Energy Roundup: Browner, Salazar speak at gas drilling forum

On tap Tuesday: White House enters gas-drilling fray

White House energy czar Carol Browner and Interior Secretary Ken Salazar will headline an Interior forum about natural gas drilling on public lands.

The event will focus on hydraulic fracturing, the controversial drilling method that’s enabling a boom in domestic gas production.

The technique – dubbed “fracking” – involves high-pressure injections of chemicals, water and sand to break apart rock formations and enable trapped gas to flow.

Environmentalists fear widespread groundwater contamination, and EPA and some House Democrats are probing the practice.

A political quandary for Obama

The issue puts the White House in a politically tricky spot.

The administration favors natural gas as a lower-carbon alternative to coal and oil, and President Obama calls it an area ripe for bipartisan compromise. But his green base is up in arms over the environmental toll of domestic production, while industry groups call the concerns overblown hype by fossil fuel opponents.

Interior’s announcement of Tuesday’s event hints at the tradeoffs:

 “As recently as November 3, 2010, President Obama reiterated his commitment to the development of natural gas resources.  The Department of the Interior shares that commitment and wants to ensure that natural gas is developed in a safe and environmentally sustainable manner so that the United States can fully realize the economic, security, and environmental benefits of this important energy resource.”

Participants Tuesday will include Deputy Interior Secretary David Hayes, and officials with Exxon Mobil Corp., the Natural Resources Defense Council, and other companies and green groups.

Hastings isn’t giving up on bid for energy jurisdiction

Incoming House Natural Resources Committee Chairman Doc Hastings (R-Wash.) believes his proposal to consolidate energy matters under his panel remains alive, despite a wall of opposition from the powerful Energy and Commerce Committee that would see its power shrink under the plan.

“I would not have done this if I didn’t think I had an opportunity to be successful, and so I am trying to be successful. I am going to work as hard as I can to see that it happens,” Hastings told reporters in the Capitol Monday.

Rockefeller says ‘all options’ under review for bill to scuttle EPA climate rules

Sen. Jay Rockefeller (D-W.Va.) is still angling for a lame duck vote on his bill to block looming EPA greenhouse gas rules. “I think it is a question of them making up their minds,” Rockefeller said Monday of his discussions with Democratic leadership.

Majority Leader Harry Reid (D-Nev.) has been noncommittal about scheduling a vote. “We have discussed all possible options,” Rockefeller told reporters in the Capitol when asked about a legislative vehicle for his plan.

“We deserve a separate vote. I would like to have one,” Rockefeller said. Asked if he believed Reid wants to bring up the measure, Rockefeller replied, “I do.”

Rockefeller’s plan would freeze the rules for power plants and other industrial plants for two years. They’re currently slated to begin taking effect next year.

Landrieu eyes Round II in drilling fight with White House . . .

Sen. Mary Landrieu (D-La.) seems to be spoiling for another fight with the White House over offshore oil-and-gas drilling permits.

Landrieu lifted her hold on the confirmation of White House budget chief Jacob Lew earlier this month — she had been blocking his confirmation to spur issuance of drilling approvals. But she says the Obama administration is still failing to make progress on allowing offshore projects to proceed.

“There are other options that I have, and I have told them that if these permits are not forthcoming that there are other actions that I can take, and I will not hesitate,” she told reporters in the Capitol Monday.

“Getting this industry back up and operating and getting people back to work, you would think that would be a priority for this administration, but evidently it’s not,” she said.

. . . and hopes for lame duck action on oil spill response bill

Landrieu said she’s still seeking Senate action this year on a limited package of measures in response to the BP oil spill – including provisions that would ensure fines from the disaster are steered toward Gulf Coast recovery.

“It would be a very narrow bill. It’s not an energy bill. It’s a spill response bill that would make sure BP pays the full amount that is due in penalties, directs . . . a significant portion to the Gulf Coast, and hopefully can deal with a few other things related to the compensation for victims,” she said. “If we can get anything done, that’s what it will be.”

Markey’s climate committee sets Wednesday hearing

Rep. Ed Markey (D-Mass.), chairman of the Select Committee on Energy Independence and Global Warming, will provide a reminder this week that those issues aren’t going away even if the committee probably is.

The panel will hold a hearing Wednesday titled, “Not Going Away: America’s Energy Security, Jobs and Climate Challenges.” The session will include retired Gen. Wesley Clark, who is now a top official with the ethanol trade group Growth Energy, as well as environmentalist Robert F. Kennedy, Jr.

Ascendant House Republicans are likely to dismantle the committee when they take control next year. But Rep. James Sensenbrenner (R-Wis.), the panel’s ranking Republican, wants GOP leaders to keep the committee intact while re-tooling it as a check against EPA rules he calls economically harmful.

House Speaker Nancy Pelosi (D-Calif.) created the panel shortly after Democrats took the House in the 2006 elections.

Ethanol trade group strikes back at effort scuttle tax credits

The ethanol trade group Growth Energy isn’t pleased that a coalition of environmental, conservative, and food industry groups are pushing Congress to let ethanol industry tax credits expire.

Growth Energy CEO Tom Buis sends along this response to the left-right anti-ethanol campaign we covered Monday:

“If there are subsidies that should expire, let’s start with the more than $280 billion in government subsidies the oil industry receives annually as reported by DTN The Progressive Farmer. The only reason the ethanol industry needs any government support today is because we are arbitrarily denied access to all but ten percent of the fuel market. Growth Energy’s Fueling Freedom plan would redirect tax credits to build out a national ethanol infrastructure to allow access to a fair and open market.  Extending the current ethanol tax credits will continue to help the ethanol industry displace costly foreign oil with clean, renewable ethanol. Eliminating them without reform would be equivalent to a tax increase on motorists – something I thought these groups were opposed to.”

On tap Tuesday II: House nuclear energy research bill

The House didn’t get around to voting Monday on Rep. Bart Gordon’s (D-Tenn.) plan to bolster Energy Department nuclear power research programs (we outlined it here). The bill is slated for consideration Tuesday, according to a notice from Majority Leader Steny Hoyer’s (D-Md.) office.

In case you missed E2 Monday

Check out these posts:

Senate Dems press for lame duck action on renewable power grants

Issa to keep one eye on drilling regulators

Energy Secretary: Pay freeze would not slow DOE push for energy tech

Tea Party backers, greens unite against ethanol tax credit

EPA chief previews defense against GOP assaults

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