Energy

Monday, May 24, 2010 11:30 AM

Outlook: Oil Liability Focus Of Hearings

By Darren Goode, NationalJournal.com

Congress this week will begin considering a plan from Democratic tax writers to quadruple the per-barrel tax oil companies pay into a spill liability trust fund as hearings on the Gulf disaster continue.

The current 8-cent-per-barrel tax on oil companies would rise to 32 cents per barrel under a broader tax extenders deal reached last week between Senate Finance Chairman Max Baucus, D-Mont., and House Ways and Means Chairman Sander Levin, D-Mich.

The $1 billion limit on damages per spill from the fund would also be lifted. The House is expected to take up and pass the extenders deal this week and the Senate may also have time to start its debate.

The Senate Energy and Natural Resources Committee Tuesday will hear from Associate Attorney General Thomas Perrelli and Congressional Research Service experts at a hearing examining a separate $75 million liability cap oil companies are subject to regarding economic damages caused by a spill. Perrelli heads the department's tax and environment divisions.

Some Senate Democrats -- with the backing of Majority Leader Harry Reid, D-Nev., -- have tried to pass legislation lifting that cap to $10 billion by unanimous consent. Republicans have objected, arguing that it would be an arbitrary increase that would adversely affect smaller companies' abilities to finance offshore drilling projects.

They have also pointed to legislation President Obama sent to Congress and testimony from Interior Secretary Ken Salazar that did not advocate a specific increase and indicated the need to work with Congress on setting a limit.

Also this week, the House Natural Resources Committee holds the first two in a series of seven hearings to investigate the April 20 explosion of the BP-run Deepwater Horizon rig and subsequent spill. On Wednesday, the panel will feature testimony from administration officials, including Salazar; Rear Adm. Peter Neffenger, the Coast Guard's deputy national incident commander for spill response; National Oceanic and Atmospheric Administration Administrator Jane Lubchenco; and Minerals Management Service Director Elizabeth Birnbaum.

BP America Chairman and President Lamar McKay, Transocean President and CEO Steven Newman, American Petroleum Institute President Jack Gerard; and Michael Hirshfield, senior vice president for North America and chief scientist at Oceana, are among those testifying before the panel Thursday.

The House Energy and Commerce Energy and Environment Subcommittee Thursday will hold its second hearing on the spill.

The House Interior Appropriations Subcommittee will hold a hearing Thursday on the oil spill, and will hear from Salazar, Birnbaum and other administration officials.

Here are highlights of the congressional hearings:

Tuesday
• The Senate Energy and Natural Resources Committee holds a hearing on liability and financial responsibility issues related to offshore oil production. Perrelli testifies. (10 a.m., 325 Russell Senate Office Building)

• A House Natural Resources subcommittee holds a hearing on the future of the National Park System, with testimony from NPS Director Jonathan Jarvis. (10 a.m., 1324 Longworth House Office Building)

• A House Natural Resources subcommittee considers amending a bill to "improve the natural resources management planning" for the Defense Department. Witnesses are not announced yet. (10 a.m., 1334 Longworth)

Wednesday
• The House Natural Resources Committee holds the first in its seven-part series of hearings on the oil spill. Witnesses include Salazar, Birnbaum, Lubchenco and Neffenger. (10 a.m., 1324 Longworth)

Thursday
• A House Appropriations subcommittee examines the oil spill, with Salazar, Birnbaum, and top officials at the EPA, Interior Department and U.S. Geological Survey testifying. (10 a.m., 2359 Rayburn House Office Building)

• Top officials from BP and Transocean, as well as the American Petroleum Institute and National Ocean Industries Association, testify at the House Natural Resources Committee's second hearing on the spill. (10 a.m., 1324 Longworth)

• A House Energy and Commerce subcommittee also holds a hearing on the spill. (2 p.m., 2123 Rayburn)

Other events:

Monday
• A discussion on oil spill liability is hosted by the Environmental Law Institute, and the D.C. Bar's Environment, Energy and Natural Resources Section of the Ocean and Maritime Resources Committee. (Noon, Environmental Law Institute, 2000 L St., NW)

• The Sierra Club, Defenders of Wildlife and Pennsylvania-based environmental groups hold a conference call to announce a lawsuit against a coal-fired power plant in Pennsylvania. (Noon)

• The Woodrow Wilson Center holds a discussion on U.S.-Mexico cooperation in renewable energy. (12:30 p.m., WWC, Ronald Reagan Building, 1300 Pennsylvania Ave., NW)

• The Environmental and Energy Study Institute holds a briefing on the "public health implications associated with different energy sources and technologies." (1 p.m., 430 Dirksen Senate Office Building)

Tuesday
• The Brazilian Sugarcane Industry Association will be at two Capitol Hill gas stations to educate consumers about the "benefits of sugarcane ethanol" and offer gas at a discounted price. (7 a.m., House side: Exxon gas station, 339 Pennsylvania Ave., SE; and Senate side: Exxon gas station, 200 Massachusetts Ave., NE)

• The U.S. Chamber of Commerce's energy arm holds a conference call to unveil its annual index of U.S. Energy Security Risk. (10 a.m.)

• Energy Information Administration Deputy Administrator Howard Gruenspecht delivers remarks on the 2010 international outlook for energy. (10:30 a.m., Center for Strategic and International Studies, 1800 K St., NW)

• The Henry L. Stimson Center holds a discussion on climate change in coastal regions. (1111 19th St., NW)

• Several nonprofits, government agencies and private firms, including the Inter-American Development Bank and the National Center for Atmospheric Research, host a two-day conference on climate adaptation. Speakers include White House science adviser John Holdren, Interior Deputy Secretary David Hayes and Agriculture Secretary Tom Vilsack. (Tuesday through Thursday, Inter-American Development Bank, 1330 New York Ave., NW)

• The Energy Department holds a meeting of the blue ribbon commission on nuclear waste. (Tuesday and Wednesday, Washington Marriott, 1221 22nd St. NW)

Wednesday
• The State University System of Florida holds a forum on the oil spill. (1:30 p.m., B-369 Rayburn)

Thursday
• EESI's Sustainable Energy Coalition holds a renewable energy and energy efficiency forum on Capitol Hill. Administration officials from EPA, the Federal Energy Regulatory Commission, and the Energy Department are scheduled to speak, as well as several House lawmakers. (9:30 a.m., 345 Cannon House Office Building)

• The American Association for the Advancement of Science holds a climate change forum on water, power and transportation in urban areas. EPA Administrator Lisa Jackson is scheduled to deliver a keynote address on sustainable water management. (1 p.m., AAAS, 1200 New York Ave., NW)

Friday
• AAAS holds a briefing on nuclear energy. (Noon, B-354 Rayburn)

Amy Harder contributed to this report.

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