Coal Leasing Amendments Act of 2003
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Referred to the Subcommittee on Energy and Mineral Resources.
February 24, 2003
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Introduced in House
February 13, 2003
Referred to the House Committee on Resources.
February 13, 2003
Referred to the Subcommittee on Energy and Mineral Resources.
February 24, 2003
Floor Debate
24 membersWhat members said about H.R. 794 on the floor
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Floor Debate
24 membersWhat members said about H.R. 794 on the floor
I thank the gentleman for yielding. I, too, will not object, Mr. Chairman; but let me hopefully make some points that are critical as we go forward not only in this conference committee to construct…
I thank the gentleman for yielding. I, too, will not object, Mr. Chairman; but let me hopefully make some points that are critical as we go forward not only in this conference committee to construct a comprehensive energy policy for our country but to continue the work of the Committee on Resources in developing the 5-year leasing plans of our government and the ability of the coastal States to work with the Federal Government and the consultation process that is required under those 5-year plans.
I want to remind my friends who may not have been here back when, in the early days of the Reagan administration, his own Interior Secretary appeared before the Committee on Resources on the 5-year plan and explained the question of moratorium to the committee. What that Interior Secretary did, Mr. Chairman, was to define for us a process by which the Interior Department divided areas of potential coastal development and/or protection in several categories.
On the one hand, there were categories of areas that were highly environmentally sensitive and very low in potential hydrocarbon content or potential. On the other hand, there were areas of very high hydrocarbon potential and very low environmental sensitivity, in other words, areas that could easily produce oil and gas for America in ways that had very little consequences or concerns for damage to the environment. That was a pretty logical way of dividing the universe of areas off the coast of the United States that might be subject to production.
He went on to say that what we have tried to do as an Interior Department is to recommend for moratoria, no activity, those areas of low hydrocarbon potential and high-environmental concern and to recommend instead for production and development those areas of low environmental consequence concerns and high hydrocarbon potential for the country. We accepted that logical analysis, only to find out that there were a number of areas that had been listed for moratorium, for no activity whatsoever, that were in fact high hydrocarbon areas and very low in environmental consequence potential.
So we asked him, what is the deal here? You told us you had a pretty logical way of figuring this out. Yet you have set down for moratorium areas that really should be over here in this category. Why did you do that? His answer was, ``Politics.'' His answer was politics, that I do not want to get in the face of the politics of the State of California in that case because they do not want to drill those areas; and, therefore, we are just going to list them as moratorium areas.
Politics was making the decision. We saw some politics on the floor last night when it came to ANWR and the fight over whether or not we ought to produce the high potential of a small area, tiny little area, less than one-tenth of 1 percent of that vast area of the Arctic National Wildlife Refuge, high in hydrocarbon potential. We had a fight over that last night. In the conference work last year with the Senate, John Breaux asked the question that was enormously, I thought, profound. As we were debating with Senators who were saying no to the question of any kind of production, he said, if we reduce the area down to 1 acre, would you still oppose, and they said absolutely. One acre was too much. He said, well, if you won't let the people who live in ANWR produce their own private property, wouldn't you let them at least have a two-acre footprint to get a pipeline to get their own product out to market? And they said no. He even suggested building a pipeline like the St. Louis arch, way up in the air, way down where they would not have any footprint, would they at least let
them do that. No, no. It was like some kind of a religious shrine instead of a logical argument. That is the problem with the way in which much of the process of the discussions over what can and what cannot be developed for our Nation's good has gone. Politics intervenes all the time.
And so we offered in the Committee on Resources a simple proposition: Let us at least inventory. Let us at least know. If you want to put areas off-limits, for political reasons, other than logical reasons, we at least ought to know what we are giving up for America, what kind of vulnerabilities we are creating for our country because we will not produce in areas we could produce in. We at least ought to know. We ought to have a right to know as a people what we have and what we do not have in this country in terms of resources. And so that is why this language was written in the Committee on Resources. But lo and behold we are met with an argument that we should not know, we should not inventory, we should not even look, we should not even think about the question of whether or not we made wise decisions.
And so this amendment comes. We are going to accept it; we are not going to have a fight over it. But where is the symmetry? Where is the symmetry here? If we had areas under development that had environmental concern for you, would you not want to inventory those environmental concerns? I would. I want to know just how well those 100 wells are producing in Mandalay National Wildlife Reserve in Louisiana. I would want to know if there is any consequences to those natural resources that we have to protect against harm. I would want to know everything I could know about that. And if you offered an amendment to say we need a national inventory to find out what those wildlife reserves look like and resources look like, I would support that. I think it is a good idea. We ought to know. We ought to make wise decisions about conservation protection and development in America.
But how do you make wise decisions if you close both eyes and you shut both ears? You will not listen, you will not look, you will not learn. You do not want to know. I think you make unwise decisions when you do that. In a country, a free country like ours where we prize free speech and information, an information society where knowledge is power, where we make good decisions because we know more, not less, this is a strange amendment.
And so, Mr. Chairman, I will not object, because my chairman of Resources has asked us not to object and to accept this amendment, but as we go forward with 5-year leasing plans in the future, I am going to continue to press this question upon all of you. What have you got to hide? What are you afraid to know? Why do you want to act in the dark? Why would you rather make decisions without the facts instead of making decisions with the facts? And if you would rather make decisions in the dark, do you not see that one day we are going to all be in the dark? We are going to be without power. We are going to have parts of this country that suffer the way California did one day. Do you not think that at least we ought to know what is coming and we ought to make wise decisions?
I thought the gentleman from California (Mr. Pombo) was very statesmanlike last night when he talked about ANWR and he talked about his own trips there. I have been there, too, as the gentleman knows. It is a fascinating place. It ought to be protected in whatever we do there. That was a very statesmanlike statement, knowing, seeing, understanding and then making wise decisions. That is the way we ought to proceed, not sticking our head in the sand and refusing to know the facts.
So we will accept this amendment, but I want to put everybody on notice that I am not through with this debate. I think we need to continue talking in the 5-year plans of this country about what we know and what we do not know and what we ought to know and what we do not know in terms of all resources development of this country.
Mr. Chairman, will the gentleman yield?
It is not my intention to recommend the reinsertion of this language, no. I will say again, though, it is my intention to continue this debate with you on every 5-year plan, leasing plan, every discussion we have at Interior about how and what we know and do not know about resource development of this country, just as it is to help you find out everything we can about our environmental resources.
I just want to make the point, my State contributes 25 percent of the oil and 25 percent of most of the gas that this country uses. We do it with some consequence. We benefit in the economy, but it also affects our lives dramatically. I am just telling you, there is a limit to the willingness of anyone like the people of my State to continue doing it for the country when others refuse. Just understand that, please.
I thank the gentleman for yielding me this time.
Mr. Chairman, this un-Kind amendment is typical of the reaction we get from the other side when we try to produce a comprehensive, balanced energy bill for America. We are asked to include efficiency titles and conservation titles and renewable fuel titles and alternative fuel titles and we do.
Then we have one title to help maintain pro-production in this country, the vital fuels, the hydrocarbon fuels, the oil, the gas. It is critical to keep electric plants working to keep this economy going, to keep people warm in the winter and cool in the summer, and we get an amendment like this to strike that part of the bill, to totally unbalance it, so it does not have the pro-production features that a balanced energy policy ought to have.
The President, in asking us to pass this bill, did a study of the Nation's needs in natural gas alone. He predicted we needed 1,600 new major electric plants in this country to supply this country with energy, and most of those plants were going to be natural gas plants because it is the environmental fuel of choice in America to produce electricity.
Where is that gas going to come from? Do my colleagues think it comes from the sky? Do they think it comes out of the wall? I mean, they did a survey in California. Believe it or not, a huge percentage of people in California, when asked where electricity comes from, they said, the wall; and when asked who put it there, they said, the contractor put it there. They had no idea that there was somebody out there drilling an oil well, producing gas, putting it in a pipeline, putting in an electric power plant to make electricity for American families.
This amendment would shut the pipeline down. This amendment would say, let us not put any more gas in the pipeline to fuel those power plants. This amendment would shut off the incentive program that Bill Clinton signed into law, the royalty relief program that Bill Clinton executed during his time in office, the program that Bill Clinton put in that was predicted, if it worked, to produce $400 to $500 million for the United States Treasury.
Do my colleagues know what it produced? It is now predicted to produce $7 billion in new royalties that would never have been obtained, but for the deep-water drilling that occurred because Bill Clinton had the wisdom to sign the act we passed in Congress on deep- water drilling.
This bill contains a similar incentive for deep-well drilling in the shallow fields, and the only place in America that most of my colleagues will allow us to drill is the offshore of Louisiana, Texas and Alabama. This bill is likely to produce enough natural gas to double the production of natural gas that the whole OCS produces in America.
This amendment would shut it down. This amendment would say, let us not produce any more natural gas for America from these exotic fields below 20,000 feet. That would never get produced without this incentive, and even Bill Clinton understood that and signed a bill and executed it into law. And the $7 billion that produces, by the way, includes $1 billion that goes into the Land and Water Conservation Fund that goes into historic preservation in this country, money that would not be available for these environmental causes but for the deep-water drilling program that Bill Clinton signed into law. This bill extends further into authorization and extends into the deep drilling of the shallow fields.
If we think natural gas and oil only powers power plants, think again. The liquids that come from these fuels, the propylenes, the ethylenes, the chemical building blocks that build most of the products we in our kitchen, shut them down, shut down American kitchens as well, shut down the entire chemical processes. That is what the un-Kind amendment does. We need to defeat it.
Mr. Chairman, I thank the gentleman from Virginia (Mr. Cantor) and would like to enter into several colloquies with Members.
I yield to the gentleman from Virginia.
Mr. Chairman, it has come to our attention that the gentleman has very serious concerns that residents of the State of Virginia may not benefit from certain provisions in the electricity title of H.R. 6, and it is for that reason we have this colloquy;
and I want to give the gentleman certain assurances today.
Mr. Chairman, I recognize and acknowledge that we will need to work further on the specific language in the savings clause of the Native Load provisions to address the gentleman's concerns.
The exemption of this bill may have unintended consequences in States and regions of the country which are transitioning to RTOs and ISOs. I intend to continue to work on that language to ensure that any load- serving entity that wishes to avail itself of the statutory provision is able to do so.
Mr. Chairman, I thank the gentleman from Virginia (Mr. Goodlatte), and would now enter into a colloquy with the gentleman from Kentucky (Mr. Whitfield).
I yield to the gentleman from Kentucky.
First, let me acknowledge the great work of the gentleman and others like the gentlewoman from West Virginia (Mrs. Capito) for their support and the enactment into this bill of the Clean Coal Power Initiative that is contained in the underlying bill.
However, I believe, as the gentleman does, that the vital role of coal in our Nation's future will continue to grow and expand. At this juncture it is not possible to predict the precise tax measures that will be adopted by the full Senate. I certainly favor enactment of tax incentives for clean coal to complement the work we have done in our title on the clean coal technology programs.
The gentleman can be sure that I will work with the gentleman and with our colleagues on the Committee on Ways and Means as this matter is considered in conference with the Senate.
Mr. Chairman, I thank the gentleman for yielding. This is the final amendment which has been authorized by the Committee on Rules for consideration on the comprehensive energy package, and so, with the adoption of this amendment, which we will support as it is, by the way, the same amendment that was adopted on the House floor that was offered by the gentleman from Michigan (Mr. Rogers) last year on a 345-85 vote, we will accept this amendment.
But I wanted to join in, first of all, thanking my friends and colleagues, the chairman of the Committee on Resources, the chairman of the Committee on Ways and Means, the chairman of the Committee on Science, as well as the chairmen and members of the Committee on Transportation and Infrastructure, Committee on the Judiciary, Committee on Agriculture, and Committee on Financial Services, all of whom worked with us in a cooperative fashion, so many committees, to develop a comprehensive energy policy for our country.
And as the gentleman from California (Mr. Pombo) indicated, there is an awful lot of staff, too many to name because we would miss someone, and I do not want to do that, but so many staffers who spent so many late hours. Members cannot imagine the hours these staffers have put in.
I do not know if they are appreciated enough by the people of this country. These young people who could do much better in the outside world and earn greater salaries, but they come because of their love of this work and love of this institution and who devote so many hours in helping us do the right thing and in a way that is accurate and, again, advances the cause of our great Nation. To all the staffers I want to say a big broad thank you, Mr. Chairman, for the great help they give to all the Members of Congress as we try to do this work.
We will shortly adopt this amendment, and then we will go back into the full House; and it is my understanding that the minority will offer a motion to recommit which we will oppose and we hope the House will reject that motion to recommit, and we will move on to pass, I believe, the most important energy bill in the past 50 years, the most comprehensive and far-reaching statement of American energy policy that will advance not only national security but begin the process of rebuilding this incredible American economy. So to the gentleman from California (Mr. Pombo) and everyone, again, I thank them so much for their cooperation. Mr. Chairman, for all of the chairmen who sat in that chair during these long and arduous hours, I thank them and their staffs and everyone who has participated.
Mr. Speaker, I rise in opposition to the motion to recommit.
Mr. Speaker, let me first thank my friend, the gentleman from Michigan (Mr. Dingell), and the members of the Committee on Energy and Commerce in particular for the cooperative spirit and civility in which we have passed out of committee and onto the floor this immensely important bill for our Nation's future. And I thank the gentleman from Michigan (Mr. Dingell) in every way for those courtesies.
Let me, on the other hand, greatly oppose this motion to recommit. There are three great ironies here. Let me first set the stage for my colleagues.
The amendment that the gentleman from Michigan (Mr. Dingell) offers in the motion to recommit is, in fact, the position the House took last year. It was agreed to as a condition, as part of the package of a bill that the gentleman from Michigan (Mr. Dingell) agreed to support last year, and we were pleased to get his support for it.
On the other hand, the Democratic Senate passed a hydro provision, and guess what, the provision in our House bill today is nearly identical to the Senate-passed hydro provisions of last year under a Democratic-controlled system. It is nearly identical to the hydro provisions passed out of the Senate committee this week, and it is a much better version of the hydro provisions that we contain in this bill that would get stripped by the Dingell motion to recommit.
Let me tell my colleagues why. Let me tell my colleagues the ironies here. The irony, number one, hydropower is the number one renewable fuel in America. It provides more renewable clean energy than wind, solar, all other renewables combined. One would think we would want to encourage relicensing of hydro plants. It is the cleanest, the safest, most renewable energy in America. Our bill's hydro provisions helps to relicense and continue hydropower in America.
The other great irony of this bill, of the motion to recommit offered by the gentleman from Michigan (Mr. Dingell) is that while everything the gentleman from Michigan (Mr. Dingell) will set forth in his motion to recommit some very arbitrary standards, under which the Secretary has to do this relicensing, he actually provides such a limited list of alternatives to the Secretary that if anyone comes up with a better way of protecting fish, that would be illegal.
