Energy Policy Act Of 2005
Mr. Chairman, I rise in support of the Castle-Markey amendment to strike Section 320 of H.R. 6. The bill that the Committee reported last week provides the Federal Energy Regulatory Commission (FERC) the authority to approve LNG import…
Mr. Chairman, I rise in support of the Castle-Markey amendment to strike Section 320 of H.R. 6.
The bill that the Committee reported last week provides the Federal Energy Regulatory Commission (FERC) the authority to approve LNG import terminals. Although this provision allows FERC to consult with state governments, this signals a departure from current law whereby states and localities play a significant role in siting decisions. Protecting the health, welfare, and safety of the surrounding communities--as well as preserving the environment and not disturbing commerce--are critical factors when determining where to site an LNG facility. Let me ask: who knows better than the local officials how a proposed facility will affect their area? To diminish their role in the process, as this provision will, only does a disservice to our constituents who trust us to act wisely on their behalf. At a time when there is a proliferation of onshore and offshore proposed LNG projects, and as there currently exists no framework to make sure that we are meeting our national demand for natural gas in a way that makes sense and best meets the regional needs of American communities, Congress should be strengthening the rights of those in our cities and towns and ensuring they have a vocal and viable role in the process. Section 320 does the opposite. I believe it should be struck from the bill, and urge my colleagues' support for the Castle-Markey amendment.
Section 320 is one of a number of provisions in H.R. 6 that tramples on the rights of states:
This bill provides unnecessary liability protections for manufacturers of MTBE, thus forcing the clean-up cost of drinking-water Contamination to states and localities instead of sending the bill where it belongs: to the polluters themselves. This legislation doesn't just reward polluters, it pays them--giving the MTBE production companies $1.75 billion in so-called ``transition costs'' as the pollutant is phased out by 2015. That is irresponsible and fundamentally unfair to the American taxpayers.
The bill also repeals the Public Utility Holding Company Act (PUHCA). PUHCA limits the geographic size and types of subsidiaries energy companies can operate. The law is necessary to help states regulate large, multi-state electricity companies by keeping their corporate structures transparent. Without PUHCA, states will find themselves helpless to protect their consumers against the actions of scandalous energy companies like Enron.
This bill grants the Federal Energy Regulatory Commission (FERC) jurisdiction over reliability standards for electricity transmission networks, allowing the FERC to approve new power lines over states' objections. It abolishes states' rights to meaningful input and participation in decisions over power lines and transmission networks.
The bill also fails to recognize and reflect successful practices being put into use at the state level. Initiatives like California's plan to limit carbon dioxide emissions from automobiles and New York's efforts to organize a consortium of Northeastern states to begin reducing power-plant emissions show promise and ought to be promoted on the federal level.
We had the chance to encourage state innovation with this bill, but its authors and GOP Leadership squandered that opportunity. I am a co- sponsor of Rep. Tom Udall's renewable portfolio standard bill (H.R. 983), which was offered as an amendment to the energy bill before the Rules Committee but was not made in order. This amendment would establish a state renewable energy account program along with setting guidelines for a renewable portfolio standard. Another missed opportunity here means another missed opportunity to enlist the states as our partners in promoting innovative energy programs to lead us toward a stable energy future instead of undermining states' rights.
This bill also deals a serious blow to the environment. Longstanding public health and environmental laws are under assault in this bill.
Saturday's New York Times reported that H.R. 6 includes a provision that, should it become enacted into law, would constitute one of the most sweeping changes to the Clean Air Act in 15 years. The provision would allow communities to delay cleaning up their dirty air, and complying with national air quality standards, if their pollution is derived from other heavily concentrated areas. This undermines the intent of the Clean Air Act and may lead to increased cases of asthma, which, according to the EPA, already afflicts 20 million Americans, including 6.3 million children.
Hydraulic fracturing, an invasive oil and gas recovery technique, that may contaminate drinking water has been removed from the Safe Drinking Water Act. News reports indicate that the Halliburton Corporation is the largest practitioner of hydraulic fracturing and has been lobbying for this provision.
Rather than seizing an opportunity to address skyrocketing gas prices (the average price is $2.28), reduce our reliance on fossil fuels and foreign oil, improve our fuel efficiency standards, and bolster the incentives to develop and utilize alternative energy sources, the energy bill before us today upholds the unacceptable status-quo and exacerbates our many current problems, as it:
Authorizes $8 billion in tax breaks for oil, gas, and nuclear companies, while directing less than $600 million to promote renewable energy and conservation-related initiatives;
Opens Alaska to oil drilling, although the U.S. Geological Survey projects that the Arctic Refuge has only approximately 3.2 billion barrels of economically recoverable oil, equivalent to what the U.S. consumes in less than 6 months, and would take between 10 and 12 years to introduce the oil into the marketplace; and
Exempts companies drilling on public lands from paying royalties for oil and natural gas
extracted from public lands, which is required under current law and has resulted in billions in additional revenue for states over the past five years.
The bottom-line with this bill, however, is that--as its previous incarnations have done--it reinforces the wrong priorities at the expense of consumers, the environment, and American taxpayers. I urge my colleagues to oppose H.R. 6.