Parties Point Fingers on Gas Prices Legislation

With prices soaring, GOP halts Democrats' wide-ranging energy plan.

ByABC News
June 10, 2008, 12:21 PM

June 10, 2008 — -- With the average price of gas in the United States now above $4, Senate Republicans today rejected a plan by Democrats to give the president the authority to declare an "energy emergency" and sue OPEC nations, prosecute price gouging, assess a "windfall profits tax" on oil companies and cut down on speculation in the energy markets.

The Democratic proposal, called the "Consumer-First Energy Act," was a grab bag of measures that Democrats cobbled together a month ago as gas prices were rising. At the time, the plan was meant as a counter-measure to a Republican plan that sought to encourage domestic oil exploration. Democrats in May voted down the Republican oil exploration plan, which would have done little for gas prices in the short term.

The Democrats' plan would also have done little in the near term.

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It was defeated on a largely party-line vote, 51-43, far short of the 60 votes it needed. A bill to extend popular tax credits for, among other things, alternative energy production, was also defeated in the Senate, victim to partisan disagreements over whether the tax credits should be accounted for by raising tax rates on hedge fund managers.

Meanwhile, there's nothing getting done legislatively to address the rising gas prices.

The bill would have allowed the U.S. attorney general to sue OPEC in U.S. courts for price-fixing and given the president anti-price gouging powers in cases of "energy emergency." And in perhaps the most contentious provision, it would have allowed for a "windfall profits tax" on oil companies that aren't using their record profits to invest in renewable energy resources and increased capacity.

The parties' competing, failed plans highlight the very real policy differences between Republicans and Democrats on how to deal with long-term energy policy.

Republicans, by and large, would like to encourage more domestic oil production and exploration in the Arctic National Wildlife Reserve and off U.S. Shores. Democrats, meanwhile, want to focus on changing the ways the U.S. consumes energy not just moving away from foreign oil, but moving away from oil altogether.

But while the average citizen pays more month-to-month and day-to-day to fill up his or her tank, each party has seemed content to point its finger at the other for not doing anything on gas prices in the short term.

"Its time to use the people's time in the U.S. Senate to work on the issues that matter to the people," said Majority Whip Sen. Dick Durbin, D-Ill., at a press conference before the vote on the Democratic plan, daring Republicans to allow debate on the legislation they oppose.

Senate Minority Leader Mitch McConnell, R-Ky., dismissed the Democratic plan as nothing more than a gimmick.

"The biggest hit wouldn't be to the energy companies. It would be the American consumer, who now dreads pulling his or her car into the gas station. Hitting the gas companies might make for good campaign literature or evening news clips, but it won't address the problem. This bill isn't a serious response to high gas prices. It's a gimmick," McConnell said.