Statement of Congressman John D. Dingell, Ranking Member
Committee on Energy and Commerce

COMMITTEE ON ENERGY AND COMMERCE
HEARING ENTITLED
“RECOVERING FROM KATRINA”

September 7, 2005

Today’s hearing takes place while vital rescue relief efforts are still underway in New Orleans and other Gulf State communities devastated by Hurricane Katrina. As we consider how this Nation will recover, we must always be mindful of the scale and severity of the destruction in the Gulf and the challenge of caring for those whose homes have been destroyed and whose lives will not soon return to anything resembling normal.

In the coming months, the effects of this disaster will continue to ripple throughout our economy. Several critical sectors affected by Katrina – health, energy, and telecommunications – fall within this Committee’s responsibilities, and I commend you, Mr. Chairman, for holding this hearing to help Members focus on the work that lies ahead. We know that the Federal response to Hurricane Katrina, and particularly that of the Federal Emergency Management Agency (FEMA), was disgraceful, but we must now focus our attention on the tasks ahead. As a preliminary, but very important, matter, I have introduced legislation to restore FEMA as an independent agency with cabinet-level status.

With respect to gasoline, which was the original focus of this hearing, it is important that the Committee provide strong oversight to ensure that consumers are not subjected to price-gouging for gasoline and other energy supplies, and that recovering energy markets are not manipulated. While the local gas station is usually the easiest target, we learned in the 70's that major oil companies, not service stations, were the major violators of oil price controls then in effect and were required to disgorge billions of dollars in overcharges. Any examination of price gouging must begin with a review of their practices.

Already a number of States have acted to stem gasoline price increases – from suspension of State gas taxes to invoking State emergency authorities limiting price increases. And it appears that announcements of releases from both the Strategic Petroleum Reserve (SPR) and the International Energy Agency (IEA) member nations’ crude and product stockpiles have tempered escalating prices to some extent.

But we cannot focus solely on gasoline. Natural gas and heating oil prices may pose an even greater challenge for our constituents as winter arrives. I applaud Saturday’s release of $27.25 million in LIHEAP funds to the affected states, but we should recognize that we will need a significant increase in LIHEAP funding in the coming months.

While the Nation’s energy needs are critically important, we cannot forget the real human need that exists on the Gulf Coast right now. First, how has our public health infrastructure met the challenge? I hope we will have hearings focusing on this vital question. Second, what do we need to do to provide ongoing care? For hundreds of thousands of displaced families, Medicaid is going to be a lifeline in the coming months. Earlier this year, Democrats strongly opposed a budget plan that included $106 billion in new tax cuts benefiting mostly wealthy people, while requiring our Committee to cut a likely $10 billion in Medicaid. We must scrap that budget, and instead immediately put together a package of assistance to ensure the health care needs of families and children do not go unmet.

Also, Hurricane Katrina has created an environmental catastrophe for the Gulf region that will require significant Federal assistance. This Committee should carefully monitor the environmental issues that are arising – from Clean Air Act waivers to rebuilding safe drinking water infrastructure. And we must pay careful attention to the environmental consequences as we consider how best to make needed improvements in our refining capacity.

Finally, this Committee should also look closely at how the communications and media sectors responded to Katrina, and what steps should be taken to better prepare for, warn people about, and respond to emergencies. Functioning communications networks are critical for first responders to do their jobs as efficiently and safely as possible, and for victims to call for help or communicate with loved ones.

I look forward to hearing from today’s witnesses about the response of the Federal Government and industry to the current disruptions in these and other vital sectors, and their plans for the coming months as we help the Gulf region and its people recover.

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(Contact: Jodi Seth, 202-225-3641)