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. 1965. Madam Chair, I yield myself…
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. 1965.
Madam Chair, I yield myself such time as I may consume.
Madam Chair, with millions of Americans still looking for work, growing debts and deficits, and energy prices that are still far too high, the United States needs to implement an all-of-the-above energy plan to responsibly harness our Nation's energy resources on our Federal lands.
New energy production is one of the best ways to grow the economy and create new jobs to put people back to work. One needs to look no further for proof than to States like North Dakota that have flourishing economies and some of the lowest unemployment rates in the country, all due to energy production. Because of this energy boom, the U.S. is now projected to be the world leader in oil production by 2015, surpassing Saudi Arabia.
The catch is that this increased oil production is happening on private and State lands--which is good--places that aren't as restricted by onerous Federal regulations and policies. Federal lands are being left behind.
However, this lack of production on Federal lands is not for a lack of resources. We have tremendous potential for new onshore oil and natural gas production on Federal lands, but the Obama administration is actively and purposely keeping these resources off limits. Leasing and permitting delays, regulatory hurdles, and ever-changing rules are a few of the reasons energy production on Federal lands is in decline.
President Obama has had the four lowest years of Federal acres leased for energy production going back to 1988. Under his administration, the average time to get a drilling permit approved on Federal land is 307 days. By contrast, it takes an average of only 10 days in North Dakota to get a permit; and another example, in Colorado it only takes 27 days.
It is no wonder that State lands are flourishing while Federal lands are experiencing a decrease in energy production. That is unacceptable, and this bill today offers real solutions to unlock the shackles that have been placed on our Federal lands.
H.R. 1965, the Federal Lands Jobs and Energy Security Act, is a package of bills that will help us expand oil, natural gas, and renewable energy production on public lands. It will streamline government red tape, break down bureaucratic hurdles, and put in place a clear plan for developing our own energy resources. Even more importantly, this bill will spur job creation and help grow and strengthen our economy.
Madam Chair, I want to take a moment to specifically highlight the importance of the third title in this bill, the National Petroleum Reserve Alaska Access Act. The NPR-A was specifically designated in 1923 as a petroleum reserve. Let me repeat that: NPR-A was specifically designated in 1923--that is 90 years ago--as a petroleum reserve. Its express purpose was to supply our country with American energy. That was the foresight of Congress 90 years ago. That is why it is completely unacceptable that the Obama administration this year finalized a plan to close half of NPR-A to energy production. Let me repeat: we set aside NPR-A 90 years ago for energy production, and this administration unilaterally shut off half of it. So this bill would nullify that plan and require the Interior Department to produce a new plan for responsibly developing these resources.
This bill would require annual lease sales in the NPR-A and ensure that necessary roads, bridges, and pipelines needed to support energy resources out of the NPR-A can be approved and completed in a timely, efficient manner. Now, Madam Chairman, this is crucial to the Trans- Alaskan Pipeline System, TAPS. It is crucial because that pipeline needs to remain fully operational.
Much focus has been given to the Keystone XL pipeline, and properly so; but we cannot forget that TAPS is one of the most important pieces of energy infrastructure in our Nation. Reduced production in Alaska has left TAPS at less than half of its capacity, threatening a shutdown that would cost jobs
and significantly weaken our energy security. We cannot allow that to happen, and developing our resources in the NPR-A is vital to ensuring that it doesn't.
I urge my colleagues to support this job-creating legislation and allow our Federal lands to be part of our Nation's energy equation.
We have seen the jobs that can be created through energy production. We have seen how it can grow local communities and create thriving economies. We have seen how lower energy prices are vital to putting more money in the pockets of American families. We know what is possible. It is just a matter of realizing that potential by allowing new energy production to occur on our Federal lands.
The majority of the provisions in this bill passed the House last Congress with bipartisan support. It is time for this Congress to once again move forward with this commonsense, job-creating energy plan.
Madam Chair, I reserve the balance of my time.
Madam Chair, I am very pleased to yield 3 minutes to the gentleman from Alaska (Mr. Young), a former chairman of the Natural Resources Committee.
(Mr. YOUNG of Alaska asked and was given permission to revise and extend his remarks.)
I yield the gentleman an additional 30 seconds.
Madam Chairman, I am very pleased to yield 4 minutes to the gentleman from Colorado (Mr. Lamborn), the sponsor of this legislation,
Madam Chairwoman, I am very pleased to yield 3 minutes to the gentleman from Colorado (Mr. Tipton), a member of the committee.
Mr. Chairman, before I yield to my colleague from Ohio, I yield myself 1 minute to respond to my good friend, the minority leader. He characterized these bills as being not pressing.
