2nd UPDATE: Senate Democrats Unveil Summary Of Spill Bill

27th Jul 2010 22:11

(Updates with details on the Senate's draft energy bill.) By Siobhan Hughes and Tennille Tracy Of DOW JONES NEWSWIRES WASHINGTON (Dow Jones)--U.S. Senate Democrats proposed eliminating the cap on damage claims that companies must pay for oil spills like the one in the Gulf of Mexico, vowing to ensure that companies responsible for spills will cover "100%" of damages, according to a draft summary of a bill Democrats are expected to introduce Tuesday. The bill, which will cost a total of about $15 billion, represents the Senate's response to the Deepwater Horizon oil spill. To help cover the cost of the legislation, the bill proposes to raise fees that the petroleum industry pays to the Oil Spill Liability Trust Fund. That trust fund, created in 1986, is used to address oil spill cleanups. The industry currently pays an 8-cent-per-barrel fee to finance the fund. It's unclear just how high the Senate Democrats are looking to raise the fee. Senate Majority Leader Harry Reid (D., Nev.) has been putting together the energy bill for several weeks, hoping to pass oil-spill legislation before members of the Senate leave for summer break in August. After a formal version of the bill is introduced later Tuesday, Reid is expected to bring it to the Senate floor later this week and to hold a vote next week. It's unclear whether Reid will allow other Senate members to offer amendments to the legislation, which could delay the process. "Time is pretty short," Sen. Byron Dorgan (D., N.D.) told reporters after Senate Democrats finished a weekly caucus meeting. The Senate energy proposal looks to eliminate a liability cap that limits the amount of money companies have to pay for damage claims. The cap is currently at $75 million. Current law doesn't impose any liability cap on cleanup-related costs. Democratic leaders in the House of Representatives have proposed similar liability-related initiatives in a bill that is scheduled for a vote Friday. Stakeholders believe the House is likely to pass that legislation. Under the House bill, Democrats also attempt to ban BP PLC (BP, BP.LN) from obtaining new leases or drilling permits by instituting new standards. The Senate bill, meanwhile, also provides five years' of funding for the Land & Water Conservation Fund, which is used to acquire federal lands. It also amends maritime statutes to allow families of the victims of the Deepwater Horizon oil spill to seek certain types of damages. The bill provides funding for the Home Star program, which encourages homeowners to install energy-efficient technology, as well as funding for natural gas vehicles. -By Siobhan Hughes and Tennille Tracy, Dow Jones Newswires; (202) 862-6654; [email protected] (END) Dow Jones Newswires July 27, 2010 17:11 ET (21:11 GMT)