Energy Markets Emergency Act of 2008
Legislative Activity
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Read the second time. Placed on Senate Legislative Calendar under General Orders. Calendar No. 864.
July 8, 2008
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Introduced in House
June 26, 2008
Referred to the House Committee on Agriculture.
June 26, 2008
Mr. Peterson (MN) moved to suspend the rules and pass the bill.
June 26, 2008 • 12:12 PM
Considered under suspension of the rules. (consideration: CR H6103-6110)
June 26, 2008 • 12:13 PM
DEBATE - The House proceeded with forty minutes of debate on H.R. 6377.
June 26, 2008 • 12:13 PM
At the conclusion of debate, the Yeas and Nays were demanded and ordered. Pursuant to the provisions of clause 8, rule XX, the Chair announced that further proceedings on the motion would be postponed.
June 26, 2008 • 1:01 PM
Considered as unfinished business. (consideration: CR H6143-6144)
June 26, 2008 • 5:30 PM
Passed/agreed to in House: On motion to suspend the rules and pass the bill Agreed to by the Yeas and Nays: (2/3 required): 402 - 19 (Roll no. 468).(text: CR H6103-6104)
June 26, 2008 • 5:37 PM
On motion to suspend the rules and pass the bill Agreed to by the Yeas and Nays: (2/3 required): 402 - 19 (Roll no. 468). (text: CR H6103-6104)
June 26, 2008 • 5:37 PM
Motion to reconsider laid on the table Agreed to without objection.
June 26, 2008 • 5:37 PM
Received in the Senate.
June 26, 2008
Read the first time. Placed on Senate Legislative Calendar under Read the First Time.
July 7, 2008
Read the second time. Placed on Senate Legislative Calendar under General Orders. Calendar No. 864.
July 8, 2008
Voting History
1 vote recorded • Roll call available
Floor Debate
22 membersWhat members said about H.R. 6377 on the floor
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Floor Debate
22 membersWhat members said about H.R. 6377 on the floor
Madam Chairman, I rise in support of H.R. 6052, the Saving Energy Through Public Transportation Act of 2008. The purpose of the bill, very simply stated, is to promote energy savings for all…
Madam Chairman, I rise in support of H.R. 6052, the Saving Energy Through Public Transportation Act of 2008.
The purpose of the bill, very simply stated, is to promote energy savings for all Americans by increasing use of public transportation throughout this country, a fact that has been a need, let us say, that has been driven home dramatically by $4 a gallon oil and gasoline prices since Memorial Day, and I thank the Speaker and majority leader for making time for us to bring this bill to the House Floor.
Basic law of economics is that the price of gas is a two-part equation: Supply and demand. Demand is a critical factor in the cost of oil, and decreasing demand is one of the most immediate ways we can attack the high cost of gasoline prices. And our fellow citizens understand this. They are making choices. They have been making choices for several years.
Over the last 3 years, in particular, there has been growth of 1 million new riders a day on public transportation systems across America, for 375 million new transit trips nationwide last year, a total of 10.3 billion transit trips throughout the country.
There was a time when New York City accounted for 60 percent of all transit trips in the United States, but no longer. In the last 3 years, New York's share of transit ridership nationwide has slipped to 38 percent, not because New Yorkers are riding transit less; they are riding more. But more Americans have found their way to public transportation, and increasingly in droves since the skyrocketing price of gasoline.
Transit systems throughout the United States have found every new transit project, every new light rail project has more than tripled its original projections of ridership nationwide.
Innovative cities like Denver under then-Mayor Wellington Webb, said: Ride our transit system free in the center city. Keep your pollution out of the center city. Ride the transit system free. And it has been an enormous boost and benefit to the city of Denver.
I can and I will cite some very specific ridership improvements in my own State. In Minneapolis, the Hiawatha light rail, 20 years in the waiting, finally was constructed; ridership opened, and 9 months later, 10 months ahead of schedule, they achieved their 10 millionth rider. Dramatic improvements.
Seattle, Dallas-Fort Worth, San Francisco all have similar increases in transit ridership. The Charlotte Area Transit System recently opened a new light rail line. They have increased ridership 34 percent from February of last year to February of this year.
CalTran, the commuter rail line that serves the San Francisco Peninsula and Santa Clara Valley, set a record for average weekday ridership in February of this year with a 9.3 percent increase over last year.
The South Florida Regional Transportation Authority, my good friend, the ranking member, the gentleman from Florida (Mr. Mica) knows well, posted a rise of more than 20 percent ridership from Miami, Fort Lauderdale, West Palm Beach in March and April of this year as compared to last year.
Americans are making the choice. They have decided. We need to help them with that choice. And the bill before us will make a huge step in that direction.
This legislation provides substantial support for States and public transportation agencies increasing incentives for computers to make their choice to ride transit: 1.7 billion, 2 years for transit agencies that are reducing transit fares or expanding the services to meet the needs of growing transit commuters. We increase the Federal share for clean fuel and alternative fuel transit bus, ferry, and locomotive related equipment or facilities, helping transit agencies become more fuel efficient.
In fiscal years 2008 and 2009, the increased Federal share for these activities will go from 90 percent to 100 percent of the net capital cost of the project.
We also provide authority to extend the Federal transit pass benefit program which has operated over the past few years on a pilot basis in the National Capital Region and in a few selected areas throughout the country. After evaluating the transit pass program, the U.S. Department of Transportation recommended that it be expanded nationwide. We do that in this legislation. There was an executive order signed by President Clinton in 2000 that launched this initiative. It was supported in the SAFETEA legislation. The 3-year pilot program under our legislation would be substantially expanded nationwide.
The Department of Transportation says that expanding this program will implement their own department recommendation by giving more Federal employees incentives to choose transit options. And we also create a pilot program to allow the funding expended by private providers of public transportation for van pools to acquire the vans to be used as their non-Federal share for matching Federal transit funds in five community pilot projects. Under current law, only public funds can be used as the local match. This pilot program will induce private funds to participate in the van pooling initiative.
I would observe we had a very successful van pooling program in the Minneapolis-St. Paul area in the mid-1980s when companies like 3M, Control Data, and Minneapolis Honeywell bought the vans for their employees and provided a fuel subsidy and encouraged their employees to join together. The vans were full. The program was successful. It cut down on congestion in the greater metropolitan Twin City area, and reduced cost for all of the riders. We should do that nationally, and we provide further authority to make that change and to take that initiative.
There are other provisions in this bill that are important, and I will submit those for the Record, but I want to close this part of my remarks with an observation by Paul Weyrich in a very thoughtful publication, Free Congress Foundation. ``Does Transit Work: A Conservative Reappraisal.'' It begins, ``The first recorded example of mass transportation was the movement of Adam and Eve from the Garden of Eden. At that time, 100 percent of the population was moved at once in a single trip; a record never equaled since.'' Then he says, ``According to most studies of mass transit, it has gone straight downhill from there.''
Well, we are on the way up and we are going to lift mass transit and speed its acceptance and its use by the public with the legislation that we bring before you today.
Toward that purpose, I express my great appreciation to the gentleman from Florida, the ranking member, Mr. Mica, for the partnership he has engaged in with us and for the thoughtful, constructive suggestions he has made every step of the way. I appreciate very much the gentleman's participation.
Madam Chairman, I rise today in strong support of H.R. 6052, the ``Saving Energy
Through Public Transportation Act of 2008''. This bill promotes energy savings for all Americans by increasing public transportation use in the United States.
As gas prices have skyrocketed past $4 per gallon since Memorial Day, everyone is talking about how we need more oil. I thank the Speaker and the Majority Leader for scheduling today's bill, H.R. 6052, so that we can also talk about using less.
Let us all remember the basic law of economics that the price of gas is a two-part equation: supply and demand. Demand is a critical factor in the cost of oil, and decreasing demand is one of the most immediate ways that we can tackle the high cost of gas.
Americans understand this. They are making choices today that are decreasing our global demand for oil. We're seeing record ridership on public transportation all across the country, as well as decreases in the number of miles traveled in cars, SUVs, and pickup trucks. Without doubt, many Americans are making these choices based on the economic hardship caused by the high price of gas. However, in my discussions with constituents in my district and people across the country, Americans are also considering transit alternatives because they're sick and tired of knowing that our great nation imports 60 percent of its oil, much of it from the Persian Gulf.
As a result, across America, public transportation has experienced a renaissance in big cities, suburban communities, and small towns. In 2007, Americans took more than 10.3 billion trips on public transportation, the highest level in 50 years. In the first quarter of 2008, commuters took more than 2.6 billion transit trips nationwide, an increase of 3.3 percent over the first quarter of 2007.
Now that the price of gas has surpassed $4 a gallon, even more commuters are choosing to ride the train or the bus to work rather than drive alone in their cars. Public transit systems in metropolitan areas are reporting increases in ridership of five, ten, and even 15 percent over last year's figures. Light rails saw the largest jump in ridership with a 10 percent increase to 110 million trips in the first quarter. Some of the biggest increases in ridership are occurring in many areas in the South and West where new bus and light rail lines have been built in the last few years.
In Denver, for example, ridership was up eight percent in the first three months of 2008 compared with last year, and Minneapolis, Seattle, Dallas-Fort Worth, and San Francisco all reported similar increases. The Charlotte Area Transit System, which recently opened a new light rail line, has increased ridership more than 34 percent from February 2007 to February 2008. Caltrain, the commuter rail line that serves the San Francisco Peninsula and the Santa Clara Valley, set a record for average weekday ridership in February with a 9.3 percent increase over 2007. The South Florida Regional Transportation Authority, which operates a commuter rail system from Miami to Fort Lauderdale and West Palm Beach, posted a rise of more than 20 percent in ridership in March and April as compared to the same time last year.
Madam Chairman, Americans are proving that riding transit is an easy, immediate, and important part of the solution to decreasing our demand for foreign oil. However, meeting this impressive new demand for public transportation services is no small task for our transit agencies. With these record-breaking numbers of commuters riding transit, many of our nation's transit systems are busting at the seams. In addition, the cost of fuel and power for public transportation providers has sharply increased, compounding costs of serving all of these new transit riders.
Currently, public transportation reduces gas consumption by 1.4 billion gallons a year (3.9 million gallons per day), which equates to more than 33 million barrels of oil. It's equal to 108 million fewer cars filling up year.
Although those fuel savings are incredible, we can do better, and we must.
H.R. 6052 provides much needed support to states and public transportation agencies and also increases incentives for commuters to choose transit options, thereby reducing their transportation-related energy consumption and our nation's reliance on foreign oil.
To increase public transportation use across the United States, H.R. 6052 authorizes $1.7 billion in funding over two years for transit agencies nationwide that are temporarily reducing transit fares or expanding transit services to meet the needs of the growing number of transit commuters. It is important to note that the funds authorized by this bill will be distributed to States and local communities in the same manner as they currently receive Federal transit urban and rural formula funds. However, in an effort to provide transit choices to smaller urban and rural areas, which may not currently have any transit service, this bill specifically increases the relative share of the transit funds that will be going to the rural areas.
H.R. 6052 also increases the Federal share for clean fuel and alternative fuel transit bus, ferry, or locomotive-related equipment or facilities, thereby assisting transit agencies in becoming more fuel efficient. In fiscal years 2008 and 2009, the increased Federal share for these activities is 100 percent of the net capital cost of the project.
H.R. 6052 also extends the Federal transit pass benefits program to require that all Federal agencies offer transit passes to Federal employees throughout the United States. Current law requires that all Federal agencies within the National Capital Region implement a transit pass fringe benefits program and offer employees transit passes.
Data from the Washington Metropolitan Area Transportation Authority covering the first three years of the National Capital Region transit pass program show that more than 15,500 automobiles were eliminated from roads in the Washington, DC area as a result of Federal employees shifting their travel mode away from single occupancy vehicle (``SOV'') use to public transportation use for commuting to work. DOT estimated the energy savings from this mode shift included the reduction of more than eight million gallons of gasoline for each of the three years that they studied. DOT also studied the results of a nationwide pilot program and found that, within the three agencies, 11 percent of the participants shifted their travel mode away from SOV use to public transportation use for commuting to work, again producing marked energy savings.
The Department of Transportation has determined that both the National Capital Region transit benefits program and the nationwide pilot program produce marked energy and emissions savings, congestion reductions, and cleaner air, and recommends that the transit pass benefits program be extended to Federal employees nationwide. This provision will implement the Department's recommendation by providing more Federal employees the incentives to choose transit options, thereby reducing their transportation-related energy consumption and reliance on foreign oil.
H.R. 6052 also creates a pilot program to allow the amount expended by private providers of public transportation by vanpool for the acquisition of vans to be used as the non-Federal share for matching Federal transit funds in five communities. Under current law, only local public funds may be used as local match; this pilot program would allow private funds to be used in limited circumstances. The Department of Transportation will implement and oversee the vanpool pilot projects, and will report back to Congress on the costs, benefits, and efficiencies of the vanpool projects.
Finally, H.R. 6052 increases the Federal share for additional parking facilities at end-of-line fixed guideway stations. This provision increases the total number of transit commuters who will have access to those facilities.
Public transportation use in all of its forms--bus, rail, vanpool, ferry, streetcar, and subways to name a few--saves fuel and reduces our dependence on foreign oil. As such, increasing public transportation use by providing incentives for commuters to choose transit options is a priority of this Congress.
Given the price of gas, Americans are more focused on the costs of commuting than at any time in recent history. And they want choices. We need to provide them. With passage of this bill, we have an opportunity to provide transit choices that will change the way that Americans travel.
The impact of such changes on our nation's dependence on foreign oil would be extraordinary. According to a recent study, if Americans used public transit at the same rate as Europeans--for roughly 10 percent of their daily travel needs--the United States could reduce its dependence on imported oil by more than 40 percent, nearly equal to the 550 million barrels of crude oil that we import from Saudi Arabia each year.
That's the difference this bill can help make.
I strongly support H.R. 6052, the ``Saving Energy Through Public Transportation Act of 2008'', and urge my colleagues to do the same.
Congress of the United States, House of Representatives,
Committee on Oversight and Government Reform,
Washington, DC, June 3, 2008.
Hon. James L. Oberstar,
Chairman, Committee on Transportaiton and Infrastructure,
House of Representatives, Washington, DC.
Dear Chairman Oberstar: I am writing to confirm our mutual
understanding with respect to the consideration of H.R. 6052,
the Saving Energy Through Public Transportation Act of 2008,
which was referred to the Committee on Oversight and
Government Reform on May 14, 2008.
In the interest of expediting consideration of H.R. 6052,
the Oversight Committee will not separately consider this
legislation. The Oversight Committee does so, however, with
the understanding that this does not prejudice the
Committee's jurisdictional interests and prerogatives
regarding this bill or similar legislation.
I respectfully request your support for the appointment of
outside conferees from the
Oversight Committee should H.R. 6052 or a similar Senate bill
be considered in conference with the Senate. I also request
that you include our exchange of letters on this matter in
the Committee on Transportation and Infrastructure Report on
H.R. 6052 or in the Congressional Record during consideration
of this legislation on the House floor.
Thank you for your attention to these matters.
Sincerely,
Henry A. Waxman,
Chairman.
House of Representatives, Committee on Transportation and
Infrastructure,
Washington, DC, June 3, 2008.
Hon. Henry A. Waxman,
Chairman, Committee on Oversight and Government Reform, House
of Representatives, Washington, DC.
Dear Chairman Waxman: I write to you regarding H.R. 6052,
the ``Saving Energy through Public Transportation Act of
2008''.
I appreciate your willingness to waive rights to further
consideration of H.R. 6052, notwithstanding the
jurisdictional interest of the Committee on Oversight and
Government Reform. Of course, this waiver does not prejudice
any further jurisdictional claims by your Committee over this
legislation or similar language. Furthermore, I agree to
support your request for appointment of conferees from the
Committee on Oversight and Government Reform if a conference
is held on this matter.
This exchange of letters will be placed in the Committee
report and inserted in the Congressional Record as part of
the consideration of H.R. 6052 on the House floor. Thank you
for the cooperative spirit in which you have worked regarding
this matter and others between our respective committees.
I look forward to working with you as we prepare to pass
this important legislation.
Sincerely,
James L. Oberstar, M.C.
Chairman.
I reserve the balance of my time.
Madam Chairman, I yield myself 15 seconds to just remind my good friend that the bill before us is not ANWR or the other subjects. It is about moving people more efficiently with lower costs and lower energy consumption. I think we do ourselves service by sticking to the subject matter at hand.
I yield 3 minutes to the gentleman from Oregon (Mr. DeFazio) who as chair of the Surface Subcommittee has held 22 hearings on the future of transportation in America and has done a superb service for the Nation.
Madam Chairman, I yield 3 minutes to the distinguished Chair of the Subcommittee on FEMA and Economic Development and other related subjects, the distinguished gentlewoman from the District of Columbia (Ms. Norton).
Madam Chairman, I yield myself 1 minute.
The gentleman made a thoughtful observation, and I'm sure the gentleman is aware that there already is a tax exemption in Federal code for private sector employers and employees. But that doesn't apply to the Federal government or to other governmental agencies because they don't have a tax. So the transit benefit for Federal employees is a matter that we could do within the context of the current bill.
In the longer term, next year, when we consider the longer-term authorization, the gentleman's suggestion would be an appropriate matter for consideration. We will have better figures which we're requesting now from public agencies for those matters.
I yield to the gentleman.
I wish we could have, too, but we didn't have good numbers to see what those costs might be.
Madam Chairman, I yield 2 minutes to the gentlewoman from California (Ms. Woolsey), a representative of the beautiful Sonoma Valley.
How much time remains on both sides, Madam Chairman?
I yield 3 minutes to the distinguished gentleman from Oregon, a long-time proponent of and advocate for and practitioner of public transportation, a man who saves 8 barrels of oil a year by consuming 86,000 calories on his bike.
We have several speakers, Madam Chairman, who have not arrived yet, and does the gentleman from Florida have other speakers?
If the gentleman will yield back the balance of his time, we will yield the balance of our time.
We do have a speaker on the transit subject, and I'm very
pleased to yield 1 minute to the distinguished gentleman from Rhode Island (Mr. Kennedy).
Madam Chairman, I yield 1 minute to the distinguished majority leader, Mr. Hoyer, with great appreciation, and thank him for making it possible for us to bring this bill to the floor today.
Madam Chairman, I yield 3 minutes to the distinguished gentleman from Massachusetts (Mr. Olver).
Madam Chairman, I yield to the distinguished gentlewoman from Texas (Ms. Jackson-Lee) 2 minutes.
Madam Chairman, I yield myself the balance of my time.
I listened with great interest to the gentleman's ruminations on a wide range of subjects. I won't comment on those that reach beyond the subject matter at hand, our transit bill. I do reaffirm my appreciation for his partnership in bringing this bill to the floor.
This is an important piece of legislation. In the larger scheme of the billions of dollars, $125 billion a year, that we need to be investing in all levels of government in our surface transportation system, this $1.7 billion is a relatively small step, but it moves us in the direction of a mode shift in transportation to 10 percent of all trips by transit. If we made just that little step in America, we would save the equivalent of all the oil we import from Saudi Arabia. That is what we can do. It's within our grasp now. We don't need a research program. We don't need a man-on-the-moon program. We just need the funding to invest in what is already at hand: solid, responsible, reliable, effective transportation systems for the public to use instead of getting in their private vehicle.
Had the administration in 2003 concurred in a $375 billion transportation program for the next 6 years, as its own Department of Transportation recommended, and as Mr. Young, then-chairman of the committee, and I introduced, we would have been far better positioned today than we are now.
Instead, that administration proposed only a $5.5 billion funding flat out over the 6 years for transit. We wound up with $10 billion in the SAFETEA legislation over the 5 years of the legislation. But we have to do far better than that, and this bill moves us in the right direction.
Madam Chairman, I have an amendment at the desk.
I yield myself such time as I may consume.
The amendment clarifies that transit agencies may use these new grants to offset the increased cost of fuel to transit agencies. Every penny additional to the cost of diesel and gasoline fuel, public transportation faces a cost of $7.6 million.
The amendment clarifies that intercity bus service is an eligible activity under the bill. The intercity bus provision was included in the version of the bill that passed the House last year, but through a drafting error, was left out when we reintroduced it. We correct that mistake.
Many transit agencies, rural and small urban centers alike, contract with intercity bus providers for more mobility. So it's important that these services are eligible for the new grants created by this bill.
We clarify that transit agencies may use the new transit grants to offset the increased cost of maintenance as they struggle to cope with recordbreaking ridership increases. I have been to transit agency maintenance centers and found very skilled workmen welding new pieces of steel in the support structures of buses that have rusted out over years of use.
