Date: 2007-01-18
Speaker: GENE GREEN (democrat)
Chamber: H
State: Texas

Mr. Speaker. I thank the chairman of our Natural Resources Committee. Mr. Speaker. most Americans believe that dependence on foreign oil is a problem and alternative energy sources deserve our support. particularly after 9/11. The recent election season saw such high consumer gas prices and high anxiety about energy security. But let us look at another industry. Very cold weather in southern California is causing loss of fruits and vegetables. and ranchers in the Midwest are losing cattle because of the cold weather. The farmeis and ranchers who still have crops and livestock stand to make a lot of money from the price spikes that we are seeing literally as we stand here on the floor today. Are we blaming those farmers and ranchers for the high prices? Are we going to cut farm benefits and raise taxes on the farmers? No. But for some reason when we have cold winters and hot summers and hurricanes in the gulf that raise gas prices. we all get mad at energy suppliers. It is the easy way out to get mad at the industry. since most of our country just uses energy and does not produce it. We have a budget deficit. and funds for new alternative energy programs are in short supply. So industry is being targeted for this purpose. I understand why my colleagues are choosing to do this. but this plan carries a significant risk of being counterproductive. especially in the near future. H.R. 6 exempts the oil and gas industry from a recent manufacturing tax benefit. cuts geological expense to major energy producers and requires new payments on 19981999 offshore leases to make up for serious government errors in the original contracts. These provisions raise $14 billion over 10 years for clean alternative energy programs that Congress will establish through regular order. That is why I support this bill. That $14 billion will be used for alternatives through the regular order of this Congress. through our committee process. These tax provisions reduce incentives for domestic production and could increase dependence on foreign oil and LNG which hurt national security. With current high oil prices. we may not miss these incentives as much if prices were low. but the effects could be very real in the long term. However. the 100 hours energy bill is a compromise within the Democratic Caucus to promote alternative energy. For the first time in my years in Congress. the Democratic leadership ineluded. the Members from energy producing States in the process. The section 199 tax provision is most unfair because it singles out oil and gas as ineligible. as compared to other manufacturing operations. The main royalty provision is based on the JindalPombo bill that House Republicans overwhelmingly supported a few months ago in June. I am also very concerned about the effects of the provision on contract certainty in U.S. oil and gas leasing. but for better or worse. there is a consensus among both parties to address this 19981999 lease issue. While this bill is a far cry from my preferred energy policies. the Democratic leadership has been narrow and targeted. After extensive discussions between our office and other Members offices from oil and gas producing States. this bill does not include more punitive .measures that seek to alter longstanding oil and gastax or accounting treatment that could destabilize our Nations gasoline supply even more. We do not repeal the refinery tax provision or the deductions for intangible drilling costs. We also do not eliminate LIFO accounting. impose a windfall profits tax. or repeal of natural gas distribution line depreciation. Mr. Speaker. as a result and the good faith we have had in this 100 hours agenda. I am voting for the bill. Before I close. I have two messages. First. you cannot hit an industry for $14 billion and go back time and time again. And my second message is to the oil and gas industry. With the recent November elections. this bill should be a wakeup call to explain energy issues to Democratic Members who may have been ignored in recent years. We also do not eliminate LIFO accounting. impose a windfall profits tax. or repeal of natural gas distribution line depreciation. As a result. and as a show of good faith during this critical 100 hours period for our new majority. I am voting for this bill. Before I close I have two messages. and the first is for the Democratic Caucuswhen you hit one industry for $14 billion. you cannot go back for more later and expect enough gasoline in your cars and fuel to heat and cool our homes. My second message for the oil and gas industrythe recent November election and this bill should be a wakeup call to explain energy issues to Democratic members that they may have ignored in recent years. We are going to need those members to prevent additional legislation of this type. 0l 1445