Oil group cheers spill bill delay

Sen. Mary Landrieu (D-La.), a strong oil industry ally, and several other lawmakers are negotiating over an alternative liability proposal that would include a shared fund to allow companies to divide the cost of future spills.

“A robust, workable oil spill liability program — possibly including a mutual insurance element — is achievable and would cover the cost of a large spill without shifting huge costs to taxpayers,” Gerard said.

On Tuesday, Reid shelved the bill — a blend of oil-spill response and energy policy measures — until after the August recess, citing a lack of GOP votes. The bill faces opposition from Republicans and a few Democrats.

The U.S. Chamber of Commerce also lobbied against the bill.

The business group opposed a host of provisions, including unlimited liability for spills, new hurdles for companies to obtain offshore leases based on if they have been involved in past accidents, and mandated disclosure of chemicals used in hydraulic fracturing.

“Provisions eliminating the cap on liability provided in the Oil Pollution Act of 1990 would discourage major integrated oil companies as well as independent producers from exploring in domestic waters, as they would be unable to afford adequate insurance to cover the potential liability risk, if they could obtain insurance coverage at all,” Bruce Josten, the Chamber’s top lobbyist, said in a letter to senators Tuesday. It adds that independent oil-and-gas producers “would be particularly hard hit.”

Karen Harbert, who heads the Chamber’s Institute for 21st Century Energy, said the bill and even more far-reaching legislation the House approved last week would “essentially shut down America’s oil and gas industry, which would harm our economy, shed more jobs and force us to become even more reliant on foreign oil.”

Reid’s decision to punt on the bill leaves lawmakers and groups on various sides with more time to lobby for changes if and when the measure resurfaces. The group Environment America, echoing several Democratic senators, called on Reid to add a requirement that utilities supply escalating amounts of power from renewable sources.