Transit buses are now, on average, 12 to 14 years. They should be replacing them every 7 to 8 years. We are seeing a million miles of ridership on a bus a year. They need to upgrade and improve and continue their maintenance.
Many transit agencies are reporting surges in ridership and, at the same time, difficulty maintaining existing services because of higher fuel prices. So we are providing funding to all those transit agencies to respond to their current needs.
I want to thank several of our colleagues for agreeing to have their amendments incorporated into the manager's amendment to expedite consideration of the bill: The gentleman from Vermont (Mr. Welch) whose amendment helps transit fleets become more fuel efficient by providing more funding for clean fuel or alternative fuel vehicle-related equipment or facilities; the gentleman from Oregon (Mr. Blumenauer) whose amendment creates a national consumer awareness program to educate the public on environmental, energy, and economic benefits of public transportation; and the Jackson-Lee amendment that clarifies that public transportation stakeholders should engage and involve local communities in the education and promotion of public transportation.
I reserve the balance of my time.
I have no further speakers on this amendment, and I yield back the balance of my time.
Would the gentleman from Florida yield a minute of his time?
I thank the gentleman for yielding.
I do so simply to express my support for the amendment, on which Mr. Mica and I have agreed, but also to point out that in the body of the bill there are protections and safeguards for the proper use of the transit pass authority provided in the additional funding increase in the monthly limit for the transit benefit. There have been reports of abuse of transit passes in the past year. An investigation by the Office of Inspector General revealed that there are some abuses.
We have provided protection against such abuses in the base of the bill underlying this legislation. I wanted to point that out for those who may have been concerned to assure that the committee has taken appropriate steps to assure that transit passes are used by the person for whom intended and for the purpose for which intended.
I ask unanimous consent to claim time in opposition to the amendment, though I do not intend to oppose it.
First, a point of order, Madam Chairman.
I observed the gentlewoman from North Carolina (Ms. Foxx) ask unanimous consent to include an article in the Record. That request must be made in the House under the rules of procedure, not in the Committee of the Whole.
I have no objection to it, but I just want the procedure to be proper.
The amendment offered by the gentleman from Washington was very thoughtfully expressed and explained, and I commend the gentleman on his statement, very thoughtfully done, to increase the Federal share for parking facilities that serve commuter bus routes.
The Transportation Research Board has addressed this issue and evaluated the accessibility of transit services to suburban commuters, and they have found that acceptance and use of transit services are clearly influenced by the availability, convenience, and cost of commuter parking at transit stations and park-and-ride lots, quoting from the report.
States that have successful long-distance suburban-to-central business district commuter bus operations found that increasing the use of commuter bus services and park-and-ride facilities is directly influenced by the availability of those park-and-ride services.
Increasing the Federal share to 100 percent would create additional incentives for transit systems to build more of these facilities to serve the communities, and I really appreciate the initiative of the gentleman.
In his reference to Microsoft, I know that Microsoft in past years has purchased in the range of 13,000 fares a year for its employees to ride the Sounder and other transit options in Seattle. It is very commendable of a company to engage in that kind of service to its workers, to encourage them to get to work in a better frame of mind, to help the environment, and to serve the public need.
I reserve the balance of my time.
I yield such time as he may consume to the gentleman from Oregon (Mr. Blumenauer).
If the gentleman would yield.
The gentleman is an alumnus of the Committee on Transportation and Infrastructure, a refugee who has been taken in by the Ways and Means Committee; and he will be most welcomed at further hearings of the Surface Transportation Subcommittee to elaborate on this very thoughtful proposal that he has set forth. We welcome that contribution as we shape the next transportation legislation.
I rise in support of the amendment which I am certain arises out of the experience of the New Hampshire Department of Transportation which has a program helping commuters find alternatives to riding alone. The State of North Carolina has created RIDE NC to do the same thing.
I just want to observe that this bill pending before the House now is the 110th bill reported from the Committee on Transportation and Infrastructure to the House, 110th bill in the 110th Congress. We have completed action on 63 bills and resolutions including 29 bills enacted into law; in addition to that, eight concurrent resolutions and 26 House resolutions. That's a remarkable record of bipartisan participation for which I express my appreciation to the gentleman from Florida. On all of these, we've had bipartisan support.
I object.
Mr. Speaker, I rise in opposition to the motion.
Yes, in its present form.
Mr. Speaker, I ask unanimous consent, in the introductory paragraph of the motion, to strike the word ``promptly'' and substitute therefor the word ``forthwith.''
I ask unanimous consent.
I made a unanimous consent request dealing with the motion of the gentleman, not the extraneous items the gentleman has now proposed.
If the gentleman is serious about his motion to recommit, we're serious about accepting it where it's forthwith and bringing that language immediately back to the House.
Did the gentleman object? I could not hear.
Then the gentleman is not serious about this motion, and this is a sham motion.
Under the language ``promptly,'' we would not be able to consider this legislation again until well after the 4th of July recess of the Congress, which the gentleman fully understands.
The substance of the motion is well-intentioned. However, under title 23 and title 49 of the U.S. Transportation Code, school buses are specifically not eligible for public funds out of the Highway Trust Fund, nor would they be under the provisions of the bill that is before us.
Since the gentleman from Oregon objects to accepting his language and making that change in Federal law to make school buses eligible, then I would suggest that he come back to the committee at an appropriate time, we're going to continue hearings--we've had 22 hearings already in the Surface Transportation Subcommittee last year and this year on the future of transportation--and make the case for such a provision to be included in the authorization that we will have next year. We would certainly be delighted to hear the gentleman's case for this provision and to perfect it. But as it stands, this ``promptly'' simply kills the transit expansion funding that we provide in the underlying bill.
Therefore, because the gentleman objected to my unanimous consent request, I say the motion is not offered in good faith, not offered with good intentions. It is a sham motion, and we should defeat it.
Mr. Speaker, I yield back the balance of my time.
Madam Chairman, I yield myself such time as I may consume. Madam Chairman, I want to thank our chair of the Transportation and Infrastructure Committee, my Democrat counterpart, Mr. Oberstar, for his…
Madam Chairman, I yield myself such time as I may consume.
Madam Chairman, I want to thank our chair of the Transportation and Infrastructure Committee, my Democrat counterpart, Mr. Oberstar, for his work on this piece of legislation that does deal with some of the issues that we are facing right now and follows some of the discussions that we have had on the floor relating to energy and energy conservation.
The Transportation and Infrastructure Committee has a very small piece of the puzzle, but it is nonetheless an important piece and we have tried to exercise our jurisdictional responsibility in coming forth with this, again, small piece of the puzzle.
This bill does provide for expansion of some of the transit grants around the country, and I think that there are some beneficial provisions for those in rural areas, suburban areas, and for much of the public that relies on public transportation.
This bill further does allow sort of an unprecedented ability to use some of the money traditionally used for projects to assist some of the local transit authorities that are suffering now with high fuel costs. Just like the average family is suffering with high fuel costs, transit agencies have also experienced the same problem. They are cutting back on services, sometimes when people really need to have an option and don't have that option, by cutting out routes, and that has been announced even in my area. So I think we are doing a responsible thing.
This is a 2-year authorization. It is an expansion of the authorization of $1.7 billion that does give some of the folks on my side some hiccups, but it is authorization, it is not appropriation and each Member is going to have to judge their support or opposition based on the final product. But I have joined Chairman Oberstar in support of this authorizing bill. I think again it fills our small piece of the puzzle.
I did want to take just a minute or two, I didn't get a chance to speak on the rule or on the energy legislation that was before the House earlier, and there was quite a bit of banter. And some people were bashing the President and this administration for not having a plan. In fact, someone said he didn't recall a plan, which is kind of funny.
I am very fortunate to have outstanding staff, but this summer I also have some outstanding interns. They come from all over the country to Congress, and I have gotten some from my district and elsewhere. So you have a little more staff to do research rather than just keep on the track that we are on here every day. I said wasn't there a Bush plan? And all be darned, there was a Bush energy plan. So I had a little research done on that.
Lo and behold, very shortly into his term, it was May 17, 2001, the President of the United States, George Bush, just a few months into office, he set two major priorities, one being education. You remember on 9/11 he was in a Florida classroom talking about his plan to improve education. But even before that, in May as one of his first priorities, he announced his plan. He announced his plan actually in the home State of the chairman, in St. Paul, Minnesota. On that day when he announced it he said, ``If we fail to act, our country will become more reliant on foreign crude oil, putting our national energy security into the hands of foreign nations, some of whom do not share our interests.''
On that same day when he announced his plan, he said regarding part of his plan, ``We will underwrite research and development into energy- saving technology. It'll require manufacturers to build more energy- efficient appliances. We will review and remove obstacles that prevent business from investing in energy-efficient technologies.''
Furthermore, President Bush said, ``The second part of our energy plan will be to expand and diversify our Nation's energy supplies. America today imports,'' and now this is May of 2001, ``America today imports 52 percent of all of our oil. If we don't take action, those imports will only grow. As long as cars and trucks run on gasoline, we will need oil, and we should produce more of it at home.''
The President called for burning coal more cleanly, expanding nuclear power, and drilling for new oil in new places, that included the Arctic area in Alaska. The President said that is banned now, but the President said it can be done safely.
Listen to this one. This is the President in St. Paul. ``ANWR can produce 600,000 barrels of oil a day for the next 40 years. What difference does 600,000 barrels a day make? Well, that happens to be exactly the amount we import from Saddam Hussein's Iraq. We're not just short of oil; we're short of the refineries that turn oil into fuel. So while the rest of our economy is functioning at 82 percent of capacity, our refineries are gasping at 96 percent of capacity.''
That was part of the President's plan, and how prophetic could you be. This was before 9/11. This was in May of 2001, announcing his plan.
I can't take up all of the time, but I have Mr. Gephardt's response: Congress will take action to stop them. Mr. Kerry vowed to filibuster, and the Sierra Club is already running ads against it. Those were some of the responses.
It is interesting how quickly we forget that there have been plans, and those plans could have made a big difference.
Here today we are trying in a bipartisan fashion to make a small difference to give some of our Federal employees outside the Capital Beltway the opportunity to have the same transit advantages and payments that we give within the Beltway to Federal employees outside, expand some of the grants for transit, and also help some of those transit operations that are suffering like the American family is with cutbacks because of high fuel costs.
I reserve the balance of my time.
Madam Speaker, I would like to yield to the distinguished gentleman from Indiana (Mr. Burton) 2\1/2\ minutes.
Madam Chairman, I yield 1 additional minute.
Madam Chairman, I am pleased to yield 3 minutes to the distinguished gentleman from Illinois (Mr. Kirk).
I am pleased to yield 2 minutes to a distinguished member of the T&I Committee, the gentleman from beautiful southwest Louisiana (Mr. Boustany).
Madam Chairman, I reserve the balance of my time at this time.
Madam Chairman, I'm in the same situation that the gentleman from Minnesota is.
I yield myself such time as I may consume.
Well, again, I have to compliment Mr. Oberstar, and folks have to look at what we're doing here this afternoon. This is the Transportation and Infrastructure Committee. We can't solve all the energy issues. We have a very small piece, and we're trying to take care of that small piece here today.
We don't get into some of the other issues that have been raised, but I must say that I'm going to be going back to Florida tomorrow, and I'll be talking to folks. And you know, it doesn't take you long to talk to folks at home and have them get your attention. And they are getting our attention by saying, what are you doing about $4 a gallon gasoline, what are you doing about energy costs that are soaring, what are you doing about the price of food and other things that are being affected by energy costs.
The people who are on a limited income, God bless them. I don't know how they're making it, or a fixed income, with the prices that they see both at the pump, at the store, in their lives. They want answers.
I'm sorry that some of the other committees are not acting and the Congress is not acting like the Transportation and Infrastructure Committee, because when I go home I have to tell them that how things are left in their Congress was that we took care of a small piece. We provided transit grants for those Federal employees working outside of the Beltway. We provided additional grants through eight transit companies who are hurting because of increased fuel costs and trying to expand transit service that people are becoming reliant on now because of the high cost of fuel. But I can't tell them that I've done anything about supply, that, again, the supply has been cut off.
I even agree with the child that's crying in the gallery. People are not happy about this. They want a response from this Congress, and this Congress has the ability to act to increase the supplies so we're not reliant on reliable friends like Venezuela, the sheiks and leaders in the Middle East, and that dependable source of energy, Nigeria.
Folks, that isn't going to cut it for an answer when we get home, and this isn't complicated. It's a question of Economics 101. This is a question of supply and demand. Right now, in the short-term, we need to increase supply. If we had worked together over the past 7 years from that introduction by President Bush some 7 years ago, one of his first plans--and I cited his rollout statements, and let me just read also what he said on May 17.
President Bush said: ``Too often, Americans are asked to take sides between energy production and environmental protection--as if people who revere the Alaska wilderness do not also care about America's energy future; as if the people who produce America's energy do not care about the planet their children will inherit. The truth is energy production and environmental protection are not competing priorities. They're dual aspects of a single purpose--to live well and wisely upon the earth. Just as we need a new tone in Washington, we also need a new tone in discussing energy in the environment, one that is less suspicious, less punitive, less rancorous. We've yelled at each other enough. Now it's time to listen to each other and act.''
Again, these are the words of our President before 9/11 on the energy issue.
You know, again, if you want to look at the Record, and I will be glad to submit for the Record how many Republicans and how many Democrats opposed each of the proposals, all that's history, folks. What the American people want is now us to act as the President said 7 years ago.
So, today, Mr. Oberstar and I don't bring an answer to the whole energy problem. We bring our little piece. We ask the rest of the Congress, I ask the rest of the Congress, to come forth and to act, and that needs to be done because when we get home, those people are going to ask you, what did you do about the high cost of energy, the high cost of food, the businesses that are closing, the lives that are being impacted by high energy costs, and we need to be able to give them an answer.
I reserve the balance of my time.
Madam Chairman, I continue to reserve.
Madam Chairman, may I inquire as to the remaining time?
Madam Chairman, I continue to reserve the balance of my time.
Madam Chairman, I yield myself the balance of my time.
Again, this is an important debate. It's a little piece of the big national debate that's going on now. Mr. Oberstar and I lead the Transportation and Infrastructure Committee. We came forward with this measure. This measure is within our jurisdiction, as I said earlier, and it is just a small piece of the puzzle.
Many Members come to me on my side of the aisle and ask me how I am going to vote, and I am going to support this legislation. It does increase the authorization. That's a fairly substantial piece of change by any estimate, $1.7 billion over 2 years, and it does make some significant changes in policy, in opening up authorization to spend money to help transit companies and agencies that are suffering like the American public is suffering with high fuel costs, and I think that's a good thing. It expands some services for mass transit, which is also a good thing. And it also expands from just within the beltway to other Federal employees the benefits of using public transportation, and that's a good thing too.
This is general debate, and we have gotten into general debate, and I have heard the distinguished majority leader speak and he quoted George Soros. I don't use him as a quote too much or rely on him for my opinion seeking, but I did just happen to have some sources that quote the American public and their opinion.
The Los Angeles Times Bloomberg Poll said when all registered voters are asked whether they support increased exploration for oil and natural gas, 68 percent respond in the affirmative, and that was just within the last 2 days. Rasmussen reports, according to them, 67 percent of the American people support oil drilling off the Nation's coasts and 64 percent think it will lower gas prices. Now, they seem to get it. The other committees with jurisdiction and the rest of Congress don't seem to get it.
Now, don't tell me you can't do it. I mean this is an incredible institution
and can do anything. We represent the greatest ingenuity, the greatest people that ever walked the face of the Earth. God blessed this Nation so much, and we are the custodians of coming here and doing things.
Now, Mr. Oberstar and I on a Monday introduced a piece of legislation. We worked together on it, and within the same week on a Thursday night, we had the President of the United States at 7 o'clock at night sign the legislation as is. So we can do these things that the American people want.
Now, 1 week from tomorrow, people are going to try to celebrate Independence Day in this great country, this great country for which so many people made so many sacrifices, and I have to go back home and tell them I increased transit grants for Federal employees outside the beltway and I also helped transit agencies who are suffering like they are to pay their fuel bill, but I don't have an answer for them. That's not what they want to hear, folks. This is the Congress of the United States, and we can and we must do better.
I have been here going on my 16th year, not as long as Mr. Oberstar. He knows transportation inside and out and he's an expert renowned on a whole host of issues, but the good thing about being here just half as long as he is that you hear some of these things.
First, we're going to solve this problem; we'll tax it. So what do they do? They say, windfall taxes for the oil companies that are taking advantage. Windfall taxes, that's it. So first we'll tax it.
Well, that didn't work. People come up to me, did you ever hear of a time when you tax something and the price goes down for consumers? Duh. Well, that didn't work.
So now there's speculation; so we'll get 'em. We'll regulate. We're going to regulate those speculators. That'll take care of it.
Madam Chairman, may I inquire as to how much time I have left.
Oh, good. So I can tell this story, Madam Chairman.
This reminds me of sitting on a committee coming here, and this took over some time. We always hear about high drug prices, and I sat on the committee, and everyone was railing about the price of vaccination drugs. So we dragged in the drug companies to sit them down, and I remember this guy who represented a drug company, and this was an investigative hearing. And he showed a little vial, and he said, this vial of vaccine, this medicine, only costs about $2 to produce. So we hammered him. It only cost $2 to produce, but he said that the liability on it was reaching $30, so $30 and increasing.
So then we dragged in the insurance company. ``You're charging them $30 for this vaccine?'' We hammered them. So they left.
And then the next thing we knew was we weren't producing any vaccine in the United States because no one would insure it. So the next hearing we held--remember this, now, folks--the next hearing we held was on its now being produced in Great Britain and we had some bad batches. Well, we hadn't sent enough FDA inspectors over to inspects the batches there.
Folks, these aren't the answers: additional taxation, additional regulation, chasing business off our shores. And the same thing isn't going to happen with energy. The American people get it. I just read the poll. It doesn't take a lot, folks. They know if you increase the supply, the price will go down. And we have the capability of doing that. We built the Alaska pipeline in 3 years.
Next Friday is Independence Day. It's going to be a sad Independence Day because instead of America's being independent, we will be dependent on energy. That's affecting all of us, and it's not right.
Madam Chairman, I yield back the balance of my time.
Madam Chairman, I claim the time in opposition.
I claim the time in opposition, but I do rise in support of the manager's amendment. I particularly find most attractive in this measure the provision that would allow grant funding to subsidize increased full costs for some of our transit systems in the country.
My support is not based on some lobbyist from a transit agency in New York or Washington or Orlando. My support is based on probably a little lady whose face I have never seen, but she wrote me and said, Mr. Mica, she said, They are going to cut one of the routes and I have no other way to get to work, and I am a constituent in your district. They are going to cut off those routes because of the higher fuel cost.
So the reason I support this is because someone in my district is being dramatically affected. It may not be a big deal here in Congress, but I can assure you in that lady's life, if she can't get to work and make a living, it's a big deal to her. So that is why I support this manager's amendment and this bill.
I yield back the balance of my time.
I yield myself 1 minute.
I rise in support of the amendment offered by the gentleman from Virginia (Mr. Davis) and the gentleman from Massachusetts (Mr. McGovern). As has been explained, this does provide the Federal employee transportation benefit program, which has been so successful, is expanded in its usage, and for that, I think that our side agrees, and this is a bipartisan amendment and has our full support.
On behalf of Mr. Davis, I urge adoption of that.
I reserve the balance of our time.
May I inquire as to how much time we have.
I am pleased to yield 2 minutes to the gentleman from Minnesota.
Let me say that the only problem that I have with this amendment as offered from my colleague from Florida is the amendment does not go far enough in correcting or addressing all of the problems caused by section 526 of the energy bill that prohibits the Federal Government from using coal derived, oil shale and other non-petroleum- based alternative fuels regardless of existing procurement rules or what is actually cost efficient or practical.
I am not going to vote against his amendment, but I do have some concerns I wanted to express against the amendment.
Madam Chairman, I reserve the balance of my time.
Madam Chairman, I yield 30 seconds to the gentleman from Oregon (Mr. Blumenauer).
I yield myself such time as I may consume just to point out, again, I am not going to object. I have concerns. I would like to have gone further.
Madam Chairman, I yield 2\1/2\ minutes to the gentlewoman from North Carolina (Ms. Foxx).
I thank the gentleman so much, that we have a distinguished member of our Transportation and Infrastructure Committee offering this well thought out amendment. It is going to clearly provide availability, convenience, and assist the cost of making eligible again these bus end-of-the-line parking facilities. Well thought out. There was a gap here, and I am glad the gentleman from Washington filled that so adequately, and we support the amendment.
