Mr. Chairman, I am pleased to yield 1 minute to the distinguished gentleman from Michigan (Mr. McCotter). Mr. Chairman, I am pleased to yield 1 minute to the gentleman from the great pickup truck State of Montana (Mr. Rehberg). Mr.…
Mr. Chairman, I am pleased to yield 1 minute to the distinguished gentleman from Michigan (Mr. McCotter).
Mr. Chairman, I am pleased to yield 1 minute to the gentleman from the great pickup truck State of Montana (Mr. Rehberg).
Mr. Chairman, I yield 1 minute to the gentleman from New Hampshire (Mr. Bass), a distinguished member of the Committee on Energy and Commerce.
Mr. Chairman, I reserve the balance of my time.
Mr. Chairman, I yield myself the balance of the time.
It has been argued that the bill is silent on CAFE. Not so. The bill calls for a study to actually replace CAFE, just as NHTSA is recommending that we study CAFE from top to bottom. Do we know why? Because it has awful, perverse effects.
One time GM came up with a new SUV that was much more fuel efficient than its old model, and it suffered, it got penalized under CAFE. Why? Because more Americans wanted that vehicle, and it upset their average. That is how perverse the system sometimes works. We call for revamping that system.
Secondly, last year we improved the CAFE standards for SUVs, an amendment that the gentleman from Michigan (Mr. Dingell) and I took through the conference committee and has now been implemented into law. I think because it has been implemented, I am having a harder time getting the gentleman from Michigan (Mr. Dingell) to support the rest of this bill, but it is well on its way to saving fuel for the American economy.
But the bill goes further. It provides $1.7 billion for the hydrogen fuel car, for the FreedomCar initiative, for new hybrids and alternative fuels, and it provides for the implementation of the President's hydrogen car infrastructure, a dramatic improvement in fuel efficiency when the hydrogen fuel car hits the market.
The amendment gives us lighter cars and smaller cars and more traffic deaths. The bill takes us on the path to new fuels, new efficiencies, new technologies. Stick with the bill. Let us defeat this amendment.
Mr. Chairman, I yield myself 5 minutes.
Mr. Chairman, let me first applaud the intent of my friend, the gentleman from Michigan (Mr. Dingell), in terms of trying to benefit consumers and prevent market manipulation. But if that is the intent, then I am afraid his amendment goes exactly the wrong direction. Here is why:
The issue is not whether FERC currently has the authority to deal with fraud, manipulation, and deception, or whether FERC is even using that authority. Clearly, the FERC has the authority and is using it now aggressively to crack down on market abuses.
The Federal Power Act requires FERC to ensure that all rates, terms, and conditions for wholesale power sales and for transmission services are in fact ``just and reasonable and not unduly discriminatory.'' This empowers the FERC to prohibit fraud, manipulation, deception, other anticompetitive conduct that distorts the market or harms consumers.
I have heard a number of my Democratic colleagues cite the manipulative practices FERC has identified in the Western markets. I am aware of that; but that is only half the story. What has been overlooked is the fact that FERC has identified these things in the context of taking strong enforcement actions against them. FERC has found, for example, many of the practices to be unjust and unreasonable and is taking action.
A recent commission staff report identifies the following, among others. Let me list them: fraud, manipulation, deception, attempted manipulation, gaming, wash trades, withholding, price distortion, inflated pricing and bidding, violation of tariff antigaming provisions, market abuse, unjust enrichment, misreporting prices, providing false or misleading information, taking unfair advantage of market rules, and anomalous market behavior.
Not one of these anticompetitive practices is just and reasonable or beyond the FERC's authority to act right now. That is why FERC is taking action right now against them.
The issue is not whether H.R. 6 does enough to update the FERC's existing authorities. It does. The electricity title of H.R. 6 enhances and modernizes FERC's penalty and enforcement powers in specific ways that FERC itself has requested.
FERC Chairman Pat Wood has testified that he needs market transparency authority and increased civil and criminal penalties for violation of the Federal Power Act's own rules and regulations.
