[Congressional Record Volume 151, Number 130 (Friday, October 7, 2005)]
[House]
[Pages H8739-H8749]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
PROVIDING FOR CONSIDERATION OF H.R. 3893, GASOLINE FOR AMERICA'S
SECURITY ACT OF 2005
Mr. LINCOLN DIAZ-BALART of Florida. Mr. Speaker, by direction of the
Committee on Rules, I call up House Resolution 481 and ask for its
immediate consideration.
The Clerk read the resolution, as follows:
H. Res. 481
Resolved, That upon the adoption of this resolution it
shall be in order without intervention of any point of order
to consider in the House the bill (H.R. 3893) to expedite the
construction of new refining capacity in the United States,
to provide reliable and affordable energy for the American
people, and for other purposes. The bill shall be considered
as read. The amendment in the nature of a substitute
recommended by the Committee on Energy and Commerce now
printed in the bill, modified by the amendment printed in
part A of the report of the Committee on Rules accompanying
this resolution, shall be considered as adopted. All points
of order against the bill, as amended, are waived. The
previous question shall be considered as ordered on the bill,
as amended, to final passage without intervening motion
except: (1) one hour of debate on the bill, as amended,
equally divided and controlled by the chairman and ranking
minority member of the Committee on Energy and Commerce; (2)
the amendment in the nature of a substitute printed in part B
of the report of the Committee on Rules accompanying this
resolution, if offered by Representative Stupak of Michigan
or his designee, which shall be in order without intervention
of any point of order, shall be considered as read, and shall
be separately debatable for 40 minutes equally divided and
controlled by the proponent and an opponent; and (3) one
motion to recommit with or without instructions.
The SPEAKER pro tempore. The gentleman from Florida (Mr. Lincoln
Diaz-Balart) is recognized for 1 hour.
[[Page H8740]]
Mr. LINCOLN DIAZ-BALART of Florida. Mr. Speaker, for purposes of
debate only, I yield the customary 30 minutes to my dear friend from
New York (Ms. Slaughter), pending which I yield myself such time as I
may consume. During consideration of this resolution, all time yielded
is for the purpose of debate only.
(Mr. LINCOLN DIAZ-BALART of Florida asked and was given permission to
revise and extend his remarks.)
Mr. LINCOLN DIAZ-BALART of Florida. Mr. Speaker, House Resolution 481
is a structured rule that provides for the consideration of H.R. 3893.
The rule provides 1 hour of general debate evenly divided and
controlled by the chairman and the ranking minority member of the
Committee on Energy and Commerce. The rule also provides one motion to
recommit with or without instructions.
Mr. Speaker, in the last 24 years, our refinery capacity has dropped
from almost 19 million barrels a day to less than 17 million barrels a
day. Now, this has happened at the same time that our gross domestic
product has quadrupled. In other words, because of the sustained growth
of our economy and the fact that we have not built a new refinery in
almost 30 years, the United States is now forced to import over 4
million barrels a day in refined products, and that is when our
refineries are running at full capacity.
I thought it was impacting when I learned this fact that I have just
relayed. We have not built a single refinery in the country during the
time period that our gross domestic product has quadrupled. I think if
there has ever been an example of a great superpower really sitting on
its laurels, it is pointed out by this example. We have to take steps,
as we are with this legislation that we bring to the floor today, to
maintain the necessary infrastructure to continue being the most
successful economy in the world.
Now, any change in our refinery capacity can cause supply constraints
and price spikes, especially, for example, in the gulf coast, where we
have almost 50 percent of our refinery capacity. That is what happened
when we had the two natural disasters in the last weeks, hurricanes
Katrina and Rita. They hit the gulf coast, causing gasoline prices to
rise significantly.
On August 25, Hurricane Katrina began her path of destruction. The
eye of that hurricane passed right by my district. It was fortunately
then only a category 1 hurricane, but it hit us in South Florida; and
then of course, as we all know, it went into the Gulf of Mexico and
became a monster storm. That storm then headed towards Louisiana and
then the Mississippi gulf coast as a category 4, almost category 5,
storm.
Once that storm passed, we awoke to the greatest natural disaster
that the United States has ever faced. The Mississippi gulf coast was
decimated by that deadly combination of the powerful winds and the
storm surge caused by Hurricane Katrina.
In Louisiana, the storm surge submerged a large portion of the
southeastern part of the State, toppling over the levees that protected
the area, including the city of New Orleans. In the immediate aftermath
of the hurricane, several refineries were shut down, accounting for
about 11 percent of the total United States refinery capacity.
As of the beginning of October, four oil refineries remain closed.
Now, those refineries provide almost a million barrels a day, almost 5
percent of our refining capacity; and even at this time it is still not
known when those four refineries will be able to reopen.
{time} 0930
A month later, we had Hurricane Rita hit the Texas-Louisiana Gulf
Coast with 120-mile-an-hour winds, causing widespread damage and
flooding. In anticipation of the storm, several oil refineries in the
warning area, constituting over 4 million barrels a day in refining
capacity, were shut down. Some of those refineries were able to
restart, but as of the first of October, nine refineries with the
capacity to refine over 2 million barrels a day, about an eighth of our
capacity, remain shut down.
Now combine that with the four refineries closed because of Hurricane
Katrina, approximately 18 percent of the refining capacity in the
United States is off line. Pipelines from the gulf to the Midwest and
East Coast have also been affected by the hurricanes. The Colonial and
Plantation pipelines serving the whole East Coast with refined products
resumed operation not long after Hurricane Katrina. However, they were
shut down again by the subsequent hurricane, Hurricane Rita, and are
still not working at full capacity.
In order to prevent the sharp price increases we have seen after the
hurricanes, we have to make sure that we do everything possible so that
refineries, new refineries, are built. And if another hurricane or a
terrorist attack were to hit our refineries, we will still have the
capacity to produce enough gasoline for the needs of our economy; that
must be our goal.
Mr. Speaker, H.R. 3893, I am so pleased to see the author, the
gentleman from Texas (Chairman Barton) here who has done a tremendous
job. He has done a tremendous amount of hard work in a very difficult
area. This is an area that you cannot alleviate, much less solve, this
problem overnight. It requires the kind of hard work, dedication,
seriousness, that the gentleman from Texas (Mr. Barton) has
demonstrated day in and day out. We are seeing it in legislation that
we are bringing to the floor today.
Now, this bill, H.R. 3893, will remove some of the obstacles that
have prevented the construction of new refineries. The underlying
legislation streamlines the cumbersome environmental and energy
provisions that affect construction of facilities such as refineries
and oil pipelines. Bringing new refineries online will alleviate our
reliance on foreign sources of refined products, will allow us to have
enough refinery capacity to meet the needs of our growing economy,
while providing a backup if any of our refineries are shut down in the
future.
Now, to help conserve gasoline, the legislation also directs the
Secretary of Energy to establish and carry out programs to encourage
the use of carpooling and van pooling. After the hurricanes, we saw
reports of unscrupulous business practices engaged in in some
instances. The bill addresses unfair or deceptive acts or practices of
any person selling crude oil or gasoline or diesel fuel or home heating
oil at a price that constitutes price gouging.
Mr. Speaker, H.R. 3893, as I stated before, required a tremendous
amount of hard work. It was introduced by the gentleman from Texas
(Chairman Barton), reported out of the Committee on Energy and Commerce
on September 29. It is a good bill. I think it is very important to our
energy needs, to the health of our economy and to the national security
of this country.
So again I thank the gentleman from Texas (Mr. Barton). I know the
ranking member, the gentleman from Michigan (Mr. Dingell) has worked
extraordinarily hard, as he has for decades in this House on so many
important issues. I urge my colleagues to support both the rule and the
underlying legislation.
Mr. Speaker, I reserve the balance of my time.
Ms. SLAUGHTER. Mr. Speaker, I yield myself such time as I may
consume.
(Ms. SLAUGHTER asked and was given permission to revise and extend
her remarks.)
Ms. SLAUGHTER. Mr. Speaker, there are two fundamental problems with
the bill before us today: What it does and what it does not to do. The
bill will not address the very real and very immediate problems
millions of Americans are facing every day. People are struggling to be
able to afford to drive to work in the morning, and families are
wondering how they are going to pay to heat their homes this winter.
But the GAS Act we are considering today will not help them. This
energy bill, written in the midst of what is threatening to become the
worst energy crisis the country has ever experienced, does nothing to
help reduce the price of gasoline.
That is not me talking, the chairman of the House Committee on Energy
and Commerce, the gentleman from Texas (Mr. Barton), admitted this very
fact in the Committee on Rules yesterday. He told us without taking
command and control measures, this Congress cannot do anything in the
short term to lower gas prices, even if the bill is passed, and he
wrote the bill.
I hope every American pays attention to that fact because it is a
very
[[Page H8741]]
important one. With this bill, the Republican leadership is telling you
they know there is a problem, they know you are suffering, but there is
nothing they can do about it; but it is not true that they cannot, it
is just true that they will not.
There are things that this Congress can do to help our fellow
Americans in this time of crisis. There are measures that can be taken
that will help reduce the price of gasoline. I know because we debated
many of those measures in the Committee on Rules just last night.
