Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I rise in opposition to the bill that is before the House and urge its rejection. The refinery bill today makes its second appearance on the House floor in recent weeks.…
Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise in opposition to the bill that is before the House and urge its rejection. The refinery bill today makes its second appearance on the House floor in recent weeks. It was essentially the same bill that was rejected by the House in May.
Since the bill's last appearance on the floor, a serious effort has been made by the bipartisan leadership of the Energy and Commerce Committee to find common ground between our position and the Republican position. I want to thank the gentleman from Texas (Mr. Barton), who chairs the full Energy and Commerce Committee for his good faith effort to produce a bipartisan bill.
I also want to thank the chairman of the Energy and Air Quality Subcommittee, Mr. Hall, and the ranking Democrat on the full committee, Mr. Dingell, for the time that they invested in seeking a bipartisan compromise.
Unfortunately, the differences between the Republican position and our position were simply too great, and the consensus bill could not be produced.
While I commend the effort made by Mr. Barton and Mr. Hall to work with us in trying to produce a balanced measure that we all today could support, I must express disappointment that the Republican House leadership chose to disallow all amendments on the refinery bill that we are debating on the floor today.
The bill should have been structured in such a way as to provide an opportunity to consider our Democratic substitute, which would make a genuine difference in relieving the Nation's shortage of refinery capacity.
While I will argue the merits of our more meaningful approach during today's debate, we are now relegated to offering our alternative in what is known as a motion to recommit, a procedure at the end of the formal debate that does not offer a full opportunity for the House to consider, in normal order, our proposal.
There is broad agreement that we have a shortage of refinery capacity in the United States today. The gentleman from Texas acknowledged that in his comments as well. There are simply not enough refineries in the Nation to produce the gasoline, the diesel fuel and the other refined products that we consume in the United States on a daily basis.
In fact, of the 20 million barrels we consume each day, more than 2 million barrels of refined product are imported each day. During times of emergency, such as a hurricane that might disable some of our refining capacity, we have no margin for error since we are not even meeting our own daily demand with U.S.-based refineries, we are in a highly vulnerable position whenever part of our already limited refinery capacity is disrupted.
When that happens, we have to import even more refined product. And we have to do it on very short notice. Arranging to buy the refined product overseas, scheduling delivery of that product to the United States, and then waiting on those shipments to arrive are all time consuming and all occur at a time when because of the hurricane, refinery fire or earthquake or other emergency, we simply do not have enough refined product to meet current demand.
The inevitable result is a huge spike in gasoline prices. That is exactly what happened in the weeks after Hurricane Katrina. And until we add more refinery capacity, that is what will happen every time in the future we have a disaster that takes down some of our limited refining capacity.
On this much, Republicans and Democrats agree. To promote our energy security and to protect Americans from future gasoline price spikes, we need to build more refineries in the United States. The disagreement that we have is over the best means to ensure that they are built.
The Republican bill now before the House is simply not the answer. It weakens State environmental protection processes and procedures while doing virtually nothing to assure that new refineries are, in fact, built. The bill before us repeals the law requiring the States and the Federal Government to work together to set deadlines and streamline the process for issuing permits for new refinery construction.
That new requirement became law just last August in the Energy Policy Act of 2005. Instead of repealing it, we should be giving it a chance to work. Let us see if those provisions are satisfactory. And if they are, perhaps that could resolve the need.
The bill before us adds a new layer of Federal bureaucracy by creating a Federal coordinator to oversee State-permitting actions, and States would be mandated to meet a Federal schedule for issuing refinery construction permits.
States that have legitimate environmental concerns would find their normal review processes short circuited under a mandated Federal schedule for permit issuance.
And the bill proceeds from a deeply flawed assumption that the reason that we have a refinery shortage is burdensome State permitting processes. The real reason we do not have enough refineries is the economic interests of the refiners, not environmental constraints.
Between September of 2004 and September of 2005, the Nation's refiners enjoyed a 255 percent profit increase. When you are doing that well, why change anything? Why make added investments in new refineries when the status quo graces you with a 255 percent profit increase?
By interfering with State environmental permitting, the Republican bill is truly a solution in search of a problem, and it ignores the real problem. The oil companies themselves have told us that environmental regulations are simply not the problem.
Here is what the oil company CEOs have said about regulations governing their refining siting process. Last November, the CEO of Shell testified to the Congress, ``We are not aware of any environmental regulations that have prevented us from expanding refinery capacity or siting a new refinery.''
Conoco's CEO testified, ``At this time, we are not aware of any projects that have been directly prevented as a result of any specific Federal or State regulation.''
The record before the Congress is clear. It is devoid of any evidence that environmental permitting has delayed or prevented the construction of new refineries. In fact, the record clearly shows that environmental permitting is simply not a problem.
And yet, this bill weakens environmental permitting. It is the wrong answer for the problem that we face. Mr. Speaker, there is a right answer. Decades ago, our Nation created the Strategic Petroleum Reserve to resolve, with regard to crude oil, the very same problem that we are now having with regard to the refining of gasoline.
