ENERGY. CNN reports that “gas prices were unchanged overnight, capping a run of eight straight days of record highs, a survey by auto club AAA showed Tuesday. The national average price for a gallon of regular gas held steady at $4.108. That's an increase of 38.5% over the last year.” Prices have risen by roughly 76 percent during Nancy Pelosi’s speakership. At this hour, oil is trading around $140 a barrel after hitting a record of $145.85 last week.

Under the headline “Energy bill out of gas,” The Hill reports that “House Democrats are in a bind on the focal point of their energy plan. Worried that a floor vote on any energy-related measure would trigger a Republican-forced vote on domestic drilling, the leadership has scrubbed the floor schedule of the energy legislation that it vowed to tackle after the Fourth of July recess.” In addition, the paper notes that despite vowing to bring back the “use it or lose it” measure that failed under suspension before the district work period, “neither ‘use it or lose it’ nor any other energy measure had been scheduled for floor action this week.”

The story is a must-read for several reasons, one of which is the notion that “further complicating matters … is the growing number of pro-drilling Democrats who are becoming increasingly worried that voters might throw them in with their anti-drilling leadership. One pro-drilling Democrat predicted that the backlash against Congress for gas prices could rival the outrage voters felt about the Jack Abramoff lobbying scandal. Another, Rep. Charlie Melancon (D-La.), is frustrated at not being listened to. ‘My concern with my leadership is that they’re not letting all the people in the room to present the facts,’ said Melancon, a proponent of more offshore drilling. “Where are all the pro-oil legislators? I’m not in the room. I don’t know who is.”

Though Republicans will continue to seek a pro-production energy vote, “exactly when Democrats will change their present course and bring an energy bill to the floor remains uncertain.” As one Democrat aide put it: “Right now, our strategy on gas prices is ‘Drive small cars and wait for the wind.”

• The Politico adds that “the most immediate challenge for congressional Democrats is a measure pending before the House Appropriations Committee that would begin the process for rolling back a 27-year-old federal prohibition on oil and gas drilling within 50 miles of much of the country’s coastline. Rep. John E. Peterson (R-Pa.), who authored the amendment, claims he has the votes to attach this measure to an annual spending bill for the Department of the Interior.” The paper notes that “a win before the committee would be a huge symbolic victory for Republicans who favor more domestic production.”

• Also, under the headline “Republicans Say Voters Are Ready for their Message on Energy,” CQ reports that “Republicans are hoping to turn the energy debate into one of their new signature issues, believing that the rising concern among voters, driven by the ripple effect of soaring gasoline prices, can work in their favor in a year when most issues have been trending in favor of Democrats. That belief is based on a series of recent polls showing newfound support for offshore oil drilling and a dip in support for conservation.” Among the polls cited: “A Pew Research Center study found support for increased energy exploration had risen from 35 percent in February to 47 percent in June. …  Other recent polls from Rasmussen Reports, CNN, Fox News and Zogby have shown similar trends of increased support for offshore drilling.”

TODAY. This morning, Sen. Obama holds a town hall meeting in Powder Springs, GA, before heading to Washington, D.C., where he will deliver remarks at the 79^th Annual League of United Latin American Citizens (LULAC) Convention. At noon, Sen. McCain will address the LULAC Convention; he holds a Straight Talk Air arrival event in Moon Township, PA, at 5:20 p.m. The latest Gallup daily tracking poll has Sen. Obama leading 47%-43%; Rasmussen has it a six-point race for Sen. Obama: 49%-43%.

IRAQ. In its lead story, The Washington Post reports that “Prime Minister Nouri al-Maliki has for the first time suggested establishing a timetable for the withdrawal of U.S. troops from Iraq, a step that the Bush administration has long opposed.” During a visit to the United Arab Emirates, Maliki said: “The current trend is to reach an agreement on a memorandum of understanding either for the departure of the forces or a memorandum of understanding to put a timetable on their withdrawal.” The Post notes that “the comments reflect the political dilemma confronting Maliki and other members of his Shiite-led government. Their primary rival in upcoming provincial elections, Shiite cleric Moqtada al-Sadr, is a leading critic of the American presence who has long called for a timetable, a position that is widely popular among Iraq's majority Shiites.”

The Los Angeles Times says that Maliki’s "suggestion...appeared aimed at deflecting domestic fears that the deal would impinge on Iraqi sovereignty and clear the way for permanent American bases." The AP also says that by "including a withdrawal formula, al-Maliki may have an easier time getting support from Iraqi lawmakers."

The Financial Times adds that "a US Embassy official, speaking on condition of anonymity, downplayed Maliki's comments, saying that he was not referring to a fixed timetable, but was speaking more generally to convey opposition to any large and long-term presence of troops or US bases."

AFGHANISTAN. The New York Times reports in a front page story that a "huge blast from a suicide car bomb at the gates of the Indian Embassy in Kabul killed 41 people and wounded more than 130 on Monday in the latest sign of a sharp deterioration in Afghanistan, where combat deaths have surpassed Iraq's in the past two months." It was "the deadliest suicide car bombing in Afghanistan since the American-led invasion ousted the Taliban in 2001." The Washington Post reports, "With Afghan and NATO troops battling a resurgent Taliban, the suicide attack at the embassy was the second major militant-led strike against a government target in the center of the Afghan capital this year." The AP reports the Afghan Interior Ministry "hinted that the attack was carried out with help from Pakistan's intelligence service, saying the blast happened 'in coordination and consultation with some of the active intelligence circles in the region.'"