The greatest irony is that this amendment in the nature of a substitute is offered for fish, and it cuts off alternative designs that would better protect fish and it leads to bureaucrats in the Department to make decisions about what rules to apply on a case-by- case basis when it comes to conditions on the license.
This is not a good hydro provision. The hydro provision the gentleman from Michigan (Mr. Dingell) offers this House will cripple the relicensing provisions of the bill. It will hurt hydropower. It will make it more difficult for us to have the number one, cleanest renewable fuel in America, and we ought not to adopt that kind of a policy in a good bill.
Let me tell my colleagues the greatest irony. The greatest irony, while I do not have the gentleman from Michigan's (Mr. Dingell) support on this bill, I have the support of the Alliance of Automobile Manufacturers, the American Farm Bureau, the American Petroleum Institute, the National Mining Association, the Domestic Petroleum Council, the Edison Electric Institute, Large Public Power Council, the National Farmers Union, the Teamsters Union, the Association of American Railroads, the National Gas Vehicle Coalition, the Solar Energy Industries Association, the Renewable Fuels Association, the National Corn Growers Association, the U.S. Chamber of Commerce and on and on and on.
This bill is great for America. This motion to recommit would cripple an important part of renewable, clean energy, and we need to defeat it.
I yield to the gentleman from Texas.
Mr. Speaker, I thank the gentleman for his comments.
Let us vote this motion to recommit down and let us give America its first good shot in the economic arm. Let us get this country rolling again with national security and economic growth.
Mr. Speaker, I demand a recorded vote.
Mr. Chairman, I thank the gentlewoman for yielding me this time. I am the ranking member on the Subcommittee on Energy that has jurisdiction over this provision. I rise in support of the amendment.…
Mr. Chairman, I thank the gentlewoman for yielding me this time. I am the ranking member on the Subcommittee on Energy that has jurisdiction over this provision. I rise in support of the amendment. With all due respect to our friend, the chairman of the Committee on Energy and Commerce, we on this side also believe in accumulating information and free speech and making informed decisions, but we also believe in the democratic process; and it has been clearly stated in a bipartisan fashion that the will of the people in these areas do not want leasing off their shore.
Referencing former Interior Secretary Watt for being the savior for the moratoriums a while back is a little revisionist history. It was mainly because of his zeal and his aggressiveness to increase leasing potential off the coasts of California and down in Florida that led to a political backlash, a bipartisan backlash which led to the moratoriums. So what we are doing is basically respecting the process and the will of our democracy, because people in these States have determined that they do not want to see the drilling offshore. So why would we then use their tax dollars to do a study for the same drilling that has already been prohibited? I commend my friend for this amendment.
Mr. Chairman, I offer an amendment.
Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, as ranking member of the Subcommittee on Energy of the Committee on Resources, we have put in a lot of time and a lot of energy in trying to produce a bipartisan piece of legislation. However, today I must rise and strongly object to one of the titles that is being offered in the base bill, title II. My amendment would strike title II, the oil and gas title, which would open the door to more drilling with fewer safeguards and less public input while granting giveaways to profitable companies that will cost taxpayers hundreds of millions of dollars over the next 10 years. It is a little surreal that in light of the budget resolution that passed yesterday, Mr. Chairman, that calls for an increase in the debt ceiling by $984 billion in the next fiscal year and an increase in the debt ceiling to $12 trillion over the next 10 years, we have a title in this energy bill which is not offset, it is not paid for and which will cost the American taxpayer hundreds of millions of dollars by creating some false economic incentives to do more drilling on public lands.
Today, Mr. Chairman, we still have brave U.S. troops fighting in Iraq, in part because of the strategic importance that region has, due to our addiction to their oil. The question before us then today is, what are we going to do about it? The answer is not that we can produce our way out of that dependence. We only possess 2 percent of the world's oil reserves. Yet this bill tries to create the illusion under title II that we can produce our way out. Even if we pass this bill today, we will remain hooked on Middle East oil for two reasons: OPEC skillfully keeps the price low to maintain our addiction, and we lack the political will today to do what is necessary to reduce our dependence on oil.
In the last thousand years, Mr. Chairman, we have had a half a degree increase in the world temperature. Today most of the scientists project that over the next 100 years, we will see a 2-degree increase in the world temperature, along with the consequences that it will bring, primarily due to the burning of fossil fuels. The rest of the world gets this. Why can we not? The solution I believe is self-evident. We need to change our energy paradigm. I believe we can do it within the context of economic growth by emphasizing more conservation practices, as well as the technologies of the 21st century, alternative and renewable fuels, wind, solar, geothermal, biofuels and the energy source of the 21st century, hydrogen power. We just lack the political will to do it.
My amendment strikes title II because it is based, I believe, on two false premises, that we can produce our way out of our dependence on foreign oil and that we should do it at taxpayers' expense and at our environment's expense. A great deal of attention during this debate has been devoted to drilling in the Arctic National Wildlife Refuge. I also oppose that. Why would we take a Monet off the wall and burn it for short-term heating needs? Yet that is what is being proposed in this whole debate to open up the Arctic National Wildlife Refuge. But there are other sections of title II that, standing alone, make this a bad bill, such as the royalties-in-kind provision that is contained in it, granting broad authority to the Secretary of the Department of the Interior for permitting alternative energy-related uses on the Outer Continental Shelf without specifying the types of places to be avoided; and reimbursing oil and gas companies for doing the environmental impact studies that are required under law.
Mr. Chairman, one of the most egregious sections of this bill is what is being called royalty relief for some of our Nation's largest oil companies. This provision waives Federal royalty collections on huge amounts of publicly owned lands. Simply put, title II will put hundreds of millions of dollars of taxpayer money into the already deep pockets of many of our oil companies. Who are some of these beneficiaries?
Mr. Chairman, this is the recent Forbes magazine list of the Fortune 500 companies. Coming in at number three, Exxon Mobil with $183 billion of annual revenues and over $1.5 billion in profits last year alone. Chevron Texaco, $92 billion in annual revenues, over $1 billion in profits. These are some of the companies that will be receiving this windfall and subsidy payments from the American taxpayer when we are currently running unprecedented budget deficits and jeopardizing our children's future.
Amazingly, during the 2000 Presidential campaign, one of the candidates stood up and adamantly opposed royalty relief. He stated, and I quote, ``Giving major oil companies a huge tax break is not the right thing to do.'' Interestingly, though, this was not Vice President Al Gore. This was then-candidate George W. Bush. If it is good enough to stand on policy in order to convince the people to elect you, it should be good policy then when you
are elected to pursue it and to see it enforced. Unfortunately, that is not what is being done with this energy bill.
I know those who support this provision will say that we need to continue to encourage the development of domestic oil and gas resources from our public lands so our Nation can become more energy independent. I agree. But we do not need to create more generous subsidies to get them to do so. I submit that these companies would continue to develop these sources without being subsidized because it is in their economic interest to do so. A couple of years ago when this was being proposed, it was being sold because of the low oil prices in order to get them to do it. Now we have high oil prices, and it is being sold to do it because of the high prices. I am beginning to wonder whether there is any economic rationale at all, or whether this is merely taking care of friends in this energy bill.
Another problem with the royalty holiday proposal is that the royalties the Federal Government does not collect will starve the Land and Water Conservation Fund of critical financial resources. The Land and Water Conservation Fund provides special protection for some of our most precious habitats and national parks. It has been doing it for nearly 40 years. Title II would significantly diminish funding for these conservation measures on our public lands for water resources, wildlife and fish habitat, scenic landscapes. That is why a number of sporting and fishing groups such as the National Rifle Association, Trout Unlimited, the Izaak Walton League have opposed similar types of provisions in the past.
Mr. Chairman, title II in this energy bill really does beg the question, Where are our priorities? We have historically high budget deficits today and a budget resolution that passed last night that will raise the national debt ceiling to $12 trillion over the next 10 years. Yet we are going to offer these royalty-in-kind and royalty relief provisions, giving some of the most profitable companies in our Nation hundreds of millions of dollars of windfall subsidies at the taxpayers' expense on the public lands. I think we can do better. I would encourage my colleagues to support my amendment.
Mr. Chairman, I reserve the balance of my time.
Mr. Chairman, I yield such time as she may consume to the gentlewoman from New York (Mrs. Maloney).
Mr. Chairman, I demand a recorded vote.
Mr. Chairman, I thank my friend, the ranking member on the Committee on Resources, for yielding me this time; and I rise in strong support of his amendment here today.
Mr. Chairman, I believe this is a necessary step in order to restore the competitive bidding process in the coal industry. I mean, that is what our free economy is all about, after all. I think the provisions that have been included in this energy bill are a serious rollback in that competitive process. But no one has to sit here today and listen to the ranking member on the Committee on Resources or the ranking member on the Subcommittee on Energy and Mineral Resources to believe what we are saying. A few out outside organizations have weighed in on this very important issue, not the least of which is the Western Organization of Resource Councils.
Mr. Chairman, this is not an anti-mining group or an anti-development group or a group that fights for further development on our public lands for mining purposes. They have been supportive of that. But they are also supportive of what the gentleman from West Virginia (Mr. Rahall) is trying to accomplish today.
In a letter in regards to this issue, they state, and I quote, ``The Coal Leasing Amendments Act of 2003,'' that the gentleman from West Virginia (Mr. Rahall) here would like to strike with this amendment, ``would grant unjustified gifts to the western coal industry at the expense of the U.S. Treasury and diligent development of the people's coal resource. This title would eliminate existing statutory protections that require timely development and limit speculative purchase and holding of Federal coal leases, promote competitive bidding for Federal coal leases, and provide a fair return to the U.S. Treasury for the Federal coal they are taking.''
They also state this is a bad deal for the States who are virtually all under severe financial difficulties today. They go on to state that ``since half of all bonus bids and royalties actually go to the States, any reductions in the Federal coal production, the royalties or bonus bid payments, will adversely have an effect on these coal-producing States.''
Finally, Mr. Chairman, the President of the United Mine Workers of America, Mr. Cecil Roberts, has weighed in in support of this amendment in opposition to the title in the energy bill. And let me just quote the concluding paragraph in which he wrote, ``In closing, this title is nothing more than a wish list for a few selected coal companies. By eliminating competition for Federal coal leases, consolidating more Federal coal resources in the hands of a few select companies, and allowing leases to be held indefinitely without production, it constitutes a serious threat to coal miner jobs and coal community families.''
I think, Mr. Chairman, that says it all. I encourage my colleagues to support the Rahall amendment.
Mr. Chairman, I submit for the Record the letter from the United Mine Workers of America.
United Mine Workers of America,
Fairfax, VA, March 18, 2003.
Hon. Richard W. Pombo,
Chairman, Committee on Resources, Longworth House Office
Building, Washington, DC.
Hon. Nick J. Rahall,
Ranking Member, Committee on Resources, Longworth House
Office Building, Washington, DC.
Dear Sirs: As President of the United Mine Workers of
America, I am writing to notify you of the UMWA's opposition
to H.R. 794, the Coal Leasing Amendment Act of 2003. H.R. 794
would adversely revise or eliminate long standing federal
coal leasing policies that were designed to encourage
competition and new investment in coal mines on federal lands
and ensure that the federal government on behalf of the
American taxpayer maximizes its return from this resource.
In particular, H.R. 794, would enable coal companies to
consolidate even larger amounts of public lands into a few
active mining operations without competing for additional
acreage by repealing the 160 acre lease modification
limitation. The bill would also allow large coal companies to
hold federal leases for indefinite periods of time without
the benefit of production by giving the Secretary of the
Interior the authority to forgive the payment of ``advance
royalties,'' payments made when mines close down for extended
periods of time. In addition, H.R. 794 would also prevent the
Bureau of Land Management from requiring coal lessees to post
a surety bond, a bond that guarantees payment of coal
company's bonus bid for a coal lease, thereby transferring
the risk of nonpayment to the American taxpayer and putting
at risk millions of dollars due in deferred bonus payments.
In closing, H.R. 794 is nothing more than a wish list for a
few selected coal companies. By eliminating competition for
federal coal leases, consolidating more federal coal
resources into the hands of a select few companies, and
allowing leases to be held indefinitely without production,
H.R. 794 constitutes a serious threat to coal miner jobs and
coal community families. If enacted, H.R. 794 would provide a
huge windfall to a few while shifting significant costs and
risks to the American public. H.R. 794 should be rejected.
Sincerely,
Cecil E. Roberts,
International President.
Mr. Chairman, I rise in support of the amendment being offered by the gentleman from Wisconsin, Ron Kind, the Ranking Member on the Subcommittee on Energy and Mineral Resources. There is no reason,…
Mr. Chairman, I rise in support of the amendment being offered by the gentleman from Wisconsin, Ron Kind, the Ranking Member on the Subcommittee on Energy and Mineral Resources.
There is no reason, no reason whatsoever, for Congress to be mandating OCS royalty relief.
The fact of the matter is that Secretary Norton apparently already has discretionary authority to grant royalty relief and is in fact promulgating regulations on this matter.
There is simply no need for this Committee to now mandate, and perhaps hamstring, Secretary Norton on the matter of granting royalty holidays.
The issue of Royalty-in-Kind deserves some attention. This stuff comes right out of the pages of the Communist Manifesto.
It is being proposed that we socialize the Federal oil and gas royalty process. That companies would send Federal bureaucrats the actual oil and gas, rather than cash payments, to meet their royalty obligations.
Then, these Federal bureaucrats would be expected to market the oil and gas, to compete with Exxon and Royal Dutch Shell, in order for the taxpayers to actually recoup the royalty proceeds. Incredible. Simply incredible.
Both of these provisions are drains on the Treasury and are simply not needed to enhance America's energy security.
And to top it off, to top it off, provisions of the bill which Mr. Kind is seeking to strike would have the taxpayer foot part of the bill for oil and gas companies to comply with NEPA.
The taxpayer is actually being called upon the pay these companies for their privilege to drill on Federal lands. At a time of soaring gasoline prices.
Suffice it to say, these provisions have not redeeming value to our energy security and should be stricken from H.R. 6.
I urge all Members to support the Kind amendment.
Mr. Chairman, I offer an amendment.
Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, this amendment would strike from the bill provisions which would give rise to a monopoly controlling Federal coal leases, primarily in Wyoming's Powder River Basin. These provisions are anticompetitive, anticonsumer and against the interest of the majority of coal miners in this country.
It is important to understand that the Federal Government owns one- third of the Nation's coal, mostly in the Western States, with a high concentration in Wyoming's Powder River Basin. This coal is made available for production under a competitive leasing program. The taxpayers receive a return in the form of bids made to secure the leases and in the form of a production royalty.