The bill does both of these things and more: it adds transparency for both electricity and gas, and it dramatically increases the criminal and civil penalties. It makes needed adjustments in FERC's refund and investigative authorities.
But H.R. 6 does not stop with penalties and enforcement; the Dingell amendment does. The Dingell substitute strikes the entire electricity title.
So we should ask ourselves, what does the Dingell substitute do to promote investment in critical infrastructure or to increase our electric supply? The answer is zero.
What does it do to protect system reliability, which is essential for all customers? The answer again is zero. Or to promote new technologies for greater efficiency? Zero. Or to protect consumer privacy and prevent slamming and cramming of retail customers? Zero.
That is the electricity title the Dingell amendment would strip. That is the problem: it does nothing but impose a cumbersome new regulatory framework on top of FERC's already existing broad authorities under the Federal Power Act.
It is not clear how this new SEC-style framework would work in conjunction with the ``just and reasonable'' standard of the current law, nor is it clear how broadly this new framework would apply. It applies in the Dingell amendment to every entity.
Let me tell Members what I think that means. I think it means that it applies equally to every rural co-op, every municipal utility, and every Federal utility. So those concerned about rural co-ops, Federals, and munis, they ought to know this. When the Dingell amendment talks about any entity, it covers all of these entities.
Our bill, on the other hand, covers these entities in very limited, carefully defined ways, in open access, in refund authority. We exempt the smaller co-ops and munis under 4 million megawatts.
I find it very troubling, on the other hand, the Dingell substitute would inject FERC regulatory authority completely over these, possibly as FERC would interpret it, over all the co-ops and munis.
The electricity title of H.R. 6 goes to the heart of the matter. Without adequate investment in transmission and a diverse, reliable supply of electricity, the result would be a chronic failure of the Nation's electricity market and higher prices for consumers. Regulatory overkill is not the answer.
Enforcement, yes, is very important. Our electricity title addresses that. But the key to protecting consumers is to improve the operation of the competitive wholesale electricity markets and eliminate the transmission congestion and other factors that have allowed the manipulation to occur in the first place.
According to a 2002 Department of Energy study, competition in wholesale electricity markets reduces consumers' electricity bills by nearly $13 billion annually. It is time now not to turn our backs on the wholesale competition; we have to look ahead.
Mr. Chairman, I hope we defeat this Dingell amendment which would strip out the incredibly good electricity title of this bill and simply add SEC overregulatory burdens on a FERC that is absolutely empowered and can do its job today.
Mr. Chairman, I am honored to yield 3 minutes to the gentleman from Texas (Mr. Barton), the distinguished chairman of the Subcommittee on Energy and Air Quality of the Committee on Energy and Commerce.
(Mr. BARTON of Texas asked and was given permission to revise and extend his remarks.)
Mr. Chairman, I yield myself such time as I may consume.
I notice that the letter does not say they support the Dingell amendment; it just says it is narrowly crafted.
That is correct; It is narrowly crafted. It strips out the improvements and reforms in electricity.
Mr. Chairman, I yield 1 minute to the gentleman from Illinois (Mr. Shimkus).
Mr. Chairman, I yield 1\1/2\ minutes to the distinguished gentleman from Nebraska (Mr. Terry), a member of our committee.
Mr. Chairman, how much time remains?
Mr. Chairman, I yield 1 minute to the distinguished gentleman from Mississippi (Mr. Pickering), a member of the Committee on Energy and Commerce.
Mr. Chairman, I yield 1 minute to the gentleman from Oregon (Mr. Walden).
Mr. Chairman, I yield 1 minute to the gentleman from Telecom Gulch, California (Mr. Issa), a distinguished member of our committee.
Mr. Chairman, I have one additional speaker who will close, so I would ask the gentleman to use his time.
Mr. Chairman, I yield the remaining time to the gentleman from Texas (Mr. Barton), the chairman of the Subcommittee on Energy and the author of the electricity title, which would get stripped by the Dingell amendment. He will close on this dastardly amendment by the gentleman from Michigan (Mr. Dingell).
(Mr. BARTON of Texas asked and was given permission to revise and extend his remarks.)
