Calls to Harkin and Grassley needed now! Grassley: 202-224-3744 or 515-284-4890 Harkin: 202-224-3254 or 515-284-4574 ENVIRONMENT & ENERGY DAILY Friday, March 10, 2006 SPOTLIGHT 1. ANWR: Senate floor is next for Arctic drilling Ben Geman, E&E Daily senior reporter Inclusion of Arctic National Wildlife Refuge oil drilling in the fiscal year 2007 budget survived its first challenge yesterday when the Senate Budget Committee rejected an amendment to strike the language on a 9-11 party line vote. The budget resolution was later approved by the committee in an 11-10 vote, with floor action -- and likely further challenges -- expected next week. Drilling supporters mustered a slim majority last year, but floor passage of another resolution that includes ANWR would be one of just several steps needed to allow leasing. Sen. Russ Feingold (D-Wis.) led the effort to eliminate a $3 billion reconciliation instruction to the Senate Energy and Natural Resources Committee from the resolution during a markup yesterday. Energy Committee Chairman Pete Domenici (R-N.M.) plans to raise the money by authorizing lease sales on the refuge's coastal plain. And Budget Committee Chairman Judd Gregg (R-N.H.) came under attack from Sen. Olympia Snowe (R-Maine) and several other anti-drilling GOP moderates over including ANWR again in this year's budget process. Use of the budget process is key because budget measures cannot be filibustered. "As you know, the budget process was designed to ensure that important fiscal matters be debated and decided swiftly. Congress should not be making environmental and energy policy decisions of this magnitude on the budget bill," states a letter released yesterday from Sens. Snowe, John McCain (R-Ariz.), Norm Coleman (R-Minn.), Susan Collins (R-Maine) and Lincoln Chafee (R-R.I.). But Domenici, in speaking against Feingold's amendment during yesterday's markup, called the matter one of basic fairness. He said ANWR should be entitled to an up-or-down vote rather than subject to filibuster. Nineteen Democrats -- including Minority Leader Harry Reid (Nev.) -- also attacked the renewed ANWR push with their own letter yesterday to Senate Majority Leader Bill Frist (R-Tenn.). The Democrats call projected lease revenues "highly speculative" numbers irresponsible to assume in the budget. The Congressional Budget Office estimates lease sale revenues at $6 billion, which would be split 50-50 with the state of Alaska, while the White House uses an even higher figure. The Democrats who signed the letter include Sens. Reid, Maria Cantwell (Wash.), Jeff Bingaman (N.M.). John Kerry (Mass.), Joe Lieberman (Conn.) and others. Gregg's proposed budget resolution does not seek to trim mandatory spending programs, such as health entitlements, which is considered very tough in an election year, leaving ANWR as the sole item to be addressed in the subsequent reconciliation process. The Senate decision to avoid a push on mandatory spending cuts this year has major ramifications for the drilling effort, especially if House lawmakers were to forgo or limit efforts to cut mandatory programs in their budget process. Last year, ANWR cleared the Senate as part of a controversial spending cut package, but it was jettisoned in the House debate over spending reconciliation plans amid revolt by anti-drilling GOP moderates. It remains unclear if the House budget will seek mandatory spending cuts or pave the way for the House Resources Committee to authorize ANWR leasing. Introduction of the budget resolution has been delayed in that chamber. A spokeswoman for the House Budget Committee indicated Committee Chairman Jim Nussle (R-Iowa) may try to slow mandatory spending growth again this year but did not provide details. "That is a discussion that has been ongoing," the aide said. "We are not there yet as far as a final number or final decision at this point." The aide said it is Nussle's "intention and hope" to continue reforming spending programs. Environmentalists launched attacks on the ANWR effort throughout the day, with a GOP environmental group linking it to recent GOP ethics scandals and claiming it could hurt the party at the ballot box. Inclusion of ANWR in the budget will "feed the impression that our party is ethically bankrupt," according to David Jenkins, government affairs director for Republicans for Environmental Protection. "Concocting a one-issue budget plan to ram through an unpopular pork-barrel scheme represents a new low in ethical lapses. This could be the last straw that convinces voters to throw the Republican majority out," Jenkins said in a prepared statement, adding it could harm GOP members in swing districts. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Sign up to receive Sierra Club Insider, the flagship e-newsletter. Sent out twice a month, it features the Club's latest news and activities. Subscribe and view recent editions at http://www.sierraclub.org/insider/