The Associated Press reports that House Democrats are offering a drilling proposal that gives coastal states the right to allow drilling 50 miles off of their coast and allows drilling in federal waters 100+ miles off the coast.

Unfortunately, the proposal has several land mines, according to the article:

  • Even if the state gives permission for drilling in state waters, it can’t collect royalties. All royalties go to the federal government.
  • In addition to rolling back tax breaks, which I’m not against, additional taxes would be assessed.
  • Utilities would be required to use renewable sources of energy for at least 15 percent of the electricity they generate.

I’m not feeling a lot of sincerity on the Democratic side for increasing supplies and lowering gas prices. Even if this passed, no state would allow rigs where they couldn’t collect royalties, and the utilities would raise prices to cover the additional expense of renewable energy.

More analysis, with numbers, here.