Mr. Chairman, I yield back the balance of my time.
Mr. Chairman, I want to speak about another national wildlife reserve. It is not in the cold north of ANWR. It is not in the frozen tundra along an Arctic coast, which is already producing just a short distance away, in Prudhoe Bay, an amazing amount of resources for the good of our country. It is the national wildlife reserve located in deep south Louisiana. It is called Mandalay. It is beautiful.
And if my colleagues think there are any critters running around in the Arctic, or in the ANWR, they should come to Mandalay. It is so rich in wildlife, with fish diversities of which one could never imagine. We call Louisiana ``Sportsmen's Paradise,'' there is so much fish, so much wildlife there. In fact, when I came to Washington as a young freshman, I told the Department of the Interior they had to get the alligators off the endangered species list quick or put us on, one or the other.
We have alligators, fish, turtles, and every kind of wildlife a person can think of in Mandalay Wildlife Reserve. There are also 100 producing wells. Each one of those wells produces for the good of our country. It produces in an environmentally safe way. Royalties from that production goes back into protecting Mandalay and the 5 million acres in Louisiana that we protect as wildlife areas, including Mandalay. We do it in an environmentally sensitive way in the heart of a region that is so full of wildlife it cannot even compare to the Arctic and ANWR.
What the gentlewoman is attempting to do in this effort is to produce for the country's sake, so we do not have to depend upon people like Saddam for our oil. In the interest of helping this country, she is reducing the footprint to a mere 2,000 acres, which is a lot smaller than Mandalay, a mere 2,000 acres. She is going to reduce the footprint of this activity to an area so small it is almost unimaginably small; and then this country would be better off for it.
The gentlewoman's amendment needs to be adopted and we need to make sure this Nation takes advantage of this other national wildlife reserve.
Mr. Chairman, will the gentleman yield?
Mr. Chairman, the gentleman has a good point. We have a lot of work to do with the Committee on Appropriations. But if the appropriators were to find this new source of revenue, if this bill did pass and they found it and they appropriated money out of the royalty fund without us first having authorized it at our committee level, the gentleman from Massachusetts and I would be objecting to the appropriators authorizing on an appropriation bill. We would say in effect that we have not authorized it yet; they had better not spend it.
So this is an important first step, I would tell the gentleman. The gentleman is correct we would still need the appropriation later; but if we do not do the first step, they cannot do the second step.
Mr. Chairman, will the gentleman yield again?
Mr. Chairman, my concern is that without this amendment, the reason why I think we ought to adopt it, is that there are laws on the books that provide for where royalty and bonus income goes, and without a provision that gives the appropriators a chance to say, no, this money can go to LIHEAP, in fact, on this date in the House Chamber the House authorized it; without that having been done, they may interpret the law to mean that they cannot use these moneys.
I would urge my friend to at least give them that option.
Mr. Chairman, the Mandalay National Wildlife Refuge in Louisiana is a national asset, too, but there are 100 producing wells on it. And the people of California and the people of Massachusetts benefit from the fact that we produce a hundred wells in the Mandalay National Wildlife Refuge, a refuge that is much more abundantly full of resources than ANWR.
What people forget is that inside ANWR, inside the area, 1002, that was designated for drilling, that is what 1002 is; out of this 19- million-acre ANWR, 1002 is the area we set aside for production. And inside it is 92,000 acres of private property. It belongs to the people who live there, and they cannot even produce their resources.
Now, I understand if California does not want to produce or Massachusetts does not want to produce. If they want to depend upon the Mandalay Wildlife Refuge in Louisiana for oil and gas, I can understand that. We make that deal. We produce in Louisiana. We do it in an environmentally sensitive way, and we produce oil and gas for the rest of the country. If we shut down tomorrow, the country is out 25 percent of its oil and 25 percent of its gas. What do you think Massachusetts and California will do then?
But the people of ANWR, 1002, the people who live on the 92,000 acres, want to produce their own private lands and you will not let them. Not government lands, their own private lands, and you will not let them; that is what this amendment does. It says to private property owners in America, the Native Alaskans who live on this private property, you cannot produce your own property, you cannot produce resources for the rest of the country if you choose to do so.
