I thank my friend, the Republican Whip, for yielding. On Monday, the House will meet at 12:30 p.m. for morning hour and 2 p.m. for legislative business, with votes postponed until 6:30 p.m. On Tuesday, the House will meet at 9 a.m. for…
I thank my friend, the Republican Whip, for yielding.
On Monday, the House will meet at 12:30 p.m. for morning hour and 2 p.m. for legislative business, with votes postponed until 6:30 p.m. On Tuesday, the House will meet at 9 a.m. for morning hour and 10 a.m. for legislative business. On Wednesday and Thursday, the House will meet at 10 a.m. for legislative business. On Friday, no votes are expected in the House.
We will consider several bills under suspension of the rules. The complete list of suspension bills will be announced by the close of business tomorrow.
In addition, we will consider H.R. 415, a bill to designate segments of the Taunton River in the Commonwealth of Massachusetts as a component of the National Wild and Scenic Rivers.
In addition, we will consider H.R. 5959, the Intelligence Authorization Act for Fiscal Year 2009; H.R. 3999, the National Highway Bridge Reconstruction and Inspection Act; and, we may also consider important energy-related legislation.
In response, if the gentleman would yield.
It is the same bill.
I thank the gentleman for yielding.
There is an extensive letter to all of our colleagues from Congressmen Frank, McGovern, Kennedy, Langevin, and Lynch.
I don't want to read the whole letter; but responding to the points in question, I am looking at the letter to see whether or not--one of the points they make is that notwithstanding this bill there are several barriers to this proposal going forward, that is the LNG plant. Killing the bill that would provide environmental benefits to people of our districts would in no way save the LNG plant from the rejection it has already received. The point being, and I have not read the entire letter, but that there are other impediments apparently to moving forward on that LNG plant. As I say, it is a long letter, I haven't read it fully, but I do know that each one of the points that was raised in the article today have been responded to and therefore will be the subject of debate once the bill is considered.
I thank the gentleman for yielding.
Yes. As you know, we have been talking about, on both sides of the aisle, developing greater domestic supply from that which we have control over here in this country. I think both sides agree that that is an objective that ought to be pursued. The differences have been I think where that should be done at least in the short term, maybe not in the long term.
In the short term, it is our belief that there is very substantial areas available for further exploration and development of energy resources from our own country. As the gentleman may have heard me say on the floor earlier today, there is about 88 million acres that we believe is currently available for leasing that experts indicate are prime opportunities for finding, drilling, and producing energy for our country. We may well consider legislation which will try to accelerate, particularly in Alaska, where there is 23 million acres in the National Petroleum Reserve area designated and approved by the Congress for drilling, where approximately 1 million acres of that has been currently let for lease but there are substantial millions of acres still available. So we may well have legislation which will direct the administration to accelerate the leases for that area and speed the development.
In addition, we may well include in that legislation the Use It Or Lose It bill, we had disagreements on whether that was appropriate, which essentially says to companies: Don't inventory large segments. If you are not going to use it, let's get it back and give it to some who may well use it at this point in time. Again, an opportunity to accelerate the exploration and securing of oil within our control here in this country.
In addition, that legislation I think will include a requirement that any oil petroleum products that are produced as a result of this legislation or as a result of these leaseholds being extended, that petroleum would need to be used
in the United States of America, not exported to Japan or to other nations.
You had in a piece of legislation that you had in 2005 a similar provision. I can't recall the phrase right now, but essentially requiring due diligent requirement as they proceeded with the leases to develop the energy. So we think our Use Or Lose It is, while not exactly what you include in your 2005 bill, certainly a similar objective of saying: You get the leases, let's develop the oil.
We will also be calling I think in that legislation, Mr. Whip, on the President to pursue finishing construction of the natural gas and the oil pipelines from Alaska as soon as possible. If that requires resources, for the administration to ask for those resources.
We share again a view that it is prudent for us to develop all of the lands that we currently have available. And pretty significant, again, I don't know whether you were there, but the 88 million acres essentially covers Maine, New Hampshire, Vermont, Massachusetts, Connecticut, New York, Delaware, New Jersey, and most of Maryland. So a pretty large area that is available now.
So we want to pursue that, but clearly want to see further exploration, further drilling, and further utilization of our own resources here in this country, all with the view of bringing prices down.
