New Energy Reform Act of 2008
Encyclopedia
The New Energy Reform Act of 2008 was offered by a bipartisan group of Senators
in the 110th United States Congress
in response to the energy policy
gridlock between Republicans
and Democrats
. The proposal was offered as an alternative to an energy bill sponsored by House Speaker Nancy Pelosi
.
House Republicans had attacked the Democratic plan for requiring that new offshore drilling
take place at least 50 miles off the US Coast.
This compromise proposal differed from Pelosi's by moving the federally-permitted drilling boundary to 100 miles offshore, with states given the option to set it at 50 miles. In what Washington Post calls "a key difference with Pelosi's bill" they would allow new drilling off Florida's west coast. Also unlike Pelosi's plan, the "Gang of 20" proposal allows for revenue sharing with the states.
(R-GA) and Kent Conrad
(D-ND) as the "Gang of 10", but ten additional members have since joined the coalition, creating a "Gang of 20". This nickname is in response to the 2006 Gang of 14
, of which several members in the Gang of 10 were also a part.
The original ten included five Republicans (Saxby Chambliss of Georgia (founding member), Bob Corker
of Tennessee, Lindsey Graham
of South Carolina, Johnny Isakson
of Georgia, and John Thune
of South Dakota) and five Democrats (Kent Conrad of North Dakota (founding member), Mary Landrieu
of Louisiana , Blanche Lincoln
of Arkansas, Ben Nelson
of Nebraska, and Mark Pryor
of Arkansas.)
Ten additional members have since joined: five Republicans (Norm Coleman
of Minnesota, Susan Collins
of Maine, Elizabeth Dole
of North Carolina, John Sununu
of New Hampshire, and John Warner
of Virginia) and five Democrats (Evan Bayh
of Indiana, Tom Carper of Delaware, Tim Johnson of South Dakota, Amy Klobuchar
of Minnesota, and Ken Salazar
of Colorado.)
The Gang of 20's proposal focuses on several main components:
The $84 billion New Energy Reform Act of 2008 calls for a focused effort to transition the nation’s motor vehicle fleets to fuels other than gasoline and diesel. To ease gas prices in the interim, the proposal includes significant conservation provisions, consumer tax credits, and responsible measures to increase domestic production.
The plan also would require cars to become more fuel efficient and would provide research funds for improved batteries to move away from petroleum-products in cars. The proposal calls for 85 percent of vehicles to run on non-petroleum-based fuel in 20 years.
The bill would open new areas in the Eastern Gulf of Mexico and Southeast Atlantic to oil and gas drilling, while raising taxes on the major oil companies. Oil companies would be allowed to drill outside of a 50-mile buffer zone off the beaches of Virginia, the Carolinas and Georgia — if those states agree. To pay for their proposal, the Gang of 10 would raise the major oil companies' taxes by excluding them from tax credits that apply to other manufacturers.
Harry Reid
(D
-NV
) as reported by Fox News: "This proposal includes some very good ideas to address our country’s many energy-related challenges, and while I do not agree with every part of it, I very much appreciate the bipartisan spirit in which it was constructed. ... I am hopeful this plan can begin to break the current legislative stalemate on the Senate floor. The American people deserve a real debate with productive Senate action on bipartisan proposals to help make energy more abundant, secure and affordable for America’s families and businesses
The response from Florida, however, has been mixed at best. "I compliment the group for coming together in a bipartisan way to try to address the current energy crisis. Unfortunately, the proposal would eliminate Florida's 2006 Gulf protections and give Floridians absolutely no voice in determining where exploration could occur," said Sen.
Mel Martinez
(R
-FL
) Martinez's Democratic colleague, Florida Senator Bill Nelson
, has vowed to filibuster the proposal or any other legislation that would open the waters off Florida's western beach resorts.
Both Pelosi's proposal and this $84 billion compromise are strongly opposed by many Republicans, including John McCain
, described in Sept 12's Guardian as "the plan's biggest opponent." McCain and many others consider the plan too expensive. Furthermore, McCain has made ending restrictions on offshore drilling
a centerpiece of his election campaign.
