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Senate Republicans Introduce Amendment To Reduce Gas Prices And Decrease Dependence On Foreign Oil
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This afternoon, Senate Republicans offered the American Energy Production Act of 2008 as an amendment to the flood insurance bill on the Senate floor. The bill was introduced by Senate Republicans last week and authored by Ranking Member of the Energy and Natural Resources Committee, Sen. Pete Domenici, to address the high prices Americans are paying at the pump by increasing American energy and American jobs.
This legislation will produce up to 24 billion barrels of oil domestically and will open up the potential of oil shale and coal-to-liquid technology. Increased domestic production will help ease the pain Americans are feeling at the pump while reducing our dependence on foreign oil.
S.2958, AMERICAN ENERGY PRODUCTION ACT OF 2008
Summary of Provisions
TITLE I – Traditional Resources
Subtitle A: Outer Continental Shelf
Allows petitions for leasing activities in the Atlantic and Pacific regions of the Outer Continental Shelf in order to tap into the 14 billion barrels of known recoverable oil in this area. Excludes the Gulf of Mexico. Allows the Governors of coastal states to submit a petition for a lifting of the moratorium within their state boundaries
Creates a revenue sharing agreement for participating states in which 37.5 percent of revenues will go to new producing states, 12.5 percent to the Land and Water Conservation Fund, and 50 percent to the Federal Treasury.
Subtitle B: Leasing Program for Land Within Coastal Plain
Establishes a competitive oil and gas leasing program for the Arctic National Wildlife Refuge Coastal Plain under the Mineral Leasing Act, providing access to over 10 billion barrels of recoverable oil. Had President Clinton not vetoed ANWR in 1995 (when oil was $19 a barrel), over 1 million barrels of oil per day would be domestically produced today. Tapping into the oil and gas in ANWR will produce hundreds of thousands of jobs and save the U.S. economy nearly $40 billion annually which is now spent to buy oil overseas.
Provides for a 50/50 share of ANWR revenues between the Federal Government and the State of Alaska. Directs that $35 million of the State share be deposited annually into a “Coastal Plain Local Government Impact Aid Assistance Fund” for Alaska communities.
Subtitle C: Permitting
Repeals the $4,000 fee for new applications for permits to drill that was established in last year’s Omnibus Appropriations Bill.
Since no new refineries have been built in the United States in over 30 years, grants the EPA authority to accept consolidated applications for permits required to construct and operate refineries, and authorizes financial assistance to states and Indian tribes for the hiring of personnel to process permits. Establishes a 360 day deadline for the approval or disapproval of consolidated permit applications for new refineries and a 120 day deadline for applications to expand existing refineries.
Subtitle D: Strategic Petroleum Reserve
Suspends filling the Strategic Petroleum Reserve for 180 days.
Subtitle E: Restoration of State Revenue
Repeals a provision in last year’s Omnibus which reduced mineral leasing revenue payments to States by 2 percent, and restores the 50/50 Federal-State revenue sharing structure.
TITLE II – ALTERNATIVE FUELS
Subtitle A: Renewable Fuel and Advanced Energy Technology
Amends the Energy Independence and Security Act of 2007 to strike the definition of renewable biomass and replace it with the Senate-passed definition.
Establishes a program of direct loans and grants to accelerate the production of advanced batteries in the United States.
Establishes a research program to determine infrastructure needs for the transport of renewable fuel blends, and directs the Secretary of Energy to consider the compatibility of existing infrastructure with intermediate blends of renewable and petroleum based fuels.
Studies the environmental and efficiency attributes of diesel-fueled vehicles.
Subtitle B: Clean Coal-Derived Fuels for Energy Security
Mandates that 6 billion gallons of coal-derived fuels be produced by 2022, starting at 750 million gallons in 2015 and ramping up by that same amount annually. This will result in a 3.75 percent reduction in the amount of oil America is projected to import in 2022. Requires that CTL fuels produced result in lifecycle greenhouse gas emissions not greater than those associated with gasoline and provides waiver authority based on economic or environmental harm.
Subtitle C: Oil Shale
Over two trillion barrels of oil shale currently exist in Colorado, Wyoming and Utah, which can eventually be used to reduce our dependence on foreign oil. Repeals the one year moratorium on funds to complete final regulations for the commercial leasing of oil shale established in last year’s Omnibus.
Subtitle D: Department of Defense Facilitation of Secure Domestic Fuel Development
Increases the current allowable contract duration of five years to 25 years for procurement of synthetic fuels by the Department of Defense.
Repeals Section 526 of the Energy Independence and Security Act of 2007, which prohibits federal agencies from procuring alternative fuels with lifecycle greenhouse gas emissions greater than those associated with conventional fuels that they replace. This provision could threaten the ability of our military to reduce its reliance on foreign sources of oil.
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| Permalink Posted: May 7, 2008 at 12:42:40 PM EDT |
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