Madam Chairman, I would like to ask unanimous consent to claim the time in opposition, although I am not in opposition.
Madam Chairman, we are pleased to support the gentleman from New Hampshire's amendment. And it will also, I think, encourage commuters to find other ways other than single occupancy vehicles to get to and from work. He has the support of the American Association of Commuter Transportation.
Again, it is a small piece in the larger puzzle. We only have jurisdiction, as I said earlier, over transportation issues; we can't resolve all the other problems we have with energy. But I commend the gentleman, and our side supports the amendment and urges its adoption.
I reserve the balance of my time.
Madam Chairman, I yield myself the balance of my time.
I don't want to take the time, but we are concluding debate on this amendment, the Hodes amendment. I urge its adoption. I urge those who feel it is appropriate to support the measure, as I said it does have an increased authorization, not appropriation, of $1.7 billion. It does expand some of the transit grants to transit agencies that are hurting across the country. It does expand the transit benefits that are now restricted to those within the Beltway to Federal employees outside.
It does not solve the problem. It is a small piece of the solution, and I have been pleased to work with Mr. Oberstar in a bipartisan fashion to do our small part.
I must conclude, however, by saying that the House and the Congress can do a better job. My side of the aisle does not control the Congress this time. We have heard that there is a larger energy plan. We need to bring that energy plan forward.
I didn't have the time that the majority leader had in his remarks, and this isn't a blame game situation nor should it be. People are suffering in this country with $4-plus a gallon gas. I just saw this $5.25, which must be from California. That's not why our constituents sent us here. They sent us here to solve problems. In the same bipartisan spirit that Mr. Oberstar and I are bringing forward this little piece, we need a much larger piece.
A week from tomorrow is Independence Day, and that is a day we should be celebrating, not lamenting that we are not independent of foreign oil. We can work our way out of this. We can't tax our way out, we can't regulate our way out, but we have the means of moving forward and increasing the supply and lowering the price for the American people. We haven't done this, this Congress hasn't done this, and I am sorry that I have that to report at the end of my remarks, both in favor of the Hodes amendment and in favor of this legislation.
I yield back the balance of my time.
Madam Speaker, I just wanted to start out by saying that I know that I can't talk directly to the American people, but I hope that if anyone is out there listening that they would listen to my…
Madam Speaker, I just wanted to start out by saying that I know that I can't talk directly to the American people, but I hope that if anyone is out there listening that they would listen to my comments that I make to you.
Madam Speaker, I guess about 2 weeks ago probably I started getting some phone calls about different petitions on the Internet and other places about the prospects of America becoming more energy independent, that we would not be dependent on foreign oil sources, and that we would be able to use our own natural resources to meet our energy needs.
And people began to ask if I had gone and signed them or had seen them. One was on americansolutions.com, which offered to increase domestic oil drilling. There was one about a gas holiday. There were several about developing alternative energy sources. But there were some interesting petitions against drilling by Democratic Senator Ms. Boxer, the Sierra Club and Greenpeace.
As I walked into a service station in my district, there was a petition on the counter, Madam Speaker, that said: Sign here if you want to let your representatives know that you're for lowering gas prices. And I'm assuming that the proprietor of that station had it there to keep people from talking bad to him about the price that was on his pump.
But what I decided after looking at all these different petitions is that I would come up with a petition so the American people could understand where their representative was at. We know where our constituents are. I think on the American Solutions petition they are at like 1.7 million people. So we can kind of understand where the American people are at. They want us to be independent. They want us to increase our U.S. oil production.
So what I decided to do was come up with a petition, and what this petition says is: American energy solutions for lower gas prices. Bring onshore oil online; bring deepwater oil online; and bring new refineries on online. Realize, we have not built a refinery in this country since the late 1970s.
And you may not realize this, because we're always talking about crude oil, but you might not realize that the United States imports 6.2 billion gallons of gas and 4.6 billion gallons of diesel every year. We import these from the United Kingdom, U.S. Virgin Islands, France, Canada, Netherlands, Norway--which, by the way, Norway is now the third largest exporter of crude oil, and back in 1965 they were energy dependent on foreign oil and they decided that they would open up to drilling in the North Sea. They are now the third largest exporter of crude oil. But we import refined gas from them--Germany, Russia, Italy, and of course the OPEC countries, which don't even really have that much refining capacity, Madam Speaker, but yet we buy refined gas from them.
So I got a petition, I've had it over here on the wall, Madam Speaker, for probably about 2 weeks now. There are 435 spaces for the Members, and then there are seven spaces for the delegates from the U.S. territories. And I'm happy to say that we've had 191 signatures. Now, this may be too simple for some people because all it says is, ``I will vote to increase U.S. oil production to lower gas prices for Americans.'' And so we need your help, Madam Speaker. We need you to sign. I don't think you're on it, Madam Speaker.
But we've got a Web site, and it's our Web site at house.gov/ westmoreland. And on there we have everybody that has signed, and we have everybody that we've talked to that said they would not sign. So we've got two columns, we've got a signers and a non-signers. And then also, just to let you know, we have notified every office here at least once, we will do it again next week. And some people said have, well, Congressman, they ask me how long have you been working on this? And I say, well, about almost 2 weeks. Well, how come you only have 191 signatures? Well, Madam Speaker, I'd ask people that ask me that question, Sunday, when they're at church, try to talk to 450 people on a Sunday, it's almost hard to do, especially when you get in different conversations with folks. So if you want to understand, house.gov/ westmoreland, Madam Speaker, that's where somebody would go if they wanted to see where their Congressman was at on this simple petition that basically just says, ``I will vote to increase U.S. oil production to lower gas prices for Americans.''
I would like to yield some time to my friend from Indiana.
I want to thank my friend from Indiana. And I want to get 300 signatures because I would like for the American people to know that way more than just a simple majority is behind them for making sure that, not necessarily those of us that are our age, but our children and our grandchildren will not have to go through the things that we're going through today. Because in 1995, this Congress passed drilling in ANWR and President Clinton vetoed it. And by all estimates today, 13 years later, we would be getting one million barrels of oil a day.
And as Senator Schumer said over in the Senate about 2 weeks ago, if we could get OPEC to increase oil production by one million barrels a day, it would lower the price of gas 50 cents a gallon just like that.
We don't need to be sending our President over to foreign countries-- and especially those that are not that friendly to us--with hat in hand on bended knee asking them to use more of their natural resources to provide us with oil when we won't use our own natural resources.
In talking about that, because this is the one thing that gets people fired up, Madam Speaker, and really gets those lines hot, that they want to find out if their Congressman has signed this very simple one sentence, is that it says, ``In a recent interview on al Jazeera, Chavez''--now this is Hugo Chavez from Venezuela--``Chavez called for developing nations to unite against U.S. political and economic policies. What can we do regarding the imperialist power of the United States? We have no choice but to unite,'' he said. ``Venezuela's energy alliances with nations such as Cuba, which receives cheap oil, are an example of how we use oil in our war against neoliberalism,'' he said. Then there was another date, on March 15, 2005, in the Washington Post, Mr. Chavez says, ``We have invaded the United States, but with our oil.''
Now, that would make your blood kind of boil, Madam Speaker, but this is what really gets people off is the fact that every day American families and businesses in this country write Hugo Chavez a check for $170 million. That $170 million could be going to our country. It could be going to provide energy independence. It could be going to provide jobs and build an industry, put into infrastructure; $170 million a day to Mr. Chavez.
Now, what we've been doing this week with the Democratic majority-- and let me remind you, Madam Speaker, that it was back in April of 2006 that then Minority Leader Nancy Pelosi made a statement, and she said, ``Democrats have a commonsense plan to bring down the skyrocketing price of gas.'' And at the time it was about $2.06 a gallon. We are waiting on that commonsense plan to be unveiled. We're waiting on it. And we heard that there were going to be about four energy bills this week. And Madam Speaker, the energy bills that were brought out this week was kind of like putting lipstick on a pig.
H.R. 6377, the speculation bill, this is what it says, ``to direct the Commodity Futures Trading Commission to utilize all its authority.'' In other words, we passed something that's already existing law. That's what we did, we passed something that was already existing law.
I want to read to you what happened in some quotes from H.R. 6. H.R. 6, Madam Speaker, was a bill that the new majority passed in January--I believe it was January 18, 2007--shortly after taking over, after they had promised the American people that they were going to lower gas prices. And I do want to read this one quote before I start reading these others. This is from Paul Kanjorski, and this was about 2 weeks ago. It said, ``A man was trying to question Mr. Kanjorski about his remarks that Democrats had overpromised during the 2006 congressional elections by implying that they could end the war if they controlled Congress.''
``Now, anybody who is a good student of government would know that that wasn't true,'' Mr. Kanjorski said at an Ashley town hall meeting in August, ``but you know the temptation to want to win Congress back. We sort of stretched the facts, and people ate it up.''
Yep, they ate it up. And right now they're paying a price for it.
I want to read you some quotes. These are from January 18, 2007, when we were debating H.R. 6:
Mr. Peter DeFazio: ``It is sad to see the Republicans come to this. Now they laughingly say that this will lead to higher gas prices.''
Well, gas was $2.23 a gallon on the day Mr. DeFazio made his statement. It's about $4.08 today. So we were probably right. This was no way to lower gas pries.
The same day, January 18, 2007, Mr. Jim McGovern said: ``What we are doing today really is responding to the outcry of the American people who are outraged by the fact that in the midst of being gouged by Big Oil . . . ''
Well, we have had seven investigations into price gouging, and it hasn't lowered the price of gas. In fact, it has gone up almost $2 a gallon since that statement was made.
The same day, John Hall: ``Today we are going to take back the tax giveaways to Big Oil so we can give the American people a break at the pump.''
January 18, floor statement, Kathy Castor: ``Instead of giving away billions of dollars to big oil companies which made multimillion dollar profits last year, the new Congress intends to
chart a course in a new direction by investing in alternatives for the American people. This will help America become energy independent and ultimately lower the utility costs for average Americans.''
I would like to tell the gentlewoman that the price of natural gas is twice what it was.
I yield.
Reclaiming my time, evidently taking these tax breaks away is not lowering the price of oil either.
I thank you for saying that because that's exactly true, and the petition is actually so simple, one line: ``I will vote to increase U.S. oil production to lower the price for Americans.'' And you can go to house.gov/westmoreland and see if the Congressman is there.
Madam Speaker, you would really have been intrigued at some of the things that I heard about why they couldn't sign it.
But I want to continue on. These are quotes from the H.R. 6 debate, which was on January 18 of 2007, after the new majority, the Democrats, had overpromised the American people, as admitted, and now they were coming up with something that was satisfying that radical environmentalist base of theirs, whom they felt like they owed their victory to, at least in part. So they were going to take away the tax breaks and other things.
I'm not a big fan of Big Oil. Don't get me wrong. But I had a high school economics teacher, and I didn't pay that much attention in school, but Colonel Wofford at Therrell High School there in Atlanta taught us that taxing manufacturers or producers does not lower the price to consumers. So for whatever that's worth, I will give that to the majority.
Thank you.
January 18, and these are quotes from H.R. 6, which was their mantelpiece legislation. This was their commonsense plan, I guess, for bringing down the skyrocketing gas that at the time was $2.23 a gallon:
Ms. Sheila Jackson-Lee said: ``The price per barrel of oil is $50 plus.'' Today I think it's about $140.
She goes on to say: ``And so what is this Congress and this leadership doing? It is doing the right thing.''
January 18, floor statement by Steve Israel: ``This dependence on foreign oil, Mr. Speaker, is a glaring threat to our national security.''
I could not agree with you more. But we are more dependent today than we were when you made that statement.
Mr. John Lewis, my colleague from Georgia: ``More than ever we need to get our priorities straight. We need to stop dancing while Rome burns and reverse the damage we have done to our environment. The American people need relief from energy costs.''
And I couldn't agree with you more, Mr. Lewis, but the problem is that gas has almost doubled since you made that statement.
Rahm Emanuel: ``Mr. Speaker, let's review the score: ``Big Oil, one; taxpayers, zero. Now the score is tied, and we are just getting warmed up.''
Well, I hope you're about as warm as you're going to get, Mr. Emanuel, because I don't know if we can stand any more of this.
January 18, 2007, floor statement from Allyson Schwartz: ``The United States imports 65 percent of the oil we consume. We spend $800 million every day on foreign oil-producing countries. This threatens our economic stability, our environmental security, and our national security, and today we say `enough.'''
Well, I say ``enough'' too, but if we had said ``enough'' then and started producing our own oil and started using our own natural resources, maybe oil wouldn't have almost doubled since then.
The chairman of the Democratic Congressional Committee, Mr. Chris Van Hollen, said this: ``This is the time to change direction, to set a new course on energy policy, to say to the country we're not just talking rhetoric, we mean what we say.''
Mr. John Yarmuth: ``Mr. Speaker, my constituent, like yours, paid over $3 a gallon for gas last year. Isn't that enough?''
Absolutely it's enough. But today we are paying over $4 a gallon, and the reason we are is because we refuse to use our own natural resources for the health of this country and, like so many of these other statements said, for the national security of this country.
Stephanie Tubbs Jones: ``Critics of H.R. 6 argue this measure will place an undue burden on oil companies which will lead to higher gas prices.''
Okay. We must have been right because what happened was after H.R. 6, with gas being $2.23 a gallon, today it is $4.08.
What we are trying to do, before I yield to some of my colleagues, we have that petition that my friend from Indiana and I have been talking about, and what it says is ``I will vote to increase oil production to lower the price of gas.'' And what that means is bringing onshore drilling online, offshore drilling online, deepwater oil online, and bring in more refineries online.
If we bring onshore oil online, it will save anywhere from 70 cents to $1.60 a
gallon. To bring deepwater oil online, the Outer Continental Shelf, 90 cents to $2.50 a gallon. To bring new refineries online, and not one has been built since 1976, would save anywhere from 15 to 45 cents. The gas tax holiday, 18 cents. To halt oil shipments to the Strategic Petroleum Reserve, a nickel.
Now, I have got some more quotes on that, and, of course, this was passed in the House probably back in May. We stopped those shipments in July, and so we should find out if it's going to bring it down a nickel a gallon. But if you look at what the Democrat plan was, and this is that commonsense plan, I'm assuming, but ``sue OPEC,'' we have had a lot of success with that. ``Launch the seventh investigation to price gougers.'' ``Launch the fourth investigation to speculators.'' Now, we put that lipstick on that pig today with the speculation bill, that we just really passed something that's already on the books.
``Twenty billion dollars in new taxes on oil producers.'' I can hardly wait to see what that does to lower the price of gas. And we've seen that just not even putting the new taxes on them but just taking tax relief away from them has caused gas to almost double.
And then of course they've got ``halt oil shipments,'' which is a nickel.
You can see that if we put our policies in place that gas today would be somewhere around $2.10, and that's using very conservative savings over there. And you can see that if this works, and we don't even know that this is going to work, it would be about $4.03.
So we hope that we will get 300 signatures on this petition to show the American people that we are not going to lie here in a fetal position or just keep doing repetitious things to make you think we are doing something. So if you could just go to the house.gov/westmoreland and look at it. We had 45,000 hits on it, Madam Speaker, last night. And we have had a couple of Members that have come to us and said, We have heard and we want to go from the ``would not sign'' to the ``sign.'' So we can't do it, Madam Speaker, if people aren't going to be involved with us because we don't have that much influence over the majority.
I would like to yield to the gentlewoman from North Carolina, my classmate (Ms. Foxx).
Well, what I wanted to point out, this is what ANWR looks like. It's kind of a frozen tundra. I had some young people up here the other day from a school, and one of them asked me a question, said, Are you for drilling in ANWR? I said, Yes, I am. She kind of frowned. I said, Why? She said, I don't want you to ruin all the beautiful trees up there.
I tried to find a tree. I couldn't find a tree on the place. So there's a lot of
misunderstanding out there about what it is. Then you can look at the size of the Arctic National Wildlife Refuge and then the ANWR part as compared to the whole State of Alaska. A lot of people don't understand that Alaska--we have got a map of it somewhere--it's bigger than Texas. I know Mr. Conaway is here from Texas. Three times the size of Texas.
In fact, I will let Mr. Conaway talk about Texas and ANWR and other things, if he would like.
Let me say this, that it is a shame that we are having to limit so much of the travel. We need to conserve, but we can't conserve our way out of this. The real shame of this is when winter comes and natural gas is twice what it was. Mr. Peterson from Pennsylvania was down here the other night and really opened my eyes to it. Not only are people not going to be able to leave their home, they are not going to be able to stay warm in their home when the winter comes and the price of natural gas.
To another one of my classmates and colleagues, Mr. Conaway from Texas.
Not only that, reclaiming my time for a minute, did not the Democrat majority in 1992 extend that lease period to 10 years? Was it prior not 5 years or 7 years what it was?
I thank my friend. Now I have got to go catch a plane, but I hope that everybody will go to House.gov/westmoreland, Madam Speaker, to find out who is for drilling and who is for not just drilling, but like the gentleman from Texas said, for producing more of our natural resources to lower the price of gas.
Now I want to yield to my good friend from Nebraska, from the heartland of this country, from one of the corn-producing States, another one of my classmates that came in, and that is Mr. Fortenberry.
Mr. Burton will dialogue with you.
Let me just say to my good friend, Congressman Westmoreland from Georgia, I am so happy that you are going to all this trouble to get all of our colleagues to sign this petition. And if you're at…
Let me just say to my good friend, Congressman Westmoreland from Georgia, I am so happy that you are going to all this trouble to get all of our colleagues to sign this petition. And if you're at 191, you're not too far short of 218. And when you get 218, I will join with you to go to the Speaker and show her that we have 218 signatures--or you do--and that they ought to bring this to the floor for a vote because a majority of the House wants this done.
You know, we passed another week. A week has gone by since you and I, I think, last were on the floor. And everybody's going home for the 4th of July recess--they're going to be in parades, they're going to be on radio, they're going to have town meetings--and we haven't done anything about reducing the price of gasoline or moving toward energy independence. And so I, like you, if I were talking to the American people right now, I would say, when your Congressman or your Senator is in that parade, I want you to talk to them strongly and say, we want you to drill in America. We want you to move us toward energy independence. We've been talking about it since Jimmy Carter was President 30-something years ago, and we aren't doing anything. And that's why we're dependent on foreign oil and that's why gasoline prices are over $4 because we aren't producing the oil here, we're sending it overseas.
We're sending over $400 million a day to Saudi Arabia to pay for oil that we're using. We could use that money right here in America, and it would help create jobs and expand our economy. We're sending $125 million a day to President Chavez in Venezuela, who's trying to move every country in this hemisphere toward communism and who is a good friend of the Castro brothers, Fidel and his brother Raul.
We have big problems here because we aren't drilling in America. And we need to have everybody in this country contact their Congressman and Senator and say, hey, listen, get with the program, it's time for us to move toward energy independence. We can't have this economy of ours suffer anymore.
I would like to enter into the Record, Madam Speaker, if I might, a
letter that was sent by the American Association of Petroleum Geologists. These are the experts that say there is oil here, we ought to drill here, and here's how we ought to do it and here's how we ought to explore. And when you read this letter--which is now going to be put in the record--it tells very clearly that drilling costs for one well onshore costs a half a million dollars, and offshore it can cost up to $25 million. And so these geologists, when they get these permits to drill in a certain area, they go out to make darn sure that there's oil there before they sink a well that's going to cost $25 million. And that's an exploratory well. And it's a half million dollars if you drill onshore. So we're talking about big money. And when you realize that 68 percent of the people who drill for oil are independent drillers, they're not the big oil companies, and 87 percent of the people who drill for gas are not the big oil and gas companies, they're individual people who have small companies, and if they find oil they're going to get it, and if they find gas they're going to get it. And so this idea that these permits are not being researched and looked at is just crazy.
And when you read what the American Association of Petroleum Geologists said, and the President is a Mr. Willard Green, you realize that these people want to get oil and gas out of the ground, they want to get it out of the offshore sites on the Continental Shelf, and they can't do it simply because they don't have the ability to pursue these permits.
Only 3 percent of the area offshore is available for permitting and for drilling for oil; 97 percent of the Continental Shelf isn't being touched. And we have about 80 percent onshore that's not being touched. We ought to explore every place we can to move this country toward energy independence. We ought to remove ourselves from being dependent on Saudi Arabia, who isn't really a friend of ours, and on Venezuela, which really isn't a friend of ours, and other countries that aren't friends of ours. We ought to really move towards energy independence. And the minute we announce we're going to do that, we're going to drill on these sites, I'm sure the American people realize the price of oil is going to go down. The competitive nature of the free enterprise system and supply and demand will force the price of oil down, and it means the price of gasoline will go down as well.