"I’d call it 40% tax increase, 10% energy and 50% snake oil" said Bob Schaffer
(R-CO), 2008 Senate candidate. Wall Street Journal columnist Kimberley Strassel explains, " Republicans like Mr. Schaffer had successfully turned this summer's political debate into a fight over domestic energy exploration, putting antidrilling Democrats on defense. Or at least that was the scene until the 'Gang' -- five Republicans and five Democrats -- announced a lackluster 'drilling' deal that may provide the left the cover it needs to defuse the energy issue."
Rush Limbaugh
's voiced a similar objection: "And so, last Friday, in stumbled Sens. Lindsey Graham
, John Thune
, Saxby Chambliss
, Bob Corker
and Johnny Isakson
— alongside five Senate Democrats. This 'Gang of 10' announced a 'sweeping' and 'bipartisan' energy plan to break Washington’s energy 'stalemate.' What they did was throw every vulnerable Democrat, and Mr. Obama
, a life preserver."
Others questioned the motivation of the proposal's Republican sponsors. "The package could prove difficult to resist for Republicans in tight reelection races. Nearly every potentially vulnerable Senate Republican, from Coleman to Elizabeth Dole of North Carolina and John Sununu of New Hampshire, has signed on to the legislation" according to the Minneapolis Star Tribune. Nine of the twenty sponsors (Pryor, Landrieu, Johnson, Chambliss, Collins, Coleman, Sununu, and Graham) are up for re-election this fall.
All 10 Republican co-sponsors had earlier pledged their allegiance to Grover Norquist
and the Americans for Tax Reform
, by signing his anti-tax pledge. Norquist says their participation in this effort violates the terms of that promise because the legislation would increase taxes on oil companies.
United States Senate
The United States Senate is the upper house of the bicameral legislature of the United States, and together with the United States House of Representatives comprises the United States Congress. The composition and powers of the Senate are established in Article One of the U.S. Constitution. Each...
in the 110th United States Congress
110th United States Congress
The One Hundred Tenth United States Congress was the meeting of the legislative branch of the United States federal government, between January 3, 2007, and January 3, 2009, during the last two years of the second term of President George W. Bush. It was composed of the Senate and the House of...
in response to the energy policy
Energy policy of the United States
The energy policy of the United States is determined by federal, state and local public entities in the United States, which address issues of energy production, distribution, and consumption, such as building codes and gas mileage standards...
gridlock between Republicans
Republican Party (United States)
The Republican Party is one of the two major contemporary political parties in the United States, along with the Democratic Party. Founded by anti-slavery expansion activists in 1854, it is often called the GOP . The party's platform generally reflects American conservatism in the U.S...
and Democrats
Democratic Party (United States)
The Democratic Party is one of two major contemporary political parties in the United States, along with the Republican Party. The party's socially liberal and progressive platform is largely considered center-left in the U.S. political spectrum. The party has the lengthiest record of continuous...
. The proposal was offered as an alternative to an energy bill sponsored by House Speaker Nancy Pelosi
Nancy Pelosi
Nancy Patricia D'Alesandro Pelosi is the Minority Leader of the United States House of Representatives and served as the 60th Speaker of the United States House of Representatives from 2007 to 2011...
.
House Republicans had attacked the Democratic plan for requiring that new offshore drilling
Offshore drilling
Offshore drilling refers to a mechanical process where a wellbore is drilled through the seabed. It is typically carried out in order to explore for and subsequently produce hydrocarbons which lie in rock formations beneath the seabed...
take place at least 50 miles off the US Coast.
This compromise proposal differed from Pelosi's by moving the federally-permitted drilling boundary to 100 miles offshore, with states given the option to set it at 50 miles. In what Washington Post calls "a key difference with Pelosi's bill" they would allow new drilling off Florida's west coast. Also unlike Pelosi's plan, the "Gang of 20" proposal allows for revenue sharing with the states.
Background and sponsors
This compromise legislation was first proposed on August 1, 2008 by a bipartisan group calling themselves the "Gang of 10" as the New Energy Reform Act of 2008 or "New Era". The group was founded by Senators Saxby ChamblissSaxby Chambliss
Clarence Saxby Chambliss, Jr. is the senior United States Senator from Georgia. A member of the Republican Party, he previously served as a U.S. Representative ....
(R-GA) and Kent Conrad
Kent Conrad
Kent Conrad is the senior United States Senator from North Dakota. He is a member of the North Dakota Democratic-NPL Party, the North Dakota affiliate of the Democratic Party...
