by Matthew Hay Brown

The congressional stalemate over prices at the pump continues.

Senate Democrats unveiled new energy legislation this afternoon that they said would address the root causes of rising gasoline prices. But their Consumer-First Energy Act, with its proposals to raise taxes on oil companies, is likely to be blocked by Senate Republicans.

Meanwhile, the Republican proposal to drill in the Arctic National Wildlife Reserve and off the Atlantic and Pacific coasts, introduced this afternoon as the American Energy Production Act, is even less likely to go anywhere in the Democratic Senate.

"Even as it costs Americans more every day to fill up their gas tanks, Bush Republicans only offer more of the same failed energy policies that brought us to this point," Majority Leader Harry Reid said.

The Democratic legislation, by contrast, protects consumers, he said.

"Instead of helping big oil make more money at the expense of average Americans, we are forcing oil companies to change their ways," Reid said. "We will hold them accountable for unconscionable price-gouging and force them to invest in renewable energy or pay a price for refusing to do so."

by Matthew Hay Brown

Senate Majority Leader Harry Reid will give President Bush this much: He's one of a kind.

"Only President Bush could allow Big Oil to write our nation's energy policy, guarantee billions in oil tax breaks and refuse to stand up to OPEC or crack down on price gouging, and then shirk responsibility for gas prices that have more than doubled and oil prices that have quadrupled since he took office," the Nevada Democrat said today. "Only President Bush could be surprised to learn that gas was approaching $4 a gallon and then claim the White House is concerned about high gas prices."

Reid was responding to Bush's press conference this morning, during which the president said it was the Democratic Congress that was standing in the way of his efforts to restrain rising prices at the pump.

"One of the main reasons for high gas prices is that global oil production is not keeping up with growing demand," Bush said. "Members of Congress have been vocal about foreign governments increasing their oil production; yet Congress has been just as vocal in opposition to efforts to expand our production here at home.

"They repeatedly blocked environmentally safe exploration in ANWR," Bush said. "Congress has repeatedly blocked efforts to expand capacity and build more refineries. ... Congress continues to block provisions needed to increase domestic electricity production by expanding the use of clean, safe nuclear power."

(Photo by Tim Sloan/AFP/Getty Images)

by Frank James

Sen. Richard Durbin knew he potentially could be stepping on a cow pie yesterday if he didn't carefully answer a reporter's question yesterday about the inflationary effect U.S. ethanol mandates might be having on food prices around the world.

The Senate's second-in-commade represents Illinois, after all, a state with large farm interests. And his party's presidential and congressional fortunes also depend on voters in states significant agricultural interests.

So Durbin was not only careful in what he said, but he was clear in asking reporters to report his answer accurately. He basically acknowledged that ethanol is part of the problem without saying much that would offend farmers. Budding politicians should study it as a great example of how to straddle an issue.

REPORTER: Senator Durbin, a lot of people, hunger experts, say that the demand for biofuels, ethanol and other biofuels, is contributing a lot to the increase in prices.

But we have to understand that it's had an impact on food prices, and let's be honest about it. Even in the corn belt, we'd better be honest about it.

By David Nitkin

The White House has abruptly announced a news conference in the Rose Garden at 10:31 a.m. today -- giving reporters less than two hours to prepare their questions for President Bush.

Bush will launch the news conference with an 8 minute statement, the White House says, "regarding Americans' understandable anxiety about issues affecting their pocketbooks."

According to the press office, "He will also call upon Congress to send him sensible and effective bills that will help Americans weather this difficult period and keep our country moving forward.

He will specifically reference:

1. Energy prices - Congress should pass legislation which would clear away obstacles to more affordable, more reliable energy here at home.

2. Rising food prices - Congress should reform our farm programs by passing a fiscally-responsible bill that does not impose new burdens on American consumers.

3. Mortgage payments - Congress should pass specific legislation that will help more families stay in their homes.

4. Student loans - Congress should give the federal government greater authority to buy federal student loans."

by Matthew Hay Brown

Republicans have taken to calling the 50 percent increase in gasoline prices since Democrats took over last year the "Pelosi Premium." Democrats say Republicans are looking at the wrong time frame.

"When President Bush took office, gas prices were less than half of what they are today - and oil was less than one-third," Sen. Frank Lautenberg of New Jersey says in today's Democratic radio address. "Then, seven years ago, President Bush and Vice President Cheney secretly invited executives from the big oil and big energy companies to the White House to write our national energy policy. ...

