"Riley Factor"

This article was featured in the December 2006 issue of Business Matters, the Chamber's monthly print newsletter.

Time Running Out for Energy Bill?

“Will the lights be turned out on the 109^th Congress before the job is done?”

The long hard work of various business and manufacturing groups to get congressional action to increase domestic energy supply has paid off with the recent passage of two bills.  However, the question remains, will the lights be turned out on the 109^th Congress before the job is done?

How important is this issue?  Very!  Manufacturers consume approximately 33 percent of the natural gas in the United States, not only as a source of energy, but as a feedstock in the chemical, plastics and fertilizer sectors, among others.  Adequate, affordable and reliable supplies of natural gas and oil are essential to the growth of the U.S. economy and to our quality of life.  Flawed federal policies have created a fundamental imbalance between growing demand and declining supplies of natural gas.  Due to restrictions on energy exploration and development, U.S. natural gas supplies are currently unable to meet demand, and the problem is expected to get worse.  The supply shortfall has led to a cost differential that is placing U.S. manufacturers at a competitive disadvantage with other nations.  This energy crisis has already contributed to the loss of three million U.S. manufacturing jobs since 2000.

Legislation Status:

On June 29, the House of Representatives passed H.R. 4761, the Deep Ocean Energy Resources (DOER) Act, by a 232-187 vote.  The bill would help reduce our reliance on foreign oil and create U.S. jobs by allowing energy development in deep waters beyond 100 miles from the coast and allowing coastal states to determine whether to permit offshore production beyond 50 miles off their coastline.  U.S. Representatives Charlie Dent, Tim Holden and Joe Pitts voted in favor of the bill.  Representative Jim Gerlach did not vote on the issue.

Then on August 1, the Senate passed a similar bill, S. 3711, the Gulf of Mexico Energy Security Act, by a 71-25 vote.  Senators Rick Santorum and Arlen Specter both voted in favor of the bill.

Since the House and Senate bills slightly differ, lawmakers must reconcile differences between the House bill and the Senate bill and send a bill to the President before they adjourn for the year.

I will be working energetically with our Federal elected officials to urge them to finish the job on energy prior to the official adjournment of the 109^th Congress.  Let’s hope they power up, before, signing off.