[Congressional Record (Bound Edition), Volume 153 (2007), Part 17]
[Extensions of Remarks]
[Pages 23856-23857]
[From the U.S. Government Publishing Office, www.gpo.gov]




  REMARKS ON THE ENERGY BILLS (H.R. 3221 AND H.R. 2776) CONSIDERED ON 
                             AUGUST 4, 2007

                                 ______
                                 

                        HON. DONALD A. MANZULLO

                              of illinois

                    in the house of representatives

                      Thursday, September 6, 2007

  Mr. MANZULLO. Madam Speaker, I rise today in opposition to H.R. 3221, 
New Direction for Energy Independence, National Security, and Consumer 
Protection Act, and H.R. 2776, Renewable Energy and Energy Conservation 
Tax Act. I am extremely saddened that these bills, which according to 
the Democrat Majority were meant to ``achieve energy independence, 
strengthen national security, grow our economy and create jobs, lower 
energy prices, and begin to address global warming,'' will in fact 
result in less domestic natural gas and oil production, higher taxes 
that are passed to consumers, and wasteful spending on duplicative 
government programs.
  The northern Illinois Congressional district I am honored to 
represent has a significant manufacturing base. There are over 2,500 
industries in the 16th District of Illinois. Because of this, I devote 
a considerable amount of my time working on manufacturing issues. I am 
a member of the Council on Competitiveness, a co-chair of the 
Manufacturing Caucus, and Chairman of the Republican Policy Committee 
Task Force on Manufacturing. As previous Chairman of the House 
Committee on Small Business, I held countless hearings on 
competitiveness. I travel this country and overseas studying machine 
tools, manufacturing efficiencies, global supply chains, manufacturing 
financing, intellectual property rights protection, export controls, 
and other important issues. I've also lectured extensively on America's 
need to be globally competitive. However, the devastating effect of the 
rising cost of natural gas to America's manufacturers, especially 
chemical, plastics, and advanced composites producers, is dramatic. 
Composite, chemical, and plastic manufacturers are more dependent on 
affordable and stable natural gas prices because they use natural gas 
as a base ``feed stock.'' Soaring natural gas prices have challenged 
their competitiveness. In 2004 alone, increases in natural gas prices 
forced the closure of scores of chemical companies and cost roughly 
100,000 high-paying jobs.
  In 2005, Congress passed an energy bill that resulted in an increase 
of an additional 18 percent capacity in domestic natural gas 
production. We are now contemplating legislation that will reduce 
incentives for domestic production and, if past is prologue, will 
likely lead to a decrease domestic output and an increase dependence on 
imports from foreign sources. According to the non-partisan 
Congressional Research Service (CRS), a similar tax on oil and natural 
gas producers lead to a decrease in domestic oil production by as much 
as 1.26 million barrels between 1980 and 1986 and may have led to 
roughly 13 percent more in imported natural gas and oil over the same 
time period.

[[Page 23857]]

  We cannot afford to travel down this path again. The Department of 
Energy projects that the United States will use 28 percent more oil and 
19 percent more natural gas in 2030 than was used in 2005. To meet this 
rising demand and wean ourselves from foreign oil and natural gas, we 
must reduce regulatory burdens, invest in additional refining capacity, 
allow environmentally sound exploration, and support the development of 
alternative fuels. Unfortunately, the energy bills under consideration 
today do none of these things.
  Instead, H.R. 2776 targets this vital sector of our economy with a 
$15.3 billion tax increase over 10 years. It also decreases the 
competitiveness of U.S. firms in global markets by adding a $3.6 
billion tax increase on international oil and gas production income. 
Finally, it terminates a Lower Manhattan development program that will 
allow New York to spend $2 billion in federal income taxes that were 
withheld on New York City and State employees for any transportation 
infrastructure project they see fit. I'm not quite certain why this 
provision is found in an energy bill.
  To make matters worse, H.R. 3221 spends $18.7 billion over 5 years on 
many programs that have little or nothing to do with energy 
independence or reducing the rising cost of energy in America. H.R. 
3221 contains extraneous provisions such as new antipoverty programs, a 
program that authorizes $1 billion for clean energy and efficient 
technologies in other countries, the creation of a brand new agency, 
and, my personal favorite, a section that will allow individuals to sue 
the Federal Government for damages caused by global warming. 
Unfortunately, I may have just described some of the less harmful 
provisions found in this bill because they only waste taxpayer's money.
  When the bill attempts to address domestic energy production, it does 
this by slowing the oil shale and tar sands commercial leasing program, 
abrogating contracts that will force an extra $5.5 billion for gas and 
oil exploration in the Gulf of Mexico, and prohibiting access to 4.2 
trillion cubic feet of natural gas found in the Roan Plateau in 
Colorado. These additional restrictions on domestic production will 
lead to a shortage of supply and drive the cost of energy up so that 
every home and every business will have to pay far more than they are 
currently paying now.
  Between 1999 and 2003, the United States experienced nothing less 
than what many considered to be the demise of American manufacturing. 
Our manufacturing base is recovering significantly since those days due 
largely to increases in productivity. But manufacturers face new and 
severe threats to the viability of their businesses in the United 
States. They face unfair foreign competition from foreign countries 
that do not honor their trade agreements and unfairly manipulate their 
currency. They face rapidly rising costs of health care. They face the 
largest regulatory burdens in the world. They face staggering increases 
in their energy costs. Please do not provide another incentive to move 
U.S. manufacturing overseas by raising their energy bill.
  I urge my colleagues to join the National Association of 
Manufacturers (NAM) by opposing H.R. 3221, New Direction for Energy 
Independence, National Security, and Consumer Protection Act and H.R. 
2776, Renewable Energy and Energy Conservation Tax Act, to show your 
support for America's manufacturers.

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