"Now, they are hauling in record profits," Lautenberg says. "We are paying record prices. And their profits are coming out of our pockets."

Republicans have been hounding Pelosi to explain the "commonsense plan" to hold down gas prices that Democrats promised two years ago.

"Two years later, they appear to have no plan other than to increase taxes on energy companies and stand in the way of increased domestic production," Senate Republican Leader Mitch McConnell said. "So what we want to know is, where is the 'commonsense plan' to lower gas prices? And what is taking them so long to unveil it? The American people are waiting--and paying more at the pump each day they wait."

In fact, Pelosi has spent a good part of the last week calling on Republicans to help pass legislation to crack down on price gouging, hold OPEC accountable for price fixing and end tax breaks for oil companies and invest the savings in renewable energy.

On Thursday, Pelosi urged Bush to halt deliveries to the Strategic Petroleum Reserve. On Friday, Democrats called on the Federal Trade Commission to use the authority recently granted by Congress to investigate prices for possible market manipulation.

The larger problem is that for a price surge linked to market speculation, unrest in the Middle East, the week U.S. dollar and growing demand from China and India, there are no easy solutions. Lautenberg's address follows.

On April 23, 2008, a motorist fuels up at a San Mateo, Calif. gas station. (AP Photo/Marcio Jose Sanchez, file)

by Matthew Hay Brown

House Democrats are concluding their gas price-themed by calling on the Federal Trade Commission to investigate gasoline prices for possible market manipulation.

In a letter today, Speaker Nancy Pelosi, Majority Leader Steny Hoyer and other senior Democrats called on Commission William E. Kovacic to exercise new investigative authority granted by Congress in the Energy Independence and Security Act of 2007.

"Congress provided this authority to the FTC four months ago - but to date, the FTC has failed to exercise its power to protect consumers from skyrocketing energy costs," they wrote. "Recent price volatility and investor speculation in the oil market require the diligent oversight Congress called for, especially when oil prices break records daily."

On Thursday, Pelosi urged President Bush to stop suspend deliveries to the Strategic Petroleum Reserve. She also has called on Bush and congressional Republicans to work with Democrats to pass legislation to crack down on gasoline price gouging, hold OPEC accountable for price fixing and end tax breaks for oil companies and invest the savings in renewable energy.

The letter follows.

by Matthew Hay Brown and David Nitkin

The White House is resisting bipartisan calls to halt new shipments to the Strategic Petroleum Reserve while gasoline prices at the pump continue to rise.

Democratic House Speaker Nancy Pelosi joined presumptive Republican presidential nominee John McCain today in asking President Bush to stop adding 60,000 barrels of oil each day the giant undergound caverns in Texas and Louisiana where the government keeps the reserve - a move they say would help reduce demand.

"Today the SPR is nearly 97 percent full," Pelosi told reporters today. "Independent experts report that suspending deliveries to SPR could cut as much as five cents on the low-end to 24 cents off a gallon of gas and provide real savings for families. ...

"Suspending delivery to SPR will not only increase supply, but impact energy prices by sending a signal to the market to stop runaway speculation."

The White House disagrees.

"The Administration continues to fill the reserve at a modest rate," spokesman Scott Stanzel said. "We don't believe the fill rates have a meaningful impact on oil supplies, as this oil equates to less than one tenth of one percent of daily world consumption. We continue to fill the reserve to provide an added layer of protection to the American people in cases of severe supply disruption."

Pelosi cited precedent for the move.

"Ahead of the first Gulf War, the first President Bush withdrew oil from the SPR. Withdrew oil from the SPR," she said. "We're not asking for that. President Clinton suspended SPR deliveries in 1995 and even the current President Bush withdrew oil from SPR and sold it on the market following Hurricane Katrina."

by Matthew Hay Brown

House Speaker Nancy Pelosi, under fire from House Republicans for failing to contain rising gas prices, is appealing to President Bush for help.

In a letter today, the California Democrat asks Bush to direct the Justice Department to investigate oil cartel price-fixing, authorize the Federal Trade Commission to pursue and punish "price gougers," end tax breaks for oil companies and invest the savings in renewable energy.

"Lastly, your administration must use the authority given to it by the Congress to end market manipulation," Pelosi writes. "We cannot wait to act in the face of these price increases."

The letters appears to be a response, of sorts, to a campaign by the House Republican Conference accusing Democrats of breaking a promise to contain gas prices. Yesterday, they were calling the increase at the pump since Democrats took control of Congress last year the "Pelosi Premium."