June 3, 2008.
Hon. Nancy Pelosi,
Speaker, House of Representatives,
Washington, DC.
Hon. Steny Hoyer,
Majority Leader, House of Representatives,
Washington, DC.
Hon. John Boehner,
Minority Leader, House of Representatives,
Washington, DC.
Dear Speaker Pelosi, Majority leader Hoyer, and Minority
Leader Boehner: Given the on-going debate about access and
leasing activity on federal onshore lands and the Outer
Continental Shelf, I would like to offer some perspective, on
behalf of the American Association of Petroleum Geologists
(AAPG), on the science and process of finding oil and natural
gas.
AAPG, an international geoscience organization, is the
world's largest professional geological society representing
over 33,000 members; The purpose of AAPG is to advance the
science of geology, foster scientific research, promote
technology and advance the well-being of its members. With
members in 116 countries, more than two-thirds of whom work
and reside in the United States, AAPG serves as a voice for
the shared interests of energy geologists and geophysicists
in our profession worldwide.
AAPG strives to increase public awareness of the crucial
role that the geosciences, and particularly petroleum and
energy-related geology, play in our society.
Finding and developing oil and natural gas blends science,
engineering, and economics. It has distinct phases:
exploration, development. and production. And it is risky,
because finding oil and natural gas traps, places where oil
and natural gas migrate and concentrate, buried under
thousands of feet of rock is like finding the proverbial
needle in a haystack. Talent and technology increase our
chances of a discovery, but there are no guarantees.
What is exploration? Well, the grid pattern on a block map
makes it tempting to think of exploration as a process of
simply drilling a well in each grid block to determine
whether it contains oil. But because of the natural variation
in regional geology, one cannot assume oil and natural gas
are evenly distributed across a given lease or region,
Rather, exploration is about unraveling the geologic history
of the rock underneath that grid block, trying to understand
where oil or natural gas may have formed and where it
migrated. If the geology isn't right, you won't find oil
or natural gas.
Legendary geologist Wallace Pratt once observed, ``Where
oil is first found is in the minds of men.'' When preparing a
lease bid, geologists use their knowledge to identify the
specific areas in a region that they believe have the highest
likelihood of containing oil and natural gas traps.
Successful exploration begins with an idea--a hypothesis of
where oil may be found.
Since exploration is about developing and testing ideas,
some acreage available for leasing is never leased. That is
because no one develops a compelling idea of why oil or
natural gas should be there. Similarly, some acreage is
leased and drilled repeatedly with no success. Then, one day,
a geologist develops an idea that works, resulting in new oil
or natural gas production from the same land that others
dismissed as barren.
Once a lease is awarded, geologists begin an intensive
assessment. They collect new geological, geophysical, and
geochemical data to better understand the geology in their
lease area. They use these data to construct a geological
model that best explains where they think oil and natural gas
were generated, where it may have been trapped, and whether
the trap is big enough to warrant drilling.
If there is no evidence of a suitable trap, the explorer
will relinquish the lease and walk away. If they see a trap
that looks interesting, they schedule a drill rig to find out
if they are right. Drilling is the true test of the
geologists' model, and it isn't a decision to be made
lightly. Drilling costs for a single well can range from $0.5
million for shallow onshore wells to over $25 million for
tests in deep water offshore.
As the well is drilling, geologists continually collect and
evaluate data to see whether they conform to their
expectations based on the geological model. Eventually, they
reach the rock layer where they think the trap is located.
If there is no oil or natural gas when the drill reaches
the trap they were targeting, they've drilled a dry hole. At
this point the explorers will evaluate why the hole is dry:
was there never oil and gas here; how was the geological
model wrong; and can it be improved based on what they know
from the drilled well? Depending on the results of this
analysis, they may tweak the exploration idea and drill
another well or decide the idea failed and relinquish the
lease.
If there is oil and/or natural gas, they've drilled a
discovery. Typically, they will test the well to see what
volumes of oil and/or natural gas flow from it. Sometimes the
flow rates do not justify further expenditures and the well
is abandoned. If the results are promising, they will usually
drill several additional wells to better define the size and
shape of the trap. All of these data improve the geological
model.
Based on this revised geological model, engineers plan how
to develop the new field (e.g., number of production wells to
drill, construction of oil field facilities and pipelines).
Using complex economic tools, they must decide whether the
revenue from the oil and natural gas sales will exceed the
past and continuing expenses to decide whether it is a
commercial discovery.
The process of leasing, evaluating, drilling, and
developing an oil or natural gas field typically takes five
to ten years. Some fields come online sooner. Others are
delayed by permitting or regulatory delays or constraints in
the availability of data acquisition and drilling equipment
and crews. Large projects and those in deep water may require
a decade or more to ramp up to full production.
As you can see, oil and natural gas exploration is not
simple and it is not easy. It requires geological ingenuity,
advanced technologies, and the time to do the job right. It
also requires access to areas where exploration ideas can be
tested--the greater the number of areas available for
exploration, the higher the chance of finding oil and natural
gas traps.
U.S. consumers are burdened by high crude oil prices.
Conservation and efficiency improvements are necessary
responses, but equally important is increasing long-term
supply from stable parts of the world, such as our very own
federal lands and Outer Continental Shelf.
As Congress considers measures to deal with high crude oil
prices, I urge caution. Policies that increase exploration
costs, decrease the available time to properly evaluate
leases and restrict access to federal lands and the Outer
Continental Shelf do not provide the American people with
short-term relief from high prices and undermine the goal of
increasing stable long-term supplies.
I am happy to further discuss these ideas. Please contact
me through our Geoscience & Energy Office in Washington, D.C.
at 202-684-8225 or 202-355-3415.
Sincerely,
Willard R. (Will) Green,
President, American Assoication of Petroleum Geologists.
And when they talk about these speculators, there are people that speculate in gas futures and oil futures, there is no question about that. But the minute we say we're going to drill here in this country, you watch those prices drop; you watch those speculators start getting out of the market and selling what they have. And that will force the price
down on oil, it will force down the price of gasoline, and it will help this country.
And let me just say to my colleague--and I really appreciate him yielding to me--if we don't get with the program, if my colleagues on the other side of the aisle and the Senate and the House don't work with us on this side of the aisle, we're going to end up with gasoline prices being $5 or more per gallon. And if we have a conflict in the Middle East, as we've heard talked about here tonight, it could go much higher than that. That will put extreme pressure on this economy.
And I hate to predict this, but I really believe that if we don't get control of this situation and start drilling onshore and offshore in our territory, I think we could have a severe economic recession in this country. And when I say severe, I mean severe. The price of food is going up rapidly, the price of gasoline is going up rapidly. The price of products that are shipped across this country, which is almost--everything is going up very rapidly, and we're not doing a darn thing about it because we're depending on the Saudis.
We had Senators go over to the Saudis just recently and ask them to open up more oil fields so we can buy more of their oil. Why are we doing that? Why aren't we drilling in America so we don't have to depend on foreign oil? It makes absolutely no sense to send billions and billions and billions of dollars overseas and to other countries that don't even like us when we won't even drill here in the United States.
And so I am so happy that my colleague has taken the time and the effort to get the message out to our colleagues that they ought to sign onto this petition. And I know he feels like I do--and we come down here night after night talking to each other--that we would like, if we could talk to the American people, to put pressure on their Congressmen and Senators to sign onto this policy of drilling in America, to sign this petition so we can move toward energy independence. If we do that, and I would say this to my American friends all across this country, if we do that, you watch the price of gasoline go down. It will go down like a rock. You will see gasoline below $3 before you know it. But we have to say that we're going to drill for oil in this country, onshore and offshore. The minute we do that, America, just watch these prices go down. But first of all, we have to get this body and the other body, the House and the Senate, to get together and say, okay, we're going to drill. And we can't do that unless the American people put pressure on their Congressmen and Senators to sign on.
You have done yeoman service to this country, Congressman Westmoreland, because you've got 191 Members that have already signed that. And I'm going to work with you to get 218. And as I said before, the minute you get 218, I will walk with you to the Speaker's office and say, hey, it's time to bring this to the floor.
You're doing good work. I'm proud of you.
Will the gentleman yield for a moment?
I just want to follow up the train of thought that you have.
These taxes that they want to put on Big Oil, if there are excessive profits made and there is collusion or something like that, if there is criminal behavior, obviously everybody wants to make sure that doesn't take place. But whatever they're promising, everything that I have seen the opposition party promise, is that they are going to hit Big Oil with more taxes. That isn't going to get one more drop of oil to the-- --
No. That's right. They want to take tax breaks away. They want to increase taxes. And when you pass a tax increase on to a business or industry, oil or automobiles or whatever it is, it's passed on to the consumer in the form of price increases. So if they raise taxes, it won't give us one more drop of oil, which we ought to be drilling for right now, but it will make more expenses for the companies, and unless they can prove wrongdoing, those expenses will passed on to the consumer in the form of another price increase. So raising the taxes on the oil companies is only going to exacerbate the problem and make the cost of oil go up more. And I don't understand why my colleagues don't understand basic economics and the law of supply and demand. It makes absolutely no sense whatsoever.
We need to pass legislation that will get more oil to the refineries, build more refineries, as you've said, and start getting the price of oil down because we are energy independent. And just talking about, okay, we're going to hit Big Oil, that may resonate with a lot of people. Some people say, oh, my gosh, they are not paying enough taxes. They ought to be taxed more. They are making too much in profits. That's not going to bring any oil to the market, not a drop.
So I just say to my colleagues, quit beating on a dead horse. We have got to become energy independent. We have to drill here in America. And I hope everybody in the country who may be looking at this, and we can't talk to them, but everyone in the country who is looking at this tonight ought to ask their Congressmen and Senators, Is what you're talking about in Washington going to bring one more drop of oil to the marketplace? Is it going to move us toward energy independence? And if it isn't, they ought to sign that petition. They ought to get on with the program in making us more energy independent.
I thank the gentleman for yielding.
If the gentleman would yield, let me just elaborate on that really quickly.
I hope everybody who may be paying attention to this, our colleagues in their offices, realize that business and industry have a certain margin of profit that they have to make to keep the doors open, whatever it is. And as you have just said, if they are taxed and they have a margin of profit of 8 percent and you raise their taxes, they're going to pass that cost increase on to the consumer in the form of a price increase. And that's what my colleagues on the other side of the aisle, your colleagues, don't understand.
We really need to do what's necessary to move toward energy independence, and raising the price of gasoline by taxing these companies is not going to solve the problem.
I thank the gentleman for yielding.
So you have to settle for me.
I thank the distinguished chairman for yielding. Jim Oberstar is one of the most knowledgeable people in America on energy issues and on transportation issues. And the two, of course, are closely…
I thank the distinguished chairman for yielding.
Jim Oberstar is one of the most knowledgeable people in America on energy issues and on transportation issues. And the two, of course, are closely related. I want to thank him for his leadership and for his service. We are fortunate, as an American people, to have him chairing this critically important committee.
There is no stronger proponent of rail service and mass transit than Jim Oberstar. That service has never been more important than it is today. His vision and his service have put this country in a place where we now have the opportunity to make additional investment which is critically needed so that the demand for mass transit resulting from the cost of gasoline and energy products can be met by our mass transit system. And I thank him for his leadership.
This bill, as well as the other two bills considered on this floor today on drilling and market speculation, is a clear recognition by this House majority that America's energy policy cannot be one dimensional.
We've heard a lot of finger pointing on the floor today, and finger pointing is relatively easy. The fact of the matter is we all need to come together. I don't just mean Republicans and Democrats and the Congress of the United States, but all 300 million of us in this country need to come together and understand that we have 3 percent of the world's oil supply and 25 percent of the demand. It does not take a great mathematician to understand, therefore, that simply drilling for new product will not solve our problem. That is not to say by any stretch of the imagination that that should not be done.
These bills, taken together, and when combined with other actions taken by the majority on energy, are a clear reflection of the alternative to the Republicans' sole focus on drilling, to the exclusion of alternative and renewable sources of energy.
Let no one be mistaken: Democrats do not oppose further drilling, discovery and production of product, period. All we are saying, as I will explain in more detail shortly, is that the oil and gas companies should utilize the 68 million acres--that's 68 million acres--currently available to drill on which contain, according to experts, over 100 billion barrels of oil. And we use about 7.5 billion a year in this country, so that is approximately 14 years of oil. That's what the experts tell us, not Democrats and Republicans, the experts tell us are available on these untapped resources currently available, currently leased. I would tell my friends that, not only that, but they contain hundreds of millions of cubic feet of natural gas.
Now, as to Chairman Oberstar's bill: It promises Americans relief from our $4 per gallon gas prices. Tomorrow? No. Next week? No. Next month? No. Very frankly, we have been too long delaying our investment in alternative energy sources and alternative transportation modes. But it does promise that in the future we will have the capability both to provide mass transit for our people, and to provide for the alternative to lower demand which, therefore, should lower prices as well.
It authorizes $1.7 billion over the next 2 years to provide grants to mass transit authorities to reduce public transit fares and will help transit agencies deal with escalating costs. That is a rational response to increased demand.
In just the first 3 months of this year, Americans took almost 85 million more trips on public transit than in the same period the year before. Surely all of us in this body, faced with 85 million additional trips, will want to respond in a way that provides capacity to accommodate that growth.
Public transit reduces America's oil consumption as well as carbon dioxide emissions. Thankfully, the administration has, very late, come to the conclusion that, yes, global warming is a problem. Unfortunately, for 7-plus years of this administration they denied it was a problem, but coming to the right conclusion late is always timely.
In addition, the legislation on market speculation that was introduced by Chairman Peterson and Congressman Van Hollen is an effort which I hope every Member of this body will support to address this issue, record high gas prices, from another angle.
Oil producers are telling us they believe that a large portion of the price is related to speculation. Can I guarantee they're right? No, I cannot. Am I an expert on this issue? I am not. But I do know that they have said that is the case. If it is the case, it's incumbent upon us to find out, because if it is, and we can reduce prices for the consumer at the pump, they expect us to do so and we want to do so.
The Bush administration, of course, insists that the spike in gas prices is not attributable to market speculation. That may be why the commission that is supposed to oversee this has not acted as vigorously as they otherwise might. George Soros, a very successful investor, has said this: ``The crude oil market has been significantly affected by speculation.''
The legislation that we will vote on shortly simply directs the Commodity Futures Trading Commission to use its full authority and emergency tools to curtail excessive speculation and other practices distorting the energy market. Why would any Member of this body vote against asking this commission to look at that issue to determine whether or not there is validity? If there is not, presumably the commission will so find.
Finally, about Chairman Rahall's bill, let me simply say this: What could make more common sense than saying to the oil and gas companies that they should drill or pursue drilling on the 68 million acres of Federal land currently under lease or simply lose those leases? After all, they are leased for the purposes of us producing more product. If they lie fallow and are not being worked, not being investigated, not being explored, not being tapped, then the American consumer finds a dwindling or short supply. And what happens in that context? Prices go up. And yes, oil companies make record profits, but consumers lose. This bill simply says to the oil companies, be diligent in the development of what you have or lose the lease to someone who will pursue the discovery and production of oil.
Democrats believe that we need to find product. I mentioned the 68 million acres that you've heard a lot about, that's a lot of acres. But there is an additional 23 million acres in Alaska, 22 million of which is under congressional set-aside for oil production and discovery. Nine hundred thousand acres have already been leased for that purpose. And experts tell us there is more oil there than there is in the Alaskan Wildlife Refuge, but our Republican friends continue to focus on the Alaskan Refuge.
Let no one be mistaken: The oil companies have many acres to look at onshore and offshore. According to the Minerals Management Service and the Bureau of Land Management, these 68 million acres on land and waters, 74
percent of which we have already leased, are not producing oil and gas.
Our Republican friends have also charged that we're keeping the best lands out of the hands of oil and gas companies. That is not the case. They can say it again and again and again and again, but it's not the case. In fact, 81 percent--I hope all of my colleagues hear this, and I hope the American public will read the Record--81 percent of estimated oil and gas resources on Federal lands and the Outer Continental Shelf are presently available for development. And here, perhaps, is the most important fact: These resources are equal, as I said, to 107 billion barrels of oil and 658 trillion cubic feet of natural gas. That is 10 times the amount of economically recoverable oil that could be produced from opening up the Arctic Wildlife Refuge and more than 14 years of current U.S. oil consumption.
Finally, Madam Chairman, let me say that there is no silver bullet, we all understand that; to pretend otherwise would be dishonest. We need to be honest with the American public. Unfortunately, for over a quarter of a century we have had mostly administrations or Republican control of the House and the Senate which essentially said that drilling more oil and not looking for alternatives was the policy they wanted to pursue.
When we got here, we passed an energy bill that focuses on alternatives. If we only have 3 percent, we have 25 percent of the demand, you can bet your sweet life that those who have the oil all over this world are going to say to us, you pay us what we tell you to pay us. And not until we pursue policies--which this administration has failed to do, which this Republican leadership failed to do--not until that time will we be able to say to our friends and, indeed, some not so friendly, we're not going to pay your price because we have alternatives. We have mass transit provided by Jim Oberstar. We have alternative energies provided by the bill that we passed. We are expecting electricity--which the Republicans oppose--to be produced by alternatives. We have renewable fuel standards passed in this House, sent to the Senate.
Ladies and gentlemen of this House, we have taken significant steps last year, we're taking significant steps today, and we will continue to take significant steps so that America will be energy independent. That's in the best interest of our national security, our economic security and, indeed, it is critically important for our global health.
The bills we are considering on this House floor today are key components of a comprehensive energy strategy that seeks to provide Americans with relief at the gas pump while we wean our Nation from its dangerous addiction to foreign oil. The President said we're addicted to foreign oil. And yet there was a meeting on energy in 2001, just after the President became the Chief Executive, and they convened oil company executives to tell us, what should our policies be? One of my colleagues said, well, whatever they said--because the meetings were secret--their policies failed. Perhaps. Perhaps they failed. One cannot inevitably draw that conclusion, however, because those same companies, 7 years later, are making the greatest profits they have made in the history of their companies. Perhaps their policies failed, or perhaps their policies led to success.
Ladies and gentlemen, we need to pursue mass transit and invest in expanding it so we can meet the demand of our consumers and of our citizens and of our energy independence.
I thank the gentleman for his leadership. And I urge my colleagues to vote for all three of these critically important bills. Are they the sole solution? They are not. Are they the only solution? They are not. Are they the solutions that we will take and then stop? They are not. But they are a step, each and every one of them, in the right direction. Let's take those steps today.
I urge my colleagues to support these three bills.
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Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I want to commend the chairman of the committee, Mr. Peterson, for his work in this area. We held a hearing on this issue on…
Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I want to commend the chairman of the committee, Mr. Peterson, for his work in this area. We held a hearing on this issue on Tuesday of this week. In the farm bill which the Congress just passed overwhelmingly several times, we overrode the President's veto, it includes legislative language that takes further steps to complete the closure of the Enron loophole. In that testimony we received on Tuesday, we received assurance that between the language that was in the Commodity Futures Modernization Act passed in the aftermath of the Enron scandal, and in the language that was included in the farm bill, the Enron loophole is now closed.
I have no reason to oppose this legislation and I therefore will support it. It simply tells the Commodity Futures Trading Commission to do what it already has the authority to do, and based upon the testimony that we received on Tuesday is already doing to ensure that there is not excessive speculation in the energy futures markets. I have every confidence that they will do so, that they will heed this additional voice of support for their doing their jobs. But, quite frankly, this legislation does not do what needs to be done by this Congress.
The Democratic leadership in this Congress is continuing a pattern that the American people are increasingly concerned about, and that is to do everything they can to try to blame everyone but themselves for the problem that we face in this country of having years of neglect of not having a domestic energy policy dedicated toward increasing the supply, increasing the supply of oil, increasing the supply of natural gas, increasing the supply of clean-burning coal, increasing the supply of nuclear power, increasing the supply of alternative fuels, increasing efforts to bring about new technologies. This is the all-of- the-above approach that this Congress should be taking that our conference has taken. In fact, we have worked very hard to see that this policy be brought to the floor of the House.
Yes, I will support this bill telling the CFTC to use its authority to curb excessive speculation, but I think it appalling that we aren't doing the job that needs to be done. It is being blocked by the party that controls the access to the floor of this House.
H.R. 2279, to expedite the construction of new refining capacity on closed military installations in the United States, and for other purposes, sponsored by Representative Pitts of Pennsylvania with 55 cosponsors. From the House Energy and Commerce and Armed Services Committees, last major action taken, a motion to discharge petition filed by Mr. English, petition 110-9. Why haven't we seen this bill brought to the floor of the House?
