Republicans Lend Support to Lifting Oil Export Ban in Fiscal 2016 Omnibus Spending Bill

Strategic Insights -

Republicans leveraged the $1.15 trillion fiscal 2016 omnibus spending bill to include a provision to lift the ban on crude oil exports, a long-sought goal for the energy industry. The provision dominated the negotiations leading up to the draft text release, with Democrats using it as a negotiating chip to include more environmentally friendly measures in the bill. The lift of the export ban is a significant win for Republicans, who have pushed for it due to the energy abundance in the United States and the need to allow U.S. producers to sell their product on the global market. However, Democrats opposed lifting the ban due to the potential increase in greenhouse gas emissions and the impact on U.S. energy security.

Key Takeaways:

  • The fiscal 2016 omnibus spending bill included a provision to lift the ban on crude oil exports, a long-sought goal for the energy industry.
  • The provision dominated the negotiations leading up to the draft text release, with Democrats using it as a negotiating chip to include more environmentally friendly measures in the bill.
  • Republicans gave in to Democrats' demands for five-year phase-outs of tax credit extensions for solar and wind construction projects, the removal of policy riders targeting President Barack Obama's environmental agenda in the spending bill, and the reauthorization of the Land and Water Conservation Fund for three years.
  • The bill would provide $37.2 billion for Energy and Water funding areas, $2 billion more than previously allotted by the House and $3 billion above the fiscal 2015 enacted level.
  • The bill includes $29.7 billion for the Department of Energy (DOE), including the restoration of $40 million for climate change research that was cut in the House bill.
  • The bill would provide $986 million for DOE's Office of Nuclear Energy, up $152.6 million compared to fiscal 2015 and up $78 million from the president's request.

Statistics:

  • The fiscal 2016 omnibus spending bill totals $1.15 trillion.
  • The bill would provide $37.2 billion for Energy and Water funding areas.
  • The DOE would receive $29.7 billion, up from $27.6 billion in the fiscal 2015 enacted level.
  • The restoration of $40 million for climate change research at DOE was achieved.
  • DOE's Office of Nuclear Energy received a $152.6 million increase over the fiscal 2015 level.

Sources:

  • CQ News, "Republicans, Democrats Make Deals in Omnibus Bill," 2015.
  • CQ News, "Environmental Provisions in Fiscal 2016 Omnibus Bill," 2015.
  • Congressional Quarterly Inc.