This vote was on an amendment by Mary Landrieu, D-La., that would allow for an increase in funding to pay for the impact of any legislation requiring that 50 percent of revenue from drilling along the Outer Continental Shelf be distributed among coastal energy-producing states or funneled to alternative energy research or parks and wildlife activities.  The amendment was offered to the budget resolution that serves as the blueprint for Congress’ budget priorities in fiscal 2010.  The budget resolution sets overall spending targets for the Appropriations committees and outlines other budget rules.

Landrieu said her amendment does not authorize any new drilling, it simply provides room in the budget allocation to allow for any future bill that would expand drilling along the Outer Continental Shelf, as long as it distributed revenues equally among energy-producing coastal states, or that was used to pay for alternative energy research or parks and wildlife activities.

“It is important that the revenue streams associated with this production are shared equitably and fairly, not only with the Federal Treasury but with States that serve as platforms for this industry and with counties,” Landrieu said.  “This amendment does not say where we are going to drill. It does not authorize drilling. It says when those decisions are made that the revenues should be shared with State and local governments appropriately, to enter into strong, reliable partnerships and mutually beneficial partnerships for increased drilling domestically.”

Max Baucus, D-Mont., said Landrieu’s amendment is not “insignificant.” He said it will mean a small number of states will get a large windfall, while the rest get nothing.

“Currently, revenue goes to all 50 States. There is a small carving out for some of the coastal States and Florida. This amendment says: All the revenue raised, all the coastal revenue goes to only those few coastal States, which means revenue would not go to the other States that benefit currently from oil and gas leasing revenue,” Baucus said.  “Which means we have to raise taxes by $110 billion to pay for giving money to a small handful of States and take it away from the majority of the States.”

By a vote of 37-60, the amendment was rejected. Of Democrats present, 7 voted for the amendment and 48 voted against it.  Of Republicans present, 30 voted for the amendment and 10 voted against it.  The end result is that the measure went forward without language that would have allowed for any eventual legislation that required that 50 percent of revenue from coastal drilling be distributed among coastal energy-producing states.