WASHINGTON (Reuters) - U.S. House of Representatives Speaker Nancy Pelosi said on Sunday that expanded oil drilling in federal waters could be included in a broader energy bill if advocates can prove its viability as a solution to America’s energy problems.

Speaker of the House Nancy Pelosi pictured in the Capitol in Washington in this May 20, 2008 file photo. REUTERS/Kevin Lamarque

Pelosi, a California Democrat who reversed her outright opposition to expanded offshore drilling earlier this month, said the oil industry and its allies in Congress must also agree to royalties on oil profits to fund the development of renewable energy resources.

She criticized President George W. Bush and other Republicans for presenting offshore drilling as an answer to the recent rise in U.S. gasoline prices, saying expanded drilling would not affect prices for a decade and then only by a small degree.

“I don’t think that’s a good alternative. But if they can prove that it is, and they want to pay royalties to the taxpayer ... then we have something to talk about,” the top congressional Democrat told NBC’s “Meet the Press” program.

“I’m prepared to preside over legislation that will take a comprehensive approach,” she said. “Include that (drilling). Let it compete and see where we come down on it, and if that in fact is a good alternative, then that is something that we should do.”

Congress is scheduled to return from its summer recess next month and Democrats in the House of Representatives have offered the prospect of legislation that could give oil companies drilling access to more offshore areas.

CHANGED POSITIONS

By moving to open additional federal waters to exploration, Democrats hope to narrow differences with Republicans on how to address public concerns about energy costs ahead of November’s presidential and congressional elections.

Democratic presidential candidate Barack Obama has changed his position on the issue by saying he would be willing to consider new offshore drilling as a part of comprehensive energy legislation.

His Republican challenger, John McCain, also switched his position and called for opening most U.S. waters to drilling.

Democrats have called for releasing supplies from the U.S. emergency oil stockpile, increasing drilling in an Alaskan oil reserve already open to exploration and requiring utilities to generate a portion of their electricity from renewable sources like solar and wind energy.

The legislation would also seek to rein in excessive market speculation blamed by many critics for driving up oil and gasoline prices.

Energy prices surged to record highs earlier this year but have since fallen back sharply.

House Republicans have said the Democratic proposal falls short of their party’s legislation to open new areas to drilling, including Alaska’s Arctic National Wildlife Refuge.

Bush, in his latest weekly radio address, said Democrats were simply trying to block expanded offshore drilling by “bringing up a bill that is designed to fail.”

Rep. James Clyburn of South Carolina, the House majority whip, told CNN on Sunday that a separate up-or-down vote on expanded offshore drilling is unlikely when Congress returns next month.

“There’s going to be a vote on an energy program of which I think offshore drilling will be a part,” he said.