Provisions of H.R. 6 would change all of this. These provisions would allow coal producers with Federal leases to seize unlimited additional Federal coal lands without competitive bidding and be relieved of paying royalties owed to the American taxpayer under certain circumstances.
Just imagine that these producers would be in the driver's seat. They could gobble up unlimited acreage of publicly owned coal lands without competition.
The net effect of these provisions would be the creation of a Federal coal-producing monopoly in the Powder River Basin, with ramifications to electricity consumers throughout the West and Midwest and to the detriment of coal producers and coal laborers in the Appalachian and Midwestern States, and the American taxpayer, the American taxpayer, the owners of the lands, would be robbed of their share of the bonus bids and royalty payments.
This map displays in red the States which lose under these provisions. These are States which either consume Powder River Basin coal or have coal producers which compete against this coal.
As United Mine Workers of America President Cecil Roberts recently wrote: ``The bill constitutes a serious threat to coal miner jobs and coal community families. If enacted, the bill would provide a huge windfall to a few, while shifting significant costs and risks to the American public.''
As it stands, electric utility companies have filed with the Surface Transportation Board, already, several cases challenging the reasonableness of coal rates involving Powder River Basin coal. These utility companies already filing suit, among them Northern State Power, Public Service Company of Colorado, West Texas Utility Company, Texas Municipal Power Agency and Wisconsin Power and Light, these utilities are alleging that the delivered price of Powder River Basin coal is already unreasonable.
The Federal coal leasing provisions of H.R. 6 would add insult to injury.
I would add that these are not by any means the only utility companies which purchase Powder River Basin coal. Whether it is the Arizona Public Service Company, the Cajun Electric Power Co-op, Detroit Edison, Nebraska Public Power, Oklahoma Gas and Electric, or Public Service Company of Colorado, the consumers of all these utilities stand to lose with the creation of a monopoly in their supplier of coal to these utilities.
It is absurd in the name of national energy security to artificially inflate the cost of delivered power to electric utility consumers. The Federal coal-leasing provisions also represent a direct assault against coal producers in States which compete with the Powder River Basin coal for electric utility markets. I make no bones about it, yes, that includes my home State of West Virginia. It also includes States such as Pennsylvania, Kentucky and Tennessee. Coal producers in Ohio, Indiana and Illinois would be harmed as well.
This amendment transcends partisan politics. Members representing States which either consume or compete against Powder River Basin coal all stand to lose if the provisions in question stay in this legislation.
I urge my colleagues to look at this map and determine how this provision adversely affects their consumers, and I urge the adoption of my amendment to strike.
Mr. Chairman, I reserve the balance of my time.
Mr. Chairman, I yield myself such time as I may consume.
In response to the gentlewoman from Wyoming and her assertion that the lawsuits that I mentioned in my opening comments are filed against the rail companies, I do not dispute that; that is true. They are filed over already high rates concerning coal coming out of the Powder River Basin. So this anticompetitive provision in this legislation would only further add to the high cost of coal coming out of that area and, therefore, yield even further lawsuits.
Mr. Chairman, on March 17 Mountaineer Coal in Mingo County in my district began laying off 460 people. These workers are among hundreds of others in southern West Virginia and eastern Kentucky to have gone out of work in the past year and a half. Meanwhile, the once hustling former B&O Railroad coal lines in part of my State are now recreational trails. The track has been pulled up.
Over the years, we have suffered as we have lost critical electric utility markets to Federal coal production in the Powder River Basin of Wyoming to the detriment of our employment base and regional economies.
The provisions in H.R. 6 that I seek to strike would provide that Powder River Basin coal production with an artificially created, additional competitive edge to the additional detriment of our employment base and our regional economies.
I say to my colleagues from coal-producing regions in the Midwest and in Appalachia, we once had a saying in the coal fields from which I held, Which side are you on? Which side are you on?
I stand for the coal miner and our coal communities, and today, this effort of mine is all about fighting for the heart and soul of Appalachia. To fiscal conservatives in this body, Democrat and Republican alike, I appeal to my colleagues on this amendment. Is it reasonable to make public resources available without benefit of competition and to not require a proper return for their disposition? Is this a proper stewardship of public lands in this country? I think not.
That is also why I am seeking to strike these provisions from H.R. 6.
And to those of my colleagues who represent electric utilities which buy Powder River Basin coal, I appeal to you as well. Stand for your consumers against potential monopolistic pricing practices. And to those of you who may not care one iota about coal, I appeal to you for a sense of fairness. There is no justifiable reason why the Federal Government, which owns over one-third of the coal in this country, should be deployed in an anti-competitive fashion against industries, workers and consumers. This is not the American way.
I urge the support of my amendment.
Mr. Chairman, I reserve the balance of my time.
Mr. Chairman, I yield 3 minutes to the distinguished gentleman from Wisconsin (Mr. Kind), the ranking member on our Subcommittee on Energy and Mineral Resources.
Mr. Chairman, do I reserve the right to close?
Mr. Chairman, I yield myself the balance of my time.
In conclusion, let me wrap up the debate on this amendment by saying that it is a pro-mining amendment. It is a pro-consumer amendment. It is a pro-fairness-for-American-taxpayer amendment.
The coal that is mined in the Powder River Basin for the most part is Federal coal. This is coal that has as the owner of the deed on that land all the American taxpayers. They have a right to get a fair return for the disposition of their resources. We have, as public policymakers, the obligation to ensure that the American taxpayer gets a fair return and that this coal that is mined on Federal coal leases in the Powder River Basin is leased on a competitive basis. That helps the consumer, and that helps all of America.
Those of us in the east and other States, where of course the majority of the coal that is mined is on private lands, this amendment ensures that that production will continue in a very fair and environmentally sound manner. It ensures that there is an equal balance in the distribution of our coal supplies across this country; and it means that the American taxpayer, in the long run, is the beneficiary of my amendment to strike this anti-competitive provision.
Mr. Chairman, I demand a recorded vote.
Mr. Chairman, I ask unanimous consent to claim the time in opposition to the amendment, even though I strongly support the amendment.
Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, I rise in strong support of the amendment that originally was to be offered by the distinguished chairman of the Committee on Ways and Means now being offered by the author of the relevant provision in the legislation, the gentleman from Virginia (Mr. Cantor).
In light of the fact that I had filed the very same amendment with the Committee on Rules, which is now being considered, despite all of the rhetoric we heard previously, we are back to the main amendment, which is the amendment involving health care for our retired coal miners.
In light of the fact that I was going to offer that same amendment on behalf of some 50,000 retired coal miners and their widows, I do want to thank the gentleman from California (Mr. Thomas), who was originally supposed to offer this amendment. I thank the gentleman from Virginia (Mr. Cantor) for offering this amendment, and the Committee on Rules for making it in order.
I would like to thank the gentleman from California (Mr. Pombo), chairman of the Committee on Resources, for allowing the amendment to be made in order. I thank the gentleman from Pennsylvania (Mr. Murtha) on my side of the aisle and several members from the coal-producing States that have retired coal miners in their districts. I certainly have some of the largest numbers in my congressional district.
I thank all of these gentlemen for making this amendment in order. I thank the gentleman from California (Mr. Thomas) again, because he has personally discussed this amendment with me and realized the adverse effect the original provision would have had on our Nation's coal miners.
Indeed, the legislation as originally presented to this body before this amendment would have allowed certain coal companies to be relieved of their contractual obligations to fully fund health care for their former employees. Rather than pay the annual health care premiums based on the current cost of coverage under the original language, the provisions would allow these companies to prefund their ability at what they determine are their obligations and then walk away without any further responsibility.
As the old adage goes, that would have been like the fox guarding the henhouse. Obviously, these companies are not going to ante up the true cost of providing long-term health care when they get to determine how much they pay. So it was more than fair that
this provision come out of this legislation.
This, after all, is a commitment that our Federal Government has made to our Nation's retired coal miners and their widows, which goes back to the days of President Truman and when John L. Lewis was the president of the United Mine Workers of America. It is a promise that our Federal Government has made to retired coal miners, which has been reaffirmed by administration after administration, regardless of party, in the ensuing years.
That is what we are doing in this legislation, making sure that the Energy Policy Act of 2003 does not rob, or have the possible potential to rob, these 50,000 retired coal miners and their widows of the health care coverage they deserve.
I thank the gentleman for offering this amendment, and urge adoption of the amendment.
Mr. Chairman, I yield back the balance of my time.
Mr. Chairman, I regret that I cannot support this legislation. I am glad we have had the opportunity to debate these issues--for the second time in nearly as many years--and I am glad that…
Mr. Chairman, I regret that I cannot support this legislation.
I am glad we have had the opportunity to debate these issues--for the second time in nearly as many years--and I am glad that legislation I've initiated is being considered as part of this bill.
We all know that this country is overly dependent on a single energy source--fossil fuels--to the detriment of our environment, our national security, and our economy. To lessen this dependence and to protect our environment, we must pass a bill that helps us balance our energy portfolio and increase the contributions of alternative energy sources to our energy mix.
Unfortunately, this bill doesn't provide that balance.
I am pleased with most of what was included in the Science Committee part of this bill, and I commend Chairman Boehlert for his bipartisan approach.
In particular, I'm pleased that the Science Committee bill included generous authorization levels for renewable energy and energy efficiency R&D. As Co-chair of the Renewable Energy and Energy Efficiency Caucus, this funding is very important to me.
I am also pleased that this bill includes the Clean Green School Bus Act, a bill that Chairman Boehlert and I drafted that authorizes grants to help school districts replace aging diesel vehicles with clean, alternative fuel buses.
H.R. 6 also includes provisions from my bill, the Distributed Power Hybrid Energy Act, which would direct the Secretary of Energy to develop and implement a strategy for research, development, and demonstration of distributed power hybrid energy systems. It makes sense to focus our R&D priorities on distributed power hybrid systems that can both help improve power reliability and affordability and bring more efficiency and cleaner energy resources into the mix.
The bill also includes the Federal Laboratory Educational Partners Act of 2003, a bill I introduced with my colleague Representative Beauprez that would permit the National Renewable Energy Laboratory and other Department of Energy laboratories to use revenue from their inventions to support science education activities.
Unfortunately, though, this bill--like the one we debated two years ago--is very reminiscent of that old Western movie--``The Good, the Bad, and the Ugly.'' And, regrettably, some of the worst provisions are in the part of the bill developed by the Resources Committee--which is why I voted against them in that Committee.
Worst of all, of course, is the provision that would open to drilling the coastal plain of the Arctic National Wildlife Refuge.
On that question, Congress is being asked to gamble on finding oil there. So, we first must decide what stakes we are willing to risk, and then weigh the odds. The stakes are the coastal plain. The U.S. Fish and Wildlife Service says it ``is critically important to the ecological integrity of the whole Arctic Refuge'' which is ``America's finest example of an intact, naturally functioning community of arctic/ subarctic ecosystems.''
What are the odds? Well, the best estimate is by the U.S. Geological Survey (USGS). In 1998 they estimated that if the price of oil drops to less than $16 per barrel (as it did a few years ago) there would be no economically recoverable oil in the coastal plain. At $24 per barrel, USGS estimated there is a 95 percent chance of finding 1.9 billion barrels of economically recoverable oil in the refuge's coastal plain and a 50 percent chance of finding 5.3 billion barrels. But Americans use 19 million barrels of oil each day, or 7 billion barrels of oil per year. So, USGS is saying that at $24 per barrel, there is a 50 percent chance of finding several months' supply of oil in the coastal plain.
There is one 100 percent sure bet--drilling will change everything on the coastal plain forever. It will never be wilderness again. We do not need to take that bet. There are less-sensitive places to drill--and even better alternatives, including conserving energy and more use of renewable resources.
But the idea of opening the refuge is only one example of misplaced priorities or flawed policies concerning energy.
I tried to improve the Resources Committee's provisions with two amendments--one dealing with the biomass provisions and the other with something just as important as energy--water.
I am a supporter of biomass, and I think the biomass provision is one of the better parts of the Resources Committee's work. But I think it should be more tightly focused--and that is what my amendment would have done.
That part of the bill authorizes cash grants to people who own or operate biomass plants, and says they can use the money to buy material removed from the forests in order to reduce the risk of forest fires. My amendment would have narrowed that by providing that the grants could only be used to buy material taken from the areas of highest priority--the so-called ``wildland-urban interface,'' or as we say in Colorado, the ``red zones.'' These are the parts of the forests that are nearest to communities, the places where people's lives and property are most at risk. That means they should have the very highest priority for thinning out brush and little trees, so that smaller fires are less likely to become big, runaway fires. In Colorado alone, the ``red zones'' cover some 6 million acres--and there are millions of acres more in other states. There is lots of thinning work to be done in those areas--and lots of material that may be useful for biomass. So, my amendment would not have been an obstacle to biomass development. But it would focus the program where it ought to be focused.
And, to make things clear, my amendment used a definition of the term ``wildland-urban interface'' that was essentially the same as the one that was in H.R. 5319, Chairman McInnis's bill, as reported by the Resources Committee last year.
One of the reasons I supported that bill was because of the priority it put on thinning projects in these ``red zone'' areas. I thought the House should follow that example by adopting my amendment, and regret that the Rules Committee did not allow it to be offered.
My second amendment dealt with water. In Colorado, we are blessed with rich mineral resources--we have lots of coal, oil, and gas. but in Colorado, and in the other states in the arid west, water is scarce and very precious. So, as we work to develop our energy resources, it is vital that we make sure that we protect our water. And this is just what this amendment would have done.
The amendment would have required people who develop federal oil or gas--including coalbed methane--to do what is necessary to make sure their activities do not harm water resources. The amendment said that if oil or gas drilling damages a water source by contaminating it, by reducing it, or by interrupting
it--the energy developer would have to provide replacement water.
Sometimes water that is produced in connection with oil or gas drilling is injected back into the ground. The amendment said that has to be done in a way that will not reduce the quality of any aquifer. It also said that if that water is not reinjected, it has to be dealt with in ways that comply with all Federal and State requirements.
And, because water is so important, it said that developers need to make protecting water part of their plans from the very beginning. It would have done that by requiring applications for oil or gas leases to include details of the way the developer will protect water quality and quantity and also protect the rights of water users.
These are not onerous requirements, but they are very important-- particularly with the great increase in drilling for coalbed methane and other energy resources in Colorado, Wyoming, Montana, and other western states. When the amendment was considered in the Committee, it was suggested that it might interfere with State laws relating to water. That was not my intent, and I am confident that the amendment I offered in the committee would not have had that effect. However, to remove any doubt, I modified the amendment to specifically say that it would not affect any state's authority over water or affect any interstate compact related to water.
We do need to develop our energy resources--especially relatively clean-burning ones like natural gas and coalbed methane. But we need to do it in the right way, with balance. And that's what this amendment was all about. Again, I regret that the Rules Committee did not permit the House to consider it.