The Strategic Petroleum Reserve has proven to be an excellent shock absorber, guarding our Nation against price spikes occasioned by disruptions in crude oil deliveries. It works exactly as it was designed to function.
Our Democratic proposal is to extend this proven and successful model to solve the problem we now face with a
shortage of refinery capacity. We propose the creation of a Strategic Refinery Reserve patterned on the Strategic Petroleum Reserve. In normal times the refineries that comprise the reserve would produce gasoline and other products for the government fleet, including the U.S. Department of Defense.
This step would enhance our national security. Refineries would not operate at full capacity during these normal times. During times of emergency, the refineries would sell gasoline into the commercial market, protecting the American public from gasoline price spikes should some of the U.S. refining capacity be shut down.
This sensible alternative, which the rule earlier adopted precludes us from offering as a substitute, would be an effective means of solving the problem which simply must be addressed.
I urge, Mr. Speaker, that the Republican bill be rejected and that the House adopt our Democratic motion which will be offered at the end of debate today, and that motion will contain the very sensible and, I think, effective Strategic Petroleum Reserve.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I yield 3 minutes to the gentleman from Michigan (Mr. Stupak).
Mr. Speaker, I yield 3 minutes to the distinguished gentleman from Massachusetts (Mr. Markey).
Mr. Speaker, how much time remains on both sides?
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I yield 6 minutes to the gentleman from Michigan (Mr. Dingell), the ranking Democrat on the full Energy and Commerce Committee.
(Mr. DINGELL asked and was given permission to revise and extend his remarks.)
Mr. Speaker, I am pleased to yield 4\1/2\ minutes to the gentleman from Maine (Mr. Allen).
Mr. Speaker, I continue to reserve my time.
Mr. Speaker, I am pleased to yield 2 minutes to the gentleman from California (Mr. Waxman).
Mr. Speaker, I yield myself the balance of my time.
Mr. Speaker, the Republican bill is not an effective way to address the shortage in refining capacity. It tramples on State environmental laws without effectively solving the problem.
The CEOs of the refinery companies have testified that the permitting process for refinery siting is not burdensome and has not prevented the construction of needed new refineries. The Republican bill, therefore, weakens State environmental laws needlessly because it would do virtually nothing to ensure that new refineries are, in fact, built.
By contrast, our Democratic alternative will be effective, it will address our national refinery shortage, and it will do so by relying on the proven and successful means by which we addressed several decades ago disruptions in crude oil supplies. We simply would extend the proven concept of the Strategic Petroleum Reserve by constructing a strategic refinery reserve in order to address the problem of refining capacity, very similar today to the problem we addressed decades ago with regard to crude oil supply disruptions.
So, Mr. Speaker, I strongly urge rejection of the Republican bill, and I urge that when we submit our motion to recommit that that be approved by the House.
Mr. Speaker, I yield back the balance of my time.
Mr. Speaker, I offer a motion to recommit.
Mr. Speaker, I am in its current form.
Mr. Speaker, the motion to recommit is the only means by which the Democratic alternative to the Republican bill could be brought to the House floor, and that is under the very restrictive procedure that the Republicans have adopted which eliminates any possibility for amendments, including a Democratic substitute.
I regret that that restrictive process does not enable the House to consider our Democratic alternative in regular order.
The motion that I am offering would create a strategic refinery reserve. That would be an effective means of resolving our national problem with regard to limited refinery capacity. We would model the refinery reserve upon the very successful strategic petroleum reserve which has been an excellent shock absorber protecting Americans from gasoline price spikes when there are disruptions in the delivery of crude oil.
Under our amendment, the Secretary of Energy will be directed to establish refineries with capacity equal to 5 percent of the total United States demand for gasoline, home heating oil and other refined petroleum products. The location of the refineries will be at the discretion of the Secretary with a preference that they be sited well away from the hurricane zone where we are concentrated today in our existing refinery capacity.
During normal times, the reserve will not operate at full capacity. The refineries during these normal times would sell refined product to the Federal fleet, including the Department of Defense, a step which would also enhance our national security.
Keeping the refinery reserve operational will ensure no lag time in placing it online if it is needed in times of emergency, and in those times when some portion of the Nation's refinery capacity is shut down, the refinery reserve would protect Americans from gasoline price spikes by selling their product into the commercial market.
This approach is sensible. It is based on a working and highly successful model, the Strategic Petroleum Reserve. It would be effective. It stands in stark contrast to the Republican proposal which would weaken environmental laws while failing to address our critical refinery shortage.
This motion also strikes section 5 which would direct the President to select three closed military bases upon which refineries would be situated, a provision which I find objectionable, which I think the vast majority of Members of this House also find objectionable. We would strike it in this motion.
Mr. Speaker, I yield to the gentleman from Maine (Mr. Allen) to address those concerns.
Mr. Speaker, I urge adoption of this motion to recommit, and I yield back the balance of my time.
Mr. Speaker, I demand a recorded vote.
Mr. Speaker, I demand a recorded vote.