H.R. 3089, the No More Excuses Energy Act of 2007 sponsored by Representative Thornberry of Texas, 77 cosponsors, referred to the Committees on Natural Resources, House Ways and Means, and Energy and Commerce. Last major action, June 10, motion to discharge petition filed by Mr. Walberg. A motion was filed to discharge the Natural Resources, Ways and Means, and Energy and Commerce Committees of this action. No action taken. Why hasn't that bill been brought to the floor of the House?
We have this week another discharge petition on H.R. 5656 which repeals the requirement with respect to the procurement and acquisition of alternative fuels, a discharge petition filed this week by Representative Hensarling. Why hasn't this legislation been brought to the floor of this House?
There are scores of other bills sponsored by both Republicans and Democrats dedicated to relieving this energy crisis that have been bottled up by the Democratic majority.
When, Mr. Speaker, will we get the chance to vote on these very worthy bills? When will we get the chance to actually start offering relief from the outrageously high gas prices that American consumers are facing?
That's the problem we are confronting. That's the problem that the leadership in this Congress is not allowing us to address. That's what needs to be done, not telling the CFTC to do the job that they are already doing and already have the authority to do, but acting to make sure that we are increasing supply of all sources of energy, new sources of energy, traditional sources of energy, acting to make sure that the incentives are in place for Americans to conserve. My goodness, they are already doing that. We are seeing that reflected in their activities. This Congress could be helping them out. It is failing to do so. And that, Mr. Speaker, is why we are failing the American people when the leadership of this Congress does not allow us to have these votes.
I reserve the balance of my time.
Mr. Speaker, at this time it is my pleasure to yield 3 minutes to the ranking member on the subcommittee with jurisdiction over the CFTC, the gentleman from Kansas (Mr. Moran).
Mr. Speaker, I yield myself 30 seconds to respond.
I support this resolution because it gives nothing new to the CFTC but it gives it encouragement to do its work. It does not make any finding that there is excessive speculation in the market, and if there is excessive speculation in the market, then I certainly expect and support action by the CFTC to exercise its emergency powers to do so.
But the gentleman is exactly right when he notes that India and China are increasing their consumption of all different types of sources of energy, and they're not the only ones. They're just the largest ones.
I yield myself an additional 30 seconds to say further to the gentleman that when demand around the world, and not just in China and India, is increasing as steadily as it has in recent years and the United States sits back and waits for other countries to increase that supply and increases our dependence upon foreign oil from such unreliable sources as Venezuela and Nigeria and the Middle East, and we then think that simply asking the CFTC to do its job will solve this problem, that is a very serious problem.
At this time, it is my pleasure to yield 2 minutes to a member of the Agriculture Committee and the ranking member of our Department Operations and Oversight Subcommittee, the gentleman from Louisiana (Mr. Boustany).
Mr. Speaker, I yield the gentleman an additional 1 minute.
Mr. Speaker, I would like to include in the Record a joint analysis prepared by the majority and minority staff of the Senate Permanent Subcommittee on Investigations of the testimony of Michael Greenberger before the Senate Committee on Commerce, Science, and Transportation on June 3, 2008. It responds to a number of assertions made about what might happen to the market. And while I certainly would hope that something could be found to lower gas prices by as much as Mr. Greenberger suggested in his testimony, here are several pages of reasons why that may indeed not be the case.
Select Excerpts of the United States Senate Permanent Subcommittee on
Investigations
8. STATEMENT: ``Overnight, [prohibiting the trading of
energy commodities in Exempt Commercial Markets) will bring
down the price of crude oil, I believe, by 25 percent.''
RESPONSE: According to recent market data, there is little
to no trading of crude oil contracts on exempt commercial
markets in the United States. Prohibiting the trading of
energy commodities in a market in which no trading is
currently taking place is, thus, unlikely to have an effect
on the price of crude oil. Moreover, although there have
never been any Exempt Commercial Markets for agricultural
commodities, many agricultural commodities have recently
experienced substantial price spikes. There is no credible
evidence that simply amending the CEA to regulate energy
commodities as if they were agricultural commodities will
lead to lower energy prices.
19. STATEMENT (p. 8): ``The Senate Permanent Investigating
Subcommittee has now issued two reports, one in June 2006 and
one in June 2007, that make a very strong (if not
irrefutable) case that trading on ICE has been used to
manipulate or excessively speculate in U.S. delivered crude
oil and natural gas contracts. The June 2006 report cited
economists who then concluded that when a barrel of crude was
@ $77 in June 2006, $20 to $30 of that cost was due to
excessive speculation and/or manipulation on unregulated
exchanges.''
RESPONSE: The 2006 and 2007 PSI reports focused on the role
of excessive speculation in U.S. commodity markets; neither
report contained any findings on whether traders manipulated
crude oil or natural gas prices.
At this time, Mr. Speaker, I yield 1\1/2\ minutes to the gentlewoman from North Carolina (Mrs. Myrick).
Mr. Speaker, at this time, it's my pleasure to yield 2 minutes to the gentleman from Florida (Mr. Weldon).
Mr. Speaker, at this time, it's my pleasure to yield 2 minutes to the gentleman from Indiana (Mr. Burton).
Mr. Speaker, may I ask how much time is remaining on each side.
Mr. Speaker, at this time, it is my pleasure to yield 1 minute to the gentleman from Texas (Mr. Conaway), a member of the committee.
Mr. Speaker, I'd ask the chairman if he has additional speakers. I have only myself to close.
That being the case, I will yield myself the balance of my time to say to the chairman again, I thank him for his work on this issue.
I support this measure. Certainly, I expect the Commodities Futures Trading Commission to address any problems with excessive speculation in the energies markets and to use their emergency powers to do so, if appropriate.
But I will tell you that this is a problem that's been going on a lot longer than recent speculation in this market. It's been going on for years because of a lack of increase of supplies of oil and natural gas and other basic sources of energy in this country.
All we ask of the Democratic leadership is to put the bills on the floor that get what the American people want, and that is a vote to open up America to increase domestic supply of energy. The Speaker of the House doesn't have to support the legislation. The majority leader doesn't have to support the legislation. All they have to do is let this happen on a bipartisan basis, and we will have a bipartisan vote to do what the American people want. Let us have that vote. Let us have that debate on the floor of this House, and we will do what the American people want.
Mr. Speaker, on that I demand the yeas and nays.
I want to thank my colleague from Florida for giving me a moment to speak on this bill. We have had examples here all day today of the fact we are not going to be able to pass any meaningful energy…
I want to thank my colleague from Florida for giving me a moment to speak on this bill.
We have had examples here all day today of the fact we are not going to be able to pass any meaningful energy legislation in this week before we go home for the 4th of July holiday. It is not just Republicans who are saying this. I want to point out the fact that in today's Politico, the story is headlined: ``Pelosi's Pump Pain. Aggressive Pre-Recess Plan Goes By the Wayside.''
I would like to introduce this, without objection, into the Record.
``Speaker Nancy Pelosi hoped to send House Democrats home for the Fourth of July recess with a series of votes that would show they're
serious about easing the pain at the pump.''
That obviously is not going to be done. We are passing bills here today that deserve the ``Emperor's New Clothes Award.'' Somebody has to stand up and say the emperor has no new clothes, because the bills that we are being asked to vote on are shams. We are not doing anything to help average, hardworking Americans who are paying over $4 a gallon for gasoline as a result of the Democrats' control in the last 18 months of this Congress.
This is a sham. This is for show. They are going to go home and say they did something, but they did nothing to help the average working American, and it is time that people said so. We don't need to be allowing this sham to continue without being able to talk about it.
It says here ``nothing has gone according to plan. The price-gouging bill failed to garner the two-thirds support necessary to pass.'' Even Democrats are speaking against the bill. They are talking about how it is going to hurt gas-producing States and the gas-producing people are opposed to it, the Democrats are.
So nothing that is going on here is really going to help those of you who are paying over $4 a gallon for gasoline in this country. All we are doing is letting the Democrats put on a show that says that they are reducing the price of gasoline, when they are not.
Pelosi's Pump Pain--Aggressive pre-recess plan goes by wayside
(By Patrick O'Connor)
Speaker Nancy Pelosi hoped to send House Democrats home for
the Fourth of July recess with a series of votes that would
show they're serious about easing the pain at the pump.
Their wish list included legislation giving the federal
government more authority to crack down on price-gouging by
oil companies and smaller vendors, a bill requiring energy
producers to relinquish any land not currently being tapped
for oil or gas production, and a measure creating new
restrictions for commodity traders whose speculation has
driven up the price of oil.
But nothing has gone according to plan.
The price-gouging bill failed to garner the two-thirds
support necessary to pass. An accounting issue forced leaders
to put off for a day the so-called ``use it or lose it''
measure. And the legislation to curb speculation is now
caught up in a member fight over the proper path forward--a
fight that exposes the misgivings some Democrats have about
this activist agenda.
So instead of a barrage of legislation aimed at knocking
back the Republicans' gas price assault, Democrats will
settle for a measure giving local transit agencies $850
million in each of the next two years to reduce prices and
add routes, as well as a symbolic vote calling on President
Bush to crack down on ``excessive'' commodity speculation.
The Democrats' stumbles come as congressional Republicans
continue to push aggressively for more domestic oil and gas
production on the Outer Continental Shelf and in Alaska's
Arctic National Wildlife Refuge as well as for an ambitious
plan to turn coal shale beneath the High Plains into natural
gas.
Republicans claim an amendment--offered by Pennsylvania
Rep. John E. Peterson--to open offshore drilling sites 50
miles off the coast has enough support to survive a committee
vote on the Appropriations panel.
The committee postponed consideration of the measure on
which Peterson planned to offer his amendment, but Chairman
Dave Obey (D-Wis.) told members Tuesday he plans to bring it
up when lawmakers return from the weeklong Fourth of July
recess.
As the Democrats struggle to hold together support for the
existing offshore drilling ban, they find themselves coming
apart on another energy issue: what to do about oil
speculators.
Some Democrats, such as Agriculture Committee Chairman
Collin Peterson of Minnesota and Rep. Bob Etheridge of North
Carolina, would like party leaders to advance a modest
measure that gives federal regulators more resources to crack
down on ``excessive'' speculation in the United States and
abroad.
``I'm not, at this point, sold that speculation is the
reason these prices are going up,'' Peterson said.
Others, such as Connecticut Rep. Rosa DeLauro and Maryland
Rep. Chris Van Hollen, the Democratic Party's campaign chief,
have urged the speaker to go further by making substantive
changes to the current laws, members and aides said.
Add to that a jurisdictional squabble between Peterson's
Agriculture Committee and members of the House Energy and
Commerce Committee--including Michigan Democratic Rep. Bart
Stupak--who have been working on this issue for years, and
Pelosi faces a major internal challenge in bringing this
legislation to the floor.
The speaker met with these and other members for more than
an hour Wednesday morning. They were joined by Michae1
Greenberger, a law school professor at the University of
Maryland and a former director of trading and markets at the
Commodity futures Trading Commission, who has testified
before Congress that speculators are driving up the price of
oil.
But the participants who emerged from that meeting
suggested the various committees of jurisdiction will begin
looking at this legislation before leaders craft a
compromise.
``I think the consensus is that this needs to be done very
carefully,'' said House Majority Leader Steny H. Hoyer (D-
Md.).
``We're going to focus on the actual legislation and try to
come to a consensus,'' Peterson said.
Pelosi told reporters Wednesday that she expects
legislation on the floor sometime next month, before
lawmakers leave for the summer and for their respective
nominating conventions.
Some Democrats wanted to vote on a modest bill this week to
give themselves cover before the recess, aides said.
A number of conservative Blue Dog Democrats were also
grumbling that party leaders were planning to put them in a
bad spot politically with these aggressive oversight
measures, aides said. Pelosi met with a number of these
members Wednesday, but the speculation issue was only one of
the topics discussed.
In the meantime, both parties continued their finger-
pointing over the gas prices and the policies that might have
an effect on them.
On Wednesday, the Department of the Interior questioned
Democratic claims that energy producers could pump oil or gas
on 68 million acres of land that has already been leased.
This talking point became a common refrain last week;
Democrats argued that the lease-holding oil companies could
produce 4.8 million barrels of oil and more than 44 million
barrels of natural gas each day under the current contracts.
``The views contained in the report [issued by Democrats on
the House Natural Resources Committee] are based on a
misunderstanding of the very lengthy regulatory process,''
wrote C. Stephen Allred, the assistant secretary of the
Interior for Land and Minerals Management, who favors
increased oil and gas exploration. ``The existence of a lease
does not guarantee the discovery of, or any particular
quantity of, oil and gas.''
In his letter--which can1e at the request of Republican
Rep. Don Young of Alaska--Allred further argued that a
lengthy permitting process creates a lag for energy producers
to extract fossil fuels from this land.
In a statement issued in response to the letter, House
Natural Resources Committee Chairman Nick J. Rahall (D-W.Va.)
called it ``a diversion from the simple fact that there are
68 million acres of leased land not producing any oil and
gas.''
Rahall said that the administration's argument about the
slow permitting process undercuts its arguments for lifting
the offshore drilling ban; a long permitting process, he
said, would slow any benefit to be gained from offshore
drilling, too.
``Roughly 80 percent of the oil and gas under federal
waters are in areas already open for leasing. They should
focus on that before trying to grab any more of our public
lands,'' Rahall said.
The fight over gas prices also has a personal component.
Pelosi has staked her speakership, in part, on aggressive
environmentalism to limit human contributions to global
warming. This puts her at odds with those in her caucus who
are more sympathetic to the oil and gas industry. That
dynamic forces her to tread lightly inside the party, but it
does not prevent her from issuing lofty challenges in the
name of the environment.
``We are in the battle of this generation,'' Pelosi told
reporters Wednesday. ``We're ready to make the fight. We are
united behind it.''
Mr. Speaker, I demand a recorded vote.
Let me thank the distinguished gentleman from Minnesota and as well his ranking member, who I hope is recognizing the importance of the work that we are doing here today, and, of course, the Members…
Let me thank the distinguished gentleman from Minnesota and as well his ranking member, who I hope is recognizing the importance of the work that we are doing here today, and, of course, the Members that have spoken.
Madam Chairman, I rise today to support the Saving Energy Through Public Transportation Act of 2008 and also to speak to the manager's amendment that incorporates my language that speaks specifically to encouraging, I hope insisting, that stakeholders, whether they be cities and counties or various transit agencies, engage the public in the question of promoting public transportation.
The Transportation and Infrastructure Committee has shared a recent study that states that if Americans use public transit at the same rate as Europeans for roughly 10 percent of their daily travel needs, the United States could reduce its dependence on imported oil by more than 40 percent, nearly equal to the 550 million barrels of crude oil that we import from Saudi Arabia.
Right as we speak, Houston, Texas, the fourth largest city in the Nation, is beginning to grow its mass transit system. It started by the advocation of many of us, including our former mayor Lee P. Brown, which required,
because of the restraints here in Washington and the difficulties of our being able to get consensus, it was started by our own tax dollars. The 7\1/2\ mile transit system that was started at least 3 or 4 years ago has now become one of the fastest new starts in America and is located in my congressional district shared with my fellow colleague in the Ninth Congressional District. What it says is that new starts should be increased in months to come. And as we look to expanding opportunities for transit systems and reducing our use of oil, it is important as well that we look to collaborative efforts on efficient transportation systems.
Madam Chairman, let me ask my colleagues to support this legislation, and I hope to get time on the manager's amendment.
Madam Chairman, thank you, and thank you Chairman Oberstar for your efforts on energy conservation with H.R. 6052--``Saving Energy through Public Transportation Act of 2008.'' The Transportation and Infrastructure has once again produced legislation that will help Americans save money and develop new modes of transportation.
The primary objective of this legislation is to reduce the United States dependence on foreign oil by encouraging more people to use public transportation. The Transportation and Infrastructure has shared a recent study that states if Americans used public transit at the same rate as Europeans--for roughly 10 percent of their daily travel needs-- the United States could reduce its dependence on imported oil by more than 40 percent, nearly equal to the 550 million barrels of crude oil that we import from Saudi Arabia each year.
Rising gas prices have only added to this country's economic downturn. When we add this cost into our troubled housing markets, soaring food prices, and a war without a clear end--the importance of this legislation becomes even more apparent.
I urge transportation systems such as Houston METRO to work in greater coordination with their local community to ensure that routing lines make not only economic sense, but practical sense as well.
Community involvement is essential, which is why I offered an amendment that would state that ``public transportation stakeholders should engage local communities in the education and promotion of the importance of using public transportation in cities and counties; and in the planning, development, and design of transportation routing lines.''
I am pleased that my amendment was incorporated into the manager's amendment. However, I am disappointed that all the language was not incorporated--leaving out the key portion of community involvement in planning, development, and design of transportation routing lines.
I still support this measure and I sincerely hope that our local public transportation agencies take the communities' use into account as well as their thoughts on what routes would add value and which routes may actually do more harm than good. It is our residents who utilize the mass transit systems not the planning boards.
In my district of Houston, Texas, many residents utilize the public transit system to alleviate congestion as well as to control cost. I believe it is imperative that we have full community involvement in the discussions surrounding outreach, planning, design of mass transit.
Our parents who are trying to hold one child, guide another, balance their bags and get to work; it is our elderly who need extra time to get onto trains and buses; and our youth who are trying to get back and forth to school and activities--these are the people who can and will utilize public transportation. The incentives are there for commuters but they should be examined with community involvement so the right message is sent.
This act will add value to our public transportation by:
Authorizing $1.7 Billion of Capital and Operating Funds for Transit Agencies to Reduce Fares and Expand Transit Services. This section authorizes $850 million (General Fund) for each of fiscal years 2008 and 2009 to allow public transit agencies to reduce transit fares and expand transit services. These funds will allow transit agencies to provide incentives for commuters to choose transit options, thereby reducing our nation's transportation-related energy consumption and reliance on foreign oil, as well as decreasing its greenhouse gas emissions. These funds will be distributed under current law urban and rural transit formulas. The Federal share for these grants is 100 percent and funds will only be available for a two-year period.
Increasing the Federal Share for Clean Fuel and Alternative Fuel Transit Bus, Ferry, or Locomotive-related Equipment and Facilities from 90 percent to 100 percent. The bill increases the Federal share for the alternative fuel vehicle-related equipment from 90 percent to 100 percent of the net project cost for fiscal years 2008 and 2009.
Extending Transit Benefits to All Federal Employees. The bill establishes a nationwide Federal transit pass benefits program and requires all Federal agencies in the United States to offer transit passes to Federal employees.
Requiring the Department of Transportation (DOT) to Establish Specific Guidance for Implementing the Nationwide Transit Pass Benefits Program. The guidance will ensure that Federal agencies have the necessary administrative procedures to ensure that Federal employees properly use the program. It also requires the Department of Transportation (DOT), the Environmental Protection Agency, and the Department of Energy to implement a nationwide three-year pilot transit pass benefit program for all qualified Federal employees of those agencies.
Establishing a Vanpool Pilot Program. The bill establishes a two-year pilot program to allow the amount expended by private providers of public transportation by vanpool for the acquisition of vans to be used as the non-Federal share for matching Federal transit funds in five communities. The provision requires the private providers of vanpool services to use revenues they receive in providing public transportation, in excess of its operating costs, for the purpose of acquiring vans, excluding any amounts the providers may have received in Federal, State, or local government assistance for such acquisition. The Department of Transportation will implement and oversee the vanpool pilot projects, and will report back to Congress on the costs, benefits, and efficiencies of the vanpool demonstration projects.
Increasing the Federal Share for Additional Parking Facilities at End-of-Line Fixed Guideway Stations. The bill increases the Federal share for additional parking facilities at end-of-line fixed guideway stations to increase the total number of transit commuters who have access to those stations.
Therefore Madam Chairman, I urge my colleagues to vote for H.R. 6052, which seeks to address energy conservations through public transportation.
Amendment to H.R. 6052, as Reported
Offered by Ms. Jackson-Lee of Texas
Page 3, after line 25, insert the following:
(10) Public transportation stakeholders should engage and
involve local communities in the education and promotion of
the importance of utilizing public transportation in cities
and counties and in the planning, development, and design of
transportation routing lines.
Well, I thank my classmate from Georgia for hosting this hour tonight. We spend an awful lot of time at these microphones, both sides, basically talking past each other. Usually, the rhetoric is…
Well, I thank my classmate from Georgia for hosting this hour tonight.
We spend an awful lot of time at these microphones, both sides, basically talking past each other. Usually, the rhetoric is heated, and we don't listen. My experience is this is the worst 435 listeners on the face of the Earth because we are clearly more interested in hearing what I have got to say than listening to what you have got to say.
