Dems Have Dramatically Scaled Back Energy Agenda

By Martin Kady II

(The Politico)  Democrats seem to be tripping over themselves to find new adjectives to describe Wall Street's oil speculators, railing about "unbridled" profiteers driving up the price at the pump.

But while they may have zeroed in on speculation, the rest of the once-aggressive Democratic energy agenda has gone by the wayside.

Under pressure to have at least some modest accomplishment on energy, Democrats have backed off of proposals for a windfall profits tax, price gouging investigations and suing OPEC. They've completely avoided any votes on oil drilling, perhaps fearing that many Democrats would cross party lines and back more exploration. 

A crackdown on speculators — being debated on the Senate floor right now — is the only piece left of a more dramatic agenda released in late April.

Senate Majority Leader Harry Reid (D-Nev.) seemed to realize the modesty of the agenda with just two weeks to go before Congress leaves for a month-long recess and the presidential nominating conventions. He said that "speculation is where we're starting." Sen. Patty Murray (D-Wash.), also a member of the Senate leadership, added that "we know that speculation is not the silver bullet."

Reid seemed to lay down the gauntlet for Republicans, saying that they would get a vote on their alternative energy package (which includes drilling) if they would simply stop filibustering the procedural motion to begin debate on the speculators bill. Reid is trying to back Republicans into a corner and force them to allow debate on the oil speculation issue while not promising any specific votes on drilling, which is the GOP mantra on energy policy.

"Drilling is a red herring," Reid said. "It is a loss leader."

Reid and Senate Majority Whip Richard J. Durbin (D-Ill.) are also trying to set up a scenario where they reach out to Republicans and say, "Let's legislate," while also offering a very limited number of amendments on energy.

This situation could end up where the energy policy has been for months: in stalemate. The key thing to watch in upcoming votes is whether moderate Senate Republicans, along with politically vulnerable GOP senators, decide to cut their losses and go ahead and vote for the crackdown on speculation so they don't get hammered in campaign ads for being in bed with Big Oil.

Republicans are planning their own response to Reid's offer later this afternoon, and The Crypt will update with details.