The House late Thursday passed by a wide margin an energy measure (H.R. 3408) that would allow for expanded oil and natural gas drilling in federal offshore and onshore land that has historically been closed to producers.

The legislation, which cleared the House on a party line vote of 237-187, calls for the Obama administration to open the areas along the Atlantic Coast, particularly offshore Virginia, the Pacific Coast and in the eastern Gulf of Mexico (GOM) to leasing; open less than 3% of the Arctic National Wildlife Refuge to energy development; and promote the development of oil shale in the Rocky Mountains. It further would take the authority for approving the Keystone XL pipeline out of President Obama’s hands, and turn it over to the Federal Energy Regulatory Commission (see NGI, Feb. 6).

Under the Republican-backed measure, revenue from expanded oil and natural gas drilling would help pay for nationwide highway and mass-transit projects. The existing highway trust fund is experiencing a major shortfall in funds, but revenues from expanded energy development aren’t expected to be enough to bridge the gap. The Congressional Budget Office has estimated that revenue from expanded activity would result in about $4.3 billion over 10 years. The House leadership is searching for other spending offsets to make up the shortfall.

The energy provisions initially were part of the House’s five-year, $260 billion overarching transportation reauthorization bill (HR 7). But House Majority Leader John Boehner (R-H) recently carved out the energy pieces to improve the chances for passage of both the energy and transportation components.

The House energy bill now goes to the Senate, which will either oppose it or possibly ignore it altogether, The Hill said. Obama has threatened to veto it. Senate Democrats are considering a two-year, $109 billion transportation authorization bill, which also would be funded through expanded energy development.

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