It happens time and time and time again at these microphones, basically because we tend to polarize and take the absolute positions, knowing full well that the best path for America is somewhere in the middle.
The best path for America includes working all the other alternatives and trying to develop those and trying to see as far over the horizon as we can for a day in which crude oil and natural gas will no longer be available, not by choice but by the fact it has all been used up. It is a finite resource. We should be conserving everywhere we get, not on an individual basis but collective as well.
Yes, from our position, we should be exploring and developing and producing American resources; crude oil, natural gas, uranium, nuclear, oil shale, tar sands, the full gamut of these resources.
So if we can actually spend some time and sit together and try to work out our differences, I think there is a solution here that is really best for America.
When I first read the ``use it or lose it'' bill, my first reaction was how can 236 of my colleagues on the other side of the aisle and all of their staffs and all of their hired consultants know so little about a fundamental industry that is so vital to our national security, our economic security, and that is the oil business. Then I came to the cynical conclusion that I was wrong; they do know about it.
They do know exactly what they are doing by this bill that was up earlier today on a suspension calendar that we were able to defeat because over a third of us said that is wrong-headed.
Here's a quick basic. When an oil and gas oil company, generally a major oil company because it requires so much money, leases in the Gulf of Mexico, where we have been drilling for a long, long time, they pay a lease bonus, which is a sizable amount of money that is given to the Federal Government, that says for a time certain I get exclusive rights to explore and try to find crude oil and natural gas on this particular parcel of land. That bonus money is a sunk cost because if they find oil, they get to produce it. If they don't find oil, too bad.
This industry, much maligned from these microphones, is a group of dedicated, hardworking, patriotic, honest people who have an incredible tolerance for risk in this environment.
So they put up the lease bonus money, sometimes millions and millions of dollars, just for the right to wade into the bureaucratic morass that we have created around these circumstances, where you have got 27 permits and all kinds of stuff to get to just until you get to start the process. The process includes geological studies, geophysical studies, evaluation to try to find where on that parcel of land the best spot may be. You have got sunk costs, regulatory compliance costs.
Then, once you have decided where you are going to drill, that you decided that you think there are commercial reserves in place under that dirt, under that ocean, then you still don't know it until you drill it. Then you have got the cost of drilling, all the expense there. Then, if you find commercial quantities of crude oil, you have to build a production platform that has got to be uniquely built for the particular formation you have got, and that has got to be moved out into the gulf and anchored.
So what you have is many millions and millions, in some instances, billions of dollars of shareholder equity and debt that's been invested in trying to find crude oil and natural gas. Most of that is sunk cost. The only way they get a return on their investment, the only way they justify to their shareholders that they are making the right decision is to produce whatever crude oil and natural gas is in place.
So there are plenty of incentives already built in to produce. The idea that they would ``sit'' on production in the hopes that this price gets even higher, which they know the price is too high now, is just wrong-headed.
The traditional offshore lease needs to be at least 10 years because from start to finish--we have got some graphs here that we can show you the logical, businesslike progression that companies have to walk down. What is not mentioned so far is all the litigation costs that are associated with these leases, particularly in the Rocky Mountains. If a company is able to win a lease, they are immediately sued by environmentalists to prevent their exploring for it. This current price of gasoline and crude oil is a product of supply and demand.
About 86 million barrels a day of production, about 85 million barrels a day of usage, and that varies from day-to-day. Inventories start dropping. That means demand has gone beyond the current production supply.
The most immediate area for quick relief in this regard would be Iraq. The Iraqi government has recently reached out to ExxonMobil, Shell, BP and Chevron to ask them, ask the experts, the folks who have the money to be able to do it, to come into Iraq and help them increase the amount of production that Iraq produces from oil and gas. They are about half of what they were under the Shah. And their fields are on land and the most quickly responsive to getting new oil and gas supplies to the market.
Charles Schumer, a colleague on the other side of the building, immediately weighed in, said that is wrongheaded and said he wants to find out some way to prevent Iraq from developing Iraq's resources.
It is not good enough that we prevent America from developing America's resources, but now we want to tell the Iraqis how they should be able to do it as well. We are about to run out of time. That is one of the things I wanted to say, and I appreciate getting to weigh in on this.
Here is the bottom line: Post-World War II, we have developed an American lifestyle that was incredibly dependent on inexpensive gasoline, suburbs, rural
America, that requires being able to drive to and from work, to and from recreation. Maintaining these high prices, as our colleagues across the aisle are intent on doing, is, in my view, an attack on that way of life.
You can call it partisan or not, but if you look at where the bulk of the Democratic support is in the Congress, it is in big cities, where they have access to mass transit, trains and buses and those kinds of things. But in rural America, flyover America, where most Republican support is, we don't have access to that.
I can assure you, the folks who live at Lake LBJ, named after Lyndon Johnson, and work in Marble Falls and Llano and Burnet, there are no buses to get to and from work. They have got to drive their cars.
So as we continue to on purpose maintain these high gasoline prices, this is an attack on our suburban way of life, an attack on rural American and the rural way of life and a lifestyle that has served us well since post-World War II.
One final statement: When I go home, this is all my constituents talk about. And if I were to come up here and take the position that I am going to ignore what they are saying, the way our Democrats appear to be doing, I would get tossed out of office, because apparently they are not hearing the same thing that you and I are hearing when we go home. Apparently in Democratic districts the high gasoline prices are not particularly relevant, which begs the question that 71 percent of Americans want to drill.
So I appreciate my colleague letting me speak tonight. We can solve this. We can fix this. But it is going to require some modification on our part, some modification on our Democratic friends' part. But we really do need to start listening to each other and quit demagoging, and particularly with respect to the oil business, considering those folks less than human as we look at what they do for America every day.
I yield back.
Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 6377) to direct the Commodity Futures Trading Commission to utilize all its authority, including its emergency powers, to curb…
Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 6377) to direct the Commodity Futures Trading Commission to utilize all its authority, including its emergency powers, to curb immediately the role of excessive speculation in any contract market within the jurisdiction and control of the Commodity Futures Trading Commission, on or through which energy futures or swaps are traded, and to eliminate excessive speculation, price distortion, sudden or unreasonable fluctuations or unwarranted changes in prices, or other unlawful activity that is causing major market disturbances that prevent the market from accurately reflecting the forces of supply and demand for energy commodities.
Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, H.R. 6377 directs the CFTC to utilize all of its authority, including its emergency powers, to immediately curb the role of excessive speculation, if any, in the energy and swaps futures market within its jurisdiction, and to eliminate any unlawful activity causing major market disturbances that prevent the market from accurately reflecting the forces of supply and demand of energy commodities.
Mr. Speaker, I don't think I would be covering any new ground in this Chamber if I were to speak about high prices of gasoline. Everybody in this chamber understands that problem. But, Mr. Speaker, a growing number of people believe a flood of speculative money into the energies futures is driving the increase in prices. The weak dollar and increased worldwide demand has led to a greater number of well capitalized investors into the commodities futures market, including the crude oil market, as these investors seek greater returns than they traditionally found in cash and securities.
It is undeniable that this group of institutional investors has a greater presence in futures markets than ever before.
So what we are doing here is asking the CFTC to look into this and use the powers that they have to look at this situation and determine and give us a report which they have done in the past. We are asking them to take one more look and make sure that these additional moneys that are coming into the futures market are not having any undo effect on prices that people are concerned about.
The CFTC is the chief regulator of the commodities futures and options market. It is their responsibility to identify, pursue and prosecute fraud in this area. I believe they are doing a good job in that regard. Chairman Lukken and his staff have testified repeatedly before our committee and others that at this point they can see no evidence of speculation causing problems in these markets. But there are a lot of folks who are concerned this is going on, and so we are asking them to take one more look.
Under current law, U.S. traders can execute transactions in West Texas Intermediate crude oil, which is the benchmark oil contract on NYMEX, a CFTC-regulated exchange, and on London's ICE exchange that is regulated by the United Kingdom's FSA. The CFTC, however, has information on the positions of traders on the NYMEX that they don't have on the traders on ICE, and this is part of the issue that has caused us to be concerned because we don't have complete information on exactly what is going on in all of these markets.
Mr. Speaker, CFTC right now is taking steps to gain more information. They have gone into an agreement with the FSA to expand trader data, and that is all good and we welcome these steps, but we believe more should be done. CFTC should immediately take these steps to utilize their authority to make sure that, as I said before, there is not excessive speculation in these markets.
We on the Agriculture Committee are going to work with the CFTC to try to acquire more information, and we will thoroughly examine all of the bills in July that have been introduced in this area in a methodical way, we will listen to all sides, and we are going to try to move ahead with a consensus bill if we can come to a consensus about what, if anything, should be done to move on this situation.
Mr. Speaker, I am here today to, we hope, provide a reasonable and useful voice to come to the right conclusion and get the right answers about what is going on in the futures market and what is going on with oil prices in this country.
I reserve the balance of my time.
I am pleased now to yield to the chairman of the subcommittee that has jurisdiction over this issue and has done outstanding work in leading his subcommittee to make sure we are on top of this issue, the gentleman from North Carolina (Mr. Etheridge), for 2 minutes.
(Mr. ETHERIDGE asked and was given permission to revise and extend his remarks.)
I yield the gentleman an additional 30 seconds.
Mr. Speaker, I am now pleased to yield to the gentleman from Maryland who has sponsored legislation in this area and has a passionate interest in this issue and has been very much involved, the gentleman from Maryland (Mr. Van Hollen), for 3 minutes.
Mr. Speaker, how much time remains?
Mr. Speaker, I am now pleased to yield 3 minutes to the Chair of the House Agriculture appropriations committee who has been also very passionate in leading on this issue and also working in her committee to make sure that the CFTC has the resources they need to complete their task, the gentlelady from Connecticut (Ms. DeLauro) for 3 minutes.
Mr. Speaker, I'm now pleased to yield to my good friend and Blue Dog colleague from Utah (Mr. Matheson) for 2 minutes.
Mr. Speaker, I'm now pleased to yield 1 minute to my good friend from Vermont (Mr. Welch).
Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks and include extraneous material on H.R. 6377.
Mr. Speaker, I'm now pleased to yield to a leader on the Energy and Commerce Committee and energy issues in general, Mr. Markey from Massachusetts, 1\1/2\ minutes.
Mr. Speaker, I am pleased to yield 1 minute to the gentleman from Washington (Mr. Inslee).
(Mr. INSLEE asked and was given permission to revise and extend his remarks.)
At this moment we have no additional speakers, so I probably can move to close.
Mr. Speaker, I yield myself the balance of my time.
Mr. Speaker, I want to say to my good friend, Mr. Goodlatte, that I appreciate his support for this measure. And what we're trying to do in our committee is to develop a consensus as we move through this issue. And there are a lot of ideas, a lot of different opinions out there, a lot of bills that have been introduced.
This is a step that we can make today I think on a basis where we can come together and make sure that the CFTC is using the powers that they have to examine this market and make sure that the speculation, the extra money that's coming in is being done properly and is not affecting these markets in a way that is not appropriate. And I trust that they will do that job.
But moving forward, what we intend to do, as I said earlier, as soon as we come back here from the July recess, our committee will convene on Wednesday after we come back and we will examine all of the bills that have been introduced or are introduced in the meantime. And we will have a debate on all the different aspects and all the different positions. And what we will try to do on that committee is to sort through all of this and hopefully come to a consensus about what is the appropriate way for us to move ahead.
These are very complicated markets and issues, and I want to make sure that whatever we do is the appropriate response, and as somebody said earlier, we don't have unintended consequences because of the actions that we take here.
So I look forward to working with my colleagues on the other side of the aisle with my colleagues on this side of the aisle to find a consensus that can have bipartisan support like we achieved on the farm bill to move something ahead that makes sense for the American people and gets the right answer.
With that, I urge adoption of the bill.
Mr. Speaker, I yield back the balance of my time.
I appreciate the gentleman's courtesy as I appreciate his leadership. It's interesting for us to hear from some of our friends on the other side of the aisle, my good friend from Florida, recounting…
I appreciate the gentleman's courtesy as I appreciate his leadership.
It's interesting for us to hear from some of our friends on the other side of the aisle, my good friend from Florida, recounting sort of the history of the Bush administration leadership on energy. I have a slightly different recollection of that.
One of the first things this administration did when they came to power was to create 7 years ago a secret task force. They never really fully released what was going on or why, but we know that it was dominated by representatives of the industry. And the Secretary of Energy in March of 2005 indicated that 95 percent of the objectives of the task force were completed. And then 35 months ago, on the floor of the House, we passed their big picture energy bill when they controlled everything, House, Senate, White House, and it was going to envision great changes for all American families.
Well, all American families have had some significant changes since the Republican energy bill was passed. Most significant is that gasoline prices have gone from $2.49 a gallon to over $4 a gallon. The changes about altered conservation, for instance, have come over the objections of our friends in the Republican party. Remember, for years, they made it illegal even to study increasing CAFE standards, and lo and behold, now George Bush is claiming credit for what we forced him to do for the first time in 30 years, increasing those fuel standards. But even if we give him credit for going to 35 miles to the gallon standard, it took George Bush longer to get to that 35 miles to a gallon than it took Jack Kennedy to get Americans to the moon.
This legislation is part of a comprehensive approach. You've seen it come to pass from our first days in Democratic control in this Congress, where we provided more incentives for new sources of energy, where we've worked to shift incentives from massive oil companies who didn't need our tax dollars. Remember, George Bush said they didn't need subsidies at $50 a barrel. Well, Big Oil didn't need it at $100 per barrel or $140, but that shift to alternative energy support was resisted by the administration and by my Republican colleagues.
We have systematically moved forward in areas to give more choices to Americans. I heard my friend from Louisiana talk about how it costs money to explore the 68 million acres already available to them. Gee, ExxonMobil spent $36 billion last year, not in alternative energy, that was $10 million, but to buy back their own stock.
Let's get a grip. It's time for us to move forward with choices that will make a difference. This legislation will make a difference for every community, rural and urban, around the country. I urge its adoption.
Madam Chairman, I thank Mr. McGovern and my friend from Virginia. This is really important for us, to be able to start equalizing the playing field. I think there is nothing at this point in the game that is more critical than giving people transportation choices. I appreciate the long-term interest and advocacy that you have had in terms of doing this. I think it is an important step to make sure that commuters across the country are treated in a fair and equitable fashion.
I am hopeful that the body will embrace this, that we will be able to deal with it in an aggressive sense, both in terms of the Ways and Means Committee, that we can work with our colleagues to find ways in the Tax Code to make the adjustments that are necessary to cushion the commuter cost of transit users, as well as people who use their vehicles; that we deal with some people who have extraordinary costs because of the long distances commute, and I think there are ways that we can adjust this.
I would beg their indulgence for one modest potential adjustment, and that is while this moves forward to make a difference for people who are commuting, I would hope there would be some way we could work together to also include equity for people who burn calories instead of fossil fuel, because as yet, the Tax Code and the policies do not provide equity for Mr. Oberstar's friendly, favorite people, the cyclists, although we have passed that three times through the House this year previously. Being able to put cycling communities along with transit and auto communities will make a big difference in the long run.
I appreciate this leadership and look forward to working with them to make progress in the future.
Madam Chairman, the reference was made by my other friend from Florida that there was a related provision that passed last week on a 429-1 vote. I confess to being the one person who voted against that. I had some concerns about how that was framed.
I went back and did some research and concluded that my ``no'' vote was ill-advised, although it wasn't determinative, and I wanted to indicate that I personally support what is being proposed here. I think it is a reasonable compromise to deal with issues that need to be taken, and I appreciate my friend's courtesy in allowing me to do my mea culpa while you wait for your other speaker.
I appreciate the gentleman's courtesy, and look forward to moving forward on this amendment. I think it balances a potential inequity.
But I would hope that as we move forward to reauthorization, that the folks on both sides of the aisle, Mr. Chairman, that we might be able to look at more Federal flexibility for the land that is used with these park-and-ride items, because in many cases they are frozen in time. We have inflexible Federal rules about what can be used for that land, and they have a habit of not being at the end of the line. So if we can in the future be able to use them as an anchor for community development and redevelopment where people can live and work at that point, rather than having to drive vast distances to get there in the first place, these facilities can leverage significant redevelopment opportunity, reduce vehicle miles traveled, and be able to reduce the operating cost for the lines.
So I have no objection to this proposal as it goes forward, but I would hope that we would be creative as we move to reauthorization that we don't freeze in arbitrarily what local communities can do with transit agencies and the Federal Government to be able to leverage them to get more out of it in the long run so we don't have to unnecessarily force people to drive to use it in the first place.
I yield to the gentleman.
I appreciate the gentleman's courtesy as I appreciate the leadership of the committee. One cannot get back to the committee often enough. And I would look forward to working with you and with the gentleman from Washington to make sure that we get the most out of these resources.
Mr. Speaker, I have a motion to recommit. In its present form, I am. Mr. Speaker, at the outset, let me say I have a long history of supporting mass transit in the urban areas of my State, including…
Mr. Speaker, I have a motion to recommit.
In its present form, I am.
Mr. Speaker, at the outset, let me say I have a long history of supporting mass transit in the urban areas of my State, including light rail development and bus transportation systems. I've received State-wide recognition for this work.
Unfortunately, there are no light rail routes, and few successful bus routes, in rural Oregon and in most of my district. In fact, the most important public mass transit in most of rural Oregon and, indeed, across most of rural America is a bright yellow school bus, like this one, that safely transports American children to and from school each day.
No one in America is immune from the impact of record-high gas prices, but for those of us from rural areas, the impact has been particularly severe not only on farms, families and small businesses, but also on our local governments that are struggling to pay sky-high fuel prices to maintain basic services.
Before you know it, our public school doors will open, and millions of our children will return to school, many of them on that familiar yellow school bus.
Yet all across this country, school superintendents are struggling mightily to figure out exactly how they'll afford to operate those school buses and to get our children to school.
Newspapers are filling with accounts of school districts and how they're going to respond to the cost of fuel. Some districts, including one just a few miles from here in Maryland, are considering reducing bus services and forcing children to walk up to 2 miles to school. Some schools are even discussing going to 4-day school weeks in order to reduce fuel consumption.
As profound as this problem is in urban and suburban area, it is even worse for those of us from rural communities where school buses must travel long distances to pick up and drop off children.
This is what the Yakima Herald-Republic in Washington State had to say just 5 days ago: ``Some of the surrounding districts in rural areas feel the pinch from increased costs a bit more because their buses have to travel farther to transport students. The Mt. Adams School District, which has about 1,000 students, is the third-largest district in the State with an area of 1,325 square miles. The district's 10 buses still travel more than 200,000 miles in a year.''
All the way across the country in Franklin County, Virginia, the Roanoke Times reports that ``a school official advised the board of supervisors Tuesday that the division could face an extra $690,000 in added fuel costs.''
Yet, today we have before us a bill that does absolutely nothing, nothing to lower the price of gasoline or diesel and nothing to help our schools, our school districts, and to help them pay for the bus transportation costs they're incurring.
Instead, it proposes to increase subsidies for public transit systems that reduce their fares and expand taxpayer-funded travel perks for Federal employees.
What's even worse is that existing Federal law would actually prohibit the funds authorized under this bill from being used to provide assistance to struggling school districts. Let me repeat that. This law, and the law on the books, don't allow the use of these funds for our school systems.
As the school year approaches, it's time to get our priorities right and to take care of our kids first.
My motion to recommit would fix this problem by sending this bill back to committee with instructions that they revise it, to specifically provide that in an area where school bus services are being cut back because of high fuel prices, that the funds under this bill shall be used first and foremost to help restore those school bus services, and that preference shall be given to rural and suburban areas where school buses have to travel greater distances to transport our children.
If the Democratic leadership's going to refuse to even allow a vote on proposals to increase domestic energy supplies so that we can lower gas prices for all Americans, then the least we can do is try to soften the blow for our Nation's schools, our school bus system and our children.
As currently drafted, this bill does not do that. We have a chance to fix it. We have a chance to help our school districts, particularly those in rural areas.
Now, the majority will undoubtedly try to rally their Members against this motion, but I ask, given that Congress is recessing tomorrow, what's wrong with sending this bill back to committee where the staff can review the amendment over the break and the full committee can carefully consider the importance of helping local schools cope with their busing needs and report this bill back in 10 days?
Or you can reject this on some sort of procedural grounds, and leave local schools in the lurch, and literally put our school children on the shoulder of the roadways, dodging traffic on their way to and from school this fall.
When schools start closing a day a week early, when parents can't figure out how to get their children to and from school, Americans will look back on this moment and see who stood with our rural and suburban schools and with our children and who stood against them.
