To: longnshort who wrote (135358 ) 9/9/2008 5:34:21 PM From: TideGlider Respond to UPDATE:Pelosi Touts Energy Vote Amid Divisions In PartyLast update: 9/9/2008 5:17:09 PM(Adds detail on possibility of auto-loan provision in last paragraph) By Siobhan Hughes Of DOW JONES NEWSWIRES WASHINGTON (Dow Jones)--House Speaker Nancy Pelosi, D-Calif., vowed to hold a vote on a wide-ranging energy bill later this week, but the chances of the bill becoming law are slim amid divisions over how much to open up off-limits coastal areas to drilling. The leader and top Democrats met Tuesday without finalizing details of legislation, and planned to meet again Wednesday. Democrats agree on allowing more drilling off Georgia, South Carolina, North Carolina, Virginia, and the eastern part of the Gulf of Mexico, but other areas are still up for debate. "We are working on that with our colleagues right now," Pelosi told reporters. She insisted that Democrats "are coming together on this." Democrats are under pressure to show that they are open to drilling as voters increasingly favor the strategy, a mainstay of the Republican message. While oil prices have declined since reaching a record high of more than $140 a barrel earlier this summer, voters are still feeling pinched. And Americans may face new risks: Tuesday, the U.S. Energy Information Administration warned that OPEC would probably cut production over the next few quarters to "prevent a sharp decline in prices." But behind the scenes, House lawmakers described a party that remains at odds over opening up more coastal waters for oil and natural gas exploration. Rep. Gene Green, D-Texas, one of the lead authors of the legislation, told reporters that as for new offshore drilling, "there are some folks, particularly on the West Coast and the East Coast, who don't want any." Rep. John Peterson, R-Pa., who developed a bipartisan energy bill in July, said rank-and-file lawmakers were getting fed up. "There's great consternation on the Democrat side," Peterson said, noting that his colleagues across the aisle hadn't yet been provided with details of an energy package. "Nancy Pelosi is close to a dictator." Under the plan, states would have a say over new drilling between 50 and 100 miles offshore, while decisions about the area 100 or more miles offshore would be made at the federal level, Green said. In the eastern Gulf of Mexico, drilling would be permitted outside of 100 miles offshore. The package also will likely include a host of other provisions, including one aimed at promoting natural-gas vehicles. Other measures would include repealing tax breaks taken by oil companies related to their domestic manufacturing. Drew Hammill, a spokesperson for Pelosi, estimated the measure could raise about $13 billion. Green estimated that some $16 billion could be raised under the energy bill. Also likely included: a measure to require utilities to generate a certain amount of their power from renewable sources, such as solar power or wind power. While various states already have such requirements, a federal standard would be a new precedent. Separately, Pelosi said that the energy bill might include a measure aimed at providing loans to struggling automakers. A 2007 law authorized the government to provide as much as $25 billion in low-interest loans to auto companies to rebuild plants to make more fuel-efficient cars. Detroit lobbyists have floated plans to boost that to as much as $50 billion. -By Siobhan Hughes, Dow Jones Newswires; 202-862-6654; Siobhan.Hughes@dowjones.com Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: djnewsplus.com . You can use this link on the day this article is published and the following day. (END) Dow Jones NewswiresSeptember 09, 2008 17:17 ET (21:17 GMT)
