Offshore drilling bill diluted
US Senate Democrats unveiled a slimmed down bill yesterday aimed at reforming offshore drilling, as doubts grew that Congress would be able to pass any substantial energy legislation this year.
The Senate bill, which Democrats were still refining, would require oil companies to cover all oil spill costs by removing the $75m (£48m) cap on liability relating to economic losses.
The measure would apply retroactively to the 20 April BP oil well disaster in the Gulf of Mexico, which prompted the legislation.
Other provisions in the legislation would provide rebates for purchasing vehicles that run on alternative fuels and making existing homes more efficient, as well as incentives to promote electric vehicles.
The estimated $15bn cost of the bill for clean energy initiatives would be paid for, according to Democratic aides, by raising the Oil Spill Liability Trust Fund fee. While a draft of the bill said the fee would rise to 49 cents per barrel of oil, from eight cents, an aide said that figure was still being reviewed.
Senate majority leader Harry Reid said he would bring the legislation to the floor in coming days. But its fate was uncertain as Reid said he also wanted to pass at least two other bills before a month-long recess set to begin on 6 August.
Meanwhile in the House of Representatives, Democrats are preparing to vote on a tough bill on Friday that would clamp down on offshore oil and gas drillers.
In addition to eliminating the oil spill liability cap, the bill would impose tough new safety rules and ban BP from getting new offshore oil exploration leases for up to seven years for its role in the Gulf oil spill.