Amendments that I and my colleagues have proposed, such as eliminating
the zone pricing methods employed by gasoline suppliers, would help to
mitigate the high gas prices not years down the road but now.
These amendments were rejected by the majority. In fact, of the 18
Democratic amendments offered only one was allowed. We are offering
that amendment by the gentleman from Michigan (Mr. Stupak) as a
substitute for the bill, but it begs the question, what is the
leadership doing with their time and energy if we cannot have a real
debate on how to solve these very real problems?
If unconcerned with the present, does the bill at least offer a plan
for the future? Does it call for our Nation to raise its energy
efficiency standards or for us to aggressively explore alternatives
fuels? Amendments that were not allowed to be considered called for
those things, but the GAS Act is silent on them.
Since the GAS Act will not address the needs of the people either now
or in the years ahead, what will it do? The answer is as simple as it
is predictable: It is a give-away to the oil industry. To justify this
action, the Republican leadership first invented a problem. America
needs to expand its refinery capacity, they said. This premise is
dubious at best.
Edward Murphy, a refinery specialist with the American Petroleum
Institute, told The Washington Post just yesterday there is not a
shortage of capacity in America because capacity is a global issue. His
learned opinion was clearly ignored by the authors of the legislation,
for having invented their problem, they have already come up with a
solution to it: Throw the money at the oil companies, and that will
induce them to build more refineries.
The simple truth of the matter is that for three decades, oil
companies have not been building refineries because it has not been
profitable for them to do so. In almost 30 years, no oil company has
applied to build one. By intentionally limiting the supply of available
gasoline on the market, they keep its price up. Numerous industry memos
available to the public have advocated just such an approach to
business.
Furthermore, it is impossible to seriously argue that throwing even
more money at the oil companies would change their minds. The American
oil industry is already flush with cash, just as the people of the
Nation struggle to foot the bill. In fact, since 2001, 4 years ago, the
top five oil companies in the United States have recorded combined
profits. This is important, Mr. Speaker, they have reported combined
profits of $254 billion. That is more money than we have spent on the
war in Iraq, and it is split between just five companies.
If we were to open that figure out to the entire industry, it would
be even more staggering. This is not the only way in which the
Republicans are standing up today for the corporations who need help
the least. Under this bill, if an oil company wins a suit against a
local government over the right to build a new refinery within that
government's jurisdiction, this bill will force the locality to pay for
the court costs.
But conversely, if the locality wins the suit, the company under this
law does not have to pay a dime. So if Exxon wants to build a refinery
in your backyard or near your child's school, and you and the local
community want to oppose it, it means you very well may have the
pleasure of paying Exxon's legal fees for trying to protect your
community. It is an official incentive for corporations to take
communities for all they are worth and then some.
Next, what about price gouging? Rather than punish this outrageous,
immoral and deeply damaging practice, the bill will place a limit on
the maximum daily fine that can be given to an individual guilty of
that practice.
Sadly, we are lucky this is all the GAS Act will do because until
late last night, it was much worse. The legislation included an
unjustified attack on the Clean Air Act and was intent on rolling back
30 years of progress on protecting the quality of air that we and our
children breathe. It seems that being good corporate citizens and
mandating that companies not pump their waste into the air we breathe
and the water we drink was just too much for this leadership to ask of
their energy industry. Apparently, they would rather have Americans pay
for corporate profits with their health.
Thankfully, the majority was shamed into removing such a provision
from the bill as its own rank and file objected to this basic assault
on the health of our country.
But what we are left with is still deeply troubling. It is
legislation that is not responsive to the welfare of the people and
does not offer real solutions for the future. It is the kind of
legislation produced by a Congress that has forgotten who it works for,
a Congress more concerned with corporate lobbyists who write bills than
concerned with the working people who struggle to deal with their
consequences. It is the product of congressional leadership out of
touch with the citizens of this country.
This bill is a living, breathing example of the culture of corruption
which has plagued this body and ails this Nation, and I urge my
colleagues to oppose this rule, this bill, and to support the
Democratic alternative.
Mr. Speaker, I reserve the balance of my time.
Mr. LINCOLN DIAZ-BALART of Florida. Mr. Speaker, I yield such time as
he may consume to the gentleman from California (Mr. Dreier), chairman
of the Committee on Rules.
(Mr. DREIER asked and was given permission to revise and extend his
remarks.)
Mr. DREIER. Mr. Speaker, I rise in strong support of this rule, and I
thank my friend from Miami for his superb management of this, as well
as the hard work he is doing upstairs as we worked late last night to
ensure we could put this package together.
Since he has left the floor, I want to take this time to praise the
very distinguished chairman of the Committee on Energy and Commerce,
the gentleman from Texas (Mr. Barton). I do not want him to actually
hear this, Mr. Speaker, but I want to say he has done an absolutely
phenomenal job in fashioning this very important piece of legislation
that is designed to increase our Nation's refinery capacity.
We know full well that our constituents are complaining,
understandably, about the high cost of gasoline. It is absolutely
outrageous. I am privileged to represent the Los Angeles area, and we
see prices in excess of $3.15 and $3.20 a gallon. Obviously, we have
seen some relief, but it is clear if we look at the history of refinery
capacity, it is one that has played a big role in exacerbating the cost
of gasoline.
Since 1981, we have seen the number of refineries in the United
States of America cut in half. It has been three decades since we have
seen a new oil refinery constructed. Why? People have argued it is the
oil companies that have not done this. An argument made, which is an
appropriate one, is it has not been a great profit center.
The fact of the matter is when you have a regulatory burden which is
designed to create a disincentive for the construction of refineries,
why would anyone in the industry consider it? This bill is designed to
address that issue. Our goal is clear and simple. We want to do
everything within our power to bring the cost of energy down for the
American people.
Now, many have argued that this is a partisan bill when in fact the
gentleman from Texas (Mr. Barton) has turned himself inside out to try
and accommodate concerns that Members of the minority have. The
combination of the base text of the bill and the manager's amendment,
which will be in fact passed when we pass this rule, we address the
concerns on heating oil put forward by the very distinguished gentleman
from Massachusetts (Mr. Markey), and you can go right down the line and
look at a number of issues that were brought forward by Members of the
minority, including the gentleman from Illinois (Mr. Rush), the
[[Page H8742]]
gentleman from Washington (Mr. Inslee), the gentleman from Washington
(Mr. Dicks), and others who have raised issues of concern, and the
gentleman from Texas (Mr. Barton) has worked diligently to address
those.
Mr. Speaker, it is my hope this bill will enjoy strong bipartisan
support. It is our one opportunity, our one opportunity now to step
forward and actually take decisive steps to work towards diminishing
the high cost of gasoline for the American people. I strongly support
this rule and the underlying legislation. I thank my friends for their
hard work on this important issue.
Ms. SLAUGHTER. Mr. Speaker, I yield 2 minutes to the gentleman from
Massachusetts (Mr. McGovern).
Mr. McGOVERN. Mr. Speaker, we have a national energy crisis now. If
my colleagues on the other side of the aisle do not appreciate that
fact, I would suggest that they go home to their districts and listen
to their constituents. Instead, we are rushing a flawed bill to the
floor that will once again reward the very industries that have gouged
the American people.
It is unacceptable for anybody in this Congress to say we cannot do
anything about the short-term crisis of high energy costs.
{time} 0945
We must. That is what our constituents expect us to do. That is what
we should be doing today here on the floor. The cost of filling a tank
of gas ranges between $40 and $100. There are workers whose wages do
not compensate for the cost of driving to and from work. I have senior
citizens in my district and low- and moderate-income families who are
scared out of their minds about how they will heat their homes this
winter. We must crack down on price gouging in the short term and find
other ways to lower prices. This is an emergency. It requires dramatic
action by the Government of the United States.
In the long term, we should reduce our reliance on foreign oil by
aggressively pursuing renewable energy sources, something that we
should have been doing a long time ago.
What we have here in this so-called ``Gas Act'' is more of the same:
tax breaks to reward the bad behavior of oil and gas companies; reduced
regulations that compromise our communities; and nothing, absolutely
nothing, for the relief of our citizens.
Let me say to my colleagues who vote for this, do not go home and
tell their constituents that they did anything for them because in
truth they have not. When they ask them what did they do to lower the
prices of gas and home heating oil, they can say honestly they did
nothing.
Mr. Speaker, I would urge my colleagues to support the Stupak
substitute, which will deal head-on with the issue of price gouging;
and if that fails, I would urge my colleagues to defeat this bill and
to go back to the committee and do something meaningful. The status quo
does not work. It is time for a comprehensive, honest-to-goodness
energy plan, and this is not it.
Mr. LINCOLN DIAZ-BALART of Florida. Mr. Speaker, I yield such time as
he may consume to the gentleman from Texas (Mr. Barton), distinguished
chairman of the Committee on Energy and Commerce.
Mr. BARTON of Texas. Mr. Speaker, I thank the distinguished member of
the Committee on Rules for yielding me this time.
Mr. Speaker, I rise in very strong support of this rule and, of
course, in strong support of the underlying bill, H.R. 3893.
