This is Good News for Us Phyllis Mains- ENVIRONMENT & ENERGY DAILY (portions) Wednesday, December 14, 2005 SPOTLIGHT 1. BUDGET Gibbons strikes mining language from reconciliation Allison A. Freeman, E&E Daily reporter Rep. Jim Gibbons (R-Nev.) gave in last night and decided to remove his changes to mining law in the budget reconciliation bill, saying he realized it could not survive in the Senate. Gibbons had successfully included language in the House version that would have allowed mining companies to purchase public lands, but it faced opposition from hunting and environmental groups, as well as some Western governors and senators who said it could lead to a "fire sale" of public lands. The Senate bill did not contain a similar provision. Gibbons struck one portion of the title earlier this week in an effort to gain support, but admitted last night that even his scaled-down proposal would not survive. "Unfortunately, it has become clear that the integrity of the mining law modernization policy I authored in the House could not be maintained while also complying with Senate procedural rules of the reconciliation process," Gibbons said. Resources Committee staff said their negotiations with senators broke down when they realized the mining language could not survive the Senate's "Byrd Rule," which bars extraneous provisions in budget reconciliation bills. It requires 60 votes to waive the rule. The proposal also seemed to lack any staunch Senate supporters. Gibbons yesterday praised Sen. Larry Craig (R-Idaho) as a "strong ally" in efforts to revamp the law. "I applaud his efforts and look forward to expanding our partnership as we build a broad coalition of support for mining law modernization," Gibbons said. But Craig said yesterday morning that he wanted to pull the mining provision from the budget, in part to keep other things in the measure, like oil and gas leasing in the Arctic National Wildlife Refuge. House and Senate negotiators are trying to find agreement this week on the conference report. "I am doing things personally to try to jettison things that shouldn't be in it," Craig said, naming the mining language specifically. Gibbons vowed to work to move legislation to revamp the 1872 Mining Law through Congress next year as a standalone bill. And Craig released a statement last night saying he would like to work with Gibbons and Sen. Harry Reid (D-Nev.) next year to make changes to the mining law. "This entire process has brought recognition to the critical need to update mining law," Gibbons said, noting he would use the budget's mining language as a start for a standalone bill. ON THE HILL 2. ANWR Arctic drilling battle continues amid talk of budget delay Ben Geman, E&E Daily senior reporter Business groups continued pressing for Arctic National Wildlife Refuge oil drilling yesterday even as a top House lawmaker acknowledged it will be tough to include ANWR in a final spending reconciliation package. House Majority Leader Roy Blunt (R-Mo.) told reporters yesterday that drilling supporters face a challenge as the chambers seek a deal on spending cut bills. Leaders have been gunning for a reconciliation deal before the holidays, but Blunt said yesterday that consideration may bleed into next year. "I don't hold the opinion that it [ANWR] would be impossible, but it is clearly something that is very difficult for us to do inside reconciliation," Blunt said, quickly adding that leaders "haven't given up." He also said, "We haven't given up on looking at alternatives." ANWR has emerged as a key sticking point between dueling House and Senate spending cut packages. The Senate measure authorizes oil and gas leasing on ANWR's coastal plain; the House measure does not. ANWR presents a vexing problem because a reconciliation bill immune from filibuster is seen as the best -- and perhaps only -- way to advance ANWR through the Senate, which is closely divided on the issue. But in the House, Democrats are united thus far against GOP spending cut plans, so opposition to ANWR drilling by a coalition of moderate House Republicans has forced the leadership in that chamber to dump it from the bill. Blunt also said the entire budget measure may be delayed until after the holidays. Asked if it was essential to pass the spending cut measure this year, Blunt appeared to indicate he would prefer debate continue into next year rather than conceding on a number of thorny issues. "Not so essential that we would have to give up, that we would give up our negotiating position on a number of issues," Blunt said. "I think it is better to get that right than to get it quickly." But he also said he hoped and believed it could done before the break. The House's $50 billion spending cut package is more agressive than the Senate's $35 billion measure, with differences on health entitlement spending cuts and other issues. A business group, the Alliance for Energy and Economic Growth, released a Dec. 13 letter sent to all members of Congress that pushes for inclusion of the ANWR provision. The alliance's steering committee includes the U.S. Chamber of Commerce, oil and gas producer groups such as the American Petroleum Institute, utility groups, the chemical sector, manufacturers, and several other business interests. "Our members believe that ANWR is one more critical part of securing America's energy future," the letter states. "While ANWR alone can't provide us with all the domestic energy we need, combined with the rapid development of other domestic oil and natural gas supplies, ANWR would make a tremendous difference, especially when coupled with greater energy efficiency, conservation and diversification." It cites estimates that ANWR could hold 10 billion barrels of recoverable oil. "ANWR's coastal plain holds the nation's greatest potential for another Prudhoe Bay-size discovery," states the letter, which argues it would be developed with tough environmental safeguards. Sen. Ted Stevens (R-Alaska) has been seeking a way around the ANWR impasse, perhaps by winning support from House Democrats who back drilling but have stood against the spending cut bill for other reasons. Efforts to win over House Democrats reportedly include sweetening the package with aid for Gulf coast areas devastated by the hurricanes. It is not clear how a delay in the measure would affect chances of ANWR passing. If the budget issue is addressed after the House reconvenes -- which Blunt has said he expects to be in late January -- many members' constituents will have experienced high home heating costs this winter. Jennifer Zuccarelli, a spokesperson for Rep. Richard Pombo (R-Calif.), declined to speculate as to how a delay might affect the ANWR debate specifically, but said the higher costs will put pressure on Congress. "People will hear more and more calls for doing something to address energy supply," she said. Athan Manuel of U.S. PIRG said that including ANWR only gets harder as time goes by. "It is closer to the midterm elections, and so many of these moderates are even less likely to want to even debate this thing in an election year," he said. In reference to Blunt's comments about the difficulty of passing ANWR through the budget process, he credits Blunt with understanding "the moderates are sincere about taking down a conference that includes ANWR." 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