WASHINGTON - Sen. David Vitter, R-La., Wednesday introduced far-reaching legislation to significantly expand domestic oil and gas development, while increasing revenue sharing for Louisiana and other producing states. But the senator acknowledged that Senate Democratic leaders aren't likely to bring up his bill for a vote. Environmentalists, joined by some congressional Democrats, have objected to previous version's of Vitter's...
WASHINGTON - Sen. David Vitter, R-La., Wednesday introduced far-reaching legislation to significantly expand domestic oil and gas development, while increasing revenue sharing for Louisiana and other producing states.
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Sen. David Vitter offers up comprehensive energy bill.
But the senator acknowledged that Senate Democratic leaders aren't likely to bring up his bill for a vote.
Environmentalists, joined by some congressional Democrats, have objected to previous version's of Vitter's bill for significantly increasing oil and gas production when they believe the better course is for more alternative energy sources.
Vitter, who describes his approach to energy as an "all of the above" strategy that focuses on both traditional and alternative energy products, said he plans to offer up his bill, or key components, as amendments to other bills debated during the current Congress.
His bill has 16 Senate co-sponsors, all Republicans.
At a Capitol news conference Wednesday, Vitter, joined by the bill's lead House sponsor and a Senate co-sponsor, said increased production would make the nation more secure, increase jobs and bring in more revenue to a government now facing huge deficits and a $85 billion sequester on Friday.,"There's no disputing the fact that our nation's domestic energy production on federal lands has been stymied by this administration and is trending in the exact opposition direction of the rapid growth we're seeing on private and state lands," Vitter said. "This legislation would help to reverse the tend by increasing access to our domestic resources, and would do so despite the threat from the White House to decrease oil and gas leasing and permitting on federal lands if sequestration goes through."
The Vitter bill would lift the $500 million cap on revenue sharing to $1 billion from 2017-2024, and to $2 billion from 2025-2055.
Sen. Mary Landrieu,. D-La, is working on another bill that would accelerate increased revenue sharing for states, now scheduled to take effect in 2017, and to lift a $500 million cap on revenue sharing for Gulf States. Landrieu was the lead Democratic sponsor of an energy bill that provided 37.5 percent of royalty payments for off-shore development to producing states, beginning in 2017.
Under Landrieu's proposal, the 37.5 percent share would take effect when the bill becomes law.
The Vitter bill, which includes key components from previous Vitter bills, would require the secretary of Interior to open closed areas of the Outer Continental Shelf for leasing, saying it could generate 1.2 million well-paying jobs.
But some provisions are likely to generate strong opposition, including language opening up production off the California and Florida coasts. Lawmakers in the two states, including Republicans, oppose new drilling off their coasts, fearful a spill or other accident could endanger their state's tourism industry.
Rep. Rob Bishop, R-Utah., the bill's lead House sponsor, said at a time when the government is running huge deficits members of Congress and the Obama administration should look at increase oil and gas development as potential significant source of revenue.
"Here we present new opportunities to grow revenues in a way that will help address the critical issues of job creation and energy costs," Bishop said.
The Vitter/Bishop bill would also significantly limit government regulation of oil and gas development.
It would expedite judicial review of energy projects on federal lands, prevents the Environmental Protection Agency from regulating CO2 under the Clean Air Act, requires EPA to conduct an economic analysis of the impact of Clean Air Act regulations, and accelerate the permitting of the Keystone XL Pipeline project.
At the news conference, Vitter was asked about the reluctance of some producers to develop new natural gas resources because of low prices. Vitter said he would not mandate that lease holders proceed with projects within a specific time period, but is prepared to work with industry, congressional colleagues and others to help generate more uses for natural gas that could increase demand.