I want to make a few comments first about the rule. We have made in
order the Democratic substitute. My understanding is that the Democrat
substitute is similar, if not identical, to the Democrat alternative
that was put in play in the Committee on Energy and Commerce at our 16-
hour markup last week. So point one is our friends on the minority side
are going to get an opportunity to have their ideas on this issue
addressed by the body and voted on; so that would be a very good reason
for everybody to vote on the rule.
Another good reason to vote for the rule is that the manager's
amendment that has been incorporated into the base text takes into
account many of the issues that were debated in the Committee on Energy
and Commerce and many of the issues that were supported by our minority
members of that committee last week, in particular the concerns about
price gouging.
The amendment that was adopted in committee on price gouging last
week only referred to price gouging within a disaster area that had
been declared by the President of the United States, and it only
applied to gasoline and diesel fuel. The manager's amendment
incorporates many of the ideas that the gentleman from Michigan (Mr.
Stupak) and the gentlewoman from New Mexico (Mrs. Wilson) on the
majority side had in their alternative price gouging amendments.
It would expand the authority of the President to allow a price
gouging investigation outside of the disaster area. It would allow the
FTC to prosecute price gouging outside the disaster area if they felt
that there was price gouging. It also expands the jurisdiction of price
gouging that would be under the control of the Federal Trade Commission
from gasoline and diesel fuel to home heating oil. And I know there are
very legitimate concerns in the Northeast and the Midwest this winter
about the price and availability of home heating oil.
So those are the reasons that I think we should vote for the rule.
When it comes time to vote for the bill, obviously we are going to
have a very spirited debate, which is what this body is all about. As
we have that debate, there are several facts that I think we should
keep in mind. Number one, since 1981 we have closed 176 refineries in
this country. That means that we have in operation today 148. We have
closed over half of the refineries in the United States of America in
the last 30 years. That might be acceptable if the demand for their
products was going down; but, in fact, the opposite is true. The demand
for refined products in our Nation is rising every year, somewhere
between 1 percent to 3 percent a year. If we convert that to barrels
per day, that is somewhere between 250,000 to 750,000 barrels a day.
Our Nation uses 30 billion barrels of oil every year.
Our refinery capacity has simply not kept pace with our demand for
the refined products. The consequences were clear for every American to
see in the aftermath of Katrina and Rita when over half of our
refineries shut down temporarily and about 25 percent of our oil and
gas production shut down. In some parts of the country, the price of
gasoline doubled and even tripled. Even with most of those refineries
back on line, there is still enough refinery capacity disabled that the
prices remain somewhere between 30 to 50 cents a gallon higher than
they were before the hurricane.
So quite simply, Mr. Speaker, it is time to invest in our energy
infrastructure, and one of the critical components of that is our
refinery capacity. This bill would do that without putting direct
Federal dollars into it. It would do it by eliminating the red tape
that we have to go through to get a refinery permitted. It would not
eliminate or reduce any environmental law on the books today, but it
would create an expedited process that a Governor of a State that
wished to build a new refinery or expand an existing one could utilize.
The bill would also make it easier to build some new oil pipelines.
We have not built a new oil pipeline in this country in over 40 years.
Again, the only two pipelines serving the Midwest and the Northeast,
both of those were temporarily shut down because of Katrina. This bill
takes some steps to do that.
The bill would also reduce the number of boutique fuels, which
currently is over 40, down to six. If the EPA thinks that that is
practical to do so, that would make these fuels more fungible, more
efficient to refine, and less expensive for the taxpayers, motorists of
our country, to have to purchase.
It also has some incentives and some emphasis on carpooling.
Carpooling is not a real sexy high-tech issue; but if we could get one
out of every three Americans to actually carpool on their way to and
from work, we would save over 1 million barrels of oil per day, which,
again, reducing the demand would reduce the cost of the gasoline.
This is a good bill. It is a bill that both sides of the aisle can
support. I
[[Page H8743]]
would hope that we vote for the rule and then vote for the bill later
this afternoon.
I want to thank the distinguished Committee on Rules for bringing
this rule to the floor, and I look forward to working with them on this
issue and other issues in the future.
Mr. Speaker, I rise in strong support of this rule.
The House today takes an important step in recovering from Hurricane
Katrina. With the Gasoline for America's Security Act, we will make our
country less dependent upon imports of gasoline and address high gas
prices.
The bill increases U.S. fuel supply by encouraging new refineries and
reducing the number of boutique fuels around the country. We promote
conservation through carpooling. We also outlaw price gouging for
gasoline.
The bill before us today is the product of a markup in committee that
started at 8 a.m. and ended after midnight. It follows countless
hearings over the last several years on gasoline markets, refinery
capacity, and Clean Air Act issues.
Our Nation is dangerously dependent upon tight refinery capacity and
refined product imports. Hurricane Katrina hit in the wrong place at
the wrong time, and American consumers are suffering. Offshore crude
oil production was shut down. Refineries went down and are struggling
to come on line. Oil and gasoline pipelines were without power and
couldn't pump their product. We are paying the price at the pump and
must take action.
I keep hearing ``it doesn't matter how much crude oil we import if we
don't build or expand refineries.'' Katrina proved that right when
refineries were damaged or unable to move their product.
Mr. Speaker, our Nation has not seen a new refinery built since 1976.
The bill today encourages companies to come forward with proposals to
build refineries. Many refiners have just given up because of an
endless stream of red tape and the threat of nuisance litigation. The
permitting process is overly cumbersome, and this bill fixes it.
We want all States to be able to build refineries under an expedited
permitting process. Any Governor can request that we cut through the
red tape. The President can designate Federal lands to be considered
for a refinery, even a military base that is being closed. If a State
needs to see a pipeline built to service a refinery, we let the
Governor request expedited permitting, too.
The manager's amendment before us today improves the bill further
from the bill reported out of the Energy and Commerce Committee. It
extends the geographic reach of our price gouging provision and
increases penalties for violations. The manager's amendment also drops
provisions that are very important policies but which I will save for
another day. Nothing should stand in the way of this bill passing.
If you want to increase the supply of gasoline, you need to do two
things: Increase the supply of crude oil; and Increase refinery
capacity.
In the end, the issue before us is whether people who work for a
living will get the gasoline they need to go to work, at a price they
can afford to pay. Some seem to believe that Americans will float to
work on a cloud of our good intentions. But they drive to work in cars
and trucks that run gasoline. That could change some day, and I hope it
does, but it will not change this day or this decade.
We've known about the problem in refinery capacity for 30 years, and
done nothing. Katrina and Rita demonstrated that the do-nothing policy
is dangerous. Today we can start doing something about gasoline prices
and gasoline supplies. The Energy Policy Act of 2005 will help on crude
oil prices, as will future legislation by the Resources Committee. We
can increase refinery capacity today by voting ``yes'' on this rule and
``yes'' on the GAS Act.
Ms. SLAUGHTER. Mr. Speaker, I yield 3 minutes to the gentlewoman from
California (Ms. Matsui).
(Ms. MATSUI asked and was given permission to revise and extend her
remarks.)
Ms. MATSUI. Mr. Speaker, I thank the gentlewoman from New York for
yielding me this time.
I rise today in opposition to the rule and the underlying bill, H.R.
3893.
Hurricane Katrina highlighted the failure of the Republican
leadership's first attempt to create a national energy policy. We now
have a second chance to craft a forward-looking strategic plan.
Unfortunately, H.R. 3893 fails to do this. Instead of tackling
America's very serious energy challenges, we are looking at the cast-
asides from the earlier legislation. I therefore urge my colleagues to
support the substitute.
Every American now clearly sees that our energy policy affects
everything, from a family's monthly budget to our national security. My
constituents, like the other Members, are paying over $3 a gallon at
the pump. Yet H.R. 3893 does not include price gouging provisions that
would sufficiently protect American consumers, particularly when we
have oil companies making as much as $80 million a day.
We owe our constituents more than empty promises on high gas prices.
And we can do this with the substitute. It gives the FTC real authority
to investigate the energy supply chain. The substitute provides for
significant fines that actually have the power to deter companies from
gouging consumers.
H.R. 3893's shortcomings are not exclusive to its attempts at
immediate relief. The legislation also fails to address our Nation's
long-term needs. Constructing new facilities would increase the
Nation's capacity to process crude oil and soften the effects of future
supply disruptions, but the oil refiners are not interested in
incentives to do so. In fact, they have minimized capacity to maximize
profit.
Again, Congress has a responsible alternative: Establish a strategic
refinery reserve, a logical complement to the existing Strategic
Petroleum Reserve. This would give us the increased flexibility and
control to respond to future energy disruptions.
But this legislation fails to do that; and worse still, it ignores
the larger causes of our energy security. A forward-looking energy
policy should curb our reliance on unstable foreign oil markets and
accelerate research for alternative sources of energy.
This bill takes only nominal steps toward that goal. There is an
almost laughable $2.5 million for an education program and
encouragement to Federal agencies to buy energy-efficient light bulbs.
This is not exactly the bold out-of-the-box thinking that will free the
next generation from dependence on foreign sources of energy. Congress
needs to pause and examine our energy stance in a long-term strategic
manner. We owe that to our children and our grandchildren.
I urge my colleagues to vote against the rule and reject this
opportunistic legislation.
