Madam Speaker, as most of my colleague know by this point, I'm an oil man. Always have been. Always will be. When I was 17 years old, my father became sick, so I went to work in the oil fields, making $1.50 an hour on a pulling unit, to…
Madam Speaker, as most of my colleague know by this point, I'm an oil man.
Always have been.
Always will be.
When I was 17 years old, my father became sick, so I went to work in the oil fields, making $1.50 an hour on a pulling unit, to help support the family.
I kept at it until I had my own company, employing and providing quality health care for 250 people.
Over the years, I've done just about everything there is to do in oil and gas around New Mexico. People know that Harry Teague is an oil man, and I am proud of that.
In 2007, when I announced that I would be running for Congress, people were surprised to find an oil man like myself campaigning on a platform that emphasized energy independence through a focus on the development of full and diverse slate of energy sources. Not only was I advocating increased production of our valuable petroleum resources. I told people in Hobbs, Roswell, Carlsbad and across Southern New Mexico that technologies like wind, solar, and biofuels were not only good for the environment, but would also create jobs in our communities and bolster our national security.
I did not wait long after being sworn in as a Member of the 111th Congress to turn my campaign platform into a legislative record. The very first bill I introduced, H.R. 451, provides a multiyear extension of the Renewable Energy Tax Credit. I worked hard to have that legislation included in the House version stimulus package, and when you signed the American Recovery and Reinvestment Act into law on February 17, 2009, the production credit was included.
I am proud to say that H.R. 451 not only gave one of the largest boosts we have ever given to renewable energy production in this country, but it also saved the oil and gas industry $13.1 billion dollars in prospective tax increases.
As the 111th Congress continued, I likewise continued my work promoting energy production in America. I passed several amendments to various legislation promoting renewable energy, and I worked tirelessly to ensure the Budget Resolution passed by Congress did not include tax hikes on oil and natural gas.
Then came the American Clean Energy and Security Act, which is the bill we're here debating today.
When the legislation was introduced and then reported out of committee, I must say, I was deeply skeptical. I had one central concern:
I worried that this bill would hurt the rural communities and small towns and cities that I represent in Congress.
So, I had a choice. I could stand by and issue my reservations and my opposition from the sidelines. Or I could get involved, and stand up for the good people in New Mexico I represent, and advocate for changes that would help people and businesses in my district.
Madam Speaker, anyone who knows me from the oil fields of Hobbs, New Mexico knows one thing: If there's one thing I know, it's hard work. And if there's a job to be done, I'm going to get it done.
The very first thing I saw to in the bill is that there would be no taxes, no additional costs, and no added red tape at the wellhead. I knew we needed to keep this bill away from production because we need more energy in this country, and putting taxes on the folks who produce it makes then produce less energy, not more.
Once I saw that oil and gas producers would not be covered by the legislation, I noted other improvements that had to be made.
The first thing was that portions of the bill threaten to put small refiners out of business. Smaller refiners process below about 200,000 barrels a day, while larger refiners typically process closer to 1.5 million barrels. The difference is drastic. Despite their small size, small refiners still supply about 11 percent of the United States market, serving mainly rural areas and military installations.
The legislation as reported from committee contained only two percent of available allocations for the entire refining sectors stationary emissions, even though refiners emit 3.8 percent of carbon across our economy. Small refiners operate at extraordinarily thin margins and would be fighting for that limited allocation with super-majors like ExxonPhillips, Chevron, and ConocoPhillips. Smaller companies would likely not survive.
If refiners close in rural areas, gas prices there would have to skyrocket in order to attract supplies from the coasts and other refining centers. Thousands of job losses from refinery closings would also result.
To prevent this terrible situation from coming to pass in rural America, I proposed that small refiners receive an allocation for all of their stationary source emissions and further mechanisms that would limit their exposure to the volatility that may exist in the market for allowances for fuels.
I am very pleased that this provision has been included in the bill.
Additionally, I was deeply concerned with the economic livelihood of 180,000 Southern New Mexicans in my Congressional district who get their power from rural electric coops. While the bill's sponsors claim that electric utilities were ``held whole'' with allowance allocations when the bill was reported out of committee, in reality there were regional disparities that unfairly punished rural electric coops. For example, in regions that possess abundant sources of carbon-neutral electricity like hydro and nuclear, consumers would receive far above their needed allocations. But in New Mexico and other states that rely in large part on coal and other carbon sources for electricity, consumers would only receive a portion of the allowances they need to cover their carbon emissions.
To remedy this problem, I proposed that emission allocations be distributed on the basis of carbon intensity rather than the number of people who receive the electricity and that no utilities should receive more than 100 percent of allocations. Allocations over 100 percent would then be redistributed to consumers in places like New Mexico.
I also proposed the same carbon molecule shouldn't be given allowances twice in its life cycle in one part of the country, while a carbon molecule being used in New Mexico receives zero allocations.
Now, we didn't get everything we asked for. But working with Chairman Collin Peterson of the Agriculture Committee and the National Rural Electric Cooperatives Association, we were able to get language in the bill that will protect rural electric coops from costly rate hikes.
Madam Speaker, this bill is not perfect. In fact, it is far from perfect.
We need to do more for rural coops. We need to improve this bill so that it promotes the use of clean burning natural gas.
I do thank my friends on the Energy and Commerce Committee for working with me to address my concerns regarding small business refiners and rural electric coops.