(D-ND) as the "Gang of 10", but ten additional members have since joined the coalition, creating a "Gang of 20". This nickname is in response to the 2006 Gang of 14
Gang of 14
The Gang of 14 was a term coined to describe the bipartisan group of Senators in the 109th United States Congress who successfully negotiated a compromise in the spring of 2005 to avoid the deployment of the so-called nuclear option over an organized use of the filibuster by Senate...
, of which several members in the Gang of 10 were also a part.
The original ten included five Republicans (Saxby Chambliss of Georgia (founding member), Bob Corker
Bob Corker
Robert Phillips "Bob" Corker, Jr. is the junior United States Senator from Tennessee. Before his election to the Senate in 2006, he served as mayor of Chattanooga, Tennessee from 2001 to 2005. Corker was a businessman prior to holding public office.-Early life and family:Born in Orangeburg, South...
of Tennessee, Lindsey Graham
Lindsey Graham
Lindsey Olin Graham is the senior U.S. Senator from South Carolina and a member of the Republican Party. Previously he served as the U.S. Representative for .-Early life, education and career:...
of South Carolina, Johnny Isakson
Johnny Isakson
John Hardy "Johnny" Isakson is the junior United States Senator from Georgia and a member of the Republican Party. Previously, he represented in the House....
of Georgia, and John Thune
John Thune
John Randolph Thune is the junior U.S. Senator from South Dakota and a member of the Republican Party. He previously served as a U.S. Representative for .-Early Life, Education:...
of South Dakota) and five Democrats (Kent Conrad of North Dakota (founding member), Mary Landrieu
Mary Landrieu
Mary Loretta Landrieu is the senior United States Senator from the State of Louisiana and a member of the Democratic Party.Born in Arlington, Virginia, Landrieu was raised in New Orleans, Louisiana...
of Louisiana , Blanche Lincoln
Blanche Lincoln
Blanche Meyers Lambert Lincoln is a former U.S. Senator from Arkansas and a member of the Democratic Party. First elected to the Senate in 1998, she was the first woman elected to the Senate from Arkansas since Hattie Caraway in 1932 and, at age 38, was the youngest woman ever elected to the...
of Arkansas, Ben Nelson
Ben Nelson
Earl Benjamin "Ben" Nelson is the senior U.S. Senator from Nebraska. He is a member of the Democratic Party and was elected to the U.S. Senate in 2000....
of Nebraska, and Mark Pryor
Mark Pryor
Mark Lunsford Pryor is the senior United States Senator from Arkansas, serving since 2003. He is a member of the Democratic Party and former Attorney General of Arkansas....
of Arkansas.)
Ten additional members have since joined: five Republicans (Norm Coleman
Norm Coleman
Norman Bertram Coleman, Jr. is an American attorney and politician. He was a United States senator from Minnesota from 2003 to 2009. Coleman was elected in 2002 and served in the 108th, 109th, and 110th Congresses. Before becoming a senator, he was mayor of Saint Paul, Minnesota, from 1994 to 2002...
of Minnesota, Susan Collins
Susan Collins
Susan Margaret Collins is the junior United States Senator from Maine and a member of the Republican Party. First elected to the Senate in 1996, she is the ranking member of the Senate Committee on Homeland Security and Governmental Affairs...
of Maine, Elizabeth Dole
Elizabeth Dole
Mary Elizabeth Alexander Hanford "Liddy" Dole is an American politician who served in both the Ronald Reagan and George H. W. Bush presidential administrations, as well as a United States Senator....
of North Carolina, John Sununu
John E. Sununu
John Edward Sununu is a former Republican United States Senator from New Hampshire, of Lebanese and Palestinian Christian ancestry. Sununu was the youngest member of the Senate for his entire six year term. He is the son of former New Hampshire Governor John H...
of New Hampshire, and John Warner
John Warner
John William Warner, KBE is an American Republican politician who served as Secretary of the Navy from 1972 to 1974 and as a five-term United States Senator from Virginia from January 2, 1979, to January 3, 2009...
of Virginia) and five Democrats (Evan Bayh
Evan Bayh
Birch Evans "Evan" Bayh III is a lawyer, advisor and former Democratic politician who served as the junior U.S. Senator from Indiana from 1999 to 2011. He earlier served as the 46th Governor of Indiana from 1989 to 1997. Bayh is a current Fox News contributor as of March 14, 2011.Bayh first held...