Now, we don't know specifically why prices have spiked so rapidly, but we are very concerned about it. As you have heard me say before, prices during the last 8 years of the nineties went from $1.06 to $1.46, about one nickel a year. Prices during the last 7\1/2\ years have spiked from that $1.46 to now $4.15 or so. All the energy policies that have been adopted have obviously been adopted in the last 7\1/2\ years with President Bush's signature. There is no energy bill that is passed without his signature. So that we believe that we have not been successful over the last 7\1/2\ years of getting an energy policy in place which has given us independence and provided for stable prices.
Both the President and proponents of the 2005 legislation, which I voted for, by the way, because I think we need to seek energy independence, but the proponents of that bill indicated 3 years ago that it would keep prices down and make sure that we had supply. That hasn't been the case. Obviously, that was not the intent of anybody who was for the bill that that wouldn't happen, but that is the legislation that we currently are looking at. We are developing that now and trying to write the language essentially with the objective of utilizing the 88 million acres that we currently have authorized on which to drill because we think that is the quickest way to proceed.
You mentioned H.R. 6. First of all, as you heard in my list, we are not contemplating adding that into this legislation that we might be considering. However, let me say this, very honestly. You and I both, I think every Member in this body very much supports the free market system. We have found it provides the greatest good for the greatest number throughout the world.
In 2005, you put incentives in the bill, $14 billion worth of tax breaks for oil companies. Oil was then, as you point out, about half of what it is bringing today at the pump. The free market system, in my view, is if you are getting a high price for your product, you try to produce more of it and you try to find more of it. The oil companies are earning the highest price that they have ever received in the history of the sale of oil. That ought to be the incentive, not taxpayers who are paying the highest price at the pump they have ever paid, also having to pay higher taxes because the oil companies are getting an incentive of $14 billion of tax cuts to incentivize what ought to be incentivized by the price that they are getting for their product.
I want to say further that the information I have, and I think you will find this interesting, is that Exxon made $40 billion in profits last year. I am informed $32 billion of that profit was spent to buy back stock. Not to do additional research, not to drill in America or any place else, but $32 billion to buy back their stock. Obviously that did have a very good effect on those stockholders who remained because their equity clearly went up. I do not criticize that, but I point it out because it was not spent either to produce more oil product, petroleum product, or to pursue alternative energy sources which we think is important which is what we will use the $14 billion in H.R. 6, whether it was hybrid cars, ethanol research, water, wind, hydroelectric, or from my perspective, nuclear.
Let me also say that I understand what you are saying, but when we talk about this 68 million or 88 million acres, let me give you this point. The oil and gas companies hold leases on these 68 million now, land and water.
They are not producing on these acreage, and 81 percent, according to experts, of the estimated oil and gas resources on Federal lands and the OCS are currently available for development in these reserves, and they are equal to 107 billion barrels of oil and 658 trillion cubic feet of natural gas.
So what we are saying and what we will say in this legislation is that you have about 14 years supply here for America if you would develop this 107 billion barrels of oil or 658 trillion feet of natural gas on the land or offshore that you currently have leases on.
So I think this is a good debate to have, and ultimately hopefully at some point in time we will get through the politics of this issue on both sides and we will get to a point where frankly we develop this.
But I will also tell my friend that if we focus only on petroleum, we will not serve your young son or my grandchildren--you are much younger than I am--or my grandchildren very well because I will tell you, and as you know, I have a great granddaughter. She is 18 months of age. When she is my age, petroleum will not be her major source of energy. We know that. Petroleum is a wasting resource. By that I mean it is a resource that is going to go away. We don't know how much is left. Experts don't know how much Saudi Arabia still has. But we need to pursue vigorously alternatives while at the same time, as you and I would agree, developing that 107 billion barrels that we have here in this country that are currently available for lease.
Frankly, if the companies tell us that they really can't produce from that, then maybe we ought to look at other sites as well. But certainly it seems to us, you ought to use what you have first; and if that doesn't work, we ought to go on to a second or third or fourth site.
I thank the gentleman for his tolerance in my taking that time.
Will my friend yield just on that?
I just want to say that I understand what you have just said. But, of course, they never did have that until the 2005 bill, or one of the tax bills that was passed around that time. Prior to that time, the manufacturers had that, as you observed, that's correct, but the oil companies were never included in it originally or for long periods of time. They were added just in the last 2005 or 2006 or 2004, I am not sure exactly which bill added it. So it is not as if that had been in place when the tax to which you refer, the incentive to which you refer, was originally included in the code.
