Capitol Hill

NRCA and other business groups experienced a major victory on energy policy when Congress allowed the federal moratorium on drilling for oil and natural gas off the Atlantic and Pacific coasts to expire Sept. 30. The expiration of the decades-old moratorium could pave the way for development of new domestic energy sources, helping stabilize energy prices and reducing the U.S.' untenable reliance on imported oil and natural gas.

Significant expirations

Earlier this year, NRCA and many affiliated roofing industry organizations joined the Coalition for Affordable American Energy (CAAE), a coalition of business groups that pushes for measures to address skyrocketing energy prices by expanding the development of domestic energy sources. CAAE played an instrumental role in helping ensure the federal moratorium on offshore drilling was lifted.

The moratorium had been renewed annually in federal appropriations bills since 1982. It expired when Congress approved appropriations legislation that did not extend the moratorium for the first time in 26 years. A similar moratorium on developing oil shale in the Rocky Mountains, another potential source of energy, also was not extended.

The lifting of the offshore drilling ban became possible when Congressional Democratic leadership determined it didn't have the votes needed to extend the moratorium. During the summer, public support for offshore drilling grew dramatically because of the rapid increase in the price of gas and other energy sources. Some Democrats in tough re-election battles feared they could not vote to extend the moratorium and expect to be re-elected.

Administrative hurdles

Although the lifting of the moratorium is significant, the offshore drilling battle has only begun. The federal regulatory process presents numerous bureaucratic challenges to bringing new domestic energy sources onboard, and it may be years before any new drilling takes place. Congressional Republicans are developing legislation to expedite new production from offshore drilling by streamlining administrative hurdles.

For example, Sen. Jim DeMint (R-S.C.) has introduced legislation to speed up drilling by bypassing some of the existing multiyear leasing process, providing a portion of new leasing revenues to coastal states and limiting court challenges to new drilling. However, legislation to expedite offshore drilling is unlikely to be acted on in a Democratic Congress without significant support from members of the majority party.

House Speaker Nancy Pelosi (D-Calif.) and Sen. Richard Durbin (D-Ill.), the Senate's second-ranking Democrat, have called for legislation to limit offshore drilling. In September, the House passed a bill to restrict drilling within 100 miles of shore and give states the option to allow drilling within 50 miles of their coasts but did not provide states with any share of the revenues from offshore production. However, this bill did not garner the votes needed to pass in the Senate.

The offshore drilling debate will continue next year as the new Congress is expected to again take up energy-related legislation. Some Capitol Hill sources believe the moratorium's expiration will compel Congress to reach a deal on a comprehensive energy bill in 2009. Sen. Jeff Bingaman (D-N.M.), chairman of the Senate Energy and Natural Resources Committee, is expected to advance a broad proposal early next year.

In addition, a bipartisan group of senators has been working to develop legislation to increase the production of domestic energy sources while promoting renewable forms of energy more aggressively. However, the increase in the federal budget deficit from the weakened economy may make it more difficult to provide subsidies for alternative energy.

An ongoing battle

It is clear the offshore drilling debate and other energy issues will have huge effects on how we use energy for years to come. NRCA will continue to be engaged in these issues as the debate continues.

Duane L. Musser is NRCA's senior director of federal affairs.