of Indiana, Tom Carper of Delaware, Tim Johnson of South Dakota, Amy Klobuchar
Amy Klobuchar
Amy Jean Klobuchar is the senior United States Senator from Minnesota. She is a member of the Minnesota Democratic-Farmer-Labor Party, an affiliate of the Democratic Party...
of Minnesota, and Ken Salazar
Ken Salazar
Kenneth Lee "Ken" Salazar is the current United States Secretary of the Interior, in the administration of President Barack Obama. A member of the Democratic Party, he previously served as a United States Senator from Colorado from 2005 to 2009. He and Mel Martinez were the first Hispanic U.S...
of Colorado.)
The proposal
- Increasing access to America’s domestic energy reserves by opening additional acreage in the Gulf of MexicoGulf of MexicoThe Gulf of Mexico is a partially landlocked ocean basin largely surrounded by the North American continent and the island of Cuba. It is bounded on the northeast, north and northwest by the Gulf Coast of the United States, on the southwest and south by Mexico, and on the southeast by Cuba. In...
for leasing and giving VirginiaVirginiaThe Commonwealth of Virginia , is a U.S. state on the Atlantic Coast of the Southern United States. Virginia is nicknamed the "Old Dominion" and sometimes the "Mother of Presidents" after the eight U.S. presidents born there...
, North CarolinaNorth CarolinaNorth Carolina is a state located in the southeastern United States. The state borders South Carolina and Georgia to the south, Tennessee to the west and Virginia to the north. North Carolina contains 100 counties. Its capital is Raleigh, and its largest city is Charlotte...
, South CarolinaSouth CarolinaSouth Carolina is a state in the Deep South of the United States that borders Georgia to the south, North Carolina to the north, and the Atlantic Ocean to the east. Originally part of the Province of Carolina, the Province of South Carolina was one of the 13 colonies that declared independence...
and GeorgiaGeorgia (U.S. state)Georgia is a state located in the southeastern United States. It was established in 1732, the last of the original Thirteen Colonies. The state is named after King George II of Great Britain. Georgia was the fourth state to ratify the United States Constitution, on January 2, 1788...
the option of allowing energy exploration at least 50 miles offshore. - Enhancing conservation through a variety of tax incentives and providing a tax credit of $2,500 for the purchase of fuel efficient vehicles.
- Investing $7.5 billion in research and development to break technological barriers to alternative fuel vehicles.
- Providing $7.5 billion to help American auto manufacturers become the world’s leader in making alternative fuel vehicles.
- Initiating a $7,500 tax credit for the purchase of primarily non-petroleum fueled vehicles and a tax credit of up to $2,500 for the retro-fitting of existing vehicles with advanced alternative fuel engines;
- Providing a CO2 sequestrationCO2 sequestrationCarbon sequestration is the capture of carbon dioxide and may refer specifically to:* "The process of removing carbon from the atmosphere and depositing it in a reservoir." When carried out deliberately, this may also be referred to as carbon dioxide removal, which is a form of geoengineering.*...
credit for use in enhanced oil recovery to increase production from existing wells and reduce greenhouse gas emissions. - Supporting nuclear energy by increasing staff at the Nuclear Regulatory CommissionNuclear Regulatory CommissionThe Nuclear Regulatory Commission is an independent agency of the United States government that was established by the Energy Reorganization Act of 1974 from the United States Atomic Energy Commission, and was first opened January 19, 1975...
, providing workforce training, accelerating depreciation for nuclear plants and supporting research and development on spent fuel recycling to reduce nuclear waste.
The $84 billion New Energy Reform Act of 2008 calls for a focused effort to transition the nation’s motor vehicle fleets to fuels other than gasoline and diesel. To ease gas prices in the interim, the proposal includes significant conservation provisions, consumer tax credits, and responsible measures to increase domestic production.
The plan also would require cars to become more fuel efficient and would provide research funds for improved batteries to move away from petroleum-products in cars. The proposal calls for 85 percent of vehicles to run on non-petroleum-based fuel in 20 years.