Without my amendments, and without other amendments that were rejected by the Committee, the Resources Committee's part of this bill puts too much emphasis on unnecessary subsidies to industry and not enough on anything else.
In conclusion, Mr. Chairman, we need a plan in place to increase our energy security. Thirteen percent of the twenty million barrels of oil we consume each day comes from the Persian Gulf. In fact, fully 30 percent of the world's oil supply comes from this same volatile and politically unstable region of the world. Yet with only 3 percent of the world's known oil reserves, we are not in a position to solve our energy vulnerability by drilling at home.
This bill does nothing to tackle this fundamental problem. For every step it takes to move us away from our oil/carbon-based economy, it takes two in the opposite direction. I only wish my colleagues in the House could understand that a vision of a clean energy future is not radical science fiction but is instead based on science and technology that exists today.
In much the same way that America set about unlocking the secrets of the atom with the ``Manhattan Project'' or placing a man on the moon with the Apollo program, we can surely put more public investment behind new energy sources that will free us from our dependence on oil.
But this bill would merely continue our addiction to finite and politically unstable energy resources. For that reason, Mr. Chairman, I cannot support it.
Mr. Chairman, I offer an amendment. Mr. Chairman, I yield myself such time as I may consume. I understand that Chairman Pombo has agreed to accept this amendment. I want to express my gratitude for…
Mr. Chairman, I offer an amendment.
Mr. Chairman, I yield myself such time as I may consume.
I understand that Chairman Pombo has agreed to accept this amendment. I want to express my gratitude for his support. I will be brief and submit my full statement for the Record, but I do want to explain the purpose of this amendment to the House. This amendment would strike the bill's language requiring the Secretary of the Interior to inventory the oil and gas resources of the entire Outer Continental Shelf, including those areas now off-limits to new drilling. This would undermine current protections for sensitive coastal areas. President George H.W. Bush initiated, and President Clinton extended, moratorium protections for these coastal waters. And, of course, Congress has had a moratorium on new drilling in these areas for 20 years.
This section of H.R. 6 pushes to open these fragile coastal waters to the possibility of new drilling. There is widespread bipartisan support both nationally and locally against new drilling in these areas. Those of us who represent vibrant coastal communities like the gentleman from Florida (Mr. Miller) and the gentleman from Florida (Mr. Davis), cosponsors of my amendment, know that our coastlines are too economically viable to risk more drilling. I want to thank my colleagues from Florida who have worked for years in a bipartisan manner on this issue. The gentleman from Florida (Mr. Goss), the gentleman from Florida (Mr. Young), and other members of the Florida delegation have been extremely helpful with this amendment.
Finally, I would like to thank the gentleman from California (Mr. Pombo) for his support of this bipartisan amendment and the gentleman from California (Mr. Dreier) for helping get my amendment made in order.
Mr. Chairman, I urge my colleagues to support this commonsense amendment.
Mr. Chairman, I am offering this bipartisan amendment, with Mr. Miller and Mr. Davis of Florida, to strike Section 30220 from the bill.
This section contains provisions that would seriously undermine current protections for sensitive coastal areas.
Section 30220 would circumvent the longstanding, bipartisan moratoria on new oil and gas drilling in particular areas of the Outer Continental Shelf.
In 1990, President George H.W. Bush signed an executive moratorium ending new drilling off the entire U.S. West Coast, East Coast, Southwestern Florida, and Alaska's Bristol Bay.
This action was met with acclaim by the coastal communities it encompassed and, indeed, all of America.
In 1998, President Clinton extended President Bush's executive memorandum protections to 2012.
And, of course, Congress has had a moratorium on new drilling in these areas for twenty years. President George W. Bush endorsed the Congressional moratoria in his FY04 budget.
State officials--including Florida Governor Jeb Bush, California Governor Gray Davis and former New Jersey Governor Christine Whitman-- have endorsed the moratoria.
The bill, however, lays the groundwork to reverse this broad bipartisan consensus by promoting activities--including exploratory drilling and seismic studies--in the OCS, including the areas that have been off limits to new oil and gas drilling for years.
Supporters of Section 30220 argue that it only calls for taking inventories and studying available resources on the OCS.
But I must ask . . . what is the purpose of this provision if not to open up the OCS areas to new oil and gas drilling in the future?
What is it we would do with this taxpayer funded ``information gathering,'' if not use it to pursue new drilling?
In fact, the bill requires the Secretary of Interior to make, and I quote, ``recommendations . . . that would lead to additional OCS leasing and development . . .''.
Mr. Chairman, we already know that large reserves of oil and gas are located in federal waters of the central and western Gulf of Mexico, which are currently open to oil and gas leasing.
According to the Department of Interior's Minerals Management Service, this area contains between 60 and 80 percent of the nation's economically recoverable oil and gas available in the entire OCS off the United States.
So, the protection of sensitive coastal areas through the longstanding moratoria still leaves the vast majority of the nation's oil and gas located on the OCS available to industry.
Section 30220 would also examine how laws, regulations, or programs might ``restrict or impede'' development of resources identified in the study.
In addition to determining how the OCS moratoria protections constrain development, this bill would erode the legitimate rights of coastal states and local governments to have a say in offshore and onshore development as embodied in the Coastal Zone Management Act (CZMA).
The CZMA is a critically important law that allows the state to weigh in on projects that may effect the state's coastal zone. Oil drilling is just such an activity.
The CZMA is the very law that the State of California recently used to halt the development of 36 undeveloped leases off my district in Central California.
California's right under CZMA to review the development plans was upheld in Federal court last year.
This affirmation of CZMA's importance led to the Bush Administration's recent decision to stop pursuing the development of the 36 leases and to instead pursue a negotiated termination of the leases.
Section 30220 would weaken a state's right under CZMA.
This section also disregards the adverse economic impacts proposed oil and gas activities would have on coastal states and local coastal communities and it fails to consider the effect of these activities on the environment and living marine resources.
Moratoria areas should not be compromised by controversial seismic surveys and other invasive technologies, like exploratory drilling.
These technologies are inappropriate within moratoria waters and would undermine the longstanding congressional oversight of these areas.
For example, high-decibel geophysical activities using sharp seismic pulses have been shown to damage fish stocks and to interfere with marine mammals.
Under the OCS Lands Act, existing uses of the sea and seabed and oil and gas development are required to be balanced. Unfortunately, the bill before us does not meet that goal.
Mr. Chairman, despite the overwhelming support of the moratorium on new oil and gas drilling in the OCS, H.R. 6 pushes to open fragile coastal waters with the provisions in Section 30220.
Coastal communities have spoken repeatedly--in strong bipartisan voices--to protect their state's sensitive coastal resources and productive coastal economies.
These coastal areas are just too economically valuable to risk more oil drilling.
It only takes one accident or spill to devastate the local marine environment and economy.
Finally, the House of Representatives has voted twice in recent years to stop new drilling in the waters off Florida and California.
Last year, 67 Republicans and 184 Democrats voted for my amendment to the Interior Appropriations bill to end new drilling off Central California.
The House spoke in a strong, clear voice against the developoment of those 36 leases.
In that vote, the House demonstrated its commitment to protecting our vital coastal communities.
A vote for the Capps-Miller-Davis amendment to HR 6 is a vote for the same principle--a vote to protect environmentally and economically valuable coastal areas from new drilling.
Mr. Chairman, we need to reject these attempts to weaken existing protections for our coastal waters and communities.
By adopting this amendment, we continue to preserve America's most treasured coastal areas and we honor and support the protections afforded to the Outer Continental Shelf and our coastal communities through the longstanding moratoria.
I urge support for the Capps-Miller-Davis amendment.
Mr. Chairman, I reserve the balance of my time.
Mr. Chairman, I would point out that those of us speaking for this amendment represent a bicoastal, bipartisan consensus on its behalf.
Mr. Chairman, I am now pleased to yield 3 minutes to the gentleman from Florida (Mr. Miller).
Mr. Chairman, it is my pleasure to yield 4\1/2\ minutes to the gentleman from Florida (Mr. Davis).
Mr. Chairman, I include for the Record a letter from 67 of our colleagues in the House of Representatives with a strong statement opposing the language in the underlying bill and in support of this amendment.
Congress of the United States,
Washington, DC, April 8, 2003.
Hon. William Frist,
U.S. Senate, Majority Leader, U.S. Capitol, Washington, DC.
Hon. Thomas Daschle,
U.S. Senate, Minority Leader, U.S. Capitol, Washington, DC.
Hon. J. Dennis Hastert,
House of Representatives, Speaker, U.S. Capitol, Washington,
Mr. Chairman, I yield myself such time as I may consume.
In closing, I thank again the cosponsors of this amendment, the gentleman from Florida (Mr. Miller) and the gentleman from Florida (Mr. Davis). I thank the chair of the Committee on Resources for the support.
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Mr. Chairman, I rise in strong opposition today to the Kind amendment. This amendment will do nothing to enhance our national energy security. In fact, it will just preserve the insecurity that we…
Mr. Chairman, I rise in strong opposition today to the Kind amendment. This amendment will do nothing to enhance our national energy security. In fact, it will just preserve the insecurity that we are going through today. The gentleman from Wisconsin is correct, these are unsettling and dangerous times. We are at war in the Middle East and many of the oil-producing nations in the world are either openly hostile toward the United States or are undergoing political turmoil. This turmoil has driven oil prices up, and meanwhile at home we are suffering a natural gas supply crisis. This winter natural gas prices reached the highest levels in history. These prices hurt American consumers, especially the elderly and the poor; and they hurt the economy.
The gentleman from Wisconsin's amendment would allow unreasonable delays to continue by allowing the bureaucracy to continue its inefficient, ineffective methods of permitting. This title helps limit the time that can be involved so that we can get energy online faster, while at the same time providing environmentally healthy gas production. This is a good title in the bill.
In the oil and gas title of the energy bill, we hold Federal agencies accountable for their leasing and permitting processes. The amendment does nothing to cut bureaucratic red tape on supplies that we already have, and it does nothing to keep energy flowing to America. In the oil and gas title, we also provide royalty relief for marginal wells on Federal lands so that these wells will not be shut in permanently when prices are prohibitively low. A marginal well is one that has almost reached the end of its productive life. Marginal wells can contain, say, 70 percent of the oil that was originally in the formation when the life of the well is depleted. It is very expensive to develop these marginal wells because you have to use tertiary production procedures. It is more expensive to produce marginal wells than it is large wells.
And so these wells would be closed in permanently, forever, leaving 70 percent of the oil in there if we did not grant these incentives to marginal well lessees. Individually, marginal wells produce very little but collectively they produce one-third of our oil supply, of our gas supply, and almost as much oil as we import from Saudi Arabia. Critics of responsible oil and gas development are always saying that production of these wells is of no particular significance, but that is absolutely wrong. Also, the poster that he was using that said that the people who benefit from these oil and gas relief measures are the major oil companies, that is simply not the case. In reality, marginal wells are so prohibitively expensive that without these incentives the majors do not produce marginal wells. They sell the marginal leases to mom- and-pop organizations. Practically every single producer in my State is an independent producer. It is that way across the country. We are not talking about billions of dollars to Exxon, Texaco, Mobil and so on. We are talking about mom-and-pop operations that keep the oil, 33 percent, flowing to this country from marginal wells.
This oil and gas title addresses the critical problems that are causing our supply crisis, but the gentleman from Wisconsin chooses to ignore reality and pretend that at some point this problem will just go away, that renewables and conservation will take care of it. Mr. Chairman, that is simply not the case. I ask my colleagues to defeat the Kind amendment.
Mr. Chairman, I seek time in opposition to the amendment.
Mr. Chairman, I yield myself such time as I may consume.
I am sorry that the color of the State of Wyoming was not in bright yellow on the chart that the gentleman from West Virginia (Mr. Rahall) just
showed the body. It should be in bright yellow because the Powder River Basin produces so much coal that all of those States that use cheap Wyoming coal have a lot of light in their lives because of that.
Despite what my colleagues have heard from the sponsor about this amendment, the coal-leasing provisions are not about giving breaks to coal companies or creating monopolies that control Federal coal leases. In fact, the amendment creates an atmosphere that guarantees monopolies will exist in the coal industry.
He has not given an explanation of exactly the way the situation is. The current law artificially raises the cost of bidding on Federal coal leases to the point that only the largest corporations in the world can afford to mine them, and what the energy bill does is, right now, when he says that there is no competition on these leases, he is actually misrepresenting, well he is representing his perspective, but I would aver that it is wrong.
What happens is, people bid on the leases, and then if they cannot develop those leases, what he would have us do, because of financial costs, what he would have us do is not be able to ever develop those leases. So it would be leaving coal still in the ground. When prices are low on the world market, it is not cost-productive to produce those huge amounts of coal, so delays are necessary to produce the coal when the demand is high.
That is exactly what the amendment does. The current law gives coal operators the option of either shutting down their operation or dumping coal at bargain-basement prices onto markets that are shared with all the other producers in the East, including West Virginia, and what happens when the coal companies have to dump this cheap coal is, the Federal Government gets fewer revenues, the State governments get fewer revenues.
I just want to refer to the lawsuits that the gentleman from West Virginia (Mr. Rahall) was discussing. The lawsuits that the gentleman brought forward are against the railroads. They are not against the coal companies. They are against the railroads because the railroads, some say, are charging monopolistic prices to transport the coal.
As a matter of fact, coal in the Powder River Basin on the spot market is selling at $6 a ton; the Appalachian areas are selling for $27 to $35 a ton. Historically, northern and central Appalachia spot prices sell about $20 to $30 per ton higher than Powder River Basin coal.
The bill before us is in no way, and will in no way, encourage monopolies, and most importantly of all, it will help America's small coal operators. It will help coal miners.
I am very worried about miners' jobs. We have a huge mining population that mine in my State. I am very worried about that. I am doing everything I can to protect their jobs. This will protect their jobs because they will be able to produce all the coal, and it will not be left.
Mr. Chairman, I reserve the balance of my time.
Mr. Chairman, I recognize myself for 10 seconds.
Mr. Chairman, I neglected to say in my opening comments that, by the way, the royalties are paid on this coal even though it is not produced. So the royalties are paid in advance to the Federal Government and to the State governments under this proposal that is in the bill.
Mr. Chairman, I yield 3 minutes to the gentleman from Nevada (Mr. Gibbons).
(Mr. GIBBONS asked and was given permission to revise and extend his remarks.)
Mr. Chairman, may I inquire how much time is remaining on both sides.
Mr. Chairman, I yield 2\1/2\ minutes to the gentleman from Utah (Mr. Cannon).
(Mr. CANNON asked and was given permission to revise and extend his remarks.)
Mr. Chairman, I reserve the right to close.
Mr. Chairman, I yield myself the balance of my time.