This is a reasonable motion to recommit. The committee clearly has the time to take this up. It is of no disservice to the committee or this process to say our first priority in this House, if we're not going to allow greater access to American fuel, is to at least take care of America's school children and their busing needs.
Every paper in your district is probably writing about this issue or will be as skyrocketing fuel costs cost them the ability to run their bus routes. You can smirk and you can laugh, but this reality is coming to us here and now.
Reserving the right to object.
Yes.
To my friend and the Chair of the Transportation Committee, I would be happy to agree to the unanimous consent request provided that you and your side would also agree to allow us to add a proposal to reduce gas prices for struggling American families. Specifically, would the gentleman agree to add to the bill either the No More Excuses Energy Act, H.R. 3089, or at a minimum, the proposal to allow the deep ocean oil exploration, H.R. 6108, the Deep Ocean Energy Resources Act?
I yield to the gentleman.
While I appreciate the gentleman's position, clearly there is an opportunity for the committee to consider this and other issues related to transportation, so I would object.
Mr. Speaker, were the gentleman's words in order?
Is it in order to call a Member's motives in question, Mr. Chairman?
Thank you so much, Mr. Westmoreland. Thank you for leading this Special Order tonight and for the work that you have been doing for the last several weeks on this issue. I think it's important that…
Thank you so much, Mr. Westmoreland. Thank you for leading this Special Order tonight and for the work that you have been doing for the last several weeks on this issue.
I think it's important that we say over and over and over again that the Republicans do have a plan to lower gas prices. We are doing everything that we can to create new sources of American-made oil because we are in touch with the American people. We go home every weekend. Most of us worked for a living before we came here; so we know what it's like to meet a payroll. We haven't been in government all our lives. We haven't served in the Congress for 53, 54 years.
We are out there every weekend talking to the folks that we represent, and we know how the high prices of gasoline are hurting them. I think the Democrats are in strong denial. They think, again, that they can continue to bash the oil companies and hide their heads in the sand about what is going on.
I want to thank you and our colleague from Indiana and our other colleagues that are going to be speaking tonight who are exposing the Democrats for who they are and what they are. Again, as I said earlier, it's important that we let the American people know it's the Democrats who are in control. The President cannot create new gas sources or new oil sources. Only the Congress has the power to do what needs to be done. So we need to set the record straight.
It seems like the Democrats want to do everything possible to avoid creating new oil and bringing down the price of gasoline. They purport to represent the little person, the common person, the average person in this country, but it's obvious that that's not who they care about. They care about the radical environmentalists and toeing their line.
Now I consider myself an environmentalist. My husband and I are in the nursery and landscaping business. I cherish the earth. I am a big recycler. I am very careful about how I spend things. When you grow up poor, you learn to be careful with money.
But we know that our Speaker is the wealthiest person in Congress. Many of the Democrats are among the wealthiest people in the Congress. This really isn't hurting them at all. Again, I think it's very important that we debunk what they are trying to say to the American people about why their ``use it or lose it'' is what needs to be done. Again, they are good at blaming everybody else in the world for the problems that they create or that they can't solve.
I want to talk a little bit about their comment that all we have to do is get the oil companies to use the leases that are available to them and put out some facts. We had the Truth Squad. The Truth Squad hasn't been active lately, but we need to bring it back. As our colleague says, You're entitled to your own opinion, but you're not entitled to create facts.
So let me say something about why we need to do something more than simply pass legislation that has already been passed. During President Reagan's administration, 160 million acres of onshore land was leased for exploration. Today, only 50 million acres are leased. Only 6 percent of Federal onshore land is available for leasing. ANWR contains 10.4 billion barrels of oil, but is 100 percent closed.
I want to say something about ANWR, and I want to say something--I saw these pictures on TV again tonight. When ANWR is portrayed, it is usually portrayed as this meadow with daisies growing in it, animals grazing. That isn't what ANWR is. ANWR is a frozen desert. The temperature gets to 60 degrees below zero there sometimes. Practically nothing grows there.
I was all over Alaska in 2005. I saw the oil fields. And, you know what? The oil fields don't look like the oil fields they show you on TV either. We have got to get those guys to get up-to-date pictures. You don't have these big cranes going up and down and back and forth like this. The oil wells don't even look like oil wells. They are little boxes with some gauges on them. If somebody didn't tell you that they were drilling oil there, you couldn't possibly know it. So we are not going to be spoiling our scenery, and we are certainly not going to hurt ANWR.
The OCS contains 86 billion barrels of oil, the Outer Continental Shelf, but 97 percent of it is closed. Onshore Federal land contains 31 billion barrels of oil, but only 6 percent of it is open to exploration. Oil shale on Federal land contains 2 trillion barrels of oil, but is 100 percent closed.
The Democrats' claims are wrong. They claim that there are 4.8 million barrels and 44.7 billion cubic feet of natural gas per day that may be extrapolated from unused Federal leased lands. Stephen Allred, Assistant Secretary of the Land and Minerals Management, wrote that anyone who makes these claims has a ``misunderstanding of the very lengthy regulatory process. Lessees must comply with permit upon permit, often 27 total permits, without any drilling, and a lease does not equal oil. A lease is not a permission to drill, a lease is a permission to explore.''
The Democrats assume that every acre of leased land can produce the exact same amount of oil and gas as the very best producing acres. This argument is not based on science, fact, or even common sense. A lease doesn't guarantee the discovery of oil and gas. A lessee may never actually find oil or gas. Between 2002 and 2007, 52 percent of all exploration wells were dry.
We have got to set the record straight. We can't let the Democrats get by with talking about things that aren't true and trying to fool the American people.
I see my colleague from Georgia has some wonderful maps here. Let me defer to you to talk about ANWR a little bit.
If I might, before Mr. Conaway speaks, I want to make one more comment. I have been getting a lot of letters in the last couple of weeks from boy scouts who are talking about their concerns with what is going on. I got one this week that was really heart-rending. He said, If the price of gas keeps going up, we are not going to be able to go on vacation, we are not going to be able to go to the grocery store. We are not even going to be able to go to church anymore.
I think it's a real shame that we have people out there who are being denied the opportunity even to go to church because they cannot afford the price of gasoline. That is a sad state that we have come to in this country, and it's a sad commentary on the Democrats when they want to allow that to continue, when they have the power to do something about it.
I yield back.
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I thank the gentleman for yielding. I rise in support of the Energy Market Emergency Act of 2008. I don't have to tell anyone that gas prices have skyrocketed over the last several months. We can all…
I thank the gentleman for yielding.
I rise in support of the Energy Market Emergency Act of 2008.
I don't have to tell anyone that gas prices have skyrocketed over the last several months. We can all remember when we thought $2 a gallon gas was high. Now we would like to return to that. Now it is on average over $4.
On June 6, the price of crude oil hit an all-time record of $139 per barrel. American families are paying an average of $4.07 for gasoline, double the price from 2001 when President Bush took over. Truckers and farmers are paying an average of $4.77 per gallon for diesel, triple the price from 2001 when the President took office.
There is clearly not just one factor leading to these outrageous prices. However, there is a growing concern that excessive speculation by investors could be a significant cause of the prices we are experiencing. North Carolina families are struggling to make ends meet, as are families all across the country. Congress must act to ensure speculators are not artificially raising energy prices for their own gain while hardworking Americans are suffering.
This legislation tells the CFTC, which is responsible for overseeing our energy markets, to use all other authority to ensure that excessive speculation is not occurring.
I can't blame them. When the price of crude oil spikes $10, folks really believe something is wrong. The House Ag Committee will conduct hearings in July to examine all of the various pieces of legislation to address this issue, including legislation that I have introduced called the Increasing Transparency and Accountability Act of 2008.
I believe after a careful review we can craft responsible legislation that can improve the price discovery function of these commodity markets. But no amount of CFTC authority will make a difference if the agency doesn't have the resources to do their job.
Since 2002, trading on the commodity markets has increased six times.
While trading has increased six times, under the Bush administration, staff levels have fallen to the lowest level in the 33- year history of the exchange.
My legislation and others will increase it by 100 people. These are investigators. Let me just say for those who are listening, that means if you have a speed limit of 55 or 60 miles an hour, we are going to put more cops on the beat. That's what we need.
Mr. Speaker, I rise today in support the Energy Market Emergency Act of 2008.
I don't have to tell anyone here that gas prices have sky rocketed over the last several months. I remember a few years ago when two- dollar-a-gallon gas seemed outrageous. Now the national average is four dollars.
On June 6th, the price of crude oil hit an all time record of $139.12 per barrel.
American families are paying an average of $4.07 per gallon for regular gasoline, double the price from 2001 when President Bush took office.
Truckers and farmers are paying an average of $4.77 per gallon for diesel fuel; triple the price from 2001, again when the President took office.
There is clearly not just one factor leading to these outrageous prices. However, there is a growing concern that excessive speculation by investors could be a significant cause of the prices we are experiencing.
North Carolina's families are struggling to make ends meet while the cost of energy soars. Congress must ensure that investors are not artificially raising energy costs for their own gain while hard-working Americans are suffering.
This legislation tells the Commodity Futures Trading Commission, which is responsible for overseeing our energy markets, to use all of its authority to ensure that excessive speculation is not occurring.
I serve as chairman of the Subcommittee on General Farm Commodities and Risk Management, which has jurisdiction over the CFTC, and I'm here to tell you that people think something is not right.
And I cannot blame them. When the price of crude oil spikes $10.00 in one day, people think somebody is making some money, and it isn't them.
The House Agriculture Committee will conduct hearings in July to examine all of the various legislative proposals to address this issue, including legislation I have introduced, H.R. 6334, the Increasing Transparency and Accountability in Oil Prices Act of 2008.
I believe after a careful review, we can craft responsible legislation that can improve the price discovery function of these commodity markets.
No amount of additional CFTC authority will make a difference if the agency doesn't have the resources to do their job. Since 2000, trading on commodity markets has increased six-fold.
However, during that time, the Bush administration let staffing levels at the CFTC fall to their lowest level in the agency's 33-year history.
My legislation calls for 100 additional full-time positions at the CFTC, mostly for enforcement because they need the talent to keep an eye on these markets.
And I want to applaud Representative Rosa DeLauro for knowing this simple truth and providing more funding for the CFTC than the President requested in the Agriculture Appropriations bill.
Commodity markets are like highways in that both have limits. If drivers don't think there are any cops watching on the road, they are going to push past the speed limits. If the CFTC doesn't have enough staff to monitor an ever growing and changing marketplace, investors will push the limits there as well.
Today's directive to the CFTC will send a message to the administration that they must get serious about these sky rocketing costs
and will pave the way for more comprehensive legislation in the future. I urge my colleagues to support this legislation.
Madam Chairman, I offer an amendment. Madam Chairman, I yield myself such time as I may consume. (Mr. MAHONEY of Florida asked and was given permission to revise and extend his remarks.) I want to…
Madam Chairman, I offer an amendment.
Madam Chairman, I yield myself such time as I may consume.
(Mr. MAHONEY of Florida asked and was given permission to revise and extend his remarks.)
I want to thank Chairman Oberstar for bringing this bill, the Saving Energy Through Public Transportation Act of 2008, to the floor today.
Madam Chairman, 232 years ago, this country fought to gain its political independence. Today, as we approach Independence Day, it is time that we must fight for energy independence.
Madam Chairman, as we all know, Americans are suffering because of high gas prices. But some of the recent proposals we have seen in the past week are political opportunism at its worst. Take the proposal to end the moratorium on offshore drilling. Not only could drilling imperil Florida's $65 billion tourist industry, but there is insufficient oil to meaningfully address demand.
In 2007, the Energy Department found that drilling off the coast would not add to domestic production before 2030, and that the impact on gas prices would be insignificant. Further, the U.S. proven reserves are approximately 2 percent of the world's supply, yet we continue to be the number one consumer of oil in the world, consuming about 25 percent of the world's production. So anyone who stands here and says we are going to drill our way out of this problem is not being honest with the American public. It is time to get real, and it is time to take action now.
While there are no easy answers, there are significant steps that we can take to stabilize gas prices.
First, I am a proud cosponsor of the Responsible Federal Oil and Gas Lease Act of 2008, and I urge my colleagues to support this critical legislation. At a time when gas prices are skyrocketing, oil and gas companies should not be allowed to stockpile leases and they should be required to drill on the leases they own. They should use it or lose it.
Second, Congress needs to investigate the impact of speculation in the commodities market and the impact that has on the price of oil. It is time to know whether energy speculators are gaming the system to make money at the expense of hard-working Americans.
Third, we must continue to bring alternative energy to the country and to Florida. Recently, the farm and energy bills have set the stage for Florida to become the biofuels capital of America. We must continue to invest in cellulosic ethanol so we can become energy independent.
Fourth, we must recognize that the reckless fiscal policies of this administration have racked up a $6 trillion debt and this debt is ravaging the value of the dollar. In the past 6 years, this has contributed to a 40 percent devaluation of the dollar, and the fact that oil is a dollar-indexed commodity, the American people now know that when the value of the dollar goes down, the price at the pump goes up. The American people can no longer afford these reckless policies and this reckless deficit spending, and this Congress must make it stop.
Lastly, we need to reduce the barriers to importing Canadian oil, which is why I am offering my amendment today which would clarify language in section 526 of the Energy Independence and Security Act of 2007 so that it does not apply to Canadian oil.
I appreciate the hard work that my colleagues Congressman Boren and Congressman Lampson have already done on this issue. For those of you who don't know, section 526 prevents the U.S. Government from purchasing an unconventional fuel whose carbon footprint is higher than a conventional fuel. Canada has vast supplies of natural gas and has the world's second largest proven reserves of oil in the world, and Canada is the largest supplier of crude oil and refined products to the United States, supplying approximately 13 percent of total U.S. imports.
My amendment will clarify that section 526 does not preclude Federal agencies from purchasing generally available fuels, and that includes fuel from Canada's oil sands, refined using existing commercial processes. Through my amendment, we can address both a national energy supply issue and a national security issue. After all, who would you rather import oil from; our good friends up north in Canada, or from the Middle East?
The time has come for real solutions, not rhetoric. Today's actions take important steps to help us stop skyrocketing gas prices and put us on the road to energy independence. I urge my colleagues to support my amendment.
I reserve the balance of my time.
Madam Chairman, I demand a recorded vote.
Madam Chairman, I have an amendment at the desk. Madam Chairman, I yield myself such time as I may consume. (Mr. HODES asked and was given permission to revise and extend his remarks.) Madam…
Madam Chairman, I have an amendment at the desk.
Madam Chairman, I yield myself such time as I may consume.
(Mr. HODES asked and was given permission to revise and extend his remarks.)
Madam Chairman, I rise in support today of my carpool promotion amendment.
First, I thank the distinguished chairman of the Transportation Committee and the ranking member for introducing this important bill to encourage the use of public transportation in this country.
Public transportation obviously needs to be part of a forward thinking 21st century energy strategy. However, in my home State of New Hampshire, many of my constituents live in rural areas where they don't have access to public transit, and many in my district have to commute by car 20 or 30 miles or more just to get to work.
Today, in intraday trading, oil hit a record of $140 a barrel, and gas prices are over $4 a gallon for regular gas in New Hampshire. The people I represent are struggling. Many drive more than an hour to work. And we have seen carpooling begin to increase in New Hampshire.
With an extremely limited public transportation network, except for city bus service in the cities of Manchester and Concord, often the only option for alternative transportation is carpooling, and the opportunities are often limited for that.
Since the average local commuter is spending more than $2,000 a year in gas just to drive to work, if a driver shares his car with just one other occupant and those carpoolers share the cost of gas, obviously they cut their costs for gas in half.
Now, New Hampshire Department of Transportation has introduced a great program called Ride Share. They work with the New Hampshire Regional Planning Commissions and employers to encourage ride sharing, and they have implemented a Statewide ride sharing program. The program is dedicated to finding an alternative way for commuters to travel to and from work.
These days, our highways and byways are increasingly gridlocked; and many of those cars stuck in gridlock, and all you have to do is go outside this building to see the kind of gridlock that Washington is famous for, and many of the cars that are sitting there are single occupant vehicles. Driving alone is not only expensive, but it also contributes to increased traffic congestion and air pollution.
To help commuters cut costs and to reduce traffic congestion and air pollution, New Hampshire Ride Share uses geographical computer matching to provide commuters with information and assistance about ride sharing and alternatives to the single occupancy vehicle, which can include carpools, van pools, buses and trains. Right now, two other States, Missouri and Michigan, have introduced similar programs.
The amendment that I have propose will help provide additional funding for programs like Ride Share across the country. We have seen in one month a tripling of interest in participation in ride sharing in some parts of New Hampshire, and we need to see more.
With the record high gas prices, rising food prices, the mortgage crisis, and the credit crunch, families across our Nation are feeling the economic squeeze. Commuters across our Nation are suffering under the strain of record gas prices, and they have to sacrifice more of their paycheck just to earn one.
This amendment provides a real-time way to help commuters save money, reduce air pollution, and increase efficiency. It is a win-win all around. I urge my colleagues to adopt this important amendment to help commuters across our Nation.
I reserve the balance of my time.
I thank the distinguished gentleman from Florida, and I yield the balance of my time to the chairman of the Transportation Committee.
I thank the gentleman for yielding. I have been sitting down here and listening for about a couple of hours to the debate on the whole question of energy, and I would like to, from my perspective,…
I thank the gentleman for yielding.
I have been sitting down here and listening for about a couple of hours to the debate on the whole question of energy, and I would like to, from my perspective, tell you what I have gleaned from this debate.
First of all, Americans are suffering. That is a fact. The price of gasoline is too high. Another fact is that everything that is associated or has anything to do with transportation is being affected, and the prices are going up for groceries, for everything. And the American people are suffering.
I'm very concerned about the future of our economy if we don't get more oil and gas to market.
Now, a while ago, the chairman of the previous committee said that we're importing 61 percent of our oil, up from about 48 percent some time ago. This was the chairman on the Democrat side. I would agree with that. We are importing 61 percent, up about 13 percent from what we did a couple of years ago. The reason is we're not drilling enough here in America. We're not producing enough in America, and we're buying it from Saudi Arabia, from Venezuela and other parts of the world.
We need to move towards energy independence, and if we don't, I predict we're going to have severe, severe economic problems over the next few years. We could have a major economic recession or depression if we don't get control of our energy prices because it's going to spread into every other area of our lives. And the American people, I think, sense that. And that's why I said to my colleagues, Go home and talk to your friends and neighbors at the gas station and ask them, Do you want to get the gas prices down, or do you want to make sure that we don't drill in America, that we're more concerned about environmental concerns than we are of taking care of our economy?
Obviously we want a better economy or better environmental situation. We want to go to alternative fuels. We want to do all of those things. Clean air, clean water. But at the same time, we don't want the entire economy of the United States to go down the tubes. And unless we get that energy independence by drilling here at home, that's a very real risk. We could have a real severe economic downturn.
Fact: Prices are too high. Fact: It's hurting our entire economy. Fact: We have enough oil and gas in oil shale to make us energy independent if we get it out of the ground and out of the ocean into the market. Fact: 68 percent of oil well explorers are small companies. That's been brought out here today. And 87 percent of gas producers are small businesses. We talk about these permits. Why would they not want us to drill? It's their livelihood.
Why would these oil producers and gas producers not want to drill?
So I think it's a bogus argument to say, Hey, they're holding these permits and not drilling. They want to make money, and if they don't drill, they're not going to make money.
In fact, 97 percent of the Continental Shelf and 94 percent of onshore areas are exempt from drilling, and the oil's there, the gas is there, and the coal shale is there; and we're not doing a darn thing about it, and we are arguing about it. There has to be a bipartisan move to solve this problem. It ain't gonna solve itself, and the American people continue to suffer.
So I would like to say to my colleagues on the other side of the aisle, let's sit down and work this out because if we don't, everybody is going to suffer, and this blame game ain't solving anything.
Madam Chairman, I offer an amendment. Madam Chairman, as we all know, skyrocketing gas prices and the pain they cause is one of the most daunting issues facing this Congress and our Nation. Today in…
Madam Chairman, I offer an amendment.
Madam Chairman, as we all know, skyrocketing gas prices and the pain they cause is one of the most daunting issues facing this Congress and our Nation.
Today in the State of Washington, the price per gallon of regular gas was $4.34, while a month ago it was $4.02 and a year ago it was $3.11 in the State of Washington. It is hard to believe we are now in the position to yearn for the days of $3 gasoline.
My constituents are looking for some form of relief, an option to paying outrageous prices to fill up their cars only to sit in gridlock traffic. Mass transit offers relief; however, mass transit does not succeed if the public is not convinced that it is a convenient alternative to driving their cars.
