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SPOTLIGHT

1. CLIMATE

Offshore drilling revenue sharing takes hold in Senate bill; RES debate continues

Coastal states that agree to oil and gas drilling off their shores would be offered one-quarter of the revenue, under the latest draft of the new climate and energy bill, sources on and off the Hill say. Another 10 percent would go to the Land and Water Conservation Fund, with the remaining 65 percent going to the Treasury for deficit reduction, under the draft authored by Sens. John Kerry (D-Mass.), Lindsey Graham (R-S.C.) and Joe Lieberman (I-Conn.), according to a Senate aide close to the process and people who have seen the draft.

2. CLIMATE

Senate Dems, states wary of draft bill's pre-emption language

Some Democratic senators and state and local air regulators are concerned that the latest draft of a Senate climate and energy bill would unduly strip authority from U.S. EPA and states. Details emerged earlier this week that draft legislation from Sens. John Kerry (D-Mass.), Lindsey Graham (R-S.C.) and Joe Lieberman (I-Conn.) would curb EPA's authority to regulate greenhouse gases under the Clean Air Act and would limit states' climate laws and regulations. But that decision is not sitting well with some Democrats.

ON THE HILL

Upcoming markups and hearings

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