Energy

Wednesday, March 24, 2010 9:11 AM

Bill Would Give States Power Over Offshore Drilling

By Darren Goode, NationalJournal.com

States would have the ability to choose whether to drill off their coastlines as part of a draft Senate climate and energy plan, both California senators said Tuesday.

States could "opt-in at a certain point and opt-out at another point," said Sen. Dianne Feinstein, D-Calif., speaking to reporters after leaving a briefing that Senate Foreign Relations Chairman John Kerry, D-Mass., and Sens. Lindsey Graham, R-S.C., and Joe Lieberman, I/D-Conn., gave updating about a dozen senators on a possible draft Senate bill.

Feinstein declined to further detail the emerging draft. But the longtime critic of drilling off of California's coastline said, "There are some things that are positive and a couple of things that are problems for me." Sen. Bill Nelson, D-Fla., who has threatened to filibuster an energy bill passed by the Senate Energy and Natural Resources Committee last year because it expands drilling in the eastern Gulf of Mexico, said there are "no conclusions yet" regarding how the issue would be addressed in the draft the Senate trio is working on.

Fellow California Democratic Sen. Barbara Boxer said the plan so far from Kerry, Graham and Lieberman generally would "give a lot of power to the states" on offshore drilling.

Graham has advocated allowing states the option of drilling within 35 miles of their coastlines; allowing them to opt out of drilling between 35 and 70 miles out; and then putting it in the hands of the federal government from there on out. States that produce oil and gas in their waters would also receive a guaranteed percentage of any revenue from that production.

Sen. Mary Landrieu, D-La., said revenue sharing is "absolutely crucial for me, yes, and for several other important senators," such as Energy and Natural Resources ranking member Lisa Murkowski of Alaska.

Little details came out of the update Kerry, Graham and Lieberman gave the senators, who received a PowerPoint presentation from the trio and nothing on paper.

Senators were asked to keep mum about the details presented. The only Republican in attendance other than Graham -- George Voinovich of Ohio -- said the three senators "gave us the contours" of a possible bill "but basically said there's lots of work that has to be done." Voinovich said he expects more details after the spring recess. Kerry and Lieberman this week have both said a draft bill will likely be released the first week back from the two-week Easter break. They may send details to EPA for modeling by the end of this week since the agency would take about six weeks to do its analysis.

"We have a lot of work to do in the day, 48 hours," Kerry told reporters after meeting privately with Senate Majority Leader Harry Reid, D-Nev., Tuesday evening. Kerry did not provide details about his meeting with Reid, saying he did not discuss a specific timeframe with him to bring a bill to the floor.

Amy Harder contributed to this report.

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