Well, let me ask a simple question. Do you think the ANWR, the 1002 area where these people live, is any more precious than the Mandalay area in Louisiana? Do you think it deserves more attention, more protection, more sacred status than the Mandalay area, my district in Louisiana?
It does not. It does not. We produce in Louisiana. It is time for the rest of you to do the same thing.
Mr. Chairman, will the gentleman yield?
Mr. Chairman, I want to disassociate myself from any of the gentleman's comments except the part where he said he supports the amendment of the gentleman from Virginia, because I do too.
Mr. Chairman, I claim the time in opposition to the amendment.
Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, this amendment proposes to establish a gasoline reserve, 20 million barrels. That is 840 million gallons of gasoline. With one site each in the Northeast, Midwest and California, there would be over 6 million barrels or nearly 280 million gallons of gasoline at each one of these three locations.
To put it in proper perspective, Port Mobil in New York, one of the largest in the world, has a storage capacity of only 2.5 million barrels. This amendment more than doubles it at each of three locations. A large gasoline storage tank can hold about 300,000 barrels. This amendment would require 22 such tanks at each location.
Gasoline, as we all know due to its extremely volatile nature, has to be stored above ground. Vaporization is a major problem. Gasoline is extremely flammable. It is explosive. I find it very ironic if a private company proposed to build one of these facilities anywhere with this kind of magnitude, every environmentalist in the country, every safety advocate in the country would be there to oppose it, and it would likely not get built. Here we propose for the government to do it.
Gasoline, worst of all, has a shelf life of 1 year or less. Now I want to put this in perspective so we all understand what I am talking about. Have Members ever tried to use the lawn mower with last year's gasoline in it? Have you ever tried to start it? Now try 840 million gallons of old gasoline in lawn mowers and cars all over America.
But the amendment says the Secretary of Energy is authorized to conduct purchase and sales of gasoline for maintenance purposes such as maintaining gasoline quality. So now let us talk about market manipulation. Here the government, the Secretary, is buying and selling 840 million gallons of gasoline in order to turn over the inventory on a 1-year cycle. That would disrupt markets in the private sector as they tried to anticipate the Federal buy-and-sale plan. This is just a ploy for the Federal Government to begin regulating gasoline prices. We have to understand it for what it is.
The amendment requires the storage of regular unleaded gasoline. Depending upon the time of the year, there are between 20 and 24 different types of regular unleaded gasoline blends at any one time in America. In the Northeast alone, there are five different types of regular unleaded gasoline. Would the reserve have winter grade or summer grade, in addition to the various blends? Members can see what I am getting to.
This is an extraordinarily complex market that is made even more extraordinary because the government requires all of these different blends, and now we are going to put the government in the business of creating massive storage tanks all over America, manipulating sales and purchases all over the place with all of these different blends to boot, and having to do it on a regular cycle because old gasoline will not start the lawn mower.
The enactment into law of this amendment would be a disaster. It would be a disaster to communities where the site is located, it would be a disaster for the gasoline markets that would be disrupted by government built-in manipulation, and it would be a disaster to the Federal Government for wasting rather precious tax dollars.
I urge my colleagues to defeat this amendment.
Mr. Chairman, I reserve the balance of my time.
Mr. Chairman, I yield 3 minutes to the gentleman from Texas (Mr. Barton), the chairman of the Subcommittee on Energy and Air Quality of the Committee on Energy and Commerce.
Mr. Chairman, I yield 2 minutes to the gentleman from Illinois (Mr. Shimkus).
Mr. Chairman, I yield myself such time as I may consume.
Let me put this in perspective for the gentleman from Ohio (Mr. Brown). The gentleman from Illinois (Mr. Shimkus) is correct. The last time America built a major refinery was in my district over a quarter of a century ago. Over a quarter of a century ago was the last time we licensed and built a major refinery in America. That is pretty sad. The result has been that our refinery is at 93 percent capacity right now.