Mr. Chairman, I would point out that probably the biggest issue facing America that we have heard from our constituents probably on both sides of the aisle is the need to have a growing economy and jobs. American energy--we have a chance to capture American energy and jobs with this legislation. So while it is not pressing, as the gentleman says, it is certainly very, very important.
Now, I would also point out the gentleman, the minority leader, was talking about several issues that are important. I would just suggest that probably number one on Americans' minds right now actually started on October 1, when the signup for the health care plan passed. Now, if there is something that is absolutely pressing that needs to pass this Congress before the end of the year, it is to rectify how people can keep the health care policies that they wanted.
Mr. Chairman, I am very pleased to yield 2 minutes to the gentlewoman from Wyoming (Mrs. Lummis), another member of the Natural Resources Committee.
I yield an additional 30 seconds to the gentlewoman from Wyoming.
Mr. Chairman, I am very pleased to yield 2 minutes to the gentleman from Texas (Mr. Poe), the gentleman from the State that certainly knows what oil production is about.
Mr. Chairman, how much time do I have remaining?
I yield myself the balance of my time.
Mr. Chairman, just let me talk about what this bill is about. This bill is about attempting to open Federal lands to energy production.
All the talk has been on oil and gas. That is very important. But this is also for renewable by doing what? By saying that in the process of using Federal lands for energy production, those lands that have the potential for the most production should be the first leased. What a remarkable idea: go where the potential energy is. And that is what this bill does.
But let me respond to my good friend from New Jersey who talked about how much we are producing in this country and so forth. I would suggest that he left out a few important points.
First of all, it takes some length of time in order to get an active lease into production, and the gentleman didn't talk about that. Why? Because it generally takes 4 to 6 years. And sometimes it is 8 to 10 years.
But in the last administration--the Bush II administration--they were very active in letting leases. And as a result of that, at the time that this administration took over, there were a number of active leases that were ready to produce. That is why the production was high in the early part of this administration.
And just put it this way: again, we are talking about Federal lands that are being leased for production. When the President took office, roughly 1.9 million acres were leased for energy production. That was in 2009. In 2012, that figure dropped to 1.75 million acres that were open for production. That is, obviously, a reduction.
But another way to look at it is the application permits to drill, which is really where I guess it meets the road, so to speak. In 2001, there were a little over 2,000 permits that were issued; and in 2012, there were a little over 1,700 permits issued. That is a 15 percent drop. If you drop the permits, you are obviously going to have less production.
So I think that needed to be pointed out to kind of set the record straight.
As to my good friend, Mr. Dingell, who is not on the floor now, I want to talk about the National Petroleum Reserve in Alaska one more time.
Ninety years ago, that was set aside as a reserve. In all the years that Democrats controlled Congress, from the mid-fifties all the way to the nineties, nothing was ever done to change that policy until this administration decided, without any direction from Congress, to set aside one-half of that.
Why is that important?
I mentioned in my opening remarks that the Trans-Alaska Pipeline is a very important part of our pipeline system. There is no question that there is a movement in this country to try to dry up that pipeline by slow-walking oil exploration in Alaska, whether they are talking about offshore or onshore.
The NPR was designed to be a petroleum reserve. Why should we not build an infrastructure to utilize that?
It has been said, well, there's not that much oil there. Well, that will come out when leases are offered. Those that want to take advantage of this and think there is some production there will make the leases. The market will dictate that. But to unilaterally close it off doesn't make any sense. This bill corrects that. It makes NPR what it was supposed to be historically since 1923.
So those are just a couple of issues, Mr. Chairman, I wanted to touch on.
I urge my colleagues to support this legislation, and I yield back the balance of my time.
Mr. Chairman, I have an amendment made in order under the rule.
I yield myself such time as I may consume.
Mr. Chairman, this amendment makes adjustments in the bill to the amount of funds authorized to be made available to BLM field offices for energy permitting. This change is made to ensure the bill meets its goal of reducing the deficit, not increasing spending.
According to information from the Congressional Budget Office, after adoption of this amendment the underlying bill would reduce the deficit by $26 million, while generating more American energy and new jobs for American workers.
This amendment sets the funding directed to wind and solar energy permitting in local BLM field offices at $5 million each fiscal year. Currently, under existing law, no funds get sent to those doing the work to permit these renewable projects. After the amendment, the amount to help foster renewable energy on Federal lands is less than currently in the bill, but is far more than the zero dollars allocated today.