This amendment is not about monopolies. This amendment is about a Member promoting his own district, and that is a very admirable thing to do. But what we have to do as Members of this body is protect our resources and not waste a precious resource. We have to protect the workers, and we have to protect the Federal Treasury and the State treasuries.
Current law forces coal operators to either shut down their operation or abandon coal in place. We cannot waste the resource. It is too precious. We cannot have miners out of jobs because they have to shut down the operation.
Powder River Basin coal sells for about $6 a ton. The lawsuits that the gentleman spoke to are about rate cases of utilities. Coal is sold in contracts. It is not regulated by the Surface Transportation Board, and that is what those lawsuits were about.
These royalties are paid in advance. The Federal Treasury will lose no money. Please defeat the Rahall amendment.
Mr. Chairman, I rise in strong support of the Kind amendment and in opposition to H.R. 6. We need an energy policy that takes us forwards, not backwards. The Republican bill is not an energy policy.…
Mr. Chairman, I rise in strong support of the Kind amendment and in opposition to H.R. 6. We need an energy policy that takes us forwards, not backwards. The Republican bill is not an energy policy. It does little to reduce America's dependence on oil, it weakens consumer and environmental protections, and it fails to include renewable alternative energy sources and robs the American people and the Treasury of oil and gas royalties.
The Kind amendment strikes the damaging oil and gas development programs which are heavily subsidized by the taxpayer. In particular, I support a provision that strikes section 30201, which I submitted as a separate, stand-alone amendment. Regrettably it was not put in order. The royalty-in-kind program, which requires the government to market and sell through an agent its percentage of oil and gas, is an anti- taxpayer, pro-industry provision that is a bad deal for taxpayers and a generous gift to the oil and gas industry. In an era of increasing budget deficits, we cannot afford to give away publicly owned resources to the oil and gas industry. Yet this section gives the Secretary of the Interior permanent ability to barter our oil and gas royalties instead of collecting cash that can go for programs in education and health care and to reduce our deficit.
Most of the world, even the former Soviet Union, is moving toward a free market system. Yet with this program in this bill, we are moving to a government-controlled system. In this system, the GAO report is so startling, it says there is no oversight, it will cost us money, and it says in this, the government relies on the oil companies to tell them what the worth of their oil is coming from government-owned, taxpayer- owned land. They can set the price. So it is not surprising the industry supports this so much. It gives them free rein.
Mr. Chairman, I include for the Record an editorial from the USA Today and the GAO report documenting the cost to the taxpayer for this program.
[From USA Today, Apr. 6, 2001]
More Public Drilling? Set Let's Collect Bills First
Bush administration plans to drill for oil and gas on
public lands will fuel environmental debate for months. But a
related
issue is being overlooked. Energy companies are cheating the
public on the oil they pump now.
Why give them new resources until they pay up?
So far the administration hasn't addressed the issue, but
by doing so it could burnish its quickly blackening image as
a poor steward of public resources.
USA TODAY disclosed Thursday an administration draft
recommendation to open millions of acres of public land for
drilling. That would add to existing drilling on federal,
state and Indian-owned land that accounts for more than one-
third of the USA's oil and gas operations.
By assorted estimates, the industry has shorted the
government on oil-royalty payments alone by about $100
million a year, through a variety of price-fixing and record-
fiddling games. That's almost 10% of the government's $1.1
billion annual collections.
What has made this possible is a system that allowed
industry to decide on its own what it would pay the
government for the oil it pumped.
Imagine going to a filling station and being allowed to
bring your own pump and gauge to figure what you've
purchased--and how much it's worth. That's essentially how
the industry has been allowed to account for oil and gas
taken from public land.
In case after case, sworn evidence shows companies
falsifying prices, using phony bills of sale and deliberately
misclassifying high-quality oil as low quality in order to
pay less.
After years of denials, stonewalling and evasion, more than
a dozen companies have agreed in recent months to settlements
totalling nearly a half-billion dollars in suits brought by
whistle blowers and government attorneys. Thus they avoided
defending themselves against daunting evidence of
persistently cheating the public. Shell Oil alone is paying
$110 million.
In one case that did go to trial, an Alabama jury recently
ordered Exxon Mobil to pay $87.7 million in overdue royalties
on oil taken from state property. The jury added a whopping
$3.42 billion in punitive damages.
Still more claims are pending in other state courts. And
similar questions are being raised about gas taken from
public property.
A new oil-royalty system adopted last summer is designed to
force the industry's payments to reflect more closely true
market prices. It is expected to boost revenues by $70
million a year or more.
But now the industry is trying to force the government to
accept payment in oil instead of cash. Its proposal would put
extra costs on the taxpayer totaling more than $300 million a
year, according to government estimates.
There's good reason to think the industry will get its way.
Oil and gas groups and individuals gave $9 million to the
Bush campaign and the Republican National Committee for the
2000 campaign, more than $20 million to GOP causes generally.
Another $6 million went to Democrats.
Additional drilling on public land may be useful to meet
the country's long-term energy needs. But if the nation's
mineral patrimony is to be sold off, the Bush administration
and Congress need to make sure it's for full price: without
private discounts for politicians' patrons in the oil
business.
Mr. Chairman, will the gentleman yield? I thank the gentleman for yielding, and I thank him for expressing his attention and his cooperation and good faith on this. There are legitimate concerns that…
Mr. Chairman, will the gentleman yield?
I thank the gentleman for yielding, and I thank him for expressing his attention and his cooperation and good faith on this. There are legitimate concerns that the gentleman has referred to about the prerogative of Congress to direct the inventory to proceed with the nonmoratorium areas. That may have been the point he was making. My question to the gentleman is, It is not his intention to encourage as part of the conference committee process the reinsertion of the inventory language with respect to the moratoria areas, is it?
I thank the gentleman.
Mr. Chairman, I thank the gentlewoman for yielding me this time. I want to start by responding to some of the legitimate points that were raised by the gentleman from Louisiana (Mr. Tauzin), the chairman of the Committee on Energy and Commerce. In particular, the one point he said that I most strongly disagree with, the gentleman from Louisiana made the point that this is about knowing things we do not know; that the purpose of the inventory language is to find out things we do not know about the level of supply that exists in the shores right off the coast of Florida or California or others. I respectfully disagree.
We know the level of supplies out there. These areas have all been previously inventoried. There is no doubt as to the supply, or in the case of the waters right off the coast of Florida, I would say the lack of supply. And so this is not about fear of the unknown. What this is about is whether to proceed with predrilling activity. This is about whether to proceed with going out into the Gulf of Mexico and other parts of the country and moving the dirt around and taking all the steps that would be taken towards proceeding with drilling.
I think because it is the will of the House not to proceed with drilling in violation of the moratorium, there is a much-appreciated consensus today in support of the amendment. What it is fair to say is not known is what happens if the drilling proceeds in these areas close to coasts like Florida, my home, and the level of risk as far as environmental impact in Pensacola, the home of the gentleman from Florida (Mr. Miller), or the Tampa Bay area, my home.
This is a risk that we as Floridians do not choose to accept. If it is characterized as politics, and I hope politics is not infesting this energy bill, but if it is characterized as politics, what it really is about is the fact that a single oil spill off the coast of Florida or many of these coasts would be incredibly destructive not just to the precious environment that attracts us to Florida and keeps us in Florida but to our economy. It would be a threat to the entire coastline of Florida, because news and the facts of a spill on the coast of Florida would be a tragedy for the entire coast of Florida, both the west and east coast.
The gentleman from Louisiana referred to the history. I think it is important to bring up the history. In 1982, long before I got to Congress, the Congress started with putting the moratorium in place we are discussing today. It is very important to point out that never in the history of the Congress since 1982 have we proceeded to inventory, to do predrilling activity in moratorium areas. It is a wise decision today not to reverse that course. This moratorium that we are talking about has been in place in part because of an executive order that in 1982 was put into place. This moratorium has continued through Democratic and Republican administrations. There is no reason not to honor that today.
Let me also mention a little bit more about the eastern Gulf of Mexico. The eastern Gulf of Mexico, we do know the facts about supply. The supply that has been previously inventoried is very minimal in relation to the central and western parts of the gulf where I think the chairman has and will continue to understandably support drilling. The supply in those areas approaches almost 20 billion barrels of oil in the central gulf, 12 billion barrels of oil in the western gulf, 1 billion in the eastern gulf. We know the supply in the eastern Gulf of Mexico is very minimal; and we further know that the risk to Florida's beaches, which are enjoyed not just by Floridians but by people all over the United States and all over the world, is significant and there is a small supply of oil involved. It is very credible for the chairman to talk about what the facts are and those are the facts.
I would like to close by simply asking the gentleman from Louisiana a question. My question to the gentleman which was the same question I directed to the chairman of the Committee on Resources is, Mr. Chairman, as I understand your statement earlier, it is not your intention in the conference committee to support the reinsertion of the language that is being removed today by this amendment?
I yield to the gentleman from Louisiana.
I just want to close by pledging to the chairman my support to continue the drilling in the central and western part of the gulf where there is ample supply and apparently a different standard about environmental degradation with respect to that coastline.
Mr. Chairman, we must reduce our nation's dependence on foreign oil. And while I believe our nation needs a comprehensive energy policy as a matter of national security, we also have an obligation to…
Mr. Chairman, we must reduce our nation's dependence on foreign oil. And while I believe our nation needs a comprehensive energy policy as a matter of national security, we also have an obligation to ensure that this need is met in a manner that does not jeopardize our financial security. This bill takes a balanced approach to meeting our nation's energy security needs. But, it fails to pay for any of these proposals, which have a cost of $18.8 billion.
H.R. 6 contains numerous provisions that I have supported in the past and will continue to support in the future under fiscally responsible circumstances. In fact, H.R. 6 includes a provision based upon a bill that I introduced during the last three Congresses that would extend the section 29 tax credit for the production of unconventional fuels such as coalbed methane. My version of this legislation [H.R. 1331] was modified and included in the Ways and Means portion of H.R. 6. I have worked for months to ensure H.R. 1331's inclusion in a comprehensive energy measure. And, while I would like to be able to vote for this provision, I cannot in good conscience support final passage of a bill that includes $18.8 billion in tax expenditures that are not offset with comparable spending reductions. This is fiscally irresponsible. Such action threatens to spend money from both the Social Security and Medicare Trust funds on which the seniors in my district rely.
Further, as a member of the House Renewable Energy Caucus, I have supported measures to encourage and increase the use of renewable and alternative energy sources. This bill includes tax incentives for energy efficiency programs and renewable energy sources such as wind and solar production that I would like to vote for, and I would support if these incentives were paid for and handled in a fiscally responsible manner. As well, H.R. 6 contains tax incentives for domestic production from marginal wells that I have supported in the past that would increase our national energy supply. As a co-chair of the Biofuels Fuels Caucus, I also support the renewable fuels standard which I have promoted to decrease our dependency on foreign oil, help U.S. farmers and protect the environment.
I cannot, however, support provisions in this legislation that do nothing to safeguard electricity consumers from unscrupulous utility companies that abuse market power and manipulate electricity prices. Rather than holding these electricity companies accountable, this bill would weaken consumer protections regarding electricity. I also find it impossible to support provisions that would protect former U.S. corporations that moved offshore to tax havens in order to avoid U.S. income taxes. This legislation continues tax benefits to companies that have already moved offshore.
I also support many aspects of Representative John Dingell's electricity title substitute, and would have supported it had it been an amendment. As a substitute to the title rather than an amendment, however, it strikes many useful and important provisions in the electricity title without providing any alternate.
Last night, the House considered the conference report on the budget resolution which increases deficits and debt and passes these pressures onto future generations. Instead of developing a sound fiscal strategy to face the challenges that will come with the increased risks from terrorism and the impending retirement of the baby boom generation, the budget will result in over $3 trillion in additional debt that creates a long-term ``debt-tax'' for working American families.
If Congress adopts this new policy of borrow and spend it not only endangers the Medicare and Social Security surpluses, it places us back on the road to deficit spending. We must not travel down this road again.
It is time we made some tough choices. This Congress made a commitment to the American people that we would not vote to spend one single penny of the Medicare and Social Security Trust Funds. We must honor that commitment. Spending restraint, fiscal responsibility, and honoring our commitments do not come about by good intentions, but by resolute actions.
Today, I reluctantly vote against this energy package because it fails to provide any offsets to pay for its provisions. This is a particularly difficult vote for me because this bill contains a proposal I authored, as well as many other good provisions.
In an effort to honor our commitments to ensure financial responsibility, I will adhere to the levels in the budget resolution enacted by a majority of this Congress. I will oppose any efforts that reduce revenues without offsets.
The expenditures contained in H.R. 6 are not accounted for in the budget resolution and, despite the sound energy policy this bill promotes, it busts the budget and threatens the Social Security and Medicare Trust funds. I urge my colleagues to honor their commitment to preserve this country's integrity; I urge my colleagues to either find a way to pay for these tax cuts or to vote no on H.R. 6.
Mr. Speaker, I offer a motion to recommit. Most vigorously opposed, Mr. Speaker. Mr. Speaker, the motion to recommit directly addresses major concerns, and that is destruction of fish, wildlife…
Mr. Speaker, I offer a motion to recommit.
Most vigorously opposed, Mr. Speaker.
Mr. Speaker, the motion to recommit directly addresses major concerns, and that is destruction of fish, wildlife resources and the denial of the ability of this Nation, through its system of hydro licensing and relicensing to protect those fish and wildlife resources and the precious outdoor values that this Nation feels important.
The motion includes reforms contained in the bill which I would have offered or, rather, the amendment which I would have offered with the gentleman from New York (Mr. Boehlert) of the Committee on Science. It is necessary to protect the egregious wrongs committed against fish, wildlife and the environment by the outrageous provisions of H.R. 6.
As I pointed out yesterday, all sportsmen, conservationists, hunters, fishermen organizations and all environmentalists support this language.
The amendment which we would have offered was not made available to the House because it was not permitted by the Committee on Rules, and the voices of the conservationists of this country were stilled by that outrageous action.
I want to remind my colleagues of exactly what this legislation does, and I refer to the bill, H.R. 6. It confers superparty status on license applicants by allowing them to propose alternatives to resource protection conditions, giving them special procedural rights that are not granted to other legitimate stakeholders like States, tribes, sportsmen or ordinary citizens.
It dilutes environmental protections included in current law and will overturn over 100 years of fish and wildlife protections which we have given with regard to the rivers and streams of this Nation.
It creates an entirely new and costly subsidy program for a mature industry that does not need, nor does it deserve, the support of taxpayers at a time of enormous deficits. Needless to say, the language we have before us lies in stark contrast to the hydroelectric provisions that were contained in last year's energy bill.
Last year, our work was not only bipartisan in character, but it was supported by the industry as well as the groups that now oppose the provisions of the legislation. Indeed, of all of those who supported the hydroelectric title last year, only one group remains satisfied today, the utilities. A quick reading of the bill explains why.
