Democratic "Energy" Bill a Sham... and Would Cost Alaska Billions in Revenues

Press Release

Alaska Congressman Don Young tonight voted against the Democratic Leadership's so-called "energy" bill because it excludes revenue sharing for Alaska and the Pacific and Atlantic Ocean states, does not include oil production in ANWR, and does not address the growing problem of frivolous lawsuits that have delayed oil activity in the NPR-A. The bill was approved by a 236 to 189 vote.

"This Democratic bill is bad for Alaska and the entire nation," said Young, the Ranking Member of the Natural Resources Committee.

"The Democratic Leadership refused to include ANWR in their bill due to opposition from the national environmental organizations. In fact, the Democrats wouldn't even allow us to vote on the Republican Leadership's comprehensive energy bill which includes my ANWR provisions.

"This bill denies Alaska billions of dollars in revenue sharing from OCS oil and natural gas leases off our coastline. The Pacific and Atlantic coastal states would also be denied this revenue sharing. Our Republican energy bill protects Alaska and the other coastal states by keeping the revenue sharing provision intact.

"And, unlike the Republican energy bill, today's bill does not address the problem of frivolous lawsuits by environmental groups who continue to delay energy projects. NPR-A production has been delayed by a decade worth of lawsuits. This is happening on projects throughout the nation yet the Democratic Leadership refuses to take any steps against their friends in the environmental community.

"Fortunately, today's vote was just for political show on the energy issue. If the Senate passes this sham energy bill, President Bush will veto it and then maybe the Democratic Leadership will finally work with Republicans to seriously address America's energy crisis.

The following is Young's prepared floor statement from today's debate on the so-called "Comprehensive American Energy Security and Consumer Protection Act" (H.R. 6899).

Democrats Refused To Hold Even One Hearing On Their Bill

I rise in the strongest possible opposition to this ill-conceived legislation.

This bill was apparently conceived in the cocktail parties of San Francisco and Manhattan - it certainly was not written in the hearing rooms in Congress. There has not been one single hearing on this do-nothing legislation.

And because of this total lack of Congressional oversight, this legislation will drive down American oil and gas development, and drive up foreign imports.

I wish we could amend the Short Title of the bill to call it the "Venezuela, Russia and Middle East Oil Production for Americans Act." Because this is whom the bill helps - foreign oil producers.

88 Percent Of All Offshore Oil Will Be Permanently Locked Up Under This Bill

This legislation contains massive increases in fees on America's oil and gas producers - fees that will increase energy prices.

It contains a leasing provisions that risks shutting down the Gulf of Mexico oil and gas industry.

It permanently closes 88 percent of the undiscovered oil resources in the Outer Continental Shelf of the Atlantic and Pacific Coasts.

It permanently closes potentially huge oil and gas deposit in Georges Bank at the same time as Canada is thinking of leasing it.

It does not permit revenue sharing with States, so States have no incentive to permit energy production.

Democratic Bill Ignores ANWR . . .

But ANWR Contains 500 Percent More Oil Than The Democratic Bill Could Produce

And it leaves out the largest onshore oil basin in North America - ANWR.

This bill at most may produce 2 billion barrels of oil, and that's a big "maybe".

ANWR has 10.4 billion barrels, nearly five times the amount that might be produced under this bill.

This nation is better off if Congress just does nothing, because on October 1st, we will have Energy Freedom Day. In two weeks, the 26-year moratorium on oil and gas leasing in the Outer Continental Shelf expires. The ban on oil shale leasing expires.

America Will Lose $800 Billion In Federal Royalty & Corporate Income Tax Revenues Under Democratic OCS Energy Lock Up

According to a recent Congressional Research Service analysis, tapping the American energy resources in the OCS will generate more than $800 billion dollars in federal royalty and corporate income tax revenue. The analysis also found that allowing Americans to tap ANWR's 10.4 billion barrels would generate more than $150 billion dollars.

Unfortunately, the Democrat Leadership's legislation taps almost none of these huge American energy resources - and none of the nearly $1 trillion in federal revenue they would generate. This is why Democrats huddled in secret with environmental groups to write this bill and rush it to the Floor before Members had chance to read it. They are afraid Members will begin to understand this bill is an attempt to cancel Energy Freedom Day on October 1.

My hat's off to the Democrat Leadership. In less than two years they have presided over the complete meltdown of fair, open and transparent process in the House of Representatives

The Natural Resources Committee has jurisdiction over most of America's oil and gas resources. And how many hearings has the Natural Resources Committee had on this bill? None. How many hearings has the Committee had on oil and gas leasing? None, unless it is done with the purpose of complaining about drilling.

In short, the Committee in the House overseeing most of the nation's energy resources has not held a single hearing on the energy crisis.

The Democrat Leadership of this body has been asleep at the switch, and the result is an energy train wreck. Thank goodness the current Democratic Leaders were not leading the House in 1973 or else we would not have the 15 billion barrels of oil from Prudhoe Bay, Alaska.

Since 1973, environmental groups have slowly taken over the energy policy of this country. Is anyone surprised we have record energy prices, record energy imports, and failing economy?

This is the wrong bill at the wrong time and without the ability to amend its deeply flawed provisions, I urge my colleagues to oppose this in the strongest possible terms.

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