Mr. LINCOLN DIAZ-BALART of Florida. Mr. Speaker, I yield 3 minutes to
the distinguished gentleman from Indiana (Mr. Pence).
(Mr. PENCE asked and was given permission to revise and extend his
remarks.)
Mr. PENCE. Mr. Speaker, I rise in support of the rule and the
underlying bill and commend Chairman Barton for his exceptional and
timely work on this legislation.
But I also rise, Mr. Speaker, to say, while we respond to the energy
crisis that was revealed by Hurricane Katrina, it is also vital that we
respond to the fiscal crisis that was laid bare by the hurricane as
well. For what began as a hurricane of nature very quickly became a
hurricane of spending here on Capitol Hill: $60 billion appropriated in
6 days, paid for by simply adding to the national debt.
Now, some of us thought we should pay for the big cost of Hurricane
Katrina by cutting Big Government; and this week, with the leadership
of President George W. Bush and the leadership of the Republican
majority in Congress, we are beginning to do just that.
Last night, Speaker Hastert unveiled a bold plan to cut billions of
dollars from every branch of government to offset the extraordinary
cost of Hurricane Katrina and its aftermath. And while the details take
shape that would save tens of billions of dollars through an across-
the-board spending cut; through additional entitlement savings; through
a Presidential recision package, the first time in this administration;
by reopening the Budget Act with a Budget Act amendment, the first time
Congress has done that since 1977; and by ending nearly 100 outdated
Federal programs, we are beginning that process as well.
So I rise today to say on behalf of House conservatives we are
pleased, but not content. We are encouraged, but not satisfied. For
while the debate has been difficult at times, the work of cutting
government spending to offset the extraordinary cost of Hurricane
Katrina will be harder still. With more hurricane spending right around
the corner, I rise humbly to challenge my
[[Page H8744]]
colleagues in the House and, Mr. Speaker, I rise to challenge my
colleagues in the United States Senate to be strong and courageous and
do the work.
{time} 1000
Let us have the courage to make the tough choices, to find the means
to pay for the cost of Hurricane Katrina and its aftermath through
reductions in government spending. Let us do the work of rebuilding our
gulf coast with the compassion and the fiscal discipline that the
American people expect from a Republican Congress.
Ms. SLAUGHTER. Mr. Speaker, I am pleased to yield 3 minutes to the
gentleman from Massachusetts (Mr. Markey).
Mr. MARKEY. Mr. Speaker, I thank the gentlewoman for yielding me
time.
The bill we are debating today is exactly what the American people
expect from a Republican Congress. It is a set of giveaways to big oil
and to big gas, while simultaneously out here on the floor the last two
speakers are calling for a gutting of environmental laws and cutting of
Medicaid and other social programs for the poorest people in our
country as a response to Hurricanes Katrina and Rita.
This Republican Party is so out of touch that it believes that the
oil and gas industries, the wealthiest industries in our country, the
industries that are tipping American consumers upside-down and shaking
money out of their pockets, is the first bill they should bring to the
floor to respond to Hurricane Katrina, even after 10 years of a
conscious conspiracy on the part of the oil industry to shut down 30
refineries, voluntarily.
And the reason is clear. In a series of memos 10 years ago, the oil
industry said that we have too much refining capacity in our country.
We must shut it down if we want to charge the consumers in our country
more money.
That is what is going on out here on the floor, this leave-no-oilman-
behind bill. We cannot fund leave No Child Behind, but can leave-no-
oilman, who today planned this complete catastrophe that occurs because
they shut down 30 refineries. They shut them down deliberately to cause
this crisis.
We should be debating out here on the floor, which the Republicans
refuse to do. Increasing fuel economy standards for automobiles, they
refuse to even allow that debate out here on the floor. Increasing,
doubling, tripling, quadrupling solar energy, wind energy out here on
the floor, they refuse to have that debate. Instead, it is this leave-
no-oilman-behind bill. Today, they have failed the historic test of
preparing our country for this day.
We are here because this party believes that an energy policy is the
President holding the hand of a Saudi prince and taking him in for a
barbecue at Crawford, that it can substitute for the kind of plan which
President Kennedy had in 1961 when the Soviets were challenging our
supremacy in outer space.
President Kennedy had a plan for us to take on the Soviet Union. This
administration says there is no magic wand, and, if there is one, it is
only to give more breaks, more environmental breaks, more subsidies, to
the oil and gas industry, which is reporting profits that they admit
they cannot even spend themselves. There is no plan from the Republican
Party, except giving more to the largest industries that have dug this
hole.
Mr. Speaker, the Republican Party is in violation of the first law of
holes: When you are in one, stop digging. What they have out here today
on the floor is a huge excavation device digging our country ever
deeper, without looking at automotive technology, solar technology and
the future of technology for our country.
Mr. Speaker. I rise in opposition to the Rule providing for
consideration of H.R. 3893, the Gasoline for America's Security Act of
2005.''
Let me begin by saying that I've been in Congress for 29 years now,
and this is absolutely the worst energy bill that I've seen in the last
eight weeks.
Moreover, the Rule that we are considering this morning is pretty
much a gag Rule. It makes only one Substitute in order, and it bars the
amendment filed by the Gentleman from New York (Mr. Boehlert), myself,
and the Gentlelady from California (Ms. Eshoo) to mandate new fuel
efficiency standards for cars and SUVs. This amendment was identical to
one that I offered in the Energy and Commerce Committee, and it is
unconscionable that at a time when gas prices are over $3.00 a gallon
nationwide that the Republican Leadership of this House would deny the
Members an opportunity to debate the issue of whether or not to
increase CAFE standards.
What is the Republican Leadership afraid of? Are they afraid that the
Members, if given an opportunity to approve a measure that might
actually do something to reduce gas prices, might vote for a fuel
efficiency standard increase? We should be able to have that debate and
vote on this issue today.
The last Energy bill that President Bush signed into law way back in
August was praised by the Chairman of the Energy and Commerce
Committee, who said its boutique fuels provisions would ``make it more
efficient to use our boutique fuels'' by reducing the number of these
fuels ``so that we have greater transportability of our boutique fuels
between those regions of the country that need those fuel sources.''
Eight weeks later, we are about to take up a bill that repeals those
boutique fuels provisions and replaces them with a completely new
boutique fuels statute. Without any hearings, and without any Record,
we're just going to rewrite those provisions.
When the last Republican energy bill was on the House floor in July,
the Speaker of the House said it ``promotes greater refinery capacity
so more gasoline will be on the market and it increases gasoline supply
by putting an end to the proliferation of boutique fuels.''
Eight weeks later, this House is about to repeal the refinery
provisions the Speaker praised, and replace with a whole new refinery
bill.
This bill is based on a false premise, the premise that somehow our
Nation's environmental laws stand in the way of building more
refineries around the country. Nothing could be further from the truth.
The Clean Air Act isn't the problem, it's the Anti-Competitive Acts of
the oil companies that has lead to our current problems. Consider these
facts.
Since 1994, 30 refineries have been closed across the country,
reducing the Nation's refinery capacity by a collective 750,000 barrels
per day.
This reduction represents nearly 5% of the Nation's current refinery
production capability of 17.1 million barrels per day.
Twenty-one of the 30 refineries that the refiners voluntarily
closed--or 78% of the shut down refinery capacity--were located in
states that are not on the Gulf Coast and therefore would not have been
affected by Hurricanes Katrina or Rita.
Nine of the top 10 producing refineries that were shut down were
located outside the Gulf Coast, including 3 in Illinois, one in Kansas,
one in Michigan, 2 in California, and 1 in Washington.
Why are these refineries being closed down?
Is it environmental regulations? No. During this same period, the
refinery industry increased capacity at existing sites--with all the
permits and approvals granted by the EPA. The one new refinery permit
application that was submitted out in Arizona was approved by the EPA
in less than a year.
So, why did the oil companies close these refineries? The reason is
very clear. During the last decade, there was a wave of mergers in the
refinery industry. The Big Oil companies got bigger, and as they
gobbled up their smaller competitors, they closed down certain
refineries for strategic business reasons.
Oil industry documents from the mid-1990s suggest that at that time,
major players sought to shut down refineries in order to decrease
supply and thereby drive up prices. Consider this:
A 1996 Chevron internal memo stated that ``A senior energy analyst at
the recent API [American Petroleum Institute] convention warned that if
the U.S. petroleum industry doesn't reduce its refining capacity it
will never see any substantial increase in refinery margins.''
A March 1996 memo from Texaco discussed concerns that ``the most
critical factor facing the refining industry on the West Coast is the
surplus of refining capacity, and the surplus gasoline production
capacity. . . . This results in very poor refinery margins and very
poor refinery financial results. Significant events need to occur to
assist in reducing supplies and/or demand for gasoline.''
It seems clear that the oil industry, in closing 30 refineries over
the course of the last decade, was pursuing a deliberate business
profit-maximization strategy aimed at addressing the oil industry's
``problem'' of low profit margins in refinery operations. By closing
down refineries, and by consolidating any increased production at
existing refineries, the oil industry has been able to drive up their
profit margins.
