June 7, 2006: Thornberry Supports Bill to Boost U.S. Refineries Print


(Washington D.C.)
With the backing of Congressman Mac Thornberry (TX-13), the U.S. House of Representatives today approved legislation to help speed the construction of new oil refineries. H.R. 5254, titled "The Refinery Permit Process Schedule Act" was approved by a 238-179 vote.

"We have neglected our energy needs for too long. We must produce more energy of all kinds here at home, and we must get it to consumers," Thornberry said.

On an average daily basis, American consumers use more than 21 million barrels of refined products. But, U.S. refineries produce just 17 million barrels of refined products a day. Relying on imports to cover the shortfall can contribute to wide price swings. 

"There are lots of reasons for the higher energy prices for consumers. But, even if we produce all of the oil we need, we still have to turn it into gasoline, diesel, and other useable products. Not having enough refineries is one of our biggest weaknesses," said Thornberry. "We need to encourage the construction of new refineries."

Currently, there are 148 refineries operating in the United States, less than half the amount that was active thirty years ago. No new refineries have been built in the U.S. since 1976. Industry officials say interest in building new refineries is often discouraged by a lengthy permitting process that can last as long as ten years. Helping drag things out is the fact that proposed refineries must meet the requirements of multiple federal and state regulatory bodies.

To streamline the process, H.R. 5254 calls for appointing a federal coordinator to oversee the permitting process. The coordinator would monitor the efforts of the federal and state regulatory entities involved and help establish a timetable for completing their reviews.

"Hopefully, this coordination will speed up the program. If we can get to where applicants only have to wait a year or two to get a permit, there may be a lot more interest in building the new refineries we need," said Thornberry.

Other highlights of H.R. 5254:

  • Makes available to states federal financial and technical assistance during the permitting process.
  • Instructs the President to designate at least three closed military installations as potential sites for new refineries.
  • At least one such site must be designated for refining biomass to produce biofuel.Maintains strict environmental standards.
  • The Environmental Protection Agency will be given priority in scheduling coordination.
  • All applications will be subject to environmental laws such as the Clean Air Act, the Clean Water Act, and the Resource Conservation and Recovery Act.Does not prevent citizens from using existing legal options to appeal the permitting process.

H.R. 5254 now goes to the Senate for its consideration.

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