (D-W.Va.) has “a nice array of ideas.”