That's under discussion. As I said, we're discussing the component parts of the bill. We haven't decided how that bill will come to the floor. But I will certainly look forward to discussing it with you.
I thank the gentleman for yielding.
I cannot confirm, because I haven't seen the report on that, nor has the chairman told me that he made such an announcement. I did read an article in which he indicated that he thought that might be the case.
As you know, he tried to move the Labor-Health bill through to markup
through the full committee, and as you know, the ranking member moved to substitute the Interior bill rather than do the Labor-Health bill.
The chairman believed he was pursuing the regular order. I have never seen, in the 23 years that I served on the Appropriations Committee, one of the appropriations bills substituted for another one of the appropriations bills in the appropriations process.
So a lot of unusual things are happening, unfortunately. And we haven't been pursuing regular order. I lament that, personally. I think that we ought to do that.
I will say that last year, as you know, we passed every appropriations bill through the House of Representatives by the August break. We had some difficulty at the end doing that, but we got them all passed. And we passed them all in the year, in the calendar year that we were supposed to pass them, not in the fiscal year, in December. As you know in a number of years we didn't do that until the following year: nine one year, eight the other passed in January, the end of January or the middle of February, as I recall, 2 years. I forget whether it was 2004 and 2005 or 2005 and 2006.
So I share the gentlemen's concern. I think both sides share the concern that the appropriations process is not proceeding in the regular order. But I want to say to the gentleman that from my perspective, I have not concluded that we're not going to consider any appropriations bills on the floor.
Will my friend yield on that?
Thank you.
Senator Reid in the other body has made it pretty clear that he does not believe, again, given the failure to pursue regular order in the Senate, that he will be able to get any bills passed, the Senate appropriations bills.
So one of the factors under consideration by Mr. Obey is that if the Senate is not going to consider any bills, that because they cannot get the bills through the House and to the President--of course, the President sent down a number, said, If you go over that number, I'm going to veto all of the bills anyway. And we had real difficulty last year, as you know, with that happening. That's not happened in my career before. I don't mean that a President hasn't indicated he would veto, but there was always room to work on that.
But that is one of the complicating factors or two of the complicating factors: the President's position and the Senate's position as well.
But I think the major problem is that the regular order Mr. Obey did not feel was being pursued in the committee.
I would not agree with the gentleman. After all, we did pass the Iraq funding, we passed a very substantive supplemental, we passed a GI bill, we passed an unemployment insurance extension. We passed an energy bill last year signed by the President. I think much of what we passed in our '06 that was passed, that got through the Senate, was signed by the President and supported by a significant number of Republicans.
Furthermore, let me just remind you, and I'm sure you recall this, that we took 50 hours longer to do the appropriations bills last year than we did in 2006 when your side was in charge. And we had extensive debate. We had 10 open bills, open rules, and we had two rules at the end, because it was clear that we were having great difficulty getting our bills done in a time cramp. Even under those bills, we spent hours debating them. We spent 17 hours on the Homeland Security bill, for instance, and 12 hours on the Labor-Health bill on the floor.
I don't want to get too testy, and you and I are good friends.
But very frankly, it was not a process that we thought was very substantive last year, and every indication that we have received this year, it is not going to be very substantive this year when we consider appropriation bills.
Now, having said that, we didn't pursue the regular order on the Labor-Health bill. The gentleman is correct there are five bills which have passed, and I would reiterate that I have not yet, from my standpoint, concluded that we're not going to consider appropriation bills on the floor this year.
So I want to make it clear. I'm not sure exactly what Mr. Obey announced. There was an article that said I was supporting Mr. Obey's position. I went a little further. What I supported of Mr. Obey's position was that regular order was not being followed in the appropriations committee, not the representation that you say he made with reference to no bills coming to the floor.
I think he's correct that regular order is not being pursued, and very frankly--and I'm going to talk to you about that, talk to my friend about this, because I think it is unfortunate that we have come to this place where the consideration of these bills last year became very politicized, and this year the announcement clearly was very early on out of your conference or your retreat and subsequently that it wasn't going to be a very happy process this year. I don't mean an agreement process. No reason why there should be an agreement. But Mr. Obey has concerns that it would simply be impossible for him to get the bills through.