The bill before us gives the hydropower industry unprecedented advantage during the licensing process at the expense of protections for fish, wildlife and natural resources. The bill before us would do enormous damage to fish passage requirements of current law. It would deny the need for fishways and would afford no ability by sportsmen groups or conservationists or the Indian tribes to insist that such be included in dams so as to facilitate the upward or the downward passage of fish in our great rivers.
This imperils the ability of fish to reach spawning grounds and subjects them to the hideous cruelties of having to pass through hydroelectric turbines to carry out their natural functions.
The bill is strongly opposed by, as I have said, almost all conservation, sportsmen and environmental groups. I will have a list of those people who oppose and the organizations who oppose
available to discuss with any Member who so desires.
The compromise we offer today is identical to the language which the House passed in the last Congress and which my good friend, the distinguished chairman of the committee, joined me in supporting and which involved a compromise not just between the two parties here in the Congress but also a compromise between industry and conservationists.
The motion and the amendment which we have before us protects natural resources, fish and wildlife. The bill does not. The motion allows the license applicant or any other party to a licensing proceeding to propose an alternative to the conditions set by the resource agencies so that the fullest possible discussion of methods for protection of fish and wildlife values in our rivers and waters may be achieved.
I note that the language that we offer in the motion to recommit is exactly the same which I agreed on with my good friend, the gentleman from Louisiana (Mr. Tauzin). I would note that he described this legislation with me as a bipartisan consensus provision that carefully balances energy and environmental priorities to achieve a significant breakthrough in licensing reform.
I urge my colleagues, in the interest of protecting our natural resources, to vote for the legislation, and let us make this a better bill in the interests of all of us and in the interests of future generations.
Mr. Speaker, I yield back the balance of my time, and I pay my respects to the chairman.
Mr. Speaker, I demand a recorded vote.
Mr. Chairman, I thank the gentleman from New York (Mr. Reynolds) for yielding me this time. Obviously, I rise in support of this Reynolds amendment, but I am really standing to just say in closing in…
Mr. Chairman, I thank the gentleman from New York (Mr. Reynolds) for yielding me this time.
Obviously, I rise in support of this Reynolds amendment, but I am really standing to just say in closing in the overall energy debate this is the most comprehensive energy legislation that has been on the floor of the House, I would argue, in the last 30 or 40 years. It is not an energy bill for Republicans or an energy bill for Democrats. It is an energy bill for all Americans. We have a broad-based bill. We do something to try to help coal, to try to help oil and natural gas, to try to help nuclear, to try to help renewable, to try to help electricity. We are for biomass and natural gas and will be for sassafras if it helps provide the energy resources for this great Nation.
We have the lowest-cost energy resource base in the world, and we have it because we believe in free markets and individuals working together in an entrepreneurial fashion to provide the goods and services in the energy sector that help makes us the most powerful and greatest Nation in the world. I hope that we would vote for this bill in a bipartisan fashion when it comes to final passage.
I want to thank the gentleman from Louisiana (Mr. Tauzin), the full committee chairman, who has done just an absolutely outstanding job; and if we had the Chamber full of people, I would ask that we all stand and give him a round of applause. This is a good bill for America.
Mr. Chairman, as the Chairman of the Energy and Commerce Subcommittee of Energy and Air Quality, the subcommittee of primary jurisdiction of H.R. 6, I recognize and acknowledge we will need to work further on some of the specifics in the bill.
Next, I want to clarify section 16023, the ``native load'' section. We will want to clarify that the term ``equivalent transmission rights'' should be read to include ``firm, financial, and tradable transmission rights'', as that is our intent. I also acknowledge that the native load provisions may have unintended consequences in the region covered the Midwest Independent System Operator, and I want to continue to work to improve the savings clause so that does not undo the development of markets in that region to date.
I note that we may need to clear up the electricity title (Title VI) of Division A. Among the technical changes needed may be inaccurate references to the Electric Reliability Council of Texas (ERCOT) and ERCOT utilities, as described in the Federal Power Act.
Finally, I have not completed work with Members on a potential addition to Division E regarding Clean Coal. I will want to discuss with Members of the conference committee a potential provision on Clean Coal General Programs. This Congress has a great opportunity to expand the clean coal title to further promote and deploy new technologies that allow coal to be used as a power source for dramatically lower emissions.
Mr. Speaker, will the gentleman yield?
Mr. Speaker, I might point out that this is also supported by the National Hydropower Association.
The title on hydro relicensing that is in the bill that is before us does not waive anything of the Endangered Species Act. It does not waive any part of the Safe Water Drinking Act. It does not waive any environmental law that is currently on the books.
What it does do, if a person has an application to relicense a hydro project in this country, and if a Federal agency proposes what is called a mandatory condition to that relicensing, we allow under our bill the applicant to offer an alternative to that mandatory condition; and if that alternative is as effective in protecting the environment and is more cost-effective or energy-efficient, then the agency has to accept the alternative. That is the principal difference between this bill and the bill that we adopted in the last Congress that the gentleman from Michigan (Mr. Dingell) has in his motion to recommit.
I would urge my colleagues to support the bill. The bill was introduced as a stand-alone hydro relicensing bill with several Democrats as cosponsors, and when we had votes on this in subcommittee and full committee, a fair number of Democrats crossed over to oppose the gentleman from Michigan's (Mr. Dingell) bill and support what is in our bill.
So let us vote in a bipartisan fashion to oppose the motion to recommit.
Mr. Chairman, the time is long overdue for Congress to enact a balanced energy policy that ensures reliable and affordable energy for all Americans. Our nation's citizens deserve a comprehensive…
Mr. Chairman, the time is long overdue for Congress to enact a balanced energy policy that ensures reliable and affordable energy for all Americans. Our nation's citizens deserve a comprehensive energy plan that ensures the short-term availability of the energy supplies they need, while addressing long-term goals of increasing our use of renewable and clean sources of energy.
The performance of the energy market of the last several years, with its wide price swings on both the producer and consumer sides, simply illustrates the need for America to take responsibility of our energy future. Congress needs to consider measures to help restore market stability with domestic crude oil and natural gas prices, maintaining a level where domestic producers can compete in a global market and help reduce our dependency on foreign sources of oil.
At the same time, Congress needs to ensure consumer protection measures to guarantee price stability and fuel availability when the demand is high. I truly believe that we can achieve equilibrium in the energy sector, thus creating a situation where prices are not so low that producers are put out of business but also not so high that they hurt consumers and threaten the economy.
America can no longer sustain a situation where this nation imports almost 60 percent of its oil from foreign sources--putting our economic and national security at risk.
I have been a long time supporter of domestic energy production in all arenas including: oil, natural gas, hydro-electric, wind, solar, geothermal, biomass and the many others. I am certainly glad to see that H.R. 6, ``The Energy Policy Act of 2003'', includes provisions to insure further domestic production of these resources.
However, these production incentives come at a cost and must be accounted for. It is entirely unacceptable to simply write off the cost of this bill and add it to the current deficit that America is facing. In fact, we are already expecting a $361 billion deficit this year, even prior to considering the costs of this bill, the Iraq war, prescription drugs, new tax curt or any other expenses being debated currently. This is a remarkable contrast from the $250 billion surplus that last occurred in fiscal year 2000.
I cannot understand how my colleagues on the other side of the aisle continue their efforts to expedite tax cuts and not address Americas' financial health. The cost of this war could be well over $100 billion, yet we continue to promote over $1.5 trillion in tax cuts over the next decade.
And this week the spending continues. This energy bill comes at a cost of $18.7 billion dollars and includes no provision to offset these costs. I have long championed for: Increased access to capital for domestic oil and gas production; more research in alternative fuels such as nuclear energy; advanced clean coal
technology; a sound commitment to renewable energy, including a renewable fuels standards; and improved energy efficiency and environmental standards.
As Ranking Member on the House Agriculture Committee, I was especially pleased to see the Renewable Fuels Standard increasing the required use of ethanol, made from corn, as a fuel additive by gasoline refineries to 5 billion gallons by 2015.
There is no doubt I am glad to see these provisions in H.R. 6, but I am very disappointed that my colleagues on the other side made no attempts to offset some of the costs of this bill. This energy bill continues down the path of more deficit spending and makes no realistic attempt to justify this spending.
America deserves a balanced and forward looking energy policy and therefore I intend to vote for this bill despite my reservations about its cost. It is my sincere hope that Congress will ultimately be responsible and pay for provisions included in the Energy Policy Act of 2003 without burdening our children and grandchildren with continued deficit spending.
Mr. Chairman, will the gentleman yield? Mr. Chairman, the State of Virginia recently enacted a law to delay our utilities from joining a regional transmission organization until July 2004. There is…
Mr. Chairman, will the gentleman yield?
Mr. Chairman, the State of Virginia recently enacted a law to delay our utilities from joining a regional transmission organization until July 2004. There is great concern in my State that the benefit that our consumers enjoy, low-price electricity, will not stay in our State if our utilities join an RTO. We have had discussions about the possibility of placing an amendment here in the bill which would resolve this problem. Unfortunately, we have not been able to accomplish that. At this time, I would ask the chairman if he can assist me.
Mr. Chairman, I thank the gentleman.
There is concern among those in my State that the savings clause language in the Native Load provision of the bill, section 16023, will not give our consumers the protection of that provision as we transition to an RTO.
Mr. Chairman, I thank the gentleman from Louisiana (Mr. Tauzin).
I would like to further elaborate on a colloquy with the Chairman of the Energy and Commerce Committee to clarify the intent of the Commerce Committee with regards to addressing the concerns of the Virginia delegation about a unique situation in our state regarding native-load protection.
Under FERC's proposed standard market design rulemaking, state authority to protect so-called native-load customers--buyers of electricity who have been guaranteed reliable supplies of power at fixed prices--could be supplanted. This proposal deeply concerned Virginia's State Corporation Commission (SCC), Virginia's regulatory agency which has oversight over the state's utility industry. The SCC was not assured that under this proposal my state would be subject to spiraling costs. As you may know, my constituents pay some of the lowest electric rates in the nation.
Because of the SCC's concerns, the Virginia General Assembly recently passed legislation to delay full implementation of FERC's proposed language to allow the state to examine the full consequences of restructuring. Virginia is the only state to have passed such legislation, putting it in a unique position with regard to the protection of native loads. Many Virginians could end up paying more for electricity if one of my utilities joins an RTO because the transfer of control of transmission lines may threaten the state's ability to assure reliable service at the stable and reasonable rates many customers are currently enjoying. If the power to protect transmission lines is lost, consumers will no longer be protected from escalating rates. The SCC and the General Assembly have acted to protect native-loads, but if their actions are ignored by FERC, Virginia's electricity prices could sour, and service could become unreliable.
When the Energy and Air Quality Subcommittee approved the Energy Bill several weeks ago, Congressman Norwood included language to protect state-regulated markets that favor native-load customers. However, Congressman Barton included a savings clause that would exempt certain RTOs from the underlying Norwood provision. Given the unique situation that my state is in, if utilities in Virginia were to join one of these exempted RTOs, I am concerned about the protection of their native- loads.
In light of the fact that language protecting native-load preferences in my state has not been included in the Energy Bill, I would like to have the assurances of both the Chairman of the Full Committee and the Subcommittee that they will work with me as this bill moves to conference and in conference to address the unique situation and concern of the Commonwealth of Virginia in protecting native-loads. It is my understanding that Chairman Tauzin and Chairman Barton intend to work with me to include language in the bill that will protect native- load preferences in my state that will help ensure that Virginia gets the full benefit of the native-load preferences in the underlying bill.
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Yes, I do, Mr. Chairman. Mr. Chairman, I yield myself such time as I may consume. While I will not oppose the amendment by the gentlewoman from California this morning, I do think that there were…
Yes, I do, Mr. Chairman.
Mr. Chairman, I yield myself such time as I may consume. While I will not oppose the amendment by the gentlewoman from California this morning, I do think that there were some valuable provisions in the underlying language that are going to be struck out, and I think at some point we are going to have to work this out between all of us as to exactly how we go about inventorying and updating our process that we are going to use. I do realize that some of the language that was in the underlying provisions caused a lot of concern. I agree with my colleague from California that this is an issue that we need to work on further, but at this time I have agreed that we will strip these provisions out of the underlying bill. I think that this is a helpful amendment at this time in order for us to move forward with a balanced energy policy for the future.
I yield to the gentleman from Florida.
Reclaiming my time, no, we have no intention whatsoever of doing that.
Mr. Chairman, I yield such time as he may consume to the gentleman from Louisiana (Mr. Tauzin).
Mr. Chairman, I claim the time in opposition.
Mr. Chairman, I yield 4 minutes to the gentlewoman from Wyoming (Mrs. Cubin).
Mr. Chairman, I yield 2 minutes to the gentleman from Louisiana (Mr. John).
Mr. Chairman, I yield 3\1/2\ minutes to the gentleman from Louisiana (Mr. Tauzin).
Mr. Chairman, I yield myself the balance of my time.
I rise in opposition to what I believe is probably the most extreme amendment that we will face in this entire energy bill. We set off to produce a balanced energy policy for this country.
We included alternative energy, wind, solar, fuel cells, but as part of it, we also had to address today's needs which are oil and gas.
This amendment strips out everything that we put into this bill to deal with the needs of today. So I believe it is extremely important for our future that we vote against this particular amendment.
Mr. Chairman, I claim the time in opposition to this amendment.
Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, I will not oppose the amendment. I believe this is a matter of States' rights. I believe the Great Lakes States have the ability to determine this on their own. I will tell Members, we have no desire to go after their gas and oil. However, we would like to run a pipe to the Great Lakes to take their water for California.
Mr. Chairman, I would like at this time to pay special tribute to the staff that worked so hard on this bill over the past several months and, in fact, the past several years to bring it to fruition. We shortly will vote on the amendments that are still pending, and then we will move on to final passage. I wanted to especially thank them for the hard work that they have put into it.
I would also like to wish a happy birthday to Dan Kish, one of the head staffers who has worked so hard on this bill for so many years.
I yield to the gentleman from Louisiana.
Mr. Chairman, I reserve the balance of my time.
Mr. Chairman, I yield myself such time as I may consume.
I had had one additional request for time, but I will conclude by thanking my fellow chairman who worked so hard on this legislation, the ranking members who worked in a cooperative manner to bring this bill to the floor.
We have labored for many years to produce a balanced energy policy for this country, and I believe that this bill represents that. It is not everything I wanted. It is not everything that the gentleman from Louisiana (Mr. Tauzin) wanted, nor is it everything that the ranking members wanted; but I do believe that it is a good compromise. It is a balanced approach, a balanced energy policy for the future. I urge my colleagues to support our energy policy for the future on the final passage.
Mr. Chairman, I yield back the balance of my time.
