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E&E DAILY
Thursday, April 28, 2005

ANWR

Budget deal with Arctic drilling appears imminent
Ben Geman, E&E Daily reporter
The House and Senate last night continued pursuing a final deal to allow votes in each chamber this week on a $2.6 trillion budget resolution that would pave the way for opening the Arctic National Wildlife refuge to oil drilling.

Aides say the two sides appeared close yesterday to bridging gaps between the chambers on cuts to mandatory spending, but questions over how deeply to cut Medicaid had reportedly slowed the talks.

The Senate package assumed $2.5 billion in federal revenues from ANWR development, but the House package heading into conference did not. The House is expected to agree -- at least implicitly -- with opening ANWR through the budget process, but it was not clear at press time precisely how the agreement would be worded in the resolution.

Aides indicate the budget language may include no explicit mention of ANWR with the understanding that the Senate Energy and Natural Resources Committee and the House Resources Committee would use the subsequent reconciliation process to lift restrictions. Reconciliation, which would occur months after the deal on the resolution, is the process by which committees make legislative changes as needed to fit budget projections.

Sean Spicer, a spokesman for House Budget Committee Chairman Jim Nussle (R-Iowa), indicated Nussle would not attempt to prevent ANWR from being developed through budget reconciliation, even though the House budget did not initially assume ANWR revenues.

"That's not our decision," he said, noting the Resources Committee is free to find savings as they see fit. "We can't preclude them from doing it."

Rep. Richard Pombo (R-Calif.), the chair of the resources panel, is among the strongest House supporters of developing ANWR's coastal plain.

ANWR development is supported by the House leadership and is contained in the House comprehensive energy bill. But Senate lawmakers do not have the votes to overcome a filibuster if they try and open ANWR through energy legislation, prompting use of budget legislation immune from filibuster.

A House vote is expected as soon as today if a deal can be reached between the chambers, while the Senate also hopes to complete votes on the budget resolution before going into recess at the end of the week.

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