They are making gasoline and fuel oil to heat our homes and jet fuel, as fast as they can make it; diesel fuel for our vehicles, as fast as they can make it. The result is we are importing more refined products now than ever. We are importing more refined jet fuel, gasoline, diesel, fuel oil, everything else because we have stopped building refineries in America. That is pretty sad.
On top of that, we have got a fuel blend requirement in our system that causes regions of the country to switch blends every now and then, winter grade, summer grade, different blends to meet air quality standards, the result of which if there is any breakdown in the system, we have got real problems. But building gasoline reserves and having the Federal Government intervene in those sales and marketing and circulating these sales every year is just going to make it worse, I promise.
I hate to pick on the post office, but if my colleagues think the government running the Postal System is a good idea, and delivering all the mail and the e-mails of America and running the Internet, for example, put them in the gasoline business and see what a mess we have got. This is not going to work. It is a terrible idea.
And, to boot, I can see what happens at the end of the year. We have got all these blends and all these products sitting in these tanks we have not been able to market, and all of a sudden we are going to have an old gasoline disposal bill and we are going to be fighting over whether to put it in Yucca Mountain or somewhere else.
I mean, I can see what happens at the end of this thing. It just does not work.
If my colleagues want a system that works, help us build a good energy policy that produces more in America, that builds a refinery every now and then when we need one, instead of not having one built in a quarter of a century. That will work.
I ask the Members to reject this amendment.
Mr. Chairman, I yield back the balance of my time.
Mr. Chairman, I rise in opposition to the amendment and claim the time in opposition.
Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, I rise in opposition to this amendment. I believe nuclear power is an essential source of electricity in the country. It provides about 20 percent of our power today. Nuclear generating capacity is critical to maintaining the diverse portfolio that everybody wants.
In order to have nuclear power, you have to have a reliable domestic source of nuclear fuel. Nuclear fuel is made of enriched uranium, which obviously comes from uranium ore, and which is mined from the Earth in several western States.
The Udall amendment seeks to strike section 14029 from the bill. That section authorizes $10 million per year over 3 years for the Secretary of Energy to enter into cooperative, cost-shared agreements with domestic uranium miners to develop improved uranium mining technologies, including those that have minimal environmental impacts.
It also supports the development of the advanced low-cost environmental restoration technologies, to clean up uranium mines after they are closed. Why would anybody, including any nuclear activist, oppose technologies to clean up old mines?
I understand that many Members are against nuclear power; but the fact is that nuclear power will continue to grow in our country, and this amendment seeks to ensure that we develop advanced and environmentally sensitive uranium mining and restoration.
Mr. Chairman, I believe a vote for the Udall amendment to strike this section is essentially a vote against nuclear power, and a vote in favor of this amendment is also a vote against the development of environmentally responsible uranium mining and clean up technologies.
So I urge that we oppose this amendment.
Mr. Chairman, I reserve the balance of my time.
Mr. Chairman, I am pleased to yield 2 minutes to the gentleman from Texas (Mr. Rodriguez).
Mr. Chairman, I am pleased to yield such time as she may consume to the gentlewoman from New Mexico (Mrs. Wilson) for purposes of a colloquy.
Mr. Chairman, will the gentlewoman yield?
Mr. Chairman, that is precisely the intent that was in fact discussed and acknowledged when we accepted the gentlewoman's amendment in full committee.
Mr. Chairman, if the gentlewoman will yield further, yes, I would.
Mr. Chairman, I yield 2 minutes to the gentleman from Texas (Mr. Burgess).
Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, this amendment strikes money that is designed to help improve technologies for mining in an environmentally safe way. It strikes money that is designed to help improve technologies for cleaning up the uranium mines once they are shut down.
Now, if one is against nuclear energy and if one is against mining, why would one be against helping to make sure that technologies for mining were at least done in an environmentally sound way? Why would you be against mining to make sure that technologies were developed to clean up abandoned mines once they have finished their life cycle?
It seems to me that this kind of an amendment is just designed to say you are against nuclear energy, and I understand that, as some of my colleagues are.
I yield to the gentleman from New Mexico.
