After months of political wrangling, the House passed legislation (H.R. 6899) last night, Tuesday, September 16 that could open up large areas off U.S. Coastlines to energy production.  Republicans have said the bill would do little to boost offshore oil and gas production, and the White House has issued a strong Statement of Administration Policy, threatening a presidential veto of the bill.

Democratic leaders hope the legislation will provide political cover for moderate members of their caucus who face tough re-election fights.  The Senate could take up its own energy legislation in the coming days, but prospects for working out a final version with the House appear difficult.  The Senate is not expected to pass the House bill in its current form.

Republicans call the Democratic drilling bill a sham, saying states would be unlikely to allow drilling near their shores because the legislation would not give them a share of the royalties from energy production.

The bill would establish new ethics requirements for the Minerals Management Service (MMS), a division of the Department of the Interior that oversees the leasing program.  This follows an Inspector General report that found federal employees engaged in sexual misconduct and illegal drug use with oil industry workers.

A last minute addition to the House bill would lift a moratorium on an oil shale leasing program for Colorado, Utah, and Wyoming, but only if a state decided to move ahead with leases.  This provision was a priority for Congressman Jim Matheson (D-Utah).  Petroleum companies are experimenting with new technology to extract potentially vast amounts of energy from oil shale.

In a statement of administration policy, the White House said “at a time when American families are in need of genuine relief from the effects of high fuel prices, this bill purports to open access to American energy sources while in reality taking actions to stifle development.”

The House legislation faces long odds of becoming law this year with time running out before Congress adjourns, coupled with the insurmountable White House veto.  Over in the Senate, Senate Majority Leader Harry Reid (D-Nevada) has said his goal is to have votes on the “Gang of 20” energy plan after the upcoming tax extenders debate.

As reported previously on HAI’s RotorNews, Senator Reid and Republican leaders still need to formally agree on how to limit the energy debate.  Further, HAI reports Senator Reid has suggested that the House bill might be used as a vehicle for amendments, allowing it to be replaced or amended by any of the Senate alternatives.