It could end up being a consolation prize for environmental activists still smarting over the collapse of a comprehensive climate bill in Congress.

Sens. Lindsey Graham (R-S.C.) and Saxby Chambliss (R-Ga.) are floating legislation that would ensure federal agencies can purchase fuels derived from Canadian oil sands.

The bill introduced Wednesday comes shortly after the two senators — along with Sen. Kay Hagan (D-N.C.) – toured the massive oil sands projects with Alberta Premier Ed Stelmach.

The “Oil Sands Energy Security Act” would repeal the provision in a sweeping 2007 energy law that bars federal agencies from buying alternative fuels that have higher greenhouse-gas emissions than conventional oil-based fuels.

Extensive debate on energy – as Senate Majority Whip Dick Durbin (D-Ill.) has noted – still appears to be a long shot in a lame-duck session.

But Senate Energy and Natural Resources Chairman Jeff Bingaman (D-N.M.) didn't get the memo. He's seeking to move at least three items post-election either broken out of a broader energy strategy his panel gave bipartisan approval to last year or that would have ridden the same legislative train if energy policy had received ample time on the Senate floor this Congress.

Manufacturing credit headlines Bingaman-Snowe tax package



Bingaman – who also chairs a key energy subcommittee on the tax-writing Senate Finance panel – and fellow Finance member Sen. Olympia Snowe (R-Maine) introduced a big energy tax package before leaving town Wednesday.

The plan combines bills already floating around and new proposals. A big piece: Expanding the tax credit first offered in the 2009 stimulus for projects to manufacture “clean energy” equipment, such as wind turbine and solar panel components, efficient appliances, and other hardware.

The stimulus capped the credit at $2.3 billion, which was awarded to a broad range of projects early in the year. But demand far exceeds the cap. The Bingaman-Snowe plan would add another $2.5 billion worth of credits, which is enough, they claim, to leverage $8.3 billion worth of capital investment in new manufacturing.

Wait, there’s more

The bill would also expand tax credits for energy efficient homes, create a new credit for industrial water reuse, provide incentives for using efficient industrial motors, new tax credits for energy storage projects, and much more.

The Interior Department’s top offshore energy regulator said the agency won’t succumb to political pressure from a Senate Democrat to lift the deepwater oil drilling freeze, but nonetheless suggested it may not last until the scheduled late November expiration.

“There's no chance that we'll lift it sooner because of political pressure of any sort,” said Michael Bromwich, director of Interior’s Bureau of Ocean Energy Management, Regulation and Enforcement, on MSNBC Thursday.

“The only way we'll lift the moratorium sooner is if we're comfortable and confident there has been progress on a number of issues. Those issues are drilling in workplace safety, spill containment and spill response,” Bromwich added.

Embattled oil giant BP has agreed to pay a $15 million penalty to resolve Clean Air Act violations at its Texas City refinery, which suffered an explosion in March of 2005 that killed 15 people and injured scores of others.

The settlement with EPA and the Justice Department announced Thursday is the largest-ever civil fine for violations of the Clean Air Act’s chemical accident prevention regulations, and the largest for violations of the statute at a single facility, according to EPA.

The violations stem from fires at the large Texas refinery on March 30, 2004 and July 28, 2005, and a leak in August of 2005, EPA said. The settlement also addresses failure to identify hazardous air pollutants used at the refinery, according to EPA.

Interior Secretary Salazar laid out new offshore oil-and-gas drilling regulations, but didn't talk about the drilling moratorium.

Gibbs lashes out at Democratic senator over hold on Obama nominee for budget director.

Two more environmental groups — the National Wildlife Federation and the Union of Concerned Scientists — have joined the BlueGreen Alliance, a coalition of unions and greens pushing for greenhouse gas limits and policies to create "green jobs."

The two green groups join the Sierra Club and the Natural Resources Defense Council in the BlueGreen Alliance, which launched in 2006 and grew out of years of less formal collaboration between the Sierra Club and the United Steelworkers.

“The interests of union members and scientists merge when good jobs build a cleaner, more resilient economy and we are thrilled to be a part of this unique alliance,” said Union of Concerned Scientists President Kevin Knobloch in a prepared statement Thursday.

The Energy Department is nearing release of a draft strategy to ensure U.S. access to so-called rare earth metals that are vital to production of wind turbines, electric vehicles and other “clean energy” technologies.

David Sandalow, the assistant secretary of energy for policy and international affairs, told a Senate panel Thursday that a draft plan for rare earths and other strategic elements is slated for release this fall.

China dominates global production of rare earths, and Sandalow said, “this concentration of production creates serious concerns.”