The Transportation Research Board studied the accessibility of transit services to suburban commuters, and has identified strategies that improve customer acceptance and the use of transit services. The study found that acceptance and use of transit services are clearly influenced by the availability, convenience, and the cost of commuter parking at rail stations and at park-and-ride lots for commuter buses.
Increasing commuter bus park-and-ride availability directly increases transit ridership in these routes. According to Sound Transit, a local transit agency in my district, once parking lots are 80 percent full at commuter bus stations, the public perceives them to be completely full and they continue to drive by, bypassing an opportunity to ease the pain of high gas prices in an environmentally friendly way.
Expansion of these facilities incentivizes transit systems and the communities they serve by increasing their suburban park-and-ride lot capacity and increases the use of transit.
Like every community, people in the Puget Sound region of Washington State are parking their cars and taking transit more often. In my district alone, the number of people who rode Sound Transit's buses and trains in 2007 increased by nearly six times the nationwide increase.
A few bus ride examples. In the first quarter of 2008, the express bus service connecting two suburbs of Seattle, Lynnwood, Washington and Bellevue, Washington, grew by more than 31 percent over the first quarter of 2007. Ridership on Sound Transit service between Everett, Washington and Bellevue, Washington is up 24 percent. And between Federal Way, another suburb of Seattle, and the Microsoft campus in Redmond, it is up 12 percent. Those are some great examples of mass transit working in my district.
I urge you to support my amendment. My amendment will simply allow bus park-and-ride lots the same Federal funding as commuter rail park- and-ride lots receive in this bill.
Join me in giving Americans a choice on how they go to work, go to the grocery store, or move about town other than painfully paying at the pump to fill up their cars. This amendment will ease congestion, help the environment, and save commuters from high gas prices.
I reserve the balance of my time.
Madam Chairman, I yield 30 seconds to my good friend from Florida, the ranking member of the Transportation and Infrastructure Committee, Mr. Mica.
In conclusion, I would just like to thank the chairman
and ranking member for their support, and the gentleman's kind suggestions and thoughtful suggestions. I would urge passage of this amendment.
I yield back the balance of my time.
I thank my colleague for yielding time. Mr. Speaker, I rise in support of this bill, but I want to restate that it's a redundancy. It's a restatement of CFTC's authority, and it does urge them to…
I thank my colleague for yielding time.
Mr. Speaker, I rise in support of this bill, but I want to restate that it's a redundancy. It's a restatement of CFTC's authority, and it does urge them to
move forward with haste, which I believe that they are doing. We heard testimony just yesterday, and the chairman of the CFTC pointed out a couple things: One, they're taking the lead in creating this interagency process working with all of the other agencies, the Department of Treasury, the SEC and others to really take a hard look at this issue of speculation.
Secondly, they've moved forward with haste to come up with a mutual recognition agreement with London and other jurisdictions to broaden their reach so that they can find out and get more transparency and more information as to what is really happening in these markets. The energy markets are a very complicated issue. And the danger is that Congress will take steps before we have adequate information that could truly be detrimental.
I fear that this debate today is taking valuable floor time away from bills that would really make a difference in working on our energy issues. We need a long-term strategy, a mid-term, and a short-term strategy clearly. And dealing with the issue of speculation is part of a short-term strategy.
But we cannot get away from the fact that we have very tight supply and demand. It is about evenly matched. And when you have a million barrels a day offline because of terrorist activity in Nigeria, when you have Venezuela's production declining because of aged technology and mismanagement, when you have Mexican production declining because of mismanagement and contract problems, these are all issues that are further putting stress on supply.
Finally, I would point out on the supply side that we have a shortage of rig materials around the world, actually. China is dealing with pulling in all kinds of commodities and it is adding costs to this. We have a workforce shortage in this oil and gas industry. There are major factors all coming into the supply side of this that are a problem.
I think it's important to recognize these factors. What is driving uncertainty is clearly the lack of a confidence of energy policy, and this House can take action. There are bills ready. This House could clearly take action. We've got a number of bills, as my colleague, the ranking member of this committee, outlined earlier.
Furthermore, the London loophole, CFTC has taken steps with their mutual recognition agreement. The farm bill provisions take substantive steps to close the Enron loophole.
And finally, if we move prematurely to impose artificial standards and limits to trading, we could definitely hurt our transportation companies, our truckers, our farmers who hedge on these high energy prices.
Furthermore, we may drive transactions into less transparent markets such as Dubai and other markets. This also denies a threat that the low value of the dollar, and there is a threat globally that we could be seeing a move in energy transaction, too. A different currency, the euro. And this is a further issue.
So we need to move forward and not delay any further.
Madam Chairman, I rise today in strong support of H.R. 6052, the Saving Energy Through Public Transportation Act. At the onset I want to commend the bipartisan leadership of the Transportation and…
Madam Chairman, I rise today in strong support of H.R. 6052, the Saving Energy Through Public Transportation Act.
At the onset I want to commend the bipartisan leadership of the Transportation and Infrastructure Committee for their efforts in getting this measure to the floor. The legislation before us is a good bill; one that will provide a much needed hand up to our Nation's transit agencies as they work to meet record demands for public transportation services.
Dallas Area Rapid Transit Agency, or DART, headquartered in my congressional district and one of the best transit agencies in the country, fully supports this bill. Similar to other agencies around the country, DART ridership is setting records, as more north Texans recognize the immense value transit offers.
In May, DART had its busiest month ever, providing 10.3 million trips. North Texans are flocking to transport by rail in record numbers as ridership by light and commuter rail is up 5.4 percent and 7.1 percent respectively over 2007 numbers. During the first 7 months of 2008, DART has witnessed a dramatic 33.8 percent increase in its vanpool ridership.
The agency has acted aggressively to accommodate the increased demand. The agency is utilizing a new super light rail vehicle to increase passenger capacity.
The agency now has a record 145 vans in operation for vanpool commuters and has reached its budget maximum. My transit agency could benefit immediately from the tools provided under H.R. 6052.
H.R. 6052 will help transit agencies expand services and reach more people as it authorizes $1.7 billion dollars for capital and operating funds for transit agencies; increases the Federal cost share for alternative fuel transit buses; extends transit benefits to all Federal employees; establishes a vanpool pilot program; and increases the Federal cost share for commuter parking facilities so more people may have access to commuter stations.
Madam Chairman, without question, there is a need for an overall expansion of transit programs across this country. However, in order for this to happen, there must be a realignment of infrastructure investment priorities and increased support at the local, State, and Federal levels. H.R. 6052 is a step in the right direction as it highlights importance of transit expansion across the Nation.
Public transit takes drivers off the road; uses one-half the fuel of private automobiles; and saves working families billions annually in transportation costs. Studies show transportation costs are the second largest household expense behind housing costs.
Nationally, for every dollar a working family saves on housing, it spends 77 cents more on transportation costs.
While public transit remains an option for some--for poor and working families, public transit exists as a means for economic survival.
So with that said Madam Chairman, I would merely like to reiterate my strong support for H.R. 6052 and urge my colleagues to vote ``yes'' in giving transit agencies across the country, and the millions of people they service, a hand up today. This sound, bipartisan piece of legislation is deserving of passage.
I thank my colleague and the chairman of the Agriculture Committee, Mr. Peterson, for his leadership on this, along with our colleagues Ms. DeLauro, Mr. Stupak, Mr. Etheridge, Mr. Larson, and many…
I thank my colleague and the chairman of the Agriculture Committee, Mr. Peterson, for his leadership on this, along with our colleagues Ms. DeLauro, Mr. Stupak, Mr. Etheridge, Mr. Larson, and many others who have moved quickly to address the problems of rampant speculation in the energy futures market.
The title of this legislation is the Energy Markets Emergency Act, and what it does is direct the Commodities Futures Trading Commission, the CFTC, to invoke its emergency powers to crack down on extreme speculation in the futures market. We all know that families across this country are facing emergencies in their family budgets, and it's time that the CFTC stepped forward and treated this like the emergency that it is.
Part of the rise in prices is of course due to supply and demand and the fact that China and India are boosting a demand. That's part of it. But the other part of it is in fact an increase in speculation, extreme speculation. There's been testimony before this Congress in front of the committee, subcommittee of Mr. Stupak, and on the Senate side and the House side by Professor Greenberger from the University of Maryland School of Law and many others that make it absolutely clear that a component of the increase in price does not have to do solely with supply and demand.
And the CFTC has the authority under the statute to invoke its emergency powers if market prices do not adequately reflect the forces of supply and demand. And I must say, Mr. Goodlatte, that it has not done that. This legislation does not say to the CFTC, Just keep doing what you're doing. The fact of the matter is, they haven't made that finding, they have not invoked their emergency powers, and there's some permanent issues we have to come back and fix. We have to finally close the Enron loophole. We need to deal with what's called the London loophole. We need to do some things on an emergency basis.
But if they invoke their emergency powers, they will have the authority to deal with those issues and close those loopholes on an emergency basis, and they have not done that. If they access and invoke these powers, they can put new position limits on, they can require greater margin requirements, they can even suspend tradings in certain funds.
So what this does is say to them, use the powers that you have; do not sit on your hands and do not stand by and refuse to enact your emergency powers because while they have taken certain steps, they have not made the finding that this bill essentially says which is that speculation is part of the problem. No one says it's all of the problem. But it is a part of the problem, and they therefore have the authority under existing law to invoke the emergency powers, and it opens up a whole set of new tools that they are not using.
So on this immediate basis, they can do everything necessary to address the problems of the Enron loophole, and they can do everything necessary to deal with the London loophole. They are not doing it today. We are directing them to treat this as the emergency it is.
I thank the gentleman of the full committee for his outstanding work over the many years for transit. How prophetic many of his positions have been. I remember during the last reauthorization…
I thank the gentleman of the full committee for his outstanding work over the many years for transit. How prophetic many of his positions have been. I remember during the last reauthorization fighting to just get a tiny bit more for transit. We didn't get what we wanted and said we would need, but we did get a little more, despite a particular opposition from a number of Republican Senators.
We are loving our transit systems to death today. Americans of necessity, or with changes in life-style, are flocking
onto mass transit at record rates, rates not seen in half a century in the United States of America. That's the good news.
The bad news is so many Americans are flooding onto our transit systems, the most in 50 years, that our transit systems are having to curtail service and cut routes. There is something very wrong with this picture.
At the very time that the American people are demanding an alternative because they can't afford the $4.50 a gallon for their car or they are tired of the congestion and commute, which have not yet been effectively dealt with because of our lack of investment in other infrastructure, they are turning to transit as an alternative.
But transit is confronted with, if it is a bus, a doubling of the cost of diesel. And other modes that are electrically driven have seen their energy costs go up. But beyond that, the rate of utilization, the people crushing on, are wearing the equipment out even faster and we haven't been keeping up with the replacement cycle because of the under-investment in the system.
I was talking to someone who came in from Rockville today. They said you wouldn't believe how packed it was. I said I think we are going to have to adopt the Japanese system where we hire little guys with white gloves to start pushing people onto our Metro cars, or our MAX cars in Oregon, because there are so many people who want to get on, we have to utilize what isn't enough capacity.
So this bill is the first, little, baby, incremental step to giving some assistance to those transit agencies who want to give assistance to an American public that is hurting because of failed energy policies.
I am not going to re-debate the energy policies with the gentleman from Florida, but that was an incredibly creative recapitulation of the failed energy policies of the Bush-Cheney administration over the last 6 years.
So we need now to deal with some of the results of those failures.
And we've debated other bills to help provide relief to the American consumers there. But here we have to provide relief and help to our transit agencies who are going to extend a hand to our American commuters and families. Unfortunately, this is, as yet, only a promise. It's an authorization. And the budget is a little tight around here unless you're one to fund a war with emergency funding. The President won't declare a transit emergency, I don't think. Maybe we can get him to do that. But we need to get some funding and flesh out the bones of this bill.
I owe the chairman and the ranking member many thanks for today's bill. I appreciate that you have worked together on it, and I appreciate that you have brought forward the only available remedy for…
I owe the chairman and the ranking member many thanks for today's bill. I appreciate that you have worked together on it, and I appreciate that you have brought forward the only available remedy for driving down $4-a-gallon gas.
Sometimes, Madam Speaker, the remedy is so obvious that we can't see it. But who has made us see it are the American people because they have found that remedy, and they are leading the way. That's why this bill is on the floor today, notwithstanding the leadership of a chairman, who for a long time has wanted to pass this bill.
I have great respect for our ranking member. But the fact is that wherever you stand on offshore or in Alaska, this is the only way to have an effect tomorrow. And that is what the American people are saying: Don't tell me about digging. Don't tell me about drilling. Tell me that I can get to work tomorrow. There is only one ``tomorrow'' remedy, and that is this public transportation remedy.
Moreover, we know what to do. What makes me want to cry is the Federal Government has done it to a fare-thee-well with incentives right here in the national Capital area where more than half of the Federal presence is located for decades because we've been giving financial incentives to Federal employees to hop on the metro and to hop on buses to get to work instead of taking to the roads. And boy, they've done it.
That's why I thank this House for last year authorizing a bill that will help us take care of the capital costs because Federal employees have hopped the metro and bus so that they've broken down our own metro.
But Madam Chair, small communities and a lot of others don't have their metro, their subway. Guess what they are doing? They are hopping on buses. They are crowding on buses. They understand there is only one way to defeat gas prices tomorrow, and that is public transportation.
I am very pleased that this bill leads by example because what we have done for a long time in the national Capital region in offering incentives to Federal employees will now be available to Federal employees countrywide. Everywhere in the United States Federal employees will get this incentive. When you consider that we're talking about more than a million employees, we're going to have an effect there.
If you need any further proof, look at what the American people have done in leading us to this point. This is 2008. In less than a year, they have already dropped 100 million miles that they were driving before that. Where have those miles gone? The same people have taken more than 85 million more trips on public transportation. There's the proof. The proof is that people have voted in the best way to do it, crowd the trains, make it happen. Now we're going to make it possible so that they don't have to crowd, so that we're partnering with local jurisdictions, in fact, to help them to do it.
We say to the American people today, we hear you, we're following you with this bill.
Mr. Speaker, I thank Mr. Goodlatte for yielding me time to speak in support of a bill that has been developed in part by the House Agriculture Committee. I am glad to see that this issue, the issue…
Mr. Speaker, I thank Mr. Goodlatte for yielding me time to speak in support of a bill that has been developed in part by the House Agriculture Committee. I am glad to see that this issue, the issue of speculation in the futures industry, is being handled by the committee of jurisdiction, the Committee on Agriculture. I think it is important for us to continue our long-standing effort at oversight at CFTC and the futures industry that the Agriculture Committee has had now for many years.
This is an important issue. In fact, I don't think there is a more important issue that this Congress will face except for energy prices. It is a significant conversation, as we all know, and with dramatic consequences upon our constituents.
An e-mail from one of my constituents in Olpe, Kansas, ``What will it take to get beyond partisan politics and the blame game? Society expects children to get along, work together, but they have lousy role models when it comes to government. Many of us are losing hope of Congress ever getting beyond bickering--and in the meantime, our country's problems get worse and worse. It seems that most of our government officials are insulated from the reality that face middle and lower-income families day after day,'' talking about the cost of energy, the prices that Americans are encountering at the pump.
What concerns me, despite my support for this and a belief that CFTC ought to have every tool to discover manipulation, ought to have every tool to discover whatever ``excessive speculation'' means, and we ought to make certain that their enforcement capabilities are strong and beneficial on behalf of the consumer in this country, what concerns me most is that this issue has become the opportunity to do nothing on the underlying cause of why oil and gas prices are so high. And that is increasing demands at a time when we are doing little to increase supply.
And this Congress, we pass legislation dealing with the Strategic Petroleum Reserve, requiring that our government no longer fill the Strategic Petroleum Reserve.
Whether or not that's a good idea or bad idea, I think all of us would admit it's not going to solve our energy problem. We debated and passed legislation dealing with antitrust and OPEC, and whether that's a good idea or a bad idea, all of us would agree it's not going to solve the problem with the price of energy and the cost at the pump.
And today we're on the House floor talking about speculation. I agree with the gentleman from Virginia. It is time for this Congress to get to this underlying issue that we face in this country: increasing demand for energy and a lack of increase in the supply. The laws of supply and demand work. As much as we Members of Congress might want to pass a law to overcome supply and demand, it cannot be done. And so this Congress needs to adequately express the laws of supply and demand that this country needs.
Bill Text
3 versions available
[Congressional Bills 110th Congress]
[From the U.S. Government Printing Office]
[H.R. 6377 Placed on Calendar Senate (PCS)]
Calendar No. 864
110th CONGRESS
2d Session
H. R. 6377
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 26, 2008
Received
July 7, 2008
Read the first time
July 8, 2008
Read the second time and placed on the calendar
_______________________________________________________________________
AN ACT
To direct the Commodity Futures Trading Commission to utilize all its
authority, including its emergency powers, to curb immediately the role
of excessive speculation in any contract market within the jurisdiction
and control of the Commodity Futures Trading Commission, on or through
which energy futures or swaps are traded, and to eliminate excessive
speculation, price distortion, sudden or unreasonable fluctuations or
unwarranted changes in prices, or other unlawful activity that is
causing major market disturbances that prevent the market from
accurately reflecting the forces of supply and demand for energy
commodities.
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 ``Energy Markets Emergency Act of
2008''.
SEC. 2. ENERGY MARKETS.
(a) Findings.--The Congress finds as follows:
(1) The Commodity Futures Trading Commission was created as
an independent agency, in 1974, with the mandate to enforce and
administer the Commodity Exchange Act, to ensure market
integrity, to protect market users from fraud and abusive
trading practices, and to prevent and prosecute manipulation of
the price of any commodity in interstate commerce.
(2) Congress has given the Commodity Futures Trading
Commission authority under the Commodity Exchange Act to take
necessary actions to address market emergencies.
(3) The Commodity Futures Trading Commission may use its
emergency authority with respect to any major market
disturbance which prevents the market from accurately
reflecting the forces of supply and demand for a commodity.
(4) Congress has declared, in section 4a of the Commodity
Exchange Act, that excessive speculation imposes an undue and
unnecessary burden on interstate commerce.
(5) On June 6, 2008, the price of crude oil traded on the
New York Mercantile Exchange hit an all-time record of $139.12
per barrel.
(6) The average price of a barrel of crude oil in 2007 was
$72, and the average price of a barrel of crude oil to date in
2008 is $109.
(7) Heating oil futures contracts have risen in price from
$2.97 to $3.81 during the March through May contract months.
(8) United States airlines are forecast to spend
$61,200,000,000 on jet fuel in 2008, which is $20,000,000,000
more than they spent for jet fuel in 2007.
(9) According to the American Automobile Association--
(A) families and businesses are paying an average
of $4.07 per gallon for regular gasoline, which is near
the all-time high and is more than double the price in
2001; and
(B) truckers and farmers are paying an average of
$4.77 per gallon for diesel fuel, which is near the
all-time high and triple the price in 2001.
(10) During this decade, energy demand has been steadily on
the rise in nations such as China and other Asian exporting
nations.
(11) In a May 2008 report, the International Monetary Fund
raised the possibility that speculation has played a
significant role in the run-up of oil prices, and stated ``It
is hard to explain current oil prices in terms of fundamentals
alone. The recent surge in the oil price seems to go well
beyond what would be indicated by the growth of the world
economy.''.
(b) Direction From Congress.--The Commodity Futures Trading
Commission shall utilize all its authority, including its emergency
powers, to--
(1) curb immediately the role of excessive speculation in
any contract market within the jurisdiction and control of the
Commodity Futures Trading Commission, on or through which
energy futures or swaps are traded; and
(2) eliminate excessive speculation, price distortion,
sudden or unreasonable fluctuations or unwarranted changes in
prices, or other unlawful activity that is causing major market
disturbances that prevent the market from accurately reflecting
the forces of supply and demand for energy commodities.
Passed the House of Representatives June 26, 2008.
Attest:
LORRAINE C. MILLER,
Clerk.
Calendar No. 864
110th CONGRESS
2d Session
H. R. 6377
_______________________________________________________________________
AN ACT
To direct the Commodity Futures Trading Commission to utilize all its
authority, including its emergency powers, to curb immediately the role
of excessive speculation in any contract market within the jurisdiction
and control of the Commodity Futures Trading Commission, on or through
which energy futures or swaps are traded, and to eliminate excessive
speculation, price distortion, sudden or unreasonable fluctuations or
unwarranted changes in prices, or other unlawful activity that is
causing major market disturbances that prevent the market from
accurately reflecting the forces of supply and demand for energy
commodities.
_______________________________________________________________________
July 8, 2008
Read the second time and placed on the calendar