Democrats say Republicans are blocking their efforts to wean America of foreign oil. Pelosi's letter follows.

by Matthew Hay Brown

Executives from Exxon Mobil, Shell and BP America all have been called to account before Congress today on oil company profits and rising prices at the pump. One oil baron who wishes he had been invited, according to House Republican Leader John A. Boehner, is Hugo Chávez.

With the hearing of the House Select Committee on Energy Independence and Global Warming now underway, Boehner has released the “testimony” of the Venezuelan strongman. As the Ohio Republican has it, Chávez is particularly interested in expressing grattitude to House Democrats for tax breaks that he says would benefit CITGO, the state-owned oil giant.

“It is especially relieving to know that while CITGO receives these tax breaks, five other major oil companies – including American-owned companies employing thousands of working Americans – will be forced to pay higher taxes, raising energy costs on consumers in your country and endangering scores of jobs as well,” Chávez says. “Please extend my gratitude to Speaker Pelosi, Majority Leader Hoyer, Whip Clyburn, Chairman Emanuel, and everyone who played a role in scheduling this legislation for a vote in the House of Representatives.

“Being a socialist dictator is a difficult – and often lonely – burden these days,” he continues. “As more nations move toward democracy, the number of socialist dictators in our world is declining, and we can use all the help we can get.”

It is, of course, an April Fool’s Day joke. The complete “testimony” follows.

by Frank James

Former Democratic U.S. Congressman Joseph Kennedy III has gotten a lot of attention, much of it negative, for his ads praising Venezuela for providing low-priced heating oil to Kennedy's company, Citizens Energy, which provides low-cost fuel to hard-hit low income Americans.

Last year, when he ran the first ads lauding Venezuela and Citgo, the nationally owned oil company, Kennedy ran into a conservative buzzsaw and he was criticized for acts tantamount to treason for aiding and abetting an enemy of the Bush Administration, Venezuelan president Hugo Chavez, a big fan of Cuba's maximum leader Fidel Castro and a man of whom it can be fairly said doesn't embody the best notions of democratic leadership.

Such hardline conservative feelings may be impossible to change. But ads running now that are similar to those that ran last year can evidently have an effect on the persuadable, which appears to be what is shown by a new study of 404 people, including self-described Democrats, Republicans and Independents, who were surveyed over the Internet by HCD Research Inc, using its MediaCurves.com technology.

What HCD found was that the ads with Kennedy do appear to win over some viewers who see Venezuela in a more positive light after viewing the ad than they did before. Of course, that is exactly the impact Venezuela means for the ads to have.

By Matthew Hay Brown

As oil futures topped $100 a barrel today, House Speaker Nancy Pelosi said congressional Democrats would try again to end government breaks for the industry – an approach that has been rejected by President Bush.

“It is unfortunate that President Bush opposed our legislation to repeal multi-billion dollar subsidies given to Big Oil companies,” Pelosi said in a statement. “We will again seek to repeal these subsidies and to enact strong legislation to stop price gouging at the pump and pursue anti-trust actions against OPEC entities that fix the price of oil.”

The White House, meanwhile, spoke of expanding domestic production, including drilling offshore and in the Arctic National Wildlife Refuge.

“We have to figure out a way to increase supply here in the United States, done in environmentally sensitive ways, which we know how to do, so that we can have an increase supply of oil here while world demand continues to increase at a really astronomical pace for demand for oil,” White House Press Secretary Dana Perino told reporters.

Violence in the Nigerian oil center of Port Harcourt and rough weather that threatened oil-exporting ports in Mexico helped push the price of light, sweet crude for February delivery over the century mark, the Associated Press reports. Adjusted for inflation, the cost remains within range of highs set in 1980.

Prices at the pump, which tend to lag behind futures, rose slightly today, according to the Oil Price Information Service. The national average cost of a gallon of regular unleaded gasoline climbed 0.6 cents today to $3.049. That was down from $3.061 a month ago, but up from $2.322 a year ago.

by William Neikirk

President Bush signed an energy bill into law today that would not have been his ideal of a good bill when he took office in 2001.

But times and politics change and so do presidents. He's still a driller but now he's become more of a conserver--greener than he was six years ago (in an environmental sense, I mean).

So it is now the law of the land that the nation's automakers must produce vehicles that get an average 35 miles per gallon by 2020. Also, it is also the law that appliances must be more efficient and that new incentives are in place to produce more renewable fuels.

