2. ENERGY POLICY:
Republicans block energy credits, oil tax for third time
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Senate Democrats failed for the third time yesterday to secure the necessary votes to move a $100 billion tax extenders package that would extend expired energy tax credits and raise the oil spill liability tax.
In a 57-41 vote, Democrats failed to reach the 60-vote threshold needed to end debate on the bill.
Republicans repeated their objection to the cost of the bill because it would add $33 billion to the deficit due to an unemployment insurance provision that was not offset. The original tax extenders bill had a price tag of $140 billion and would have increased the deficit by about $80 billion.
Sen. Ben Nelson (D-Neb.) was the only Democrat to vote against cloture, citing the additional deficit spending.
Senate Majority Leader Harry Reid (D-Nev.) told reporters before the vote that he would move on to a small business tax relief and loans bill if the tax extenders bill failed for the third time. He added that none of the provisions in the tax extenders bill would be moved to the small business bill.
"I want to keep this package together," Reid said. "It's a good package."
The vote throws into limbo millions of dollars' worth of tax credits for biodiesel and renewable diesel, energy efficiency, alternative vehicle fuel, research and development and land conservation. Also included in the bill was $5 billion for "Build America Bonds," a one-year highway bill extension and agriculture disaster relief.
The vote also makes it likely Congress will miss a sixth deadline to finalize a $3.4 billion settlement over mismanaged land trusts for American Indians, which will expire July 9.
The measure also included a 49-cent-per-barrel tax hike on oil companies to raise funds for the oil spill liability trusty fund, which pays for economic damages after the company's $75 million liability cap. The fund currently contains $1.5 billion, an amount that looks inadequate as the oil spill in the Gulf of Mexico already has cost BP PLC $2 billion.
The House passed its $115 billion version of the tax extenders bill last month, which included a 34-cent-per-barrel tax for the oil spill liability fund.