A vote for this amendment is a vote for an all-of-the-above approach to American energy. It is a vote for more American-made energy, and it is a vote to support renewable energy that uses its own funds and not taxpayers' subsidies; and, Mr. Chairman, it is a vote to reduce the deficit.
I reserve the balance of my time.
Mr. Chairman, I urge adoption of the amendment, and I yield back the balance of my time.
Mr. Chairman, I rise in opposition to the amendment.
Mr. Chairman, I yield myself such time as I may consume.
To be clear, nothing in this act prohibits individuals from asserting their rights to petition the government. In fact, it would be ridiculous for us to try to write a statute that would negate the First Amendment, so nothing in this bill does that at all. Let me talk about the process here.
The BLM undertakes multiple layers of rulemaking and environmental review when going through its Federal actions. Nearly every layer of this process allows for the opportunity for public comments, involvement, and questions regarding BLM's actions. Nothing, Mr. Chairman, in this legislation impacts an individual's right to comment, petition, and object to the actions of BLM under this bill. Nothing, by the way, in this legislation stops individuals from filing lawsuits. That is important in this debate on this amendment.
H.R. 1965 simply implements a cost recovery fee for the formal process of filing protests of oil and gas leasing. These formal protests require a direct BLM response, using staff time, energy, and resources to address what is, simply, often a delaying tactic. This paperwork recovery fee will ensure that BLM has the resources necessary to address the protests but that it has the necessary resources to carry out the functions of the Bureau of Land Management, which is for multipurpose use in this country.
So it is for these reasons, Mr. Chairman, that I oppose this amendment, because it does not add anything to what people already have a constitutional right to do.
I reserve the balance of my time.
How much time is remaining, Mr. Chairman?
I yield myself the balance of my time.
First of all, Mr. Chairman, this bill has nothing to do with high- rises, so we should set that apart, and I know the gentlelady was using that as an example.
I have to say this in a larger sense, which is that, in the time that I have had the privilege to chair this committee, we have seen over and over and over what I would call ``frivolous action'' by people with lawsuits who are trying to slow down the process. The gentlelady used her example of high-rises in Houston. I will use another example that, I think, this House needs to address, and that is the issue of the Endangered Species Act and how it affects development in other parts of the country.
In setting that aside for now, this bill simply says that, in going through the process, there should be something up front if you are serious about your issue. It is nothing more than that. This is a modest way to say, if people are serious about the actions that they are trying to take, then there ought to be nothing more than some skin in the game. That is what this bill does. This amendment would take that out. That is why I oppose the amendment and why I urge my colleagues to vote ``no.''
I yield back the balance of my time.
Mr. Chairman, I yield myself such time as I may consume.
This amendment would increase regulatory red tape and opportunities for frivolous lawsuits to stop what we are trying to do here--American energy production and job creation. It would achieve the exact opposite of what our Nation needs and what the bill provides.
H.R. 1965 seeks to streamline and expedite the onshore oil and gas and renewable permitting process, and it does so in a safe and responsible way. This amendment would simply reinject the same uncertainty and bureaucracy into the permitting process that this legislation seeks to do away with.
The Energy Policy Act of 2005, Mr. Chairman, established in a broad, bipartisan fashion the use of categorical exclusions for energy projects in specific and limited circumstances. This provision was intended to expedite the permit approvals of certain energy projects on disturbed land, on operations with a small footprint, or in areas that were previously approved in recent years. Again, the Energy Policy Act of 2005 was a bipartisan attempt, and this provision which I just described was part of the 2005 Act.
These pro-energy reforms are designed to allow minor actions that do not significantly affect the environment to move forward without the burdensome and lengthy full costly environmental review.
To the point the gentleman is making and what the gentleman's amendment addresses, this legislation clarifies the Department's ability to use the categorical exclusion tool to quickly permit energy projects. This amendment, unfortunately, would require the Department of the Interior to unreasonably review what we call ``extraordinary circumstances'' which require additional NEPA reviews, thereby essentially negating any value from expediting a project and inserting more certainty into an already uncertain energy permitting process.
The intent of this legislation is to streamline and simplify projects that are held up, often for years, in bureaucratic red tape and regulatory uncertainty. This amendment backtracks
from the goal by injecting more bureaucracy and regulatory hurdles into the process.
Mr. Chairman, I don't think this amendment adds anything to what we are trying to accomplish. In fact, I think it goes the other way. It goes the other way in such a way that negates what the Energy Act of 2005 in a bipartisan manner said.
I urge rejection of the amendment, and I reserve the balance of my time.
Mr. Chairman, I yield myself the balance of my time.
