Fate Of Senate's Oil-Spill Bill Growing Uncertain

By Tennille Tracy Of DOW JONES NEWSWIRES WASHINGTON (Dow Jones)--The U.S. Senate appears increasingly unlikely to pass an oil-spill bill before it leaves for a summer break in August. Senate Majority Leader Harry Reid (D., Nev.) unveiled a bill earlier this week that tackles a variety of spill-related measures, with the focus being on a proposal to eliminate liability caps for companies that are responsible for oil spills. But while Reid said he wanted to pass the bill before the August recess, he doesn't appear to have the necessary 60 votes to do that. Republicans have voiced opposition to the bill, in part because it fails to lift the Obama administration's temporary moratorium on deepwater drilling. Republicans have said the moratorium kills jobs in Gulf Coast states, already hurt by the spill itself. "We're not interested in yet another debate about a Democrat bill in which the prerequisite is killing more jobs," said Republican Leader Mitch McConnell (R., Ky) in a statement. At least one Democrat, meanwhile, Sen. Mary Landrieu (D., La), is considering alternative ways to handle liability caps, which suggests she does not support Reid's bill as proposed. Landrieu is crafting a proposal that seeks to ease the liability burden on small to medium-sized energy producers by creating a shared insurance fund that is financed by all energy companies. Reid's proposal eliminates liability caps altogether, making responsible parties liable for the full value of cleanup costs and damages. Small producers have said this setup would make it prohibitively expensive for them to do business. A few other lawmakers are showing interest in Landrieu's approach. Among them are Sen. Mark Begich (D., Alaska) and Sen. Robert Menendez (D, NJ), who plays a crucial role in the formation of the Senate's legislation. "I am open to figuring out a process in which the taxpayers never are held responsible for any dollars out of their pockets as well as making sure that those who are damaged have the access to get fully compensated," Sen. Menendez told reporters Wednesday. "If I can be shown a liability scheme that meets those standards, I'm willing to consider it." Reid's attempt to garner votes for the spill bill is further complicated by the fact that he's unlikely to allow Senate members to offer amendments to the legislation, presenting a take-it-or-leave-it proposition. Despite the challenges, Reid continues to work on the bill, which also promotes clean-energy initiatives. "We will not pass up this opportunity to create jobs, hold BP (PLC) accountable and reduce our dependence on oil," a spokeswoman for Reid said. Procedurally speaking, Capitol Hill aides say Reid is likely to file a motion Monday to cut off debate on the bill, with a vote on that motion expected for Wednesday. If the vote fails, as appears likely, Reid could revive the oil-spill bill in the fall. Democrats and Republicans, however, are not waiting until then to lob attacks at each other. Democrats are accusing Republicans of protecting big oil companies, with Sen. Menendez blaming Republicans for the bill's fate and taking aim at their opposition to unlimited liability caps. "It seems that just about the only people who think that taxpayers and coastal families should pay for an oil company's spill are oil companies themselves and the Republicans who fight for them in Congress," Menendez said. Republicans, meanwhile, say Democrats are playing politics with the spill bill and merely want to force Republicans to vote against it in an election year. "It's reasonable to wonder whether they're looking for an accomplishment or just another talking point," said a GOP aide. -By Tennille Tracy, Dow Jones Newswires; 202-862-6619; tennille.tracy@dowjones.com (END) Dow Jones Newswires July 30, 2010 11:43 ET (15:43 GMT)