Abercrombie Issues A Code Red Hypocrisy Alert On Republican's Energy Bill Complaints

Statement

Abercrombie Issues A Code Red Hypocrisy Alert On Republican's Energy Bill Complaints

"It is fascinating to listen to the Republican rhetoric as they continue to hyperventilate about the House energy bill passed Tuesday; even more so when you realize they're howling from a self-inflicted wound. They are fulminating because The Comprehensive Energy Security and Consumer Protection Act does not provide for the sharing of substantial federal revenues from offshore oil and gas drilling, either with the States, or to fund further research and development of alternative fuels and renewable energy.

And, in fact, the White House issued a statement announcing the President's opposition to the measure because it "does not allow for revenue-sharing with the States, eliminating a critical incentive for them to permit exploration off their shores."

But, what they aren't saying is that the only reason there's no sharing of royalties and revenues in our legislation is because of the Decider. Revenue sharing was in the bill, but had to be removed because of an action taken by President Bush.

In this White House, the right hand frequently doesn't know what the far right hand is doing. President Bush reversed the Executive Order issued by his father banning offshore drilling.

The problem is, under the regulations followed by the Congressional Budget Office (CBO) to enforce "pay-as-you-go" budgeting and spending, his action technically opened offshore areas to drilling, despite the Congressional ban. And, according to the CBO, anything Congress did afterward to limit potential federal revenues — like limiting the drilling to 25 or 50 miles from the shoreline — would mean less money for the federal government and had to be offset. As a result, the House was forced to remove the language that let States share in the revenue from drilling off their coasts.

President Bush's action to repeal the offshore drilling ban was certainly clever; perhaps a bit too clever.

In fairness, the Administration also opposes the legislation because the House took the Bush tax subsidies for big oil companies to encourage drilling and redirected them to provide incentives for more rapid development of alternative fuels and renewable energy technologies. At least, when this White House supports giving tax subsidies to the most profitable businesses in history, it is being very consistent.

We will be working with our Senate colleagues to reach agreement on an energy bill that establishes for the first time a real national energy policy. We will also be waiting for January 20, 2009.

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