The bill would open new areas in the Eastern Gulf of Mexico and Southeast Atlantic to oil and gas drilling, while raising taxes on the major oil companies. Oil companies would be allowed to drill outside of a 50-mile buffer zone off the beaches of Virginia, the Carolinas and Georgia — if those states agree. To pay for their proposal, the Gang of 10 would raise the major oil companies' taxes by excluding them from tax credits that apply to other manufacturers.
Reaction and criticism
From Sen.United States Senate
The United States Senate is the upper house of the bicameral legislature of the United States, and together with the United States House of Representatives comprises the United States Congress. The composition and powers of the Senate are established in Article One of the U.S. Constitution. Each...
Harry Reid
Harry Reid
Harry Mason Reid is the senior United States Senator from Nevada, serving since 1987. A member of the Democratic Party, he has been the Senate Majority Leader since January 2007, having previously served as Minority Leader and Minority and Majority Whip.Previously, Reid was a member of the U.S...
(D
Democratic Party (United States)
The Democratic Party is one of two major contemporary political parties in the United States, along with the Republican Party. The party's socially liberal and progressive platform is largely considered center-left in the U.S. political spectrum. The party has the lengthiest record of continuous...
-NV
Nevada
Nevada is a state in the western, mountain west, and southwestern regions of the United States. With an area of and a population of about 2.7 million, it is the 7th-largest and 35th-most populous state. Over two-thirds of Nevada's people live in the Las Vegas metropolitan area, which contains its...
) as reported by Fox News: "This proposal includes some very good ideas to address our country’s many energy-related challenges, and while I do not agree with every part of it, I very much appreciate the bipartisan spirit in which it was constructed. ... I am hopeful this plan can begin to break the current legislative stalemate on the Senate floor. The American people deserve a real debate with productive Senate action on bipartisan proposals to help make energy more abundant, secure and affordable for America’s families and businesses
The response from Florida, however, has been mixed at best. "I compliment the group for coming together in a bipartisan way to try to address the current energy crisis. Unfortunately, the proposal would eliminate Florida's 2006 Gulf protections and give Floridians absolutely no voice in determining where exploration could occur," said Sen.
United States Senate
The United States Senate is the upper house of the bicameral legislature of the United States, and together with the United States House of Representatives comprises the United States Congress. The composition and powers of the Senate are established in Article One of the U.S. Constitution. Each...
Mel Martinez
Mel Martinez
Melquíades Rafael Martínez Ruiz, usually known as Mel Martinez , is a former United States Senator from Florida and served as Chairman of the Republican Party from November 2006 until October 19, 2007, the first Latino to serve as chairman of a major party...
(R
Republican Party (United States)
The Republican Party is one of the two major contemporary political parties in the United States, along with the Democratic Party. Founded by anti-slavery expansion activists in 1854, it is often called the GOP . The party's platform generally reflects American conservatism in the U.S...
-FL
Florida
Florida is a state in the southeastern United States, located on the nation's Atlantic and Gulf coasts. It is bordered to the west by the Gulf of Mexico, to the north by Alabama and Georgia and to the east by the Atlantic Ocean. With a population of 18,801,310 as measured by the 2010 census, it...
) Martinez's Democratic colleague, Florida Senator Bill Nelson
Bill Nelson
Clarence William "Bill" Nelson is the senior United States Senator from the state of Florida and a member of the Democratic Party. He is a former U.S. Representative and former Treasurer and Insurance Commissioner of Florida...
, has vowed to filibuster the proposal or any other legislation that would open the waters off Florida's western beach resorts.
Both Pelosi's proposal and this $84 billion compromise are strongly opposed by many Republicans, including John McCain
John McCain
John Sidney McCain III is the senior United States Senator from Arizona. He was the Republican nominee for president in the 2008 United States election....
, described in Sept 12's Guardian as "the plan's biggest opponent." McCain and many others consider the plan too expensive. Furthermore, McCain has made ending restrictions on offshore drilling
Offshore drilling
Offshore drilling refers to a mechanical process where a wellbore is drilled through the seabed. It is typically carried out in order to explore for and subsequently produce hydrocarbons which lie in rock formations beneath the seabed...
a centerpiece of his election campaign.
"I’d call it 40% tax increase, 10% energy and 50% snake oil" said Bob Schaffer
Bob Schaffer
Robert Warren "Bob" Schaffer was a Republican member of the United States House of Representatives from the State of Colorado in the 105th Congress and the two succeeding Congresses . In 2004, Schaffer lost in the primary election to be the Republican nominee for a U.S. Senate seat...
