Scalise Introduces GAS Act to Lower Gas Prices

Wednesday, July 9, 2008

Washington, DC -- Congressman Steve Scalise today introduced his bill to address the national energy crisis by increasing the supply of American oil to lower the price of gas and provide Louisiana with more of its fair share of offshore oil and gas revenue.

The legislation, called the Grow American Supply Act or the GAS Act, would lift the drilling moratorium on the Outer Continental Shelf (OCS) as well as increase exploration of alternative sources of energy such as oil shale and tar sands. The bill will also increase the amount of revenue each state would get from offshore oil and gas activity.

In addition Scalise’s bill will dedicate the billions of dollars in new federal revenues that would be generated by increased OCS drilling to paying down the national debt and shoring up the Social Security Trust Fund.

“The GAS Act is a common sense approach to bringing down the price of gas at the pump, and reducing our dependence on Middle Eastern oil. This legislation will not only increase American supply, but it will directly help Louisiana’s economy by providing an increased share of OCS revenues to immediately fund coastal restoration and flood protection projects,” said Scalise.

“Families and small businesses are demanding more production of American energy to help lower gas prices, and Congressman Scalise’s legislation will provide just that,” said House Republican Leader John Boehner (R-OH).  “The American people know we can produce more oil and gas on remote federal lands and far off our nation’s shores in an environmentally safe way, but Congress needs to get out of the way in order for that to happen. To help create more good-paying American jobs and bring down the price at the pump, Speaker Pelosi and the Democratic leadership should schedule Congressman Scalise’s bill immediately.”

Scalise added, “The time for Congress to act is now. The liberal majority has shown they have no intention of considering legislation that addresses this serious national energy crisis. Instead of bringing forward legislation to lower the price of oil and gas, the liberal majority in Congress will be spending their time this week designating trails as historic sites and naming post offices.”

Scalise held a news conference at a gas station last week to announce his plan and to discuss the urgency of addressing skyrocketing gas prices. Scalise was joined by business owners, a chief of police and a mother of five to share how the high prices are adversely affecting them too.

The Grow American Supply Act, or “The GAS Act” will lower gas prices by doing the following:

• Increasing American supply of oil and natural gas by opening the OCS past 75 miles offshore for areas where drilling is currently prohibited. States are given the opportunity to opt out of leasing within 75 miles of their coastline if they so choose.
• Exploring alternative sources of energy like oil shale and tar sands
• Providing incentives to industry to drill more quickly on current leases and relinquish partial leases that have recoverable resources that they do not intend to drill

The GAS Act will also provide Louisiana and other coastal states a greater share of offshore oil and gas revenues. These funds will allow Louisiana to immediately make major investments in restoring our vanishing coastline and protecting our valuable wetlands by:

• Allocating to Louisiana 100% of bonus bids on new leases (LA currently gets nothing)
• Beginning in 2008, provides Louisiana up to 75% of revenue from drilling within 12 miles of its coast (LA currently only receives 27% between 3 and 6 miles)
• Beginning in 2009, provides Louisiana a share of up to 50% of revenue from drilling beyond 12 miles of its coast (LA currently receives nothing, is set to receive a share of 37.5% in 2017, but the amount shared by coastal states is subject to an annual cap of $375 million).

The GAS Act designates the federal portion of new OCS revenues to help make Social Security solvent and pay down our national debt by:

• Directing 50% of the federal share of OCS receipts from new areas of exploration to paying down the national debt through a newly established Deficit Reduction Trust Fund
• Directing 50% of the federal share of OCS receipts from new areas of exploration to the Social Security Trust Fund

Scalise has also cosponsored the following legislation intended to bring down the price of gas.

• American Energy Independence and Price Reduction Act (HR 6107)
• Deep Ocean Energy Resources Act of 2008 (HR 6108)
• Refinery Permit Process Schedule Act (HR 6139)

###

Contact: Luke Bolar
202-226-4309