Mr. Chairman, the Energy Policy Act of 2003 (H.R. 6) falls terribly short in preparing the United States for the future in terms of fiscal responsibility, environmental stewardship, and meeting our…
Mr. Chairman, the Energy Policy Act of 2003 (H.R. 6) falls terribly short in preparing the United States for the future in terms of fiscal responsibility, environmental stewardship, and meeting our nation's energy needs. The bill mortgages our environmental future in order to meet short term energy challenges.
This bill is a missed opportunity. Any national energy policy for the 21st century should take steps to reduce our dependence on outdated and polluting sources of energy such as oil, gas, and coal. The United States has less than 3 percent of the recoverable supply of the world's oil, much of which is under ecologically important areas of land. We are currently at war with the part of the world that contains 65 percent of the earth's oil reserves: the Middle East. Yet this bill keeps us dependent on oil.
My Republican colleagues claim that American technology and innovation will enable us to meet our energy needs. American innovation and creativity should enable us to rely on renewable sources of energy such as wind, solar, and geothermal. Yet this bill continues the status quo.
The bill provides over $18 billion in tax breaks and royalty relief to oil, electric utilities and nuclear power. The oil and gas industry alone receive 55 percent of the tax breaks in this bill. During a time of war and a struggling economy, Congress should be exercising fiscal discipline. Yet this bill provides cost-of-doing business funding to mature industries.
It is important to note that the oil, gas, coal and offshore drilling industries that receive most of the benefits of this bill have also hand picked people in the administration and agencies to oversee them. Much of the energy development allowed in this bill will take place on lands now regulated by former corporate energy lobbyists.
For example, the Department of the Interior oversees over 30 percent of the total domestic energy production in the United States. Steven Griles, second in command at the Department of the Interior, is a former energy lobbyist. While he was in the private sector he represented the National Mining Association, the American Gas Association, Arch Coal, Chevron and Shell oil companies.
I cannot support an energy bill that reduces environmental protections and allows development in the Arctic National Wildlife Refuge. A few years ago I visited the Arctic and witnessed its fragile beauty. I came away with a profound sense that the American public is right. The Arctic Wildlife Refuge is absolutely the last place we should be exploring for oil, not the first.
A rational national energy policy must place conservation and efficiency at the forefront. Merely ending the fuel efficiency loophole for SUV and light trucks will save more oil than the Arctic Refuge will produce. Our energy habit accounts for 25 percent of the world's consumption--the United States simply cannot produce enough energy to meet its demand. We would do better to use the 10 years it would take to get the oil from the coastal plain of Alaska to improve the energy efficiency of our transportation system, homes and factories, and to increase our renewable energy production.
It is significant to note what this bill does not do. It does not address global climate change, even though the United States is responsible for 25 percent of the world's greenhouse gases. The bill does not increase fuel efficiency for cars, which consume a tenth of the annual global oil production. The bill does nothing to protect consumers from market manipulation such as what we saw from Enron. In fact, the bill repeals important consumer protection laws that have been in place for decades.
Without any of these provisions, I believe this bill is a missed opportunity for the American people.
Mr. Chairman, I support the amendment offered by my colleagues, the gentleman from New York (Mr. Reynolds) and the gentleman from Michigan (Mr. Rogers). This important ``Sense of the Congress''…
Mr. Chairman, I support the amendment offered by my colleagues, the gentleman from New York (Mr. Reynolds) and the gentleman from Michigan (Mr. Rogers). This important ``Sense of the Congress'' amendment reaffirms the commitment of Congress in opposition to off-shore drilling in the Great Lakes.
The Great Lakes are a national and international treasure, serving both as the Nation's largest fresh water resource and one of the largest systems of fresh water on Earth--containing nearly 20 percent of the world's supply. Formed by the melting and retreat of mile-thick glaciers 10 to 12 thousand years ago, the Great Lakes contain 5,500 cubic miles of water and cover 94,000 square miles. In fact, if the six quadrillion gallons of water in the Lakes were poured over the continental United States, the entire landmass of the lower 48 states would be covered to a depth of nearly 10 feet.
The Great Lakes Basin is also of critical importance to the economy of two nations. The Basin is home to more than one-tenth of the U.S. population and one-quarter of the Canadian population. One of the world's largest concentrations of economic capacity is located in the Basin--some one-fifth of U.S. industrial jobs and one-quarter of Canadian agricultural production.
As a lifetime resident of the Great lakes community, I am keenly aware of the importance of the Great lakes to the surrounding region and the need to protect this vital resource for current and future generations. This great natural treasure deserves long-term protection from shortsighted exploitation.
I support the amendment offered by my colleagues that encourages the States surrounding the Great lakes to either enact a ban on, or to continue to prohibit, off-shore drilling in the Great Lakes for oil and gas deposits.
Off-shore drilling poses a serious environmental and economic risk to the Great lakes community. A large-scale spill, fire, or gas leak could despoil miles of beaches and fragile wetlands, pollute the ecosystem, and render the water unfit for drinking. It has been said that a single quart of oil can foul two million gallons of drinking water; imagine the potential impact of a massive oil or gas leak on a waterbody that currently provides drinking water to more than 10 million people. For a waterbody that takes more than 200 years to completely renew itself, such environmental risks are simply unacceptable.
In addition, most scientific estimates show that extracting all of the oil and gas reserves under the Great Lakes would have little or no impact on the nation's energy supplies or prices.
Mr. Chairman, this is not the first time Congress has spoken on the issue of oil and gas drilling under the Great Lakes. In 2001, and again earlier this year, Congress passed, and the president signed a prohibition on Federal or State permits or leases for new oil and gas drilling activities in or under the Great Lakes. This amendment takes the next step to encourage those States bordering the Lakes to either continue to prohibit this practice, or to enact similar provisions to protect the Great Lakes from further environmental degradation.
On March 27, 2003, I, together with 18 Democratic colleagues on the Transportation and Infrastructure Committee, introduced H.R. 1491, the Securing Transportation Energy Efficiency for Tomorrow Act of 2003. That bill included a provision almost identical to the Reynolds/Rogers amendment.
I urge my colleagues to support this amendment.
Mr. Chairman, I regretfully rise to oppose this bill today. When President Bush introduced the National Energy Policy in 2001, I applauded the plan. The President laid out a comprehensive, balanced…
Mr. Chairman, I regretfully rise to oppose this bill today.
When President Bush introduced the National Energy Policy in 2001, I applauded the plan. The President laid out a comprehensive, balanced policy to address our nation's energy needs. I supported the President energy policy and voted for the House version, H.R. 4, in the 107th Congress.
The bill we have before us today includes much of the beneficial programs embedded in H.R. 4. However, it also includes an ethanol mandate that I am adamantly opposed to. This provision is bad public policy. It is bad for consumers, bad for air quality, and bad for the environment.
Last year, the Government Reform Subcommittee on Energy Policy, Natural Resources and Regulatory Affairs, which I chair, held a hearing to review the concept of an ethanol mandate. One of our expert witnesses predicted that the ethanol mandate would cause reformulated gasoline to raise almost 10 cents per gallon.
On Tuesday, the Energy Information Agency (EIA) predicted that, by the time ethanol is fully integrated in California, the price increase for reformulated gas would be 9 cents per gallon. California has already seen huge price increases this year as refiners attempt to shift from MTBE to ethanol.
For a State like California, or New York, or Connecticut, which uses a large amount of reformulated gasoline, this will represent an income shift of hundreds of millions of dollars from our citizen's pockets to those in ethanol-producing States. Furthermore, when the EPA implements its new 8-hour ozone rule, 155 new counties will have to use reformulated gasoline. I hope my colleagues who represent these counties know that the ethanol mandate will increase their constituents gas prices.
Ethanol will also make it tougher to meet our air quality standards. While the supporters of ethanol love to tell us that ethanol reduces carbon monoxide, they fail to tell us that ethanol use results in higher volatile organic compounds, which contribute to ozone. In fact, ethanol has to get a waiver from the Clean Air Act to be used in the summertime because of its ozone forming qualities.
Ethanol proponents also claim that ethanol will reduce our demand for foreign oil. But a 2002 study published by the Encyclopedia of Physical Sciences and Technology concluded that it takes more energy to produce a gallon of ethanol than that gallon yields. Furthermore, an ethanol mandate that subsidizes corn production will have adverse effects on water quality, as farmers use more and more fertilizer to produce their crops.
No wonder ethanol proponents slipped into the Bill liability protection for ethanol producers. If we find that ethanol does indeed harm our water supply--like we found with MTBE--ethanol manufacturers will get a free ride.
I offered an amendment at the Rules committee--along with my colleague Elliot Engel--to improve the ethanol mandate. My amendment would have allowed a credit against the ethanol mandate for any refiner that produces clean burning gasoline.
This is the direction our nation's fuel policy should take. Instead of mandating inputs into gasoline, we should set high environmental standards and let oil refiners and automakers meet those standards. California today can produce the cleanest burning gasoline in the nation without ethanol.
The bottom lie is that an ethanol mandate will increase our gasoline prices and harm our air and water quality. And therefore, I cannot vote for this bill.
Mr. Chairman, I thank the gentlewoman from Wyoming for yielding me this time, and I rise in opposition to the Rahall amendment. Despite what my colleagues have heard from the sponsor of this…
Mr. Chairman, I thank the gentlewoman from Wyoming for yielding me this time, and I rise in opposition to the Rahall amendment.
Despite what my colleagues have heard from the sponsor of this amendment, the coal leasing provisions in the underlying bill are not about giving breaks to western coal companies and they are not about creating monopolies and controlling Federal coal leases. The underlying bill is about modernizing and improving current law to allow the Federal Government and the Federal coal lessees on Federal ground the ability to protect the environment and to optimize the recovery of Federal coal, coal which they have already paid for with fair market value.
This amendment will delete the provisions that will prevent the wasting, the wasting of America's most abundant and reliable energy resource; and it will delete provisions that maximize Federal and State revenues in the form of royalties and taxes.
Now, a recent letter sent by the amendment's sponsor mistakenly attempts to tie this bill, with the coal leasing provisions, to the electric utility cases filed before the Surface Transportation Board. Those cases involve the railroad transportation costs and have absolutely nothing to do with coal production. There is no relationship between the coal producers and the railroad rates as represented in that letter.
The current law gives coal operators only two options, and that is to shut down mining operations after they have reached an arbitrary time limit or surface area, or the alternative of dumping coal at bargain basement prices, as we have heard from the gentlewoman from Wyoming previously. Current policies artificially raise the cost of bidding on Federal coal leases so high that only the largest, best capitalized corporations in the world can afford to mine the abundant coal resources.
The Rahall amendment encourages monopolies; it does not prevent them.
The current law forces coal producers to leave Federal coal in the ground forever by not allowing them to buy the coal located just across the line of the lease. If this amendment passes, this coal will never be mined and America will lose this important energy resource.
Mr. Chairman, the Federal coal leases are located on Federal lands that have been designated for coal production and have passed stringent environmental tests regarding the suitability of coal for production. The Surface Mining Act that the gentleman from West Virginia wrote in 1977 ensures the environmental integrity of these coal operations is met. However, this is not really an environmental issue; it is one of maximizing the public's interest in coal resources on public land. It is simply a matter of giving the Federal Government the same flexibility that private lessors have to maximize their return on investment while ensuring a strong energy future for America.
Who will pay the price if the Rahall amendment passes? Millions of Americans across the Southwest who pay nearly double the electricity rate will pay the price. Small coal operators, America's coal miners, and America's energy losers will all be denied America's largest domestic energy source. The Federal Treasury will be denied revenues, and they will be denied royalties and taxes from them.
No one wins with the Rahall amendment. I urge a ``no'' vote on the amendment.
Mr. Chairman, I offer an amendment. Mr. Chairman, I yield myself such time as I may consume. (Mr. REYNOLDS asked and was given permission to revise and extend his remarks.) Mr. Chairman, along with…
Mr. Chairman, I offer an amendment.
Mr. Chairman, I yield myself such time as I may consume.
(Mr. REYNOLDS asked and was given permission to revise and extend his remarks.)
Mr. Chairman, along with the gentleman from Michigan (Mr. Rogers), I am offering an amendment that was passed overwhelmingly by this body 2 years ago.
The 94,000 square miles of the Great Lakes system constitutes some of this Nation's most precious resources. Lake Superior, Michigan, Huron, Erie and Ontario are the largest system of fresh water on the face of the Earth, and comprise one-fifth of the world's entire drinking supply.
For the 30 million people residing in the region and the millions more who visit its shores each and every year, the Great Lakes are also a recreational playground, an enormous fishery and wildlife breeding ground, a vital transportation link, and an important resource for agriculture and business, making untold contributions to our Nation's economy and our way of life.
Most of all, the Great Lakes are binational treasures and a vital natural resource. To protect the natural resources of the five Great Lakes, and with them, 20 percent of the world's drinking water, most in the region agree that oil and gas drilling should not be allowed within the Great Lakes. In fact, several States have enacted statutory prohibitions on offshore drilling in the Great Lakes.
In respecting the provisions of the Submerged Lands Act, which gives each State that borders the Great Lakes authority over between the State's coastline and the boundary of Canada or another State, this amendment expresses a sense of Congress for continued support for the ban on drilling.
Mr. Chairman, I believe the States and Canadian provinces are the wisest stewards of the Great Lakes resources, ensuring their effective use and sound conservation. As such, actions to protect the Great Lakes work best when all of the States and provinces work together.
At this time, not all States and provinces have equivalent nondrilling policies. Through this amendment, the States and provinces will be advised of this Congress' support for efforts that protect the world's largest fresh water supply by encouraging them to prohibit offshore drilling.
Mr. Chairman, I urge Members to support the State's right to protect the Great Lakes.
Mr. Chairman, I reserve the balance of my time.
Mr. Chairman, I yield 2 minutes to the gentleman from Michigan (Mr. Rogers).
Mr. Chairman, I urge adoption of this amendment and I yield the balance of my time to the gentleman from Texas (Mr. Barton), the Chair of the Subcommittee on Energy and a vital link to seeing the success of this bill today.
(Mr. BARTON of Texas asked and was given permission to revise and extend his remarks.)
Mr. Chairman, I rise to specifically support section 16023 of H.R. 6, which clarifies state and federal jurisdiction over the regulation of electricity. When Congress enacted the Federal Power Act in…
Mr. Chairman, I rise to specifically support section 16023 of H.R. 6, which clarifies state and federal jurisdiction over the regulation of electricity.
When Congress enacted the Federal Power Act in 1935, it limited federal regulatory authority over electricity in section 201(a) of that Act to ``the transmission of electric energy in interstate commerce and the sale of such energy at wholesale in interstate commerce.'' It further stated in that section that ``Federal regulation . . . [shall] extend only to those matters which are not subject to regulation by the States.''