This strategy has worked out quite well for the oil industry. During
the course of this year, the profit margins of each of these companies
have risen higher and higher and higher. According to a recent article
in the Washington
[[Page H8745]]
Post, there's been a 255 percent average increase in refiner profit
margins over the last two years. Now, all of that is great news if you
are a shareholder in any of the big companies. But it's terrible news
if you're a consumer paying $3.00 a gallon or more to fill up the gas
tank on your car or paying a $1,000 more this winter to fill up the oil
tank to heat your home.
So, what does this bill proposed to do?
Is it going to impose a windfall profit tax on the big oil companies?
No.
Is it going to mandate an increase in fuel efficiency standards for
cars and SUVs so we can begin reducing consumer demand? No.
Is it going to promote investment in and deployment of solar and wind
energy technologies that could be an alternative to natural gas? No.
Is it going to give the Federal Trade Commission and the State
Attorneys General tough new enforcement powers to go after price
gouging at both the wholesale and retail level? No.
What this bill proposes is more giveaways for the big oil and gas
companies at the expense of consumers and the environment.
This bill shamelessly tries to exploit the terrible human tragedy of
Hurricanes Katrina and Rita to advance a radical anti-environmental
agenda, of gutting the Clean Air Act, of gutting the principle of local
control over land use decisions, all to advance an oil company agenda.
The sponsors of this bill call it the GAS Act. In reality, it should
be called the ``Leave no Oil Company Behind Act.''
This is a terrible bill. It deserves to be defeated.
I strongly urge a ``no'' vote on the Rule and a ``no'' vote on final
passage.
Mr. LINCOLN DIAZ-BALART of Florida. Mr. Speaker, it is interesting
how today is a clear example of how anything, anything, is possible on
this floor. Anything can be said. That is freedom. Even the most
inconceivable, out of touch with reality statements.
Mr. Speaker, I yield 1 minute to the gentleman from Texas (Mr.
Barton), the author of the legislation, the distinguished chairman of
the Committee on Energy and Commerce.
Mr. BARTON of Texas. Mr. Speaker, I want to thank the distinguished
gentleman from Florida for yielding me time.
Mr. Speaker, I want to point out one thing to the body: There is one
thing in this bill, one thing, that scores as a cost by the
Congressional Budget Office. One thing. Do you know what it is? It is
the Markey amendment that we accepted in committee to increase the home
heating oil reserve from 2 million barrels to 5 million barrels. We
accepted it because the gentleman from Massachusetts has a legitimate
concern about the plight of people that need home heating oil in the
northeast. We accepted his amendment to increase the reserve by 150
percent. That is the only thing in the bill before us that the CBO has
scored.
Now, is that a giveaway to big oil? Is that some kind of a payoff to
industry? Or is that a legitimate need of the American people that we
put into the bill because the gentleman from Massachusetts (Mr. Markey)
asked for it, legitimately so, and it made sense, and we put it in the
bill?
Ms. SLAUGHTER. Mr. Speaker, I yield 2\1/2\ minutes to the gentleman
from Oregon (Mr. DeFazio).
Mr. DeFAZIO. Mr. Speaker, well, the majority party is shocked,
shocked that price gouging took place in the wake of Katrina. Of
course, they turned a blind eye to the gouging of consumers for months
and years before that by big oil working in collusion with OPEC.
In the last 4 years, the top five oil companies have made $254
billion of profits. Exxon-Mobil, in the quarter before Katrina, $14
billion in one-quarter. And this bill does nothing to provide price
relief to consumers or prevent gouging. Big oil gets a pass yet again.
They are not getting as big of a gift this time, just a pass.
They point the finger at the retailers. Well, with rare exceptions,
the gouging is not at the retail level. Producers of gas, they are
getting 46 percent more, 47 cents a gallon; refiners, they are up to
250 percent in one year, 70 cents a gallon. Every American is paying 70
cents a gallon more to the refiners and 2 cents more on average to the
retail people. It is not the retailers who are price gouging.
The chairman says ``we have closed 175 refineries.'' He can only say
``we'' if he is the oil industry. The oil industry has consciously
colluded to close refineries to squeeze supply to drive up the price.
It is the same thing Enron did in California to stick it to everybody
on the West Coast of America. Tried and true. The industry has been
doing that for years.
It is not environmental laws or regulation which have closed these
refineries. They have been closed by mergers and a conscious decision
of the chief operating officers and CEOs of big oil to drive up their
profits, and boy, have they done that. Unfortunately, it is about to
destroy small businesses and consumers across America.
But they still cannot take them on. They cannot take on their
benefactors here on the floor. The President offered last year to let
Valero or anybody else build a new refinery on a closed military base,
waiving all environmental laws, and the chief operating officer of
Valero, stock up 263 percent in one year, you thought Google was doing
good, he said, why would we do that? It is working really well the way
it is. It is phenomenally profitable for them and the few others who
still operate refineries.
We need real help for Americans, short-term relief against price
gouging, take on OPEC in the World Trade Organization. And then we need
longer-term new technology, new fuels, more efficiency, true energy
independence for the United States of America from big oil and the
Saudi and the OPEC cartels. That would be something for the American
people. You are not doing that.
Mr. LINCOLN DIAZ-BALART of Florida. Mr. Speaker, I yield 3 minutes to
the distinguished gentleman from Pennsylvania (Mr. Murphy).
Mr. MURPHY. Mr. Speaker, we find ourselves with so many things
happening now. We have increased gasoline prices, increased winter
heating costs, natural gas prices are up, manufacturing jobs are down,
all because the cost of energy has remained high. Our demand for oil
has grown, our production simply cannot meet demands, and this has
caused increased prices. We have increased population, and we want more
manufacturers to remain in the United States. That means that we have
to do something.
Mr. Speaker, we do not need another hurricane to remind us that our
energy infrastructure is wholly inadequate. Had we taken action to
prevent our energy problems years ago, we would not have been
vulnerable to natural disasters. For 30 years, we sat back. We did not
want to study it. We did not want to take inventories. We did not want
to explore. We resisted drilling for oil or gas. We did not build
refineries. We did not move to develop clean coal technology. We did
not build nuclear power plants over those 30 years, while demand grew.
And eventually the system snapped. We did the same thing over and over
again and expected different results.
Until our refining capacity and production capacity expands, our oil
markets will remain vulnerable to disruptions. We have to have
increased conservation measures. We have to have the car-pooling
measures in this bill. We have to have energy-efficient cars, but we
have to have more refineries.
During the last 30 years, our dependence or foreign energy has
increased from 24 to 62 percent. How much further do we have to go? The
American people understand this, and that is why they support this.
That is why labor unions support this bill. That is why we have to move
this forward.
The Gasoline for America's Security Act builds on the Energy Policy
Act of 2005 and keeps us moving in the right direction. It addresses a
great deal of what we need, the use of biomass debris, car pooling, van
pooling, requirements to direct the FTC to conduct an investigation
into nationwide gasoline prices, and it does include anti-price-gouging
measures.
The other side says repeatedly it is not in there, but it does. It
has anti-price-gouging measures and enforcement for gasoline, for
diesel, for home heating oil, for crude oil. It is massive.
There will be a temptation to blame the high gas prices on the storms
alone or to use politics to block this. But the American people
understand, you cannot drive a car with politics in your tank or heat a
home with politics.
I support the rule and this bill.
Ms. SLAUGHTER. Mr. Speaker, I yield 2 minutes to the gentleman from
New York (Mr. Hinchey).
Mr. HINCHEY. Mr. Speaker, one of the things that you can say about
the
[[Page H8746]]
way in which the national Republican Party has handled America's energy
problem is that they are being very consistent, and that goes back to
the first moment when they controlled both the Congress and the White
House; when the President, charged by the Bush administration to
develop an energy policy, did the natural thing for them, brought in
the energy companies to tell them what kind of policy we should have.
That attitude is reflected in this bill, as well as the one that this
Congress passed last July. They are both deferential to the energy
companies at the expense of the American people. Everything goes to the
energy companies; nothing goes to the American people.
The energy companies last year, the oil companies, made record
profits, more than $125 billion. One corporation alone made more than
$25 billion in profits in 2004. Their profits in 2005 are even higher,
while the American people struggle to get back and forth to work
because of the price of gasoline and as they will struggle this winter
to heat their homes to try to stay safe and secure. Lives will be lost
because of the way in which the national Republican Party is handling
this energy problem.
In order to justify gasoline being sold at $3 a gallon under a free,
open market, you would have to have oil priced at $95 a barrel. But we
do not have a free and open market, even though the Republicans claim
we do. We have a market that is controlled by the oil companies, for
the oil companies and against the interests of the American people, and
all of that is conspired and entered into by the national Republican
Party, in the White House and in this Congress as well.
That is what we are seeing here today in the context of this
legislation: More for the oil companies, less for Americans. Struggle,
struggle, struggle for the American worker; struggle, struggle,
struggle for the American family, while huge profits are given to the
oil companies over and over again. It has got to stop. Defeat this
rule, defeat the bill, pass the Stupak substitute.
Ms. SLAUGHTER. Mr. Speaker, I am pleased to yield 2 minutes to the
gentlewoman from California (Ms. Eshoo).
Ms. ESHOO. I thank our distinguished ranking member for yielding me
time.
