Congressman John D. Dingell

June 26, 2008

Washington, DC - Congressman John D. Dingell (D-MI15), Chairman of the Committee on Energy and Commerce, made the following remarks on Democratic bills designed to help ease the pain many Americans are feeling from high energy prices.

On H.R. 6251, The Responsible Federal Oil and Gas Lease Act
The “Use it or Lose it” legislation forces oil companies to produce oil and gas, or diligently develop, the 68 million acres of public land they already have leased, but are not using to produce energy. This legislation was blocked by House Republicans and was not approved.

“In recent weeks, President Bush, John McCain and their oilmen friends have argued that we need to dig, drill, and detonate our way to energy independence – including on our federal lands and the Outer Continental Shelf.  I’ve watched Congressional Republicans fall in lock-step with Bush & McCain, while letting these oil barons warehouse 68 million acres of public land.  These leases have the potential to produce an additional 4.8 million barrels of oil and 44.7 billion cubic feet of natural gas EACH DAY.  This could cut our oil imports by more than one-third.  Moreover, I would note that oil companies are getting a hell of a deal leasing this land for a mere $1.50 annual rental fee – a fee that was set in the 1920s.

“If there is more supply in the markets the price of oil will go down, but so will oil company profits. The ‘Use It or Lose It’ legislation had the potential to increase our oil supply, but clearly my Republican colleagues feel it is more important to help the oil companies than it is to help families feeling the pinch from the prices at the pump.”

On Congressional efforts to address the rise in prices caused by oil speculators
This includes Congressman Dingell’s own bill which would empower the Secretary of Energy to gather information from multiple federal agencies and commissions responsible for studying, overseeing and policing petroleum-related energy markets in an effort to uncover the factors affecting the price of crude oil and petroleum products. This week, Congress considered H.R. 6377, The Energy Markets Emergency Act, which directs the Commodity Futures Trading Commission to use its full authority and most potent emergency tools to curtail excessive speculation and other practices distorting the energy market. The House passed H.R. 6377, 402-19.

“Some analysts have suggested that one-half the price of a barrel of oil may be attributable to rampant speculation in energy markets. I have dark suspicions about the effects that unchecked speculation and possible market manipulation are having on the price of crude oil and petroleum products. Energy speculation has become a growth industry and it is time for the government to intervene.  But President Bush shows no signs of taking any action, and if he doesn’t, I doubt John McCain will do anything different.  We need to consider a full range of options to counter this rapacious speculation.  Given the record energy prices that are harming businesses, farmers, consumers, and our economy as a whole, Congress should act to determine the precise effects that manipulation and speculation are having on energy prices, and work to identify where there are gaps in regulation that allow this rampant speculation.  Unfortunately, when Americans are paying four dollars a gallon at the pump, the Administration seems to be proceeding with a ‘business as usual’ attitude, when it comes to speculation.”

On H.R. 6346, The Federal Energy Price Gouging Prevention Act
This bill fell six votes short of the two-thirds majority required to pass it earlier this week. 

“My colleague Bart Stupak (D-MI01) led the good fight here, but Republicans pulled the rug out from under this bill and the American people. H.R. 6346 would have provided the Federal Trade Commission (FTC) with a clear, enforceable definition of price gouging and imposed tough criminal penalties, with fines as high as $150 million. Unfortunately, 11 Republicans who previously voted for price gouging legislation changed sides for this vote. Clearly, the House Republicans are following the lead of John McCain, who is also taking sides with big oil during this election year.”

On H.R. 6052, The Saving Energy Through Public Transportation Act of 2008
The bill gives grants to mass transit authorities to reduce public transit fares, giving consumers a cost-effective alternative to gasoline. The bill passed 322-98. 

“I have worked with transit services in Michigan’s 15th Congressional District for years to help bring more transportation options as well as more energy-efficient vehicles for my constituents. This bill will help further that cause and pass some extra savings on to those who choose to use a bus or, in some large cities, take a train. Since I announced my co-sponsorship of this legislation, I have received tremendous feedback from people in the 15th District telling me how happy they are about that decision. It tells me there is a real interest in using public transportation, perhaps more than ever before. For years, the White House has been afraid to ask Americans to make any kind of compromise on energy consumption. Maybe the public is more willing to make sacrifices for the public good than many have given them credit for being. Until there is a real drop in the price of crude oil, more and more Americans will be looking for transportation alternatives, and I hope to be a partner in that effort.”

Prior to these votes, Congressman Dingell and the Democrats have taken action to make America more energy independent and bring down the cost of gasoline. Last month, Congressman Dingell called on President Bush to temporarily suspend the filling of the Strategic Petroleum Reserve (SPR). After initially rejecting the idea, the President signed legislation which will suspend the filling of the SPR through the end of the year, as long as the price of crude oil remains above $75 per barrel.

Last year, Congressman Dingell helped write and pass the Energy Independence and Security Act, a bill that increased fuel economy standards by 40 percent while protecting American jobs.  The Energy Independence and Security Act will increase the efficiency in everything from light bulbs to light trucks.

Since the beginning of this Congress, Congressman Dingell and his colleagues on the Energy and Commerce Committee, have conducted more than 20 climate change hearings, hearing from dozens of witnesses – including business leaders, environmental experts, elected officials, leading academics, and even a former Vice President - all in an effort to produce comprehensive climate change legislation that will reduce greenhouse gas emissions by up to 80 percent by 2050.