California losing battle in Federal Energy Policy

The Golden State may end up the biggest loser as Congress considers final passage of an energy bill...

California officials -- including top members of Gov. Arnold Schwarzenegger's Cabinet -- are warning that the House energy bill expected to pass today will make it tougher for the state to block offshore oil drilling or the placement of liquefied natural gas terminals.

The energy bill is strongly opposed by many California lawmakers, who claim its provisions to boost domestic energy supplies could threaten the environment and limit states' abilities to object to energy projects.

But proponents of the bill, including House Resources Committee Chairman Richard Pombo, R-Tracy, argue that Democrats have failed to offer a viable alternative to reduce the nation's dependence on foreign oil.

"We are not providing enough energy to meet the demands that we have," Pombo said at the start of Wednesday's debate on the bill. "I ask my colleagues, with oil at $55 a barrel, don't you think it's time we did something? If you don't like this bill, where's your alternative?"

Democrats say the bill, which includes $89 billion in tax breaks and grants to the energy industry and consumers, is too heavily focused on oil, gas, coal and nuclear energy and fails to reduce demand for foreign oil by raising federal fuel economy standards.