Mr. Speaker, I rise in opposition to the rule. I want to point out
something that is in the underlying bill which authorizes the President
to designate Federal lands that might be suitable for the construction
of an oil refinery.
Once he has made a designation, the land must be leased for the
construction of a refinery. The refinery would be permitted under
expedited procedures with limited judicial review. Although the
manager's amendment requires the President to conduct an analysis of
the suitability of the site, there is no obligation that he take the
analysis into account before designating Federal property as suitable
for a refinery. So there is no requirement that there be an opportunity
for citizen input.
The sponsors of the bill did bar the President from designating lands
that are part of the National Park System, the National Wilderness
System and national monuments.
{time} 1015
But they failed to place language in the bill that would protect
millions of acres of other equally sensitive lands, including national
forests, the National Wildlife Refuge System, National Conservation
Areas, Wilderness Study Areas, the National Wild and Scenic River
System, the National Trail System, and the National Landscape
Conservation System.
I offered an amendment that was turned back by the Committee on Rules
that would have protected these lands which have been set aside for the
American people. I cannot imagine why a President would want to clear
the path for building a new refinery in Chincoteague, Virginia; the
Great Bay Refuge in New Hampshire; or in Arkansas's Cache River Refuge.
My question is, why would Congress want to give him the chance?
Vote against the rule. This is a bad bill for the American people.
Ms. SLAUGHTER. Mr. Speaker, I yield 2 minutes to the gentleman from
Ohio (Mr. Kucinich).
Mr. KUCINICH. Mr. Speaker, first of all, at the appropriate time, I
will enter some extraneous information into the Record.
Mr. Speaker, it is very clear when we look at what has happened in
the last few years where we have had a number of mergers of oil
companies, the top five oil companies, I believe, now dominate more
than a third of the market. As a result, we see that prices keep
increasing as market concentration increases. This is a clear example
of what happens when monopolies dominate an economy. We have high
prices, and we also have manipulation of supplies, increased profits;
and now we have price gouging.
With this manipulation of supply, we are also seeing an attempt today
to attack our environmental laws. That puts us in a position where we
sacrifice not only the standard of living of many Americans to the oil
companies but now we are sacrificing the environment itself.
I think that many Americans are already aware that one of the reasons
that we are in Iraq is because of oil. I mean, very few people would
dispute that now. There were no weapons of mass destruction, they are
not going to have a democracy there, but the administration is
preparing to stay there for the long haul, and it is because of oil.
Oil is corrupting this government. Oil is costing us peace in the
world. Oil is putting us on a path to economic ruin. Oil is dominating
this political process right now.
We need to take a new course. We can start with the windfall profits
tax, but we have to go beyond that. We need to look at alternative
energy, the power of the sun. Sunlight is a disinfectant in many ways,
but it is also a powerful energy source. We need wind power, we need
geothermal, we need to tap all available technologies to take us in a
new direction where the globe itself is not at stake.
What a disgrace it is that we put the lives and the existence of the
Gwitchin Indians in Alaska at risk for more oil. What a disgrace it is
that we violate people's human rights for more oil. What a disgrace it
is that we are not taking a new direction, not just to save the planet,
but to save democracy. Vote down the bill.
Public Citizen,
Washington, DC, October 5, 2005.
Dear Representative: On Friday, October 7 the House will
consider H.R. 3893, the ``Gasoline for America's Security
(GAS) Act of 2005.'' This bill takes the approach that
environmental laws must be weakened in order to encourage the
U.S. refining industry to expand or construct new refining
capacity. This is false. The facts clearly show that not only
are current environmental laws in place at a time when the
refining industry is experiencing record profits, but that
recent, fundamental changes to the refining industry--namely
recent mergers--have created financial incentives for
refineries to encourage tight supplies. Until these market
fundamentals--and not environmental rules--are corrected,
Americans will continue to be price-gouged by oil companies.
This week, the national average gasoline price hit $2.93/
gallon, up 50 percent from a year ago. These prices were well
on their way to hitting record highs long before Hurricane
Katrina. Oil and gasoline prices were rising long before
Hurricane Katrina wreaked havoc. U.S. gasoline prices jumped
14 percent from July 25 to August 22.
The problem is that too few oil companies control too much
of the refineries, squelching competition but guaranteeing
record profits for the industry.
In 1993, the 5 largest U.S. oil refining companies
controlled 34.5 percent of domestic oil refinery capacity;
the top 10 companies controlled 55.6 percent. By 2004, the
top 5--ConocoPhillips, Valero, ExxonMobil, Shell and BP--
controlled 56.3 percent and the top 10 refiners controlled 83
percent. As a result of all of these recent mergers, the
largest 5 oil refiners today control more capacity than the
largest 10 did a decade ago. This dramatic increase in the
control of just the top 5 companies makes it easier for oil
companies to manipulate gasoline prices.
The proof is in the numbers. According to the Energy
Information Administration, profit margins for U.S. oil
refiners have been at record highs. In 1999, U.S. oil
refiners made 22.8 cents for every gallon of gasoline refined
from crude oil. By 2004, they were making 40.8 cents for
every gallon of gasoline refined, a 79 percent jump. And the
Washington Post noted that those profit margins have soared
even higher in 2005, to 99 cents on each gallon sold, for a
more than 300 percent increase since 1999.
It is no coincidence that oil corporation profits--
including refining--are enjoying record highs. Since 2001,
the largest 5 oil refiners in America have recorded $228
billion in profits.
And will the environmental regulations make it easier to
build new refineries? No, because the financial structure of
the refining industry is what is prohibiting additional
[[Page H8747]]
investment. That's because the industry is making record
profits off of the current tight supplies. They have no
interest in creating surplus capacity because that will erode
their profit margins.
Want proof? Start with the U.S. Federal Trade Commission.
In March 2001, FTC concluded in its Midwest Gasoline Price
Investigation:
``. . . A significant part of the supply reduction was
caused by the investment decisions of three firms . . . One
firm increased its summer-grade RFG [reformulated gasoline]
production substantially and, as a result, had excess
supplies of RFG available and had additional capacity to
produce more RFG at the time of the price spike. This firm
did sell off some inventoried RFG, but it limited its
response because selling extra supply would have pushed down
prices and thereby reduced the profitability of its existing
RFG sales. An executive of this company made clear that he
would rather sell less gasoline and earn a higher margin on
each gallon sold than sell more gasoline and earn a lower
margin. Another employee of this firm raised concerns about
oversupplying the market and thereby reducing the high market
prices. A decision to limit supply does not violate the
antitrust laws, absent some agreement among firms. Firms that
withheld or delayed shipping additional supply in the face of
a price spike did not violate the antitrust laws. In each
instance, the firms chose strategies they thought would
maximize their profits.''
So, that settles it: U.S. oil refineries would rather sell
less gasoline and earn bigger profits than flood the market
and earn lower profit margins. So gutting environmental laws,
as H.R. 3893 proposes, will do nothing to expand refining
capacity, but it will reduce public health protections for
Americans.
And a May 2004 U.S. Government Accountability Office report
agreed with Public Citizen that recent mergers in the oil
industry have directly led to higher prices. It is important
to note, however, that this GAO report severely
underestimates the impact mergers have on prices because
their price analysis stops in 2000--long before the mergers
that created ChevronTexaco, ConocoPhillips, and Valero-
Ultramar/Diamond Shamrock-Premcor.
Rolling back environmental laws will do nothing to lower
prices, but it will weaken public health protections for
Americans.
Sincerely,
Tyson Slocum,
Public Citizen's Energy Program.
Mr. LINCOLN DIAZ-BALART of Florida. Mr. Speaker, after hearing more
prophecies of pessimism, I yield 2 minutes to the distinguished
gentleman from Pennsylvania (Mr. Peterson).
Mr. PETERSON of Pennsylvania. Mr. Speaker, I thank the gentleman for
yielding me this time. I rise, after listening to the last two or three
speakers, because we are short of energy in this country because we
have locked up our energy. We are short of energy in this country
because we have built no refineries to process the oil that we purchase
now from Third World countries.
We cannot shut down supply; we cannot shut down our capacity or not
increase our capacity with the growing need and not have high prices.
When we restrict supply, we give the power to the big companies. When
we bring on supply, our market system works, and prices will come down;
but then we have to have, we have to have the refineries to refine it.
To not pass this bill today is a tragedy. I am going to support this
rule, even though my amendment that I think was very important to open
up supply was not allowed to be a part of it.
I want to tell my colleagues, natural gas is an issue that this
Congress has to deal with. We have to deal with the supply of oil and
gas both. We have to deal with having the capacity to process and
provide the products. This winter, home heating oil is going to be in
very short supply. In some markets, it will be way higher than others
because it is not an even distribution system.
But natural gas is the one thing that we have to deal with this fall,
in my view, because natural gas has not doubled; it is 700 percent
more. We are going to endanger home heating. We are going to endanger
major industries who are natural gas-intensive. We have companies who
use it. Polymers, plastics, petrochemicals, fertilizers use natural gas
as an ingredient and as a fuel. They cannot afford $14 and $15 natural
gas. They will leave American shores.
