By Tom Doggett and Richard Cowan
WASHINGTON (Reuters) - A close vote is expected later on Friday when the U.S. House of Representatives decides on legislation to reform the oil industry's offshore drilling practices in response to the massive Gulf oil spill.
Republicans warned the bill will slash U.S. oil and gas production in the Gulf of Mexico, a major supplier of domestic energy, and cut high-paying drilling jobs.
"The Obama moratorium on deepwater drilling has already costs thousands of jobs and this bill will eliminate even more American energy jobs, making it harder and more expensive to produce both energy on and offshore," said Republican Representative Pete Sessions.
Democrats said the bill would make offshore drilling safer for workers and protect the environment and Gulf Coast business from future oil spills like the one caused by BP that damaged
wetlands and hurt the region's fishing and tourism industries.
"If you want to apologize for Big Oil, go right ahead, but the American people are not on your side on this one," Democratic Representative Jim McGovern told his Republican colleagues.
However, the House vote on the bill could be a close one, as several Democrats representing districts with strong oil industry interests were planning to join Republicans in opposition.
Representative Gene Green, from the oil industry-dominated city of Houston, was one of those Democrats. "There are a lot of things in there that have nothing to do with safety" of offshore drilling operations, Green told reporters.
Gulf Coast Democrats will also offer an amendment to the bill to end the federal moratorium on deepwater drilling for oil companies that meet new safety requirements.
Passing the bill as the House leaves for its six-week recess would give lawmakers the opportunity to return home boasting that they had moved to rein in Big Oil and hold BP responsible for the worst offshore oil disaster in U.S. history.
While the House was expected to approve the bill later on Friday, the legislation still has a long way to go before it can become law.
A similar bill is pending in the Senate, but it was unlikely it would pass before that chamber begins its summer recess on August 6.
A sticking point in the Senate is opposition from Republicans and some moderate Democrats to removing all liability limits oil companies would face for economic damages stemming from the BP disaster and any future spills.
Current law requires companies to only cover up to $75 million for damages to local economies. The BP spill could end up costing billions of dollars in lost tourism, fishing and other Gulf Coast revenues.
BP has said it would pay for all costs related to the spill, but many lawmakers worry that the company could put victims through years of litigation.
On the eve of the House debate, the White House said in a statement that it strongly supports passage of the legislation.
The Senate energy bill has an added component: new incentives to encourage more natural gas-powered trucks and electric vehicles to clean up the environment. It also provides $5 billion to help improve home energy efficiency.
But Senate Democrats abandoned attempts to attach climate change provisions that would have set mandatory limits on some companies' carbon dioxide emissions.
Senate leaders plan to hold a test vote next Wednesday to gauge support for the bill, according to a Democratic aide. But Republicans, and possibly some moderate Democrats, might block a full debate, forcing senators to take it up in September.
The House was also expected to approve a separate bill on Friday that would give whistle-blower protection to workers who report violations in offshore drilling rules.
(Editing by Lisa Shumaker)
