Despite his efforts to extend an olive branch, Senate Majority Leader Harry Reid (D-NV) said Tuesday that Republicans rebuffed his offer to allow votes on four GOP-backed amendments to the anti-energy speculation bill, including a proposal to expand oil and natural gas drilling in the federal Outer Continental Shelf (OCS).

“They [Republicans] turned that down. They said they want more [amendments],” Reid said during a briefing with reporters on Capitol Hill. He noted that Minority Leader Mitch McConnell (R-KY) still wants to do something with respect to amendments to the speculation bill. “I’m willing to take look at those…I believe that Sen. McConnell is acting in good faith, saying that he wants to try to work something out on the [tax] extenders and on the speculation bill. I hope that’s the case.”

Reid indicated that if Republicans blocked legislation to extend tax incentives for renewable energy and energy efficiency for businesses and consumers, Democrats would not agree to any sort of deal on amendments to the speculation bill.

Shortly after his remarks the package of tax incentive extenders was stalled in the Senate as Democrats failed to capture the 60 votes needed to close debate and move forward.

The vote (53-43) clearly was a setback for the Democratic leadership, but it also likely lessens the chances for the Senate Republicans to propose amendments to the energy speculation bill, including the much-touted OCS proposal.

The four Republican amendments focused on new OCS drilling; the development of oil shale in western states; construction of new nuclear facilities; and a broader piece of legislation (S. 2958) that, among other things, would allow coastal states to petition the federal government for an exemption from the moratorium on offshore drilling, and open up the coastal plain of the Arctic National Wildlife Refuge to oil and gas leasing.

Under Reid’s plan, the amendments would be offered as part of the Senate anti-speculation bill (S. 3268), which seeks to reduce speculation in oil and natural gas futures markets by directing the Commodity Futures Trading Commission to set position limits for pure speculators; close the loophole for U.S. traders on foreign exchanges; and expand reporting requirements in the over-the-counter realm of derivatives, swaps and index funds (see Daily GPI, July 21). It’s unclear whether the Senate will take another shot at anti-speculation legislation this week.

Senate Democrats last Friday failed in their attempt to move forward with their anti-speculation bill, falling short of the 60 votes (three-fifths of the 100 senators) required to close debate (see Daily GPI, July 28). It capped off two days of rhetoric characterized by Democrats blasting speculators for inflicting high oil prices on American consumers and Republicans countering with actions they said were needed to address supply/demand fundamentals, including the lifting of a ban on OCS exploration. The Democratic leadership last week firmly held out against allowing amendments, while Republicans said they had at least 28 amendments to offer.

The House is expected to take up an anti-speculation bill this week, possibly as early as Wednesday. Since House Speaker Nancy Pelosi (D-CA) is steadfastly opposed to lifting the OCS ban, the bill would likely be brought to the floor under a rule that bars amendments and requires a two-thirds vote to pass it. It is not clear whether supporters of the measure have the necessary votes.

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