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Democrats and Republicans outline a compromise on offshore drilling that largely moves energy policy in the right direction. Can it pass? If so, will Bush sign it?
The Democrats picked the wrong battle at the wrong time with offshore drilling. It should never have been allowed to become a so-called wedge issue because it’s effectively a non-issue. Neither party is making any sense with its case to drill or not to drill. It won’t bring down the price of oil, and it won’t become an environmental catastrophe. Even Paris Hilton gets this. Nevertheless, some good could finally come out of it.
After stonewalling on the issue, Democrats finally woke up to the reality that (a) they’re on the losing side of the issue and (b) they actually control Congress (right?). With many Republicans fighting for reelection, five members of each party, known as the gang of 10, have worked out a compelling compromise that has since drawn three more supporters from each party. CNN reports that several more members are expected to join this week.
According to Business Week, “The proposal contains some items on the Republican wish list, such as opening areas of the Outer Continental Shelf to drilling and boosting nuclear power. The Democrats get incentives for wind, solar, and other renewables along with energy efficiency measures—and pay for much of the projected $84 billion cost by eliminating tax breaks on the oil and gas industry.”
It’s a win-win, right? Indeed, this compromise lines up perfectly with our positions. We obviously support tax credits for renewable energy, if only to balance out the centuries of taxpayer subsidies paid to oil companies. We believe that nuclear power is the only reliable form of low-carbon, baseload energy. And as we’ve said repeatedly, offshore drilling is fine provided the taxpayers aren’t funding it. Hence, the “repeal of tax breaks for oil and gas industry.” The only missing component is mandatory bonds to cover the potential for environmental catastrophe.
Another sign that this is good policy is that the party faithful don’t think it’s a good compromise. “‘Opening up a very, very minor area [to drilling] and punishing the industry [by repealing tax breaks] while doing it makes absolutely no sense,’ says Charles T. Drevna, president of the National Petrochemical & Refiners Assn. For their part, Democrats fear losing support among core constituents if they vote to drill.”
If it comes to a vote, Obama should back it. This is good policy. McCain will more than likely vote against it because his campaign is supported by Big Oil. His campaign opposes repealing tax breaks for oil companies, which it mischaracterizes as “raising taxes”. When in fact, all it will do is adjust record profits to slightly less of a record. McCain’s vote against it will be a vote against offshore drilling and renewable energy, two of the policies he claims to support. The vote will be in the name of Big Oil. If that’s not the epitome of being in the pockets of special interests, we don’t know what is.
The Democrats will be wise to bring it to a vote before the election and get it to Bush’s desk, where he’ll veto it in the name of Big Oil. He and McCain will be in lock step behind oil companies. However, judging from the bipartisanship support it already has, an override is not out of the question, especially if certain Republican Senators want to be seen as doing something positive ahead of the election.
McCain just won’t be one of them.
2 responses so far ↓
1 The Daily Show on Offshore Drilling, Energy Policy, and the Financial Crisis | Max Gladwell // Sep 17, 2008 at 11:14 pm
[...] that lifts the ban on offshore drilling. This is similar to the bill being hammered out in the Senate that we fundamentally support. Of course, when both sides compromise no one ends up happy. But [...]
2 Barack Obama is Politics in Three Dimensions | Max Gladwell // Nov 26, 2008 at 10:55 am
[...] though, this outdated idea of the left-right spectrum can come in handy. This is our rule of thumb: if the left hates it and the right hates it, it’s probably good policy. Otherwise, this mode of thought and outlook has outlived any [...]
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