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Reid Splits Oil-Spill Response From Climate Bill--Is That Wise?

Andrew Restuccia passes along an update on the ever-elusive energy bill. It looks like Harry Reid is going to introduce a very pared-back bill next week that will include:

-- An oil spill response title based on the bill passed by the Senate Energy & Natural Resources Committee and the bill lifting the liability cap for economic damages in the event of a spill passed by the Senate Environment & Public Works Committee, both passed out of committee last month.

-- A title on energy efficiency that will be based on the Home Star Energy Retrofit Act, which gives homeowners incentives to make their homes more efficient.

This would be a no-brainer energy bill that should easily get 60 votes. The oil-spill response provisions largely entail reforming the Interior Department and tightening regulations for rigs. The only controversial section is the bit about lifting the cap on liabilities for oil spills. (At the moment, oil companies have to pay to clean up their messes, but they're only on the hook for the first $75 million in indirect damages.) Even Home Star, which I wrote about recently, picked up a number of Republican votes in the House.

Trouble is, this bill won't do much to address climate change. It doesn't have a renewable standard for electric utilities. There's no cap on carbon emissions. There isn't a broader suite of efficiency measures that could really start chipping away at all the energy bloat and waste in the economy. Democratic staffers say that most of those measures will have to be brought up in a separate bill, after the August recess. Although then we get into the question of whether there will even be time to consider the climate provisions. Possibly not.

And there's another question: Is it a smart strategy to separate the oil-spill provisions from everything else? The thing about the spill-response legislation was that it was popular. Moderate Republicans were relatively nervous about opposing it—who wants to be seen as protecting BP? Including rig regulations in a broader energy/climate bill might have improved the chances of passing the whole thing. But what happens if the two are split apart? The odds of a climate bill plummet.