……………………………………………………………………………………………………………………………………………………………………………..News and analysis for South Dakota’s political junkies

Aug 7

SHS has her own gang, and it’s bigger than Thune’s

By Denise Ross

Before the US Senate’s Gang of 10, there was another bipartisan energy compromise in the US House - not that you’d know it by the GOP-led histrionics going on there now - but there was.

It is H.R. 6709, also known as the National Conservation, Environment and Energy Independence Act. And it would lift the ban on offshore drilling in the US, which is what the current fuss on the Hill is all about. H. R. 6709 also would do a whole lot of other things.

H.R. 6709 is similar in spirit to a proposal released late Friday by the Senate’s Gang of 10, which includes SD’s own John Thune. The group behind the House measure is 119 strong - more than the whole Senate (just sayin’) - and SD’s own Rep. Stephanie Herseth Sandlin is one of the original cosponsors of the bill. (Read her full press release on the jump.)

When it comes to bringing down prices at the pump and enhancing our energy security, Americans deserve more from their leaders than partisan fighting and political stunts,” Rep. Herseth Sandlin said. “I’m optimistic that when my colleagues return after spending time talking to constituents in their district about the need for less talk and more action from Washington, they will be eager to move this package forward.”

Here’s a brief list of some of what’s in the House bill, which appears to allow more off-shore drilling than the Senate’s bill would but does not offer a plan to transition the nation’s auto fleet away from gasoline.

  • Would count woody biomass derived from federal lands towards the Renewable Fuels Standard. (SHS has been steamed about this exclusion ever since Congress passed an energy bill.)
  • Would mandate the release of oil from the Strategic Petroleum Reserve.
  • Would dedicate funding to the development of alternative fuels, renewable energy and environmental restoration by allocating the estimated $2.6 trillion in oil royalties from oil and gas production derived from offshore drilling. (See the jump for a breakdown of who would get the money.)
  • Would repeal prohibitions preventing federal agencies from entering into contracts for procurement of an alternative or synthetic fuel. (If you’re like me, you ask, There’s a prohibition on the feds contracting for alternative fuel? Who says the oil companies have too much influence? Read the official memo on H.R. 6709 from the bill’s chief Republican sponsor, John Peterson of Pennsylvania.)

 Here’s the full press release: HERSETH SANDLIN, BIPARTISAN GROUP INTRODUCE COMPREHENSIVE ENERGY LEGISLATION IN HOUSEBill Represents Bipartisan Breakthrough - Includes Compromise Agreements on Controversial Sticking Points Including Increased Domestic Production and Production Tax Credit for WindAugust 6, 2008, Washington, DC- In an effort to get beyond the partisan stalemate and move forward with bipartisan solutions to the nation’s energy crisis, the House Energy Working Group recently introduced a comprehensive energy bill with support from a range of Democrats and Republicans, including Rep. Stephanie Herseth Sandlin.  The bill seeks to break through and move beyond the familiar political arguments that have prevented progress on meaningful energy legislation.  Importantly, the bill includes compromise agreements on longstanding, controversial sticking points such as increased domestic production in the Outer Continental Shelf and key tax incentives for renewable energy.H.R. 6709, “The National Conservation, Environment and Energy Independence Act,” features a range of short- and long-term provisions to enhance America’s energy security, including measures to increase domestic supply through more exploration, extend production tax credits over multiple years, and make greater investments in renewable sources of energy like biofuels and wind.  The bill’s bipartisan lead sponsors are Rep. Neil Abercrombie (D-HI) and John Peterson (R-PA), and it has 119 bipartisan cosponsors.When it comes to bringing down prices at the pump and enhancing our energy security, Americans deserve more from their leaders than partisan fighting and political stunts,” Rep. Herseth Sandlin said. “We need to break away from these same old battles fought along the same old party lines, and look for common ground.  This comprehensive energy package has support and input from members on both sides of the aisle, and represents a true compromise.  I’m optimistic that when my colleagues return after spending time talking to constituents in their district about the need for less talk and more action from Washington, they will be eager to move this package forward.”Notably, the bill includes language to count woody biomass derived from federal lands towards the Renewable Fuels Standard.  This language is similar to that in Rep. Herseth Sandlin’s bill, the Renewable Biomass Facilitation Act (H.R. 5236).  Herseth Sandlin said, “Virtually prohibiting the inclusion of woody biomass from federal lands as part of the Renewable Fuels Standard was a serious mistake, and I’ve been working to change it ever since.”In addition, the National Conservation, Environment and Energy Independence Act includes the following provisions:

  • Mandates the release of oil from the Strategic Petroleum Reserve, which can reduce the current price of oil.
  • Extends tax incentives for renewable energy production from wind, solar and geothermal and other sources – including a five-year extension of Production Tax Credit for wind - and creates a new incentive for plug-in hybrid automobiles.
  • Takes a major step toward U.S. energy independence by opening the Outer Continental Shelf 25 miles or more from the coastline to “Over the Horizon” oil and natural gas production for domestic use only.  The issue of increased domestic drilling has been extremely controversial in the Congress, and the inclusion of this provision represents an important breakthrough.
  • Provides the first stable, designated funding source for the development of alternative fuels, renewable energy and environmental restoration by allocating the estimated $2.6 trillion in oil royalties from oil and gas production in the Outer Continental Shelf as follows:
    • 30% to the U.S. Treasury;
    • 30% to the adjacent State;
    • 8% to the Conservation Reserve created by this Act;
    • 10% to the Environment Restoration Reserve Fund created by this Act;
    • 15 % to the Renewable Energy Reserve Fund created by this Act;
    • 5% to the Carbon Capture/Sequestration and Nuclear Waste Reserve Fund created by this Act;
    • 2% to the Lower Income Home Energy Assistance Program (LIHEAP).

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