Mr. Chairman, my amendment would strike Section 2201 relating to hydraulic fracturing and replace it with the compromise reached last October during the House-Senate conference. Section 2201, which amends the Safe Drinking Water Act, was not in the bill reported by the Subcommittee on Energy and Air Quality. It eliminates the authority that currently exists in the Safe Drinking Water Act to ensure that hydraulic fracturing does not endanger underground drinking water sources. We should all keep in mind that more than 50 percent of all Americans rely on groundwater for their drinking water.

Let me explain the compromise for those Members who were not part of the conference.

The compromise required that the Environmental Protection Agency (EPA) complete a study of the known and potential effects on underground drinking water sources of hydraulic fracturing in coal beds. As part of the study, the Administrator must make three findings: (1) whether hydraulic fracturing in coal beds has endangered or will endanger underground sources of drinking water; (2) whether there are specific methods, practices, or hydro-geologic circumstances in which hydraulic fracturing in coal beds has endangered or will endanger underground drinking water sources; and (3) whether there are precautionary actions, including actions regarding use of diesel fuel in fracturing fluid, that can be taken to reduce or eliminate the dangers to drinking water.

The compromise also required independent scientific review by the National Academy of Sciences of the conclusions and scientific findings of the EPA study.

There are three other very important features of the compromise.

First, after the study and independent scientific review is completed the EPA Administrator must make a regulatory determination within 18 months. Unless the Administrator determines regulation is necessary to ensure hydraulic fracturing does not endanger underground sources of drinking water, the EPA shall not regulate or require the states to regulate hydraulic fracturing in coal beds.

Second, the compromise retains federal authority to regulate in the future. This provision was specifically sought by the Bush Administration EPA. Future regulation could happen only if necessary to ensure that underground sources of drinking water will not be endangered or where there are specific methods or practices that may adversely affect the health of persons unless additional precautionary actions are taken.

Third, the compromise addresses the fears of industry by preventing lawsuits that force regulation by the states.

To summarize, my amendment provides for:

• A completed EPA study and independent scientific review by the National Academy of Science;
• A regulatory determination by the Administrator of the EPA;
• Preservation of federal authority to respond in the future where endangerment or adverse health effects are established; and
• Prevention of lawsuits that would force regulation under the Safe Drinking Water Act.

This was the sound public policy outcome of the conference negotiations last fall. In contrast, Section 2201 in the Committee Print does not wait for or require a completed study or independent scientific review. It does not allow for a regulatory determination. It completely eliminates any authority under the Safe Drinking Water Act to protect underground sources of drinking water from bad or improper hydraulic fracturing practices.

Further, I note that from a procedural standpoint the Subcommittee on Environment and Hazardous Materials, which has jurisdiction over drinking water, has never held a single hearing or markup on this issue, despite ample opportunity.

Representatives of the oil and gas industry have supported what I am offering today. Recently, I talked with representatives of the Michigan Oil and Gas Association who informed me of their support for last year’s compromise. For those who say just leave it solely to the states, you should know Members of the State Groundwater Protection Council -- state oil and gas commissioners and state environmental officials -- recently informed us that they also supported the compromise from last fall.

I urge adoption of the amendment.