Recess overtakes spill-driven Senate bill
WASHINGTON – Despite months of public outrage over the massive BP oil spill, frustrated Democratic Senate leaders abandoned their effort Tuesday to pass spill-related legislation before leaving for their summer recess later this week.
Sen. John Kerry, D-Mass., and other Democrats had sought to raise liability limits on oil companies drilling in U.S. waters and provide incentives for consumers to make their homes and vehicles more energy efficient.
The bill won’t be considered before the Senate returns in mid-September.
The measure stalled because Republicans, as well as at least two Democrats, balked at its terms setting unlimited liability for companies responsible for an oil spill. Currently, companies have a $75 million cap on liability for offshore oil spills. Republicans are generally in favor of increasing liability but not leaving it uncapped, warning that doing so would discourage drilling.
BP has agreed to set aside a $20 billion fund to pay claims of people harmed by the well’s April 20 explosion.
The White House has said that the $20 billion was not a cap, and that the company would pay more if necessary. The company has disbursed $271 million to date. BP also is likely to be fined billions of dollars.
The Democrats’ bill also would raise the $1 billion liability cap on the Oil Spill Liability Trust Fund to $5 billion and increase the amount oil companies are required to pay into it to 49 cents a barrel. Funds from the tax are used for oil spill cleanup, research and other spill expenses.