Also worth noting, NBC Nightly News reported that "US military commanders are so worried about the growing war in Afghanistan, they've now called in the big guns. Pentagon officials tell NBC News that over the weekend, the aircraft carrier 'Abraham Lincoln' was ordered out of the Persian Gulf and into the Arabian Sea so its war planes can now fly combat missions over Afghanistan."

G-8.  The leaders of the G-8 nations reached an agreement that they would “they would work toward a target of at least halving greenhouse gas emissions by 2050,” according to Reuters. In a joint communiqué, the leaders agreed on the need to set “mid-term goals to achieve the ‘shared vision’ for 2050, but gave no numerical targets. The European Union's executive welcomed the communique, saying it kept negotiations on track for a global deal in 2009. Reuters notes that “the statement puts the focus of fighting global warming on U.N.-led talks to create a new framework for when the Kyoto Protocol expires in 2012.” The environmental group WWF deemed the goal “inadequate” and described the lack of progress as “pathetic.”

FANNIE, FREDDIE. In what The New York Times calls “one of the strongest warning signs” of a deepening “economic malaise,” shares of Fannie Mae and Freddie Mac plummeted. According to its front-page story, the Times says that “after falling almost continuously over the past month, in just one day Freddie Mac tumbled another 18 percent, and Fannie Mae lost 16 percent amid concerns that the companies would need to raise billions of dollars in fresh capital.” The Times notes that the companies have each lost more than 60 percent of their market value since the beginning of the year.

The Washington Post also puts this on its front page, reporting that “the sell-off came after a report warning that a proposed change in accounting rules could weaken Fannie Mae and Freddie Mac so severely that it ‘could possibly topple the already fragile capital markets.’” In its front-page story, The Wall Street Journal said that “few expect Washington officials to let that happen, because the changes would make it difficult for the companies to buoy the housing market.”

FISA.  The Wall Street Journal reports Congress is "expected to approve Wednesday a White House-backed bill to update the Foreign Intelligence Surveillance Act -- the most sweeping change in the 30-year-old law and one that may further expand the use of evidence gathered by intelligence agencies in criminal cases." While "much debate has centered" on immunity for telecommunication firms, "arguably of greater importance are changes to the law that would let the government seek more-sweeping surveillance orders.

SEN. MCCAIN. At a town hall meeting in Denver yesterday, Sen. John McCain “kicked off a week of economic themed-campaigning,” according to The New York Times. The presumptive GOP nominee pledged “is now pledging once again to balance the budget by the end of his first term in 2013 … In doing so, they were reverting to an earlier pledge that Mr. McCain had abandoned in April, when he proposed a series of costly tax cuts and said, citing the ailing economy, that it might take two terms to balance the budget.”

The Washington Post adds that at the "same time, McCain's campaign released a document detailing his already announced economic proposals: more offshore oil drilling and a gas-tax holiday; aggressive efforts to control government spending; lower taxes for businesses and individuals; new energy research; and tax credits to spur a private health insurance market."

As for his opponent’s response Bloomberg News reports, "any McCain pledge to balance the budget by 2013 is 'overly ambitious,' Obama said. 'Every independent observer who's looked at John McCain's plan says that his plan would add $200-$300 billion a year in deficit spending. He hasn't specified how he would bring it down.' For himself, Obama said, 'I do not make a promise that we can reduce it by 2013 because I think it is important for us to make some critical investments right now in America's families.'"

SEN. OBAMA. The AP reports in a "break with tradition," Sen. Barack Obama "will accept the Democratic presidential nomination at Invesco Field at Mile High, a 76,000-seat stadium, rather than at the site of the party's national convention across town." DNC chair Howard Dean "acknowledged the decision to move Obama's speech on the final night of the Aug. 25-28 convention to the giant open-air football field of the Denver Broncos would raise security challenges, but said he and Denver Mayor John Hickenlooper had agreed such concerns won't deter the change in venue." USA Today says the move “heightens the symbolism of a speech already laden with historic significance." Obama "is adding a parallel to former president John F. Kennedy. He accepted the 1960 Democratic nomination at the Los Angeles Memorial Coliseum."

SENATE AGENDA. CQ reports that “the Senate has postponed until Wednesday votes on an overhaul of electronic surveillance law for lawmakers who want to attend Tuesday’s funeral of former North Carolina Republican Sen. Jesse Helms.” CQ notes that Sen. Majority Leader Harry Reid also discussed his to-do list for the next few weeks: “Among the items on the Senate’s agenda are a five-year, $50 billion authorization to treat AIDS and other diseases overseas (S 2731), legislation to extend a series of expired and expiring tax provisions (HR6049), legislation overhauling the Consumer Product Safety Commission (HR 4040), legislation that would establish a federal shield law for journalists (S2035), an extension of heating assistance for low-income households, the fiscal 2009 defense authorization (S 3001) and appropriations bills, and a yet-to-be-unveiled package of smaller measures being held up by opposition from Oklahoma Republican Tom Coburn.” This is in addition to the items the body is slated to consider this week: housing, FISA, and Medicare.

WASHINGTON POST. Marcus Brauchli (pronounced BROW-klee), formerly managing editor of The Wall Street Journal, was named executive editor of The Washington Post yesterday, succeeding Leonard Downie, Jr., who has served in the post for 17 years. The Post says that “when the handoff occurs Sept. 8, Brauchli will become only the third person in the paper's top job since Ben Bradlee was given the position in 1968. He will be the first from outside the corporation since shortly after Weymouth's great-grandfather Eugene Meyer bought the paper at a bankruptcy sale in 1933.”