(R-CO), 2008 Senate candidate. Wall Street Journal columnist Kimberley Strassel explains, " Republicans like Mr. Schaffer had successfully turned this summer's political debate into a fight over domestic energy exploration, putting antidrilling Democrats on defense. Or at least that was the scene until the 'Gang' -- five Republicans and five Democrats -- announced a lackluster 'drilling' deal that may provide the left the cover it needs to defuse the energy issue."
Rush Limbaugh
Rush Limbaugh
Rush Hudson Limbaugh III is an American radio talk show host, conservative political commentator, and an opinion leader in American conservatism. He hosts The Rush Limbaugh Show which is aired throughout the U.S. on Premiere Radio Networks and is the highest-rated talk-radio program in the United...
's voiced a similar objection: "And so, last Friday, in stumbled Sens. Lindsey Graham
Lindsey Graham
Lindsey Olin Graham is the senior U.S. Senator from South Carolina and a member of the Republican Party. Previously he served as the U.S. Representative for .-Early life, education and career:...
, John Thune
John Thune
John Randolph Thune is the junior U.S. Senator from South Dakota and a member of the Republican Party. He previously served as a U.S. Representative for .-Early Life, Education:...
, Saxby Chambliss
Saxby Chambliss
Clarence Saxby Chambliss, Jr. is the senior United States Senator from Georgia. A member of the Republican Party, he previously served as a U.S. Representative ....
, Bob Corker
Bob Corker
Robert Phillips "Bob" Corker, Jr. is the junior United States Senator from Tennessee. Before his election to the Senate in 2006, he served as mayor of Chattanooga, Tennessee from 2001 to 2005. Corker was a businessman prior to holding public office.-Early life and family:Born in Orangeburg, South...
and Johnny Isakson
Johnny Isakson
John Hardy "Johnny" Isakson is the junior United States Senator from Georgia and a member of the Republican Party. Previously, he represented in the House....
— alongside five Senate Democrats. This 'Gang of 10' announced a 'sweeping' and 'bipartisan' energy plan to break Washington’s energy 'stalemate.' What they did was throw every vulnerable Democrat, and Mr. Obama
Barack Obama
Barack Hussein Obama II is the 44th and current President of the United States. He is the first African American to hold the office. Obama previously served as a United States Senator from Illinois, from January 2005 until he resigned following his victory in the 2008 presidential election.Born in...
, a life preserver."
Others questioned the motivation of the proposal's Republican sponsors. "The package could prove difficult to resist for Republicans in tight reelection races. Nearly every potentially vulnerable Senate Republican, from Coleman to Elizabeth Dole of North Carolina and John Sununu of New Hampshire, has signed on to the legislation" according to the Minneapolis Star Tribune. Nine of the twenty sponsors (Pryor, Landrieu, Johnson, Chambliss, Collins, Coleman, Sununu, and Graham) are up for re-election this fall.
All 10 Republican co-sponsors had earlier pledged their allegiance to Grover Norquist
Grover Norquist
Grover Glenn Norquist is an American lobbyist, conservative activist, and founder and president of Americans for Tax Reform...
and the Americans for Tax Reform
Americans for Tax Reform
Americans for Tax Reform is an advocacy group and taxpayer group whose stated goal is "a system in which taxes are simpler, flatter, more visible, and lower than they are today. The government's power to control one's life derives from its power to tax...
, by signing his anti-tax pledge. Norquist says their participation in this effort violates the terms of that promise because the legislation would increase taxes on oil companies.
External links
- 'Gang of 10' Introduces Bipartisan Energy Proposal, Sen. Lindsey O. Graham Press Release.
- http://www.chron.com/disp/story.mpl/front/5920512.html Senate's Gang of 10 offers an offshore drilling plan
- http://www.foxnews.com/story/0,2933,395942,00.html Senate ‘Gang of 10’ offers bipartisan energy plan
- http://conrad.senate.gov/pressroom/record.cfm?id=301684&Senate Kent Conrad- Full Text
- http://www.wpde.com/news/news_story.aspx?id=168741 Gang of 10 Introduces Bipartisan Energy Proposal