The tenor of much of the commentary has been to praise Congress and the White House for their action--and then to ask: What took so long? To some, it seems like seven years of wasted argument over better mileage standards--otherwise known as CAFÉ standards.

by Christi Parsons

UPDATED

Illinois will soon be home to a new $1.5 billion coal generation plant, officials announced this morning.

The plant in downstate Mattoon will be a joint venture between the U.S. Department of Energy and the FutureGen Alliance, a non-profit consortium of coal producers and energy generators.

Illinois' congressional delegation has been trying since 2003 to persuade officials to choose Illinois for the plant, which promises a significant boost for the state economy and for the state's coal industry.

Sen. Dick Durbin, a leading champion of the project, was all over the announcement this morning.

"Downstate Illinois has the coal, the geology and the commitment needed to make this project a success," Durbin said in a press release that came out seconds after the announcement was made. "The success today is a tribute to the community, the state and all those who worked so hard to secure the FutureGen project for Illinois."

It doesn't hurt the politicians who fought for it any, either. The plant will be in Rep. Tim Johnson's downstate district. It was also a high priority for Reps. John Shimkus and Jerry Costello.

Barack Obama at the Redemption World Outreach Center in Greenville, S.C., on Sunday. Today. he presents an energy policy. AP photo by Mary Ann Chastain

by Mike Dorning

Presidential candidate Barack Obama hopes to reduce U.S. dependence on foreign oil and combat global warming with a national auction system that would make every company pay for the right to emit smoke and other sources of carbon.

The "cap-and-trade" auction system is based on the idea that the easiest way to reduce the carbon emissions that contribute to global warming is to simply charge a price for pollution. The approach has long been favored by environmentally minded free-market economists who believe that a pollution "price" would reduce emissions more efficiently than complex government regulations.

Under the Obama plan to be formally announced in a speech today, the government would set a national cap on carbon emissions that by 2050 would be reduced gradually to 80 percent of 1990 carbon emissions. The national cap in turn would determine the number of individual carbon allowances available for auction to industry. So the price of a carbon allowance should reach the level necessary to limit emissions to the right level.

Promoters of the approach believe that such an auction system works better than complicated government standards for industry-by-industry emissions limits and the inevitable grandfather clauses to allow some old factories to continue polluting because it is not economical to retrofit them.

Instead, the market makes decisions about which plants install potentially costly control systems to limit carbon emissions, which ones do not, and which ones simply shut down. Companies make individual decisions on what, if any, controls are economical for individual factories based on the price set for carbon allowances by the national auction.

Alan Greenspan, author of The Age of Turbulence, has created some in Washington with his new memoir. AP photo

by William Neikirk

Alan Greenspan’s new book is full of odd detail. He confesses that Ayn Rand, the libertarian author and his mentor, called him "the undertaker" because of his serious manner and conservative clothing. As a boy, he collected railroad timetables, a vicarious if not nerdy way of seeing the world. Unlike most people, he wanted to get out of New York City.

The former chairman of the Federal Reserve writes that his wife, television correspondent Andrea Mitchell, jokes to friends that he proposed three times in his indecipherable "Fedspeak" before she grasped what he was saying. Wrong, said Greenspan. "Actually, I proposed five times—she missed a couple."

For all the lightness and heaviness sprinkled through Greenspan’s memoir, "The Age of Turbulence," this is a serious book by and about a serious man who felt secure enough to criticize President Bush and the Republican Party from which he came for failing to take fiscal discipline seriously. The GOP deserved to lose last year’s elections, he says, and Bush made a mistake in not vetoing a bill. What heresy it was to say that he is fonder of Bill Clinton than any president named Bush.

by William Neikirk

The energy story, already big, is about to get bigger. Oil prices rose sharply on Wednesday, briefly touching $80 a barrel. The Energy Department reported a large drop in oil inventories. Gasoline supplies and refinery utilization fell. Higher prices at the pump could follow.

A higher level of political dispute could be the way. Democrats in Congress are considering a new energy bill that would mandate a greater use of ethanol and force automobile manufacturers to meet higher fuel economy standards--35 miles per gallon for cars and light trucks by 2020 as approved by the Senate. A joint House-Senate conference will write the final bill.

Gasoline prices have come down from their highs of the summer, but the recent bad news could build the momentum for a measure that pressure Congress to include the higher mileage requirements, called CAFE standards for corporate average fuel economy.