Notwithstanding what my good friend from California said, I just want to make this point, which ironically was not brought out at all in the gentleman's argument. That is the issue of categorical exclusion.
That has been in place on energy projects now for 8 years. If there is something wrong with that or there is an example of where it has been abused, then maybe the gentleman has a case, but the gentleman didn't speak at all--not at all--to the point that that provision in the 2005 Energy Act has been abused. That alone should be enough to reject this amendment.
In any case, I do not believe that his amendment adds to what we are trying to do to streamline the process of energy creation and creating American energy jobs.
I urge rejection of this amendment, and I yield back the balance of my time.
Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, as I say, I rise to oppose this amendment.
The Equal Access to Justice Act, or the EAJA, was created, rightfully so, to level the playing field between citizens seeking to do the right thing and a well-funded Federal Government. Unfortunately, wealthy activist groups have been able to distort the intended purpose of the EAJA by exploiting the program as a cash register to file thousands of lawsuits, many based on frivolous technicalities.
Further, Federal payments to lawyers fighting lawsuits come out of each agency's budgets, which, of course, hinders the agency's ability to do their job and forces tighter budgets on the agencies working on behalf of Americans.
Every year, numerous energy projects are held up by burdensome legal challenges by activist groups whose aim is to hold up or simply stop energy production in this country.
Under the guise of ``responsible development,'' these groups file lawsuit after lawsuit that force the government to use Federal resources and millions of dollars in taxpayer funds to litigate these lengthy and burdensome lawsuits. These well-funded activist groups have the resources to hire, in some cases, multiple lawyers to sue the Federal Government.
These unnecessary delays in energy projects result in a domino effect of delays in economic development, of delays, obviously, in job creation, of delays in income generation for local, State, and, indeed, the Federal Government, and delays in making the United States becoming energy independent.
Further, many small communities depend on a robust energy sector to provide jobs for its residents and generate income for their local schools and for their communities. These well-funded activist organizations should not be rewarded, Mr. Chairman, with taxpayer dollars for delaying American job creation and the generation of funds for our local communities.
I urge my colleagues to vote ``no'' on the amendment, and I reserve the balance of my time.
Mr. Chairman, I yield myself the balance of the time.
I would just simply say that what this bill and the bill tomorrow, for that matter--this bill is designed to create an atmosphere for more American energy production, which I think is badly needed in our economy, because we know that a growing economy by any measure has to have a predictable energy source. That has been lacking on our Federal lands. That is what the underlying bill does.
What we have seen, and what we have observed in our committee, is the fact that the courtroom is used to slow down so many projects on Federal land. This provision in the current bill simply, I think, clarifies and rectifies that we can have some certainty in the law. That, I think, is the important part of creating American energy. I don't think that this amendment adds anything to that.
I urge rejection of the amendment, and I yield back the balance of my time.
Will the gentlelady yield?
I have no problem with your amendment. As you rightfully said, in the last Congress this was accepted by a voice vote. I think it adds more lands for energy production; and as the gentlelady knows, we are in favor of that. So we accept the gentlelady's amendment.
Will the gentleman yield?
I want to thank the gentleman for bringing this amendment to the floor. I think it adds a great deal to what we are trying to do with energy development in this country, and I am prepared to accept the amendment. I thank the gentleman for yielding to me.
Mr. Chairman, I claim the time in opposition.
Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, in light of the recent flooding in the gentleman's home State of Colorado, I can appreciate his concern about this issue. However, this amendment contains no restrictions on the scope and breadth of this study, and it seems to be endless. In fact, the study is not focused on the tragic flooding in Colorado, and it is so expansive it can include all flooding anywhere, and the term ``oil and gas'' facilities is undefined. That is what the amendment says.
``Oil and gas'' facilities could be interpreted to mean many things, much of which is outside of the jurisdiction of this committee. This could include corner gasoline stations or private gas meters. And ``leaking and spills from tanks, wells, and pipelines'' does not have to be associated with natural gas. It can be anything, such as a septic or water or sewer tanks and pipelines.
Further, this amendment does not specify that the study be conducted in conjunction with production on Federal land, which of course is what this legislation specifically deals with. The result is a nationwide study that can touch a variety of sources, right down to private homes, the results of which will have nothing to do with the energy production process that this legislation seeks to streamline.
This study, undoubtedly at the expense of taxpayer dollars, will have no impact on energy production; and, frankly, it has no clear goal.
