House committee approves renewed offshore leasing

By Norman Leahy | Thursday, February 2nd, 2012 | Policy, Politics, Virginia

The House Natural Resources committee voted 25-19 in favor of an energy-related portion of the “American Energy and jobs infrastructure Act,” a measure that, at first blush, is just another big transportation bill. But inside the mammoth legislation are a number of proposals that would address energy exploration, the Keystone XL pipeline and a whole lot more.

Among the items cleared so far are provisions to re-open the waters off Virginia’s coast to oil and gas leasing. The Governor’s office cheered this development:

I am very pleased that this House committee has moved this legislation forward that would open the Virginia offshore oil and gas reserves to exploration and production. I applaud the Committee’s new approach to adjust Virginia’s lease sale area and the treatment of lease sale blocks that conflict with important military training areas. This is win-win for the Commonwealth, the military, and the American consumer.

House Majority Leader Eric Cantor said of the measure:

Developing Virginia’s offshore energy resources will both create high-quality private sector jobs and help reduce our dependence on foreign oil. The American Energy & Infrastructure Jobs Act removes government red tape preventing domestic energy development and ensures Virginia receives a fair share of the revenues without interrupting military operations along our coast.

Putting Virginia’s energy potential back in the game is a good thing indeed. But there are other good items to consider in this very big bill. According to Randal O’Toole, some of the highlights are:

…the bill contains no earmarks, consolidates or eliminates 70 different programs, and eliminate mandates that states spend highway money on bike paths and other non-highway programs. To please rail nuts, the bill streamlines the rail planning and approval process. To please the energy industry, the bill mandates approval for the Keystone pipeline.

O’Toole also notes that some of the bill’s provisions will likely spark “intense opposition.” And as Politico reports, that opposition spans the political spectrum. Because the bill would open a small portion of the Arctic National Wildlife Refuge to drilling, environmentalists are apoplectic. Organized labor isn’t keen on items that “…would force transit systems to privatize their operations and mandate that Amtrak’s food and beverage service be contracted out.”

Even the Club for Growth has issues with the broader bill. Not because of the items listed above — all of which are very good things. Instead, they consider it “…a remarkably bloated and inefficient piece of legislation” that “doesn’t cut any spending at all.”

Usually when a piece of legislation offends at least some folks on both sides, that’s a good sign.

And so far, at least on the energy front, it’s an excellent step forward toward greater energy production and job creation (not to mention revenue, both for states and the federal government).

But there’s a long way to go on this one and the fireworks are sure to be intense. As the saying goes, this is “developing…”

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