Mr. Chairman, reclaiming my time, I accept my friend's explanation, but my point is, if we are talking about doing what we always do in government, and that is to assist technologies to help improve the environment in this case, to make sure that when mining occurs, it is done in an environmentally sensitive way; to make sure that when mines are closed, they are closed in an environmentally sensitive way, if that is what we are doing in this case, it seems to me whether you are pro- or antinuclear, one would be for doing this. I cannot imagine why one would be against doing this, unless one just does not like
nuclear energy, and I know a lot of people do not.
I accept the gentleman's statement that that is not why he is doing it; I just find it hard to believe that all of the groups the gentleman has aligned with him are not antinuclear activists, because I have seen the list.
Mr. Chairman, I yield back the balance of my time.
Mr. Chairman, will the gentleman yield?
Mr. Chairman, I want to thank the gentleman for yielding, and I want to announce that we support the gentleman's amendment.
And if I might have time of the gentleman to explain why, we think this amendment improves on the amendment that we supported in committee offered by the gentleman from Florida (Mr. Deutsch) earlier. The underlying provision requires the Department of Energy to provide Congress with a report of recommendations on how we can reduce the threat of theft or diversion of highly enriched uranium; and the Nadler amendment, as I understand it, requires the Secretary to include in this report any recommendations to accelerate the purchase of excess weapons-grade uranium and plutonium from Russia to reduce the likelihood of these materials being stolen or falling into the hands of terrorists.
My understanding is, the Department of Energy has already negotiated several agreements with Russia to purchase highly enriched uranium and weapons-grade plutonium, for that matter. This amendment would require the Department to study ways to build off those successful agreements, and determine whether accelerating the programs would be feasible.
The Subcommittee on Oversight of the Committee on Energy and Commerce has held numerous hearings to review physical security of nuclear power plants, security of Department of Energy facilities, and the risk of nuclear smuggling at our ports. The nuclear title, in fact, of our bill before us today has numerous provisions to improve the security of nuclear materials in our country.
The Nadler amendment, as I understand it, builds upon our strong efforts already in the bill to ensure that nuclear materials are protected and do not fall into the hands of terrorists. So I think the gentleman is doing this country and this Congress a favor with his amendment.
I rise in support of it, and I ask my colleagues to vote in favor of the provision.
Mr. Chairman, I claim the time in opposition, although I am going to speak in support.
Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, I rise in support of the amendment offered by the gentlemen from New York (Mr. Houghton and Mr. Reynolds), and I sympathize with our friend, who is going through a bad time.
Mr. Chairman, the amendment would require the Secretary of Energy to develop a plan to transfer to the DOE all clean-up responsibilities at the Western New York Service Center in western New York. The West Valley site was owned by the State of New York. The West Valley site was once a nuclear waste processing facility where DOE sent some of its spent nuclear fuel for processing.
In 1980, the Committee on Energy and Commerce helped pass the West Valley Demonstration Project Act. This act directed the Secretary of Energy to carry out a project to solidify and remove high-level radioactive waste from the West Valley site. Pursuant to that West Valley Demonstration Project Act, the State is required to pay a 10 percent share of the annual clean-up costs.
To date, the State has met this financial commitment. Over the past several years, DOE and the State of New York have attempted to negotiate a comprehensive agreement to resolve all remaining radioactive waste clean-up issues at the West Valley site. Regrettably, the parties, as the gentleman has indicated, have not yet come to agreement.
This amendment requires the Secretary to develop a plan to transfer clean-up responsibilities from the State of New York once and for all. In developing the plan, the DOE should consider any long-term stewardship issues, and DOE should work with the appropriate authorities in New York to determine what share of the total cleanup costs should be paid by the State.
This is an important issue to the committee. I hope this amendment will encourage the DOE and the State of New York to finalize a plan to address these important cleanup activities at West Valley.
So I rise, actually, in support of this amendment, Mr. Chairman. I encourage my colleagues to support it also.
Mr. Chairman, I yield back the balance of my time.
Mr. Chairman, I move that the Committee do now rise.