My brick companies are closing down until it gets less costly. The
last plant they are shutting down because they cannot properly make
glass and compete with these natural gas prices. It is the one we have
where we can be totally self-sufficient in this country on the clean
fuel natural gas that fuels our industry, heats our homes, heats our
schools, heats our hospitals.
Folks, let us not go home this fall until we deal with natural gas.
Ms. SLAUGHTER. Mr. Speaker, I yield 30 seconds to the gentleman from
Michigan (Mr. Stupak) for the purpose of asking a question to the
previous speaker.
Mr. STUPAK. Mr. Speaker, the gentleman from Pennsylvania makes a good
point, but if you look at today's Washington Post, ``Natural Gas Danger
Signs,'' they talk about a 90 percent increase in natural gas. Higher
costs threaten our economic growth in U.S. manufacturing. Here is USA
Today: ``Staying Warm Costs Up 90 Percent More.''
There is no way you are going to vote for the Barton bill, the main
bill, if you believe the price of natural gas is too high. If you
believe everything the gentleman from Pennsylvania said, you would vote
against the Barton bill, because it does not include natural gas. Only
the Democratic substitute, the Stupak-Boucher bill does.
Ms. SLAUGHTER. Mr. Speaker, I yield 2 minutes to the gentlewoman from
California (Ms. Lee).
Ms. LEE. Mr. Speaker, I want to thank the gentlewoman for yielding me
this time and for her leadership.
I rise in strong opposition to this very restrictive rule. Now, we
are all touched by the magnitude of the devastation caused by Hurricane
Katrina and Hurricane Rita in the gulf coast. The human and
environmental costs of these disasters are unimaginable. But as in any
catastrophe, there is always somebody waiting in the wings to make a
profit off the human misery and suffering. Today, once again, it is the
energy companies. This adds insult to injury. We just gave them over
$12.8 billion in subsidies and tax breaks 2 months ago, and now they
are back asking for more help. Why?
The top 10 energy companies last year made over $125 billion. Why
should the American public be subsidizing these megaprofits? Once
again, instead of allowing us to take a real stand to address our
short-and long-term energy needs, the Committee on Rules has reported a
restrictive rule that rejects consideration of many amendments which
would have made this bill much better.
Despite a recent survey indicating that 86 percent, 86 percent of
Americans favor an increase in fuel economy standards, the Committee on
Rules prevented, prevented consideration of the Boehlert-Markey
amendment which would do just that. We were prevented from considering
the Gas Price Spike Act of 2005 offered as an amendment by the
gentleman from Ohio (Mr. Kucinich), the gentleman from New York (Mr.
Hinchey), the gentleman from Arizona (Mr. Grijalva), and myself. It
would have discouraged price gouging by implementing a windfall tax on
oil and gasoline profits. And we were also prevented from considering
the Larson-Slaughter amendment which would have put an end, an end to
gasoline price discrimination based on location, creating a free market
for gasoline dealers.
Our current energy strategy will only further increase our dependence
on foreign oil. We must break this chain by implementing a strategy of
energy independence and defeat this giveaway to the oil industry.
Vote for a new strategy, not more of the same. We must oppose this
rule and support the Stupak substitute.
Mr. LINCOLN DIAZ-BALART of Florida. Mr. Speaker, I reserve the
balance of my time.
Ms. SLAUGHTER. Mr. Speaker, I yield 3 minutes to the gentleman from
California (Mr. Waxman).
Mr. WAXMAN. Mr. Speaker, the Republican leadership has done it. They
have turned the House of Representatives into a banana republic. We
have a bill on the floor today that had no hearings. It had no
subcommittee markup. It was rushed through the committee without any
attempt to find a compromise.
A few hours ago, in the dark of night, the bill was rewritten. There
is not one Member who really understands everything that is in this
bill or understands what this bill will really do. But there are dozens
of cronies and special interest lobbyists smiling this morning because
they know the fix is in.
[[Page H8748]]
The Republican leadership is so scared of open debate and the
democratic process that they will not allow the bill's provisions to be
debated or amended. They only will permit one amendment to one of the
most anti-environmental, backward, and intellectually dishonest bills
that has ever come before the House. And that may not be the worst of
it, because the Republican leadership is trying to do all of this in
the name of Katrina.
America watched with horror as this hurricane struck. The damage was
immense, and so was our responsibility in Congress to do all we can to
help those who have been displaced rebuild their lives. But that is
what makes this legislation so shameful. At a time of desperate need
and profound responsibility, the response of Washington Republicans is
crass opportunism.
The bill will not help a single victim of Katrina. It will do nothing
to help lower gas prices. Instead, Washington Republicans are using the
devastation caused by the hurricanes to stampede Congress into
undermining our environmental laws.
Exploitation is an ugly word, but that is what this is. I would urge
Members to vote against the rule and, more importantly, vote against
this bill. It is a shameful piece of legislation. It is the legislative
equivalent of price gouging, and the American people deserve better,
and we can do better.
Mr. LINCOLN DIAZ-BALART of Florida. Mr. Speaker, I yield 1 minute to
the distinguished gentleman from Georgia (Mr. Westmoreland).
Mr. WESTMORELAND. Mr. Speaker, I hope the American people are
watching this debate; and if they are watching this debate on TV, I
hope they have a video recorder, because they need to record this
debate.
When you are talking in your church or in your home or where you work
about high fuel prices, you can play this and let people see why we
have the prices that we have right now; why they are going to be paying
more for home heating oil; why they are paying more for gasoline,
because this side of the aisle over here does not understand the
problems that we have in this country.
Play it; listen to it. You are an individual out there. You can car
pool if you want to. If you want to buy a car that gets 50 miles to the
gallon, they make them every day. You can go buy them by the hundreds.
If you want to buy a car that gets 10 miles to the gallon, that is up
to you. You are an individual, and you have individual
responsibilities.
Let us quit blaming the people who are trying to be leaders in this
country and put us on the right track for an energy policy.
Announcement by the Speaker Pro Tempore
The SPEAKER pro tempore (Mr. Simpson). The Chair would advise Members
to address their remarks to the Chair and not to guests in the gallery
or the television audience.
Ms. SLAUGHTER. Mr. Speaker, I reserve the balance of my time.
Mr. LINCOLN DIAZ-BALART of Florida. Mr. Speaker, how much time
remains?
The SPEAKER pro tempore. The gentlewoman from New York (Ms.
Slaughter) has 1\1/2\ minutes remaining. The gentleman from Florida
(Mr. Lincoln Diaz-Balart) has 2 minutes remaining.
Mr. LINCOLN DIAZ-BALART of Florida. Mr. Speaker, I yield 1\1/2\
minutes to the gentleman from Texas (Mr. Barton), the author of the
legislation.
Mr. BARTON of Texas. Mr. Speaker, I want to try to respond to some of
the comments that have been made. One comment that has been made is
that the U.S. oil companies somehow control the market. We consume 21
million barrels a day of oil in this country. We only produce 8 million
barrels a day. We import 1 million to 2 million barrels a day from
Saudi Arabia. We import a million barrels a day from Venezuela. We
import a half a million barrels a day from Libya. We import some oil,
believe it or not, from Iraq. We import a million barrels a day from
Mexico.
One thing the U.S. oil companies do not do is control the market.
They do accept a world market price. The reason the price of oil is
high is because the world is using about 84 million barrels of oil a
day and the world is producing about 84 million barrels of oil a day.
{time} 1030
Economies like China and India are growing at 2 to 3 to 4 to 5
percent a year. The amount of oil that China is going to need from the
world market in the next year is expected to go up perhaps as much as a
million barrels a day. So that is one reason the oil prices are high.
The gentleman from Michigan (Mr. Stupak) comments that his price
gouging amendment does something on natural gas. That is true. I would
like to point out that every State PUC in the country already regulates
the retail price of natural gas, so in that particular instance, I am
not sure that his amendment would do much good. The pending bill does
have a provision to get information from the gathering systems, the
Gulf of Mexico for natural gas production, which is something that we
do not have under current law.
With that I would just ask us to vote for the rule.
Ms. SLAUGHTER. Mr. Speaker, I yield back the balance of my time.
Mr. LINCOLN DIAZ-BALART of Florida. Mr. Speaker, this is an important
piece of legislation that the gentleman from Texas (Mr. Barton) has
brought forward today. I urge support of the rule. I urge that we
reject the arguments we have heard from the prophets of pessimism. This
is an important piece of legislation to keep the economy's
infrastructure in place for sustained economic growth and for the
lifestyle that this great Nation has become accustomed to, and so we
would ask all colleagues to support the underlying legislation as well
as the rule.
Ms. EDDIE BERNICE JOHNSON of Texas. Mr. Speaker, I rise today to
express my disappointment and opposition to the Rule regarding H.R.
3893.
The Gasoline Security Act, as reported by the Committee on Energy and
Commerce, includes language that takes away States' rights to have
State decisions on Clean Water Act permits and water quality related to
the placement of refineries and pipelines decided in State courts.
Instead, the Gasoline Security Act overturns 33 years of successful
State/Federal partnership and forces States to defend their actions in
the U.S. Court of Appeals for the District of Columbia.
In the absence of this provision, challenges to State decisions would
be brought in State courts as they always have.
