Energy Portion of "First 100 hours" Easily Passed

Washington DC January 18, 2007; The AIADA newsletter reported that the Democratic controlled House allowed a bill that would repeal several oil industry production incentives and funnel an estimated $14 billion into an alternative energy fund passed overwhelmingly last night.

Republicans called the proposal bad economic policy while Democrats characterized it as a way to overturn ill-gotten tax benefits enjoyed by the oil industry over the past 12 years.

The bill may face resistance in the Senate where margins are tighter and lawmakers are wary of overly-aggressive legislation.

According to E&E Daily News, the bill pressures Gulf of Mexico producers to renegotiate deepwater leases and allows the Interior Department to waive royalties for offshore Alaska production.

In addition, the bill would roll back tax breaks for certain oil exploration costs for major integrated oil companies, creating what Democrats call a reserve to provide money for domestic alternative energy production, which Republicans deem a mere "slush fund."

Republicans contend the bill would end up penalizing oil companies, taxing domestic oil instead of focusing on foreign oil imports, and raising prices for consumers.