GOP offers alternative oil spill strategy

Senate Republicans would lift an Obama administration ban on offshore drilling and give the president authority to set new oil spill liability limits for companies in an alternative spill strategy to one Democrats will push next week.

Republican leaders late Thursday filed a package that would ensure the administration’s drilling ban does not apply to rigs that meet new Interior Department inspection and safety requirements. It also requires the department to issue permitting decisions within a month of compliance.

{mosads}The effort to end the drilling ban comes amid widespread criticism of the moratorium from Republicans and Gulf Coast lawmakers from both parties who allege it is harming the region’s already battered economy.

Elsewhere, the GOP plan gives the president authority to increase the current $75 million liability limit oil and gas producers now face for a major oil spill. Under the GOP plan, the government must account for 13 factors when setting the limits on damages, such as water depth and a company’s safety record.

It also sets up a new 10-member commission largely appointed by Congress to probe the oil spill, which would effectively compete against the commission that President Barack Obama created in May. Critics contend the members of Obama’s commission are tilted against drilling. Both the House and Senate energy panels have given bipartisan approval to the idea.  

The GOP alternative also would accelerate guaranteed revenue given to states that have oil and gas production occurring off their coastline in federal waters, equal to 37.5 percent of all federal offshore oil and gas drilling revenue. Gulf coast senators have long sought this revenue sharing, which is strongly opposed by Senate Energy and Natural Resources Chairman Jeff Bingaman (D-N.M.). Senate Majority Leader Harry Reid (D-Nev.) has put Bingaman in charge of cobbling together oil spill response plans from his and other panels as part of a larger spill response and energy package next week.

Other provisions in the GOP alternative would expand oil spill research; boost funding for Coast Guard response efforts; and improve training of federal, state and local first responders to conduct research and testing of oil spill response equipment, technologies and techniques.

Senate Democratic leaders are putting together a four-part package to bring to the floor as early as Tuesday. In addition to an oil spill response plan, it is slated to include non-controversial measures to promote residential energy efficiency, deploy more large natural gas-powered trucks, and add funding for land and water conservation.

Reid Thursday said the plan should get 60 votes and includes provisions with bipartisan backing.

But it is expected to include a controversial plan to retroactively eliminate the current $75 million limit on companies’ liability for damages from offshore spills. The Senate Environment and Public Works Committee recently approved the plan, which was offered by Sen. Robert Menendez (D-N.J.). Sen. David Vitter (La.) was the lone Republican on the panel to support it.

The Democratic plan would combine oil spill response bills from multiple committees – including the establishment of the new oil spill commission.