The Gasoline Security Act dilutes State authority to protect water
quality. I offered an amendment that would have prevented this
dilution; unfortunately it was not make in order.
Section 401 of the Clean Water Act requires that before any Federal
permit or license is issued that could result in a discharge into the
State's waters, the State in which the discharge would occur must issue
a certification that the proposed activity is consistent with the
State's water quality standards.
Such a certification must be issued within a reasonable time (not
more than one year), and if the certification is denied, the Federal
permit or license may not be issued.
This authority is the States' ability to ensure a role in Federally-
permitted activity within the State's borders.
The provisions contained in both the refinery and pipeline titles of
the Gasoline Security Act are modeled on a similar provision in the
recently enacted Energy Policy Act. This language was inserted in
response to a specific case in Connecticut where the business community
wanted to construct a pipeline over State and public objections.
The proponents of the pipeline believe that Federal courts will be
less deferential to Connecticut's position in denying the water quality
certification. In fact, less than two hours after President Bush signed
the Energy Policy Act, Islander East Pipeline Co. went to the Federal
Appeals Court seeking to overturn Connecticut's decision.
I urge my colleagues and members of the Rules Committee to help stop
the trampling of the States' rights to defend the quality of the
environment and public health by making in order my amendment to modify
these provisions from H.R. 3893.
Mr. LINCOLN DIAZ-BALART of Florida. Mr. Speaker, I yield back the
balance of my time, and I move the previous question on the resolution.
The previous question was ordered.
The SPEAKER pro tempore (Mr. Simpson). The question is on the
resolution.
The question was taken; and the Speaker pro tempore announced that
the ayes appeared to have it.
Ms. SLAUGHTER. Mr. Speaker, I object to the vote on the ground that a
quorum is not present and make the point of order that a quorum is not
present.
The SPEAKER pro tempore. Evidently a quorum is not present.
[[Page H8749]]
The Sergeant at Arms will notify absent Members.
Pursuant to clause 8 of rule XX, this 15-minute vote on adoption of
House Resolution 481 will be followed by a 5-minute vote on approval of
the Journal.
The vote was taken by electronic device, and there were--yeas 216,
nays 201, not voting 16, as follows:
[Roll No. 515]
YEAS--216
Aderholt
Akin
Alexander
Bachus
Baker
Barrett (SC)
Bartlett (MD)
Barton (TX)
Bass
Biggert
Bilirakis
Bishop (UT)
Blackburn
Blunt
Boehner
Bonilla
Bonner
Bono
Boozman
Boustany
Bradley (NH)
Brady (TX)
Brown (SC)
Brown-Waite, Ginny
Burgess
Burton (IN)
Buyer
Calvert
Camp
Cannon
Cantor
Capito
Carter
Chabot
Chocola
Coble
Cole (OK)
Conaway
Crenshaw
Cubin
Culberson
Cunningham
Davis (KY)
Davis, Jo Ann
Davis, Tom
DeLay
Dent
Diaz-Balart, L.
Diaz-Balart, M.
Doolittle
Drake
Dreier
Duncan
Ehlers
Emerson
English (PA)
Everett
Feeney
Ferguson
Flake
Foley
Forbes
Fortenberry
Fossella
Foxx
Franks (AZ)
Frelinghuysen
Gallegly
Garrett (NJ)
Gerlach
Gibbons
Gilchrest
Gillmor
Gingrey
Gohmert
Goode
Goodlatte
Granger
Graves
Green (WI)
Gutknecht
Hall
Harris
Hart
Hastings (WA)
Hayes
Hayworth
Hefley
Hensarling
Herger
Hobson
Hoekstra
Hostettler
Hulshof
Hunter
Hyde
Inglis (SC)
Issa
Istook
Jenkins
Jindal
Johnson (CT)
Johnson, Sam
Jones (NC)
Keller
Kelly
Kennedy (MN)
King (IA)
King (NY)
Kingston
Kirk
Kline
Knollenberg
Kolbe
Kuhl (NY)
LaHood
Latham
LaTourette
Lewis (CA)
Lewis (KY)
Linder
LoBiondo
Lucas
Lungren, Daniel E.
Mack
Manzullo
Marchant
McCaul (TX)
McCotter
McCrery
McHenry
McHugh
McKeon
McMorris
Mica
Miller (FL)
Miller (MI)
Miller, Gary
Moran (KS)
Murphy
Musgrave
Myrick
Neugebauer
Ney
Northup
Nunes
Nussle
Osborne
Otter
Oxley
Paul
Pearce
Pence
Peterson (PA)
Petri
Pickering
Pitts
Platts
Pombo
Porter
Price (GA)
Pryce (OH)
Putnam
Radanovich
Ramstad
Regula
Rehberg
Reichert
Renzi
Reynolds
Rogers (AL)
Rogers (KY)
Rogers (MI)
Rohrabacher
Ros-Lehtinen
Ryan (WI)
Ryun (KS)
Saxton
Schmidt
Sensenbrenner
Sessions
Shadegg
Shaw
Sherwood
Shimkus
Shuster
Simpson
Smith (NJ)
Smith (TX)
Sodrel
Souder
Stearns
Sullivan
Sweeney
Tancredo
Taylor (NC)
Terry
Thomas
Thornberry
Tiahrt
Tiberi
Turner
Upton
Walden (OR)
Walsh
Wamp
Weldon (FL)
Weldon (PA)
Weller
Westmoreland
Whitfield
Wicker
Wilson (NM)
Wilson (SC)
Wolf
Young (FL)
NAYS--201
Abercrombie
Ackerman
Allen
Andrews
Baca
Baird
Baldwin
Barrow
Bean
Becerra
Berkley
Berman
Berry
Bishop (GA)
Bishop (NY)
Blumenauer
Boehlert
Boren
Boucher
Boyd
Brady (PA)
Brown (OH)
Brown, Corrine
Butterfield
Capps
Capuano
Cardin
Cardoza
Carnahan
Carson
Case
Castle
Chandler
Cleaver
Clyburn
Conyers
Cooper
Costa
Costello
Cramer
Crowley
Cuellar
Cummings
Davis (AL)
Davis (CA)
Davis (FL)
Davis (IL)
Davis (TN)
DeFazio
DeGette
DeLauro
Dicks
Dingell
Doggett
Doyle
Edwards
Emanuel
Engel
Eshoo
Etheridge
Evans
Farr
Fattah
Filner
Ford
Frank (MA)
Gonzalez
Gordon
Green, Al
Green, Gene
Grijalva
Gutierrez
Harman
Herseth
Higgins
Hinchey
Hinojosa
Holden
Holt
Honda
Hooley
Hoyer
Inslee
Israel
Jackson (IL)
Jackson-Lee (TX)
Jefferson
Johnson (IL)
Johnson, E. B.
Jones (OH)
Kanjorski
Kaptur
Kennedy (RI)
Kildee
Kilpatrick (MI)
Kind
Kucinich
Langevin
Lantos
Larsen (WA)
Larson (CT)
Leach
Lee
Levin
Lewis (GA)
Lipinski
Lofgren, Zoe
Lowey
Lynch
Maloney
Markey
Marshall
Matheson
Matsui
McCarthy
McCollum (MN)
McDermott
McGovern
McIntyre
McKinney
McNulty
Meehan
Meek (FL)
Meeks (NY)
Melancon
Menendez
Michaud
Millender-McDonald
Miller (NC)
Miller, George
Mollohan
Moore (KS)
Moore (WI)
Moran (VA)
Murtha
Nadler
Napolitano
Oberstar
Obey
Ortiz
Owens
Pallone
Pascrell
Pastor
Pelosi
Peterson (MN)
Pomeroy
Price (NC)
Rahall
Rangel
Reyes
Ross
Rothman
Roybal-Allard
Ruppersberger
Rush
Ryan (OH)
Sabo
Salazar
Sanchez, Linda T.
Sanchez, Loretta
Sanders
Schakowsky
Schiff
Schwartz (PA)
Scott (GA)
Scott (VA)
Serrano
Shays
Sherman
Skelton
Slaughter
Smith (WA)
Snyder
Solis
Spratt
Stark
Strickland
Stupak
Tanner
Tauscher
Taylor (MS)
Thompson (CA)
Thompson (MS)
Tierney
Towns
Udall (CO)
Udall (NM)
Van Hollen
Velazquez
Visclosky
Wasserman Schultz
Waters
Watson
Watt
Waxman
Weiner
Wexler
Woolsey
Wu
Wynn
NOT VOTING--16
Beauprez
Boswell
Clay
Deal (GA)
Delahunt
Fitzpatrick (PA)
Hastings (FL)
Neal (MA)
Norwood
Olver
Payne
Poe
Royce
Schwarz (MI)
Simmons
Young (AK)
{time} 1055
Messrs. CARNAHAN, WYNN and KENNEDY of Rhode Island changed their vote
from ``yea'' to ``nay.''
So the resolution was agreed to.
The result of the vote was announced as above recorded.
A motion to reconsider was laid on the table.
The SPEAKER pro tempore (Mr. Simpson). Without objection, the title
is amended to conform to the number of the bill reflected in the text.
There was no objection.
____________________