[Congressional Record Volume 154, Number 108 (Friday, June 27, 2008)]
[Senate]
[Pages S6321-S6322]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                        GAS PRICE REDUCTION ACT

  Mr. SPECTER. Mr. President, I have sought recognition to discuss 
legislation introduced yesterday entitled the Gas Price Reduction Act. 
I have agreed to join over forty of my Republican colleagues to 
cosponsor this legislation because I believe Congress needs to take 
action to address high oil and gasoline prices, as well as America's 
overall energy security going into the future.
  My cosponsorship of this bill does not mean that every provision has 
my full support. My office received the final legislative text late 
yesterday morning and I have not had a great deal of time to analyze 
all of the details. That said, I have reluctantly decided to cosponsor 
this bill to signal my concern with the state of our Nation's energy 
situation. I have long supported efforts to reduce U.S. oil demand 
through conservation and efficiency whenever practical, as well as 
increase domestic oil production in an environmentally safe manner, and 
encourage energy markets that are free of price manipulation.
  I am extremely concerned about the high cost of oil, gasoline, diesel 
and other fuels which are exacerbating our nation's already difficult 
economic situation and truly hurting American consumers and families. 
With oil near $140 per barrel and gasoline over $4 per gallon, we are 
facing an unsustainable situation.
  The legislation introduced today proposes to increase the supply of 
oil, promote technology to lower fuel consumption, and increase 
oversight and transparency of energy markets. Specifically, the bill 
would allow consideration for oil exploration and production on the 
Outer Continental Shelf on the Atlantic and Pacific coasts with 
appropriate environmental protection at the request of a State's 
Governor and State legislature. Any authorized drilling could only 
occur beyond 50 miles offshore and only if the federal government 
determines that leasing would not create an unreasonable risk of harm 
to the marine, human, or coastal environment. Further, all existing 
environmental laws would have to be followed.
  The second part of the bill would allow the Department of Interior to 
move forward with leasing of land in the Western U.S. to develop oil 
shale. It is my understanding that there are very large deposits of 
energy resources that could be tapped with significant investments in 
rock extraction technology. This resource is much less understood than 
oil and natural gas drilling. I support locating as many domestic 
resources as we can in an environmentally safe manner. However, I am 
concerned about claims made by opponents that opening these lands at 
this time is premature until Congress and the executive branch have the 
ability to study the results of research and development efforts. 
Further, some argue that Congress should first review regulations 
drafted by the Bureau of Land

[[Page S6322]]

Management, but which are under review by the Office of Management and 
Budget. Finally, we should be fully informed about the energy and water 
inputs that may be necessary for extraction, as well as the greenhouse 
gas emissions associated with production of oil from shale.
  The third title of this bill seeks to increase research, development 
and deployment of advanced plug-in electric cars and trucks. There is a 
great deal of emphasis being placed on the promise of plug-in electric 
vehicles as a replacement technology for today's fuel-consuming 
vehicles. The potential benefits of plug-in electric vehicles includes 
much higher energy efficiency, elimination of the need for oil, and use 
of existing and expanded electric infrastructure. The legislation under 
consideration would increase research and development for advanced 
batteries, which will be required to allow these vehicles to drive long 
distances without needing to recharge. The bill also authorizes a loan 
program for the re-tooling of advanced battery manufacturing 
facilities. Finally, it calls on the federal government to purchase 
plug-in electric vehicles to the extent practicable to help increase 
market penetration of the technologies and make significant reductions 
in government-related fuel use.
  Finally, this legislation attempts to strengthen futures markets. 
There are concerns that the role of speculation in these markets is 
impacting today's oil and gasoline prices. Therefore, this bill 
authorizes increased funding and staff for the Commodity Futures 
Trading Commission--CFTC. It requires the President's Working Group on 
Financial Markets to conduct a study of international regulation of 
energy commodities markets. It codifies recent CFTC action on position 
limits and transparency for foreign boards of trade that are involved 
in the U.S. oil trading market. Finally, it requires the CFTC to gather 
information on index traders and swap dealers. Many of these proposals 
result from the fact that a lack of information in the oil markets is 
making it very difficult to pinpoint whether and to what extent new 
actors in the oil markets may be causing some of the price increases we 
have experienced.
  I have been working for many years to tackle the high price of oil 
and gasoline and improve U.S. energy security. I have long been 
concerned about OPEC--Oil Producing and Exporting Countries--fixing the 
price of oil, which makes up the largest share of gasoline prices. I 
continue to work with my colleagues on both sides of the aisle to pass 
S. 879, the No Oil Producing and Exporting Cartels Act--NOPEC. NOPEC 
clarifies that it is unlawful under the antitrust laws for OPEC members 
to agree to limit the production or distribution, or to set or maintain 
the price, of petroleum products or natural gas.
  Further, on May 7, 2008, I questioned top oil company executives on 
high oil and gasoline prices at the Senate Judiciary Committee. Among 
other points, I asked them to justify the record profits their 
companies have earned while Americans pay record high prices at the 
pump. When I was chairman of the Senate Judiciary Committee, I held two 
hearings in February and March of 2006 to consider the effects of 
consolidation in the energy industry and whether such concentration had 
resulted in increased prices of gasoline, other petroleum-based fuels 
and natural gas. Those hearings prompted me to introduce the Oil and 
Gas Industry Act of 2006 to require U.S. antitrust agencies to further 
consider whether mergers within the oil and gas industry have violated 
antitrust laws and if such mergers and information sharing among 
companies should receive further scrutiny.
  Dating back to 2002, I was the lead cosponsor of fuel savings 
legislation, including the Carper-Specter amendment to save 1 million 
barrels of oil per day by 2015 and in 2003 the Landrieu-Specter 
amendment to save 1 million barrels per day by 2013, which passed by a 
vote of 99-1. I believe the foundation we laid in the Senate helped 
lead to the eventual passage of the first automobile fuel efficiency 
standard increases since the 1970s. On December 19, 2007, the President 
signed the Energy Independence and Security Act which contained 
legislation I cosponsored to increase automobile fuel efficiency 
standards to 35 mpg by 2020. This increase in efficiency, and the 
anticipated decrease in consumption, could substantially decrease oil 
use and bring down prices over time.
  I commend my colleagues on both sides of the aisle for their 
proposals to address today's unacceptable oil and gasoline price 
situation. However, I do not think any purely partisan exercise will 
ultimately prove successful. While I joined my Republican colleagues in 
introducing legislation today, I am convinced that we must work in a 
nonpartisan fashion to tackle this issue of paramount importance to our 
constituents and the economic health of our Nation. As evidenced by the 
unification of the parties that occurred in December 2007 with the 
Energy Independence and Security Act, when the parties work together, 
the American people benefit. I recommend we all rise above politics and 
work toward constructive solutions to the energy crisis we currently 
face.
  As we consider the Gas Price Reduction Act and other proposals, it is 
essential that we not act in haste, but rather consider all potential 
consequences. When we talk about opening new areas for domestic oil 
production, we must have all of the facts not just about the potential 
oil reserves, but also about the precise environmental impacts and the 
status of the advanced technologies like directional drilling that are 
purported to mitigate these impacts. When Congress involves itself in 
very complex energy markets, we ought to be very cautious to avoid 
unintended consequences that could exacerbate the high and volatile 
prices we have seen in recent months and years.
  I look forward to working with my colleagues on these difficult, but 
extremely important matters.

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