Finally, the proper place to examine the effects of flooding in Colorado is in Colorado. In testing done by the Colorado State Department of Public Health and the Environment, they found pollutants from oil and gas in the aftermath of the spills at 29 specific sites, but no pollutants in Colorado's waterways. However, the incidence of E. coli and raw sewage was measurable and did have an impact on public health, which is not limited to one industry and is not even covered by this study.
Mr. Chairman, for a variety of reasons, and I think I have tried to touch on the major ones that I just enunciated, I urge rejection of this amendment.
I reserve the balance of my time.
Mr. Chairman, I am very pleased to yield 1\1/2\ minutes to the gentleman from Colorado (Mr. Lamborn), the author of this legislation.
Mr. Chairman, I yield myself the balance of my time.
As I mentioned in my initial remarks, this amendment really is very broadly written. And when we had other amendments talking about potential lawsuits, boy, adopting this amendment here would really be a litigant's dream if it were to be part of the legislation.
I urge rejection of this amendment, and I yield back the balance of my time.
Mr. Chairman, I claim the time in opposition to the amendment.
Mr. Chairman, let me be very clear that I do oppose this amendment.
This amendment is costly and wasteful. The amendment would redirect $10 billion away from Federal permitting streamlining, which we know would help lower costs and produce more energy, and instead funnel the money to another fruitless study of the unfounded position of somehow market speculation is impacting energy prices.
Mr. Chairman, earlier this year, researchers Christopher Knittel and Robert S. Pindyck from the Massachusetts Institute of Technology, Sloan School of Management, MIT, found that speculation wasn't driving up energy prices. I will quote them, Mr. Chairman.
Back to those pesky speculators for a moment: surely, their
bets on oil have had at least some effect on prices?
According to our latest research, the answer is: not
really. In our recent paper, we explore the link between
speculation and inventory changes. We calculate a series of
speculation-free prices by creating a stable inventory of
oil, providing us with a picture of what the market might
look like in the absence of speculation. We focus on
inventory for a simple reason: if oil prices are changing
because of speculators, then there would have to be
commensurate changes to inventories--a buildup when prices
are increasing and a drawdown when prices are falling.
But when the economy was strong and oil prices were
increasing, we didn't see large increases in inventories. In
fact, they fell somewhat. This means that peak prices would
have actually been higher if you take away any effects of
speculation.
And let me repeat that final part:
But when the economy was strong and oil prices were
increasing, we didn't see large increases in inventories. In
fact, they fell somewhat. This means that peak prices would
have actually been higher if you take away any effects of
speculation.
Time and time again, we have heard from those opposed to oil and gas drilling that it is the shady Wall Street speculator, the man behind the curtain who is driving up energy prices. The truth is that the best way to fight speculators, or foreign cartels, is simply to outproduce them, and that should be our solution here today.
We should be working to figure out how to use more than just 2 percent of our Federal lands for energy development. We should find a way to have Federal lands keep pace with private lands in the revolution of energy production as currently taking place in the United States. Yet the Congressional Research Service tells us:
All of the increase from fiscal year 2007 to fiscal year
2012 took place on non-Federal lands, and the Federal share
of total U.S. crude oil production fell by about 7 percentage
points.
Yet, instead of reversing this trend, streamlining permitting, the author of this amendment wants to siphon off money for studies.
The legislation before us today is designed to streamline and produce more onshore energy production. This will create jobs and reduce our dependence on foreign imports. It demands an all-of-the-above energy agenda, and I would like to think that the folks on the other side could at least embrace that part of it.
I urge my colleagues to reject this amendment and support the underlying bill, and I reserve the balance of my time.
Mr. Chairman, I am prepared to close if the gentleman is prepared to close, and I reserve the balance of my time.
Mr. Chairman, I yield myself the balance of my time.
Mr. Chairman, I know there is no truism specifically in economic theory, but one thing we do know about crude oil is that it is subject to international pricing.
We do know that a big part of the international pricing and production is conducted by a cartel, namely, OPEC. The last figure I saw was about 45 percent of the international market. Well, when you have 45 percent controlled by one entity, you are going to have some price pressures that are coming. Indeed, you probably have some speculation.
Mr. Chairman, this is the important part of what this underlying bill and the bill that we will have on the floor tomorrow does.
The only way that you are going to beat cartels is to outproduce them. I don't care if you are talking about crude oils or if you are talking about apples or you are talking about potatoes or you are talking about timber. The whole idea, if you have somebody that controls a big part of the marketplace, the way you beat them is to outproduce them.
This bill allows America to outproduce our foreign competitors. This amendment adds nothing to that. I urge rejection of the amendment.
Mr. Chairman, I yield back the balance of my time.
Mr. Chairman, I move that the Committee do now rise.