Mr. Speaker, I thank my friend from Florida for recognizing me, and I want to thank the staff, the chairman of the Commerce Committee and the chairman of the energy committee, Chairman Boehlert, for their participation in working out this…
Mr. Speaker, I thank my friend from Florida for recognizing me, and I want to thank the staff, the chairman of the Commerce Committee and the chairman of the energy committee, Chairman Boehlert, for their participation in working out this piece of legislation.
As has been said before, this legislation passed the House a few weeks ago 237-188. Although it prevailed by a pretty good margin, it wasn't enough to make the two-thirds margin required for suspension, so we bring it up today under regular order.
I just want to point out exactly what this bill does. It directs the President to appoint a coordinator for the process of considering refinery citing permits.
It requires that coordinator to work with, not against, but with Federal, State and local entities to issue the needed permits and approvals and set an agreed upon schedule for each approval.
It also allows this coordinator to establish a memorandum of agreement with all the relevant parties which will set forth the most expeditious path toward a coordinated schedule for permitting.
It allows the local Federal district court to enforce this agreed upon schedule, giving proper opportunity for good faith delays and setbacks.
It instructs the President, as we heard a minute ago from my friend from Maine, to designate at least three closed military installations as potentially suitable areas for the construction of a refinery. And, by the way, at least one of those must be designated as usable for a biorefinery, not an oil refinery.
I would point out, as had been debated the last time the bill came up, we haven't built a new refinery in this country since 1976. Gasoline demand in the United States has doubled since then; doubled. Our current capacity for refining gasoline is about 17 million barrels a day. Our consumption is over 21 million barrels a day, which means that the deficit is being imported as a finished goods product from abroad. We are indeed importing an enormous quantity of gasoline every day, which is adding to the instability of gasoline prices as well as availability.
Secondly, too much of our refining capacity is in one part of the country. We learned last year when energy prices climbed 50 cents a gallon at gas stations that Katrina, going through Louisiana and the Gulf of Mexico, can have a devastating impact on availability when refineries are shut down for short periods of time or even longer periods of time. We need to have a more diverse geographic location for refinery capacity in our country.
Furthermore, our current refinery capacity is too reliant on crude oil as a feedstock. Less than 2 percent of our motor fuel is based only anything other than crude. Our national agriculture and forest industry resources can sustainably provide feedstock to displace more than one- third of our transportation fuels. I am hopeful. I would welcome a biorefinery in my neck of the woods. We need refined ethanol to replace MTBE as an oxygenate for gasoline.
We have heard the opponents of this legislation say that even big oil industry, the oil companies, don't think that expediting the permitting process is necessary. Well, I would rather not take the word of the big oil companies as to whether or not they think tight refinery supply is good or bad for business. I don't want to give them any excuse for saying that they can't build new refinery capacity.
Nothing in this legislation will circumvent any existing regulation that exists today. All it does is make it quicker and more expeditious and more efficient, but it doesn't eliminate nor short circuit any local protections.
Others say we are better off expanding current refinery capacity. Well, I addressed that a little bit a minute ago. The danger we face in having a few very large refineries and not other refinery capacity in this country is serious. The impact on consumers, on the economy, can be devastating if we only have a dozen or two. The increased dependence on foreign oil that we may face under these circumstances is significant.
My friend from California earlier mentioned that there is no evidence that the passage of this legislation would lead to the construction of any new refinery. That is a difficult question to answer, because if you don't make it easier, how are you going to know that making it easier doesn't work? The fact is that we know that it can take up to 10 years to get the permitting process done.
I would point out that this bill does no harm whatsoever to the current process, but it makes it work better. If the industry doesn't like it, I don't want to be on the side of an industry that wants to restrict increasing refinery capacity.
I believe that what we envision in this bill protects the environment, it protects the process, it can potentially lead to more diverse and better and modern refinery capacity in this country, which will lead to a stronger economy, lower gas prices in my part of the world, and yet at the same time protecting our fragile environment.
So I urge the Congress to not oppose this rule, bring this bill to the floor, and pass it on to the Senate.