Texas Governor Rick Perry Named Chair of IOGCC

Emphasizes importance of alternative energy at member state meeting

BILOXI, Miss. – Gov. Rick Perry today was named chairman of the Interstate Oil and Gas Compact Commission (IOGCC) at the member states’ annual meeting in Biloxi. The governor met with various leaders from member states of the commission to discuss cap and trade legislation being considered in Washington, and the regulation of oil and gas resources.

“More mandates, restrictions and penalties are not the kind of thing that will encourage innovation and investment. As it stands, this bill would usher in the single largest tax in the history of our nation, along with an unprecedented degree of federal intrusion into every American farm, home and workplace,” Gov. Perry said. “These energy taxes will cause every product that uses energy in its creation, cultivation or transportation to become more expensive, forcing hard-working Americans to bear massive new costs and kicking the legs out from underneath a national economy that is already wobbling.”

The governor reiterated the importance of developing a diverse energy portfolio by pursuing innovative energy sources as an alternative to the burdensome regulations associated with the proposed Waxman-Markey Bill, which would increase the cost of living for families and crush Texas and the nation’s energy producing sectors.

Implementing the regulations associated with the Waxman-Markey Bill, also known as the American Clean Energy and Security Act, would be the single largest tax increase in U.S. history, significantly increasing the cost of living for all Texas families by an additional $1,200 per year, according to the comptroller. Additionally, a study by Texas A&M University suggests that virtually all Texas ranchers and farmers would be negatively impacted by the bill.

This bill would also cripple Texas’ energy sector, irreparably damaging both the state and national economies and severely impacting national oil and gas supplies. Texas’ energy industry fuels the nation, supplying 20 percent of the nation’s oil production, one-fourth of the nation’s natural gas production, a quarter of the nation’s refining capacity, and nearly 60 percent of the nation’s chemical manufacturing. Additionally, Texas’ energy industry employs 200,000 to 300,000 Texans, with $35 billion in total wages.

Rather than adopting this misguided legislation or allowing the EPA to overly regulate every sector of the economy, Gov. Perry has proposed that the federal government follow Texas’ lead by making alternative energy technologies less expensive, thereby encouraging widespread commercial use and removing barriers to innovation and competition. Modernizing the national energy grid to support wind and solar energy transmission, facilitating investments in the development of carbon capture and sequestration technologies, and removing barriers to investment in nuclear generation would reduce carbon emissions while encouraging competitiveness, innovation and growth in alternative energy sources.

Diversifying the state’s energy portfolio remains a priority for Gov. Perry. Texas has already installed more wind power than any other state and all but four countries, and is developing new transmission lines that will move more than 18,000 megawatts across the state – nearly as much as all other states’ current capacity combined. Texas has also attracted more than 9,000 megawatts of energy from the development of next generation nuclear power plants. The state is also looking to add new clean coal plants, which will capture and sequester carbon dioxide emissions or use the carbon dioxide to increase production from Texas oil fields.

IOGCC was founded in 1935 as a multi-state agency to protect states’ rights, especially the right for state regulation of oil and gas resources, with a different governor from each member state serving as chairman each year. The commission works to ensure that the nation’s oil and gas resources are conserved and maximized while protecting health, safety and the environment. IOGCC also acts as an advocate for the states in Washington D.C., and is heavily involved in setting national energy policy. Currently, the IOGCC is focused on keeping the regulation of carbon sequestration and hydraulic fracturing at the state level, as a one size fits all approach would not be successful.

To view text of the governor’s remarks, please visit http://governor.state.tx.us/news/speech/13750/.

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