Bundled retail sales of electric service, including the transmission component of such service, is a matter that was subject to regulation by the states in 1935 (and well before), and is still a matter regulated by many states today. Yet despite the clear language of the statute, and the clearly established fact of state regulation, the Federal Energy Regulatory Commission (FERC) is proposing under its `'standard market design'' (SMD) proposal to regulate the transmission component of bundled retail sales of electricity in place of the states.
One can only assume that FERC's apparent legal theory for proposing such action is that section 206 of the Federal Power Act requires it to remedy any ``unduly discriminatory or preferential'' practice ``affecting [a] rate, charge, or classification'' subject to the jurisdiction of the Commission. After decades of states granting to local utility customers a ``native load'' priority that allows these customers to use utility resources before other customers, thereby ensuring low-cost and reliable service, the FERC in its SMD proposal now finds such a priority unduly discriminatory. This sudden and stunning change of policy by the FERC is a serious threat to retail customers in places that have opted not to risk restructuring of their electric service like my home state of Mississippi.
Section 16023 clarifies that native load priority is not an unduly discriminatory practice, and therefore that the FERC does not have a basis for reaching into the jurisdiction of the states over bundled retail sales and their components. The intent of Congress to strongly differentiate areas of regulatory jurisdiction between states and the FERC is clear and unambiguous. Congress has provided explicit direction to FERC that it should stay out of bundled retail sales and bundled retail transmission service. I hope FERC will get this message and go back to the drawing board with its SMD proposal.
Mr. Chairman, I rise in opposition to this blatantly flawed energy bill. This bill isn't sound policy. It isn't forward thinking. It is a flat-out giveaway to the big energy companies. It puts…
Mr. Chairman, I rise in opposition to this blatantly flawed energy bill. This bill isn't sound policy. It isn't forward thinking. It is a flat-out giveaway to the big energy companies. It puts industry profits ahead of the interests of consumers and the environment.
It's no secret that the President and Republicans have held closed, backroom meetings with their friends in the big oil and gas industry. The result is no surprise. They've crafted an energy policy that promotes fossil fuel consumption above all else. Now, they say they want to free us from dependence on foreign oil. But, oil dependence is exactly what this bill promotes.
Consider the consequences. This bill grants tax cuts to the most polluting industries while providing a pittance for renewable resources, clean technologies and energy efficiency. Solar, wind and geothermal power take a back seat to oil drilling in pristine wilderness areas and off our coasts. This bill will turn the coastal plain of Arctic National Wildlife Refuge into an oil field. It will lift the ban on drilling off California's Coast. I strongly oppose these efforts!
At the same time, Republicans won't raise fuel efficiency standards for gas guzzling SUVs. But, they will cut the royalties the big oil companies have to pay to the American people for drilling on our lands. Republicans will even allow these polluting industries to get out from under paying their share of taxes by moving into tax havens overseas.
Now, for those energy market profiteers, the Republicans leave the door wide open for unfair competition and price manipulation. Clearly, Republicans don't want consumers and small public utilities to pay a fair price for their power. They want to allow the Enrons of the world to skim huge profits while wreaking havoc on the electricity market. Well, we know how well that policy worked in California.
For their final act of irresponsibility, the Republicans want to exempt the cancer causing fuel additive MTBE from product liability protections. MTBE has caused wide spread groundwater contamination and remains a significant public health risk. Yet, if this bill passes, polluters will get off scot-free while the taxpayers get stuck with the high cost of clean up.
I urge my colleagues to take a stand for consumers and the environment and vote no on this bill. It is time Republicans put a long-term, sustainable energy policy ahead of pandering to their short sighted special interests.
Mr. Chairman, I rise in support of the Energy Policy Act of 2003 and congratulate the leaders of all the Committees involved for reporting a comprehensive, balanced energy plan. This legislation will…
Mr. Chairman, I rise in support of the Energy Policy Act of 2003 and congratulate the leaders of all the Committees involved for reporting a comprehensive, balanced energy plan.
This legislation will begin to free our nation from its dependence on foreign sources of energy, a vital priority for America's national security. The more energy we produce within our borders, the more we know we can rely on, no matter what international circumstances arise. The bill also contains provisions to allow lower-income Americans to pay their energy bills. This is a real benefit to real people, right now.
Finally, the increased production of oil in the United States will help lower America's gas prices, which now are too heavily impacted by the actions of other nations. It has been more than a decade since our nation had a comprehensive energy plan, and quiet frankly, if it were up to the Democrat leadership, we still wouldn't have one.
Instead of engaging the debate with an alternative proposal, they complain. They complain about specific measures and complain about our governing philosophy, yet they refuse to offer their own.
Take ANWR. The estimated daily production from ANWR would exceed the currently daily production of any individual state. As our economy grows, even as Americans conserve more energy, our consumption of it will rise. The larger an economy becomes, the more energy it will require. This is common sense. ANWR represents an opportunity to produce billions and billions of barrels of oil. The ANWR provisions in this legislation permit development of only 2,000 acres out of a designated area the size of Delaware!
The bill answers environmental concerns. Recovery projects under this legislation will either respect the health of local fish and wildlife, or they will be shut down.
The facts, then, are clear. Recovering oil from ANWR will help the national economy. It will reduce our dependence on foreign oil, thus improving our national security. It will preserve local fish and wildlife populations and respect the surrounding environment. And in response to these facts, the other side just says ``NO''. No constructive criticism. No alternative proposals. Just obstruction and obstinacy.
The American people deserve an energy policy, and the Republican Congress has an obligation to give them one. They can lecture. We will lead.
Mr. Chairman, I thank the gentlewoman for yielding me this time, and I rise in opposition to the Rahall amendment. Few people realize how significant coal is in the everyday lives of Americans. Only…
Mr. Chairman, I thank the gentlewoman for yielding me this time, and I rise in opposition to the Rahall amendment.
Few people realize how significant coal is in the everyday lives of Americans. Only a small portion of the population appreciates that nearly one-third of the United States' primary energy production is from coal. In addition, domestically produced coal is the most affordable and reliable electricity generation source.
The reason why this is so significant is that an estimated 60 percent of GDP, gross domestic product, is due to enterprises that use electricity as their front-end energy. Without coal, our economy would be about as robust as the Iraqi regime is today.
Credible studies project the United States will need 54 percent more power by 2025, and that power has to come from somewhere. Most experts agree the growth is most likely to come from coal and natural gas that is located on Federal lands. Mr. Chairman, the coal provisions we are discussing here today will help facilitate and expedite this necessary increase in coal production.
For example, by adjusting the existing 160-acre life-of-lease modifications, we will be moving away from regulations that waste coal reserves and which confine the use of modern mining technology and toward a more rational coal policy. In addition, the 40-
year mine-out requirement causes premature closure and results in bypassing nearby coal reserves. This bill gives the Secretary the needed discretion to allow the consolidation of leased coal reserves.
There has been some discussion about fair competition and pricing, and the suggestion has been that somehow we have higher priced coal out of the West. The problem that the people who are mining coal in the East have is that we have abundant supplies that are relatively easy to produce and are being produced at a much lower cost to consumers. So consumers today are the people who are benefiting. The American families are the people who are benefiting from this low-cost coal that this amendment would undermine.
This amendment, if passed, would cause significant increases in electricity for most Americans, or many Americans. So, Mr. Chairman, I urge my colleagues to oppose this amendment.
Mr. Chairman, I thank my colleague from California for yielding me this time and I do want to associate myself with the chairman of the Committee on Energy and Commerce because I also believe we need…
Mr. Chairman, I thank my colleague from California for yielding me this time and I do want to associate myself with the chairman of the Committee on Energy and Commerce because I also believe we need an inventory. However, I am a cosponsor of this amendment for two different reasons. One in particular was addressed in a letter that was sent to the leadership of this body and to the body of the Senate. It has been signed by the Governor of the State of Florida, both United States Senators, and all but one of the members of the Florida delegation.
One of the issues that has not been discussed on the floor this morning, Mr. Chairman, though, is a concern that is shared by the United States military. With the closure of Vieques in Puerto Rico, the United States has been heavily dependent on the 724-square mile testing range at Eglin Air Force Base. It is a complex of land with quite a bit of testing ranges. Also, though, there are 86,500 square miles of water ranges off the coast of Florida that stretches from the panhandle all the way down to the Florida Keys. Drilling in the eastern Gulf of Mexico will generate frequent civilian supply flights as well as create additional maritime traffic in the area. This will in turn prevent much of this airspace from being used for live fire tests of new weapons systems as well as limit the U.S. Navy from conducting carrier battle group flight operations. This long-term mission will be undermined and military training exercises will be hindered if petroleum companies were allowed to explore the area. Now more than ever is absolutely the worst time to hamstring our United States military.
Mr. Chairman, I appreciate the gentleman from California (Mr. Pombo) agreeing to accept this amendment and again I would say that I do support the energy bill, including drilling in ANWR. However, I have for the State of Florida and the other coastal areas a unique interest in this particular amendment.
Congress of the United States,
Washington, DC, April 9, 2003.
Hon. J. Dennis Hastert,
Speaker, House of Representatives, U.S. Capitol, Washington,
Bill Text
Latest available legislative text
[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 794 Introduced in House (IH)]
108th CONGRESS
1st Session
H. R. 794
To amend the Mineral Leasing Act to provide for the development of
Federal coal resources.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 13, 2003
Mrs. Cubin introduced the following bill; which was referred to the
Committee on Resources
_______________________________________________________________________
A BILL
To amend the Mineral Leasing Act to provide for the development of
Federal coal resources.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Coal Leasing Amendments Act of
2003''.
SEC. 2. REPEAL OF THE 160-ACRE LIMITATION FOR COAL LEASES.
Section 3 of the Mineral Leasing Act (30 U.S.C. 203) is amended in
the first sentence by striking ``such lease,'' and all that follows
through the end of the sentence and inserting ``such lease.''.
SEC. 3. MINING PLANS.
Section 2(d)(2) of the Mineral Leasing Act (30 U.S.C. 202a(2)) is
amended--
(1) by inserting ``(A)'' after ``(2)''; and
(2) by adding at the end the following:
``(B) The Secretary may establish a period of more than 40 years if
the Secretary determines that the longer period--
``(i) will ensure the maximum economic recovery of a coal
deposit; or
``(ii) the longer period is in the interest of the orderly,
efficient, or economic development of a coal resource.''.
SEC. 4. PAYMENT OF ADVANCE ROYALTIES UNDER COAL LEASES.
(a) In General.--Section 7(b) of the Mineral Leasing Act of 1920
(30 U.S.C. 207(b)) is amended to read as follows:
``(b)(1) Each lease shall be subjected to the condition of diligent
development and continued operation of the mine or mines, except where
operations under the lease are interrupted by strikes, the elements, or
casualties not attributable to the lessee.
``(2)(A) The Secretary of the Interior, upon determining that the
public interest will be served thereby, may suspend the condition of
continued operation upon the payment of advance royalties.
``(B) Such advance royalties shall be computed based on the average
price for coal sold in the spot market from the same region during the
last month of each applicable continued operation year.
``(C) The aggregate number of years during the initial and any
extended term of any lease for which advance royalties may be accepted
in lieu of the condition of continued operation shall not exceed 20.
``(3) The amount of any production royalty paid for any year shall
be reduced (but not below zero) by the amount of any advance royalties
paid under such lease to the extent that such advance royalties have
not been used to reduce production royalties for a prior year.
``(4) This subsection shall be applicable to any lease or logical
mining unit in existence on the date of the enactment of this paragraph
or issued or approved after such date.
``(5) Nothing in this subsection shall be construed to affect the
requirement contained in the second sentence of subsection (a) relating
to commencement of production at the end of 10 years.''.
(b) Authority To Waive, Suspend, or Reduce Advance Royalties.--
Section 39 of the Mineral Leasing Act (30 U.S.C. 209) is amended by
striking the last sentence.
SEC. 5. ELIMINATION OF DEADLINE FOR SUBMISSION OF COAL LEASE OPERATION
AND RECLAMATION PLAN.
Section 7(c) of the Mineral Leasing Act (30 U.S.C. 207(c)) is
amended by striking ``and not later than three years after a lease is
issued,''.
SEC. 6. AMENDMENTS RELATING TO FINANCIAL ASSURANCES WITH RESPECT TO
BONUS BIDS.
(a) Prohibition on Requiring Surety Bonds.--Section 2(a) of the
Mineral Leasing Act (30 U.S.C. 201(a)) is amended by adding at the end
the following:
``(4) The Secretary shall not require a surety bond or any other
financial assurance to guarantee payment of deferred bonus bid
installments with respect to any coal lease issued based upon a cash
bonus bid.
``(5) Notwithstanding any other provision of law, if the lessee
under a coal lease fails to pay any installment of a deferred cash
bonus bid within 10 days after the Secretary provides written notice
that payment of such installment is past due--
``(A) such lease shall automatically terminate;
``(B) any deferred bonus payments that have not been paid
to the United States with respect to such lease shall no longer
be owed to the United States; and
``(C) any bonus payments already made to the United States
with respect to such lease shall not be returned to the lessee
or credited in any future lease sale.''.
(b) Conforming Amendment.--Section 2(a)(1) of the Mineral Leasing
Act (30 U.S.C. 201(a)(1)) is amended by striking ``Upon default or
cancellation of any coal lease for which bonus payments are due, any
unpaid remainder of the bid shall be immediately payable to the United
States.''.
SEC. 7. INVENTORY REQUIREMENT.
(a) Review of Assessments.--
(1) In general.--The Secretary of the Interior, in
consultation with the Secretary of Agriculture and the
Secretary of Energy, shall review coal assessments and other
available data to identify--
(A) public lands with coal resources;
(B) the extent and nature of any restrictions or
impediments to the development of coal resources on
public lands identified under paragraph (1); and
(C) with respect to areas of such lands for which
sufficient data exists, resources of compliant coal and
supercompliant coal.
(2) Definitions.--For purposes of this subsection--
(A) the term ``compliant coal'' means coal that
contains not less than 1.0 and not more than 1.2 pounds
of sulfur dioxide per million Btu; and
(B) the term ``supercompliant coal'' means coal
that contains less than 1.0 pounds of sulfur dioxide
per million Btu.
(b) Completion and Updating of the Inventory.--The Secretary--
(1) shall complete the inventory under subsection (a) by
not later than 2 years after the date of the enactment of this
Act; and
(2) shall update the inventory as the availability of data
and developments in technology warrant.
(c) Report.--The Secretary shall submit to the Committee on
Resources of the House of Representatives and to the Committee on
Energy and Natural Resources of the Senate and make publicly
available--
(1) a report containing the inventory under this section,
by not later than 2 years after the effective date of this
section; and
(2) each update of such inventory.
SEC. 8. APPLICATION OF AMENDMENTS.
The amendments made by this Act apply with respect to any coal
lease issued before, on, or after the date of the enactment of this
Act.
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