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Congressman McCaul Votes Against Sham Energy Bill

September 16, 2008

AUSTIN – Congressman Michael McCaul (R-TX 10) voted against a Democratic energy bill that keeps more than 80 percent of America’s oil reserves locked away beneath the earth and unusable. In doing so, Rep. McCaul stood his ground fighting for an "all of the above" energy strategy designed to lower gas prices and produce more American-made energy. The Democratic-proposed legislation will achieve neither. Speaker Nancy Pelosi rammed the bill through the House and denied members the ability to offer amendments. Gas prices have soared 78% under Democratic leadership when they topped out at $4.11 per gallon in July.

"This bill is an insult to Americans who have been bleeding over high gas prices under a Democrat-controlled Congress. It does nothing to solve our nation’s energy crisis and could make the situation worse," said Congressman McCaul. "This bill signals to the energy markets that we have no intention of utilizing our country’s vast resources that could make us energy independent. That signal by itself could cause prices to rise because the markets know that our domestic supply will be limited for the foreseeable future."

The Democrat plan does not allow coastal states to share in the revenue generated from exploration. Without allowing coastal states to share in the revenue, it's a bait-and-switch: Democrats know that states will have no incentive to opt-in if they don't get to participate in the revenues. Democrats are cynically attempting to convince Americans they now support new exploration all the while knowing it will never happen.
The Democrat plan is NOT an "all of the above" energy strategy – not even close. Their legislation will contain:

• No environmentally responsible exploration on the Arctic coastal plain in Alaska. The Interior Department estimates the 1002 area contains 10.4 billion barrels of oil.

• No expansion of emission-free nuclear power. France relies on nuclear for nearly 80 percent of its electricity needs. The United States, only 20 percent.

• No development of advanced clean coal and coal-to-liquid technologies and resources. In addition, the "Section 526" prohibition on government contracting for alternative fuels such as coal-to-liquids is not fully repealed.

• Fails to make a real leap from carbon to renewables. The Democrat legislation funds investment in renewable energy at the expense of American taxpayers – the American Energy Act increases investment in renewables through revenues derived from exploration for American energy.

• No real oil shale exploration. The bill prohibits environmentally responsible exploration of American oil shale resources unless states "opt-in" to such a system; nor does the bill allow local communities to share in the revenues generated from oil shale exploration. The Department of Energy estimates that 2 trillion barrels of oil shale exists within the United States.

• No new refineries. No provisions to cut red-tape and increase American refining capacity of American made energy.

"What the American people keep asking for, and what I will continue to fight for, is meaningful legislation that will allow us to drill for oil to increase our domestic supply and become less dependent on foreign countries that don’t like us," said Congressman McCaul. "What the Democrats have given us is a bill that keeps 80 percent of the oil we need locked away."

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Congressman McCaul is a sponsor of the American Energy Act, which would increase the production of American-made energy, including renewable energy, in environmentally sound ways. The legislation, which has enough bipartisan support to pass the House if it the Speaker were to allow a vote, would:
• Open our deep water ocean resources, which could provide an additional 3 million barrels of oil per day, as well as 76 trillion cubic feet of natural gas;
• Open the Arctic coastal plain, which could provide an additional 1 million barrels of oil per day;
• Allow development of our nation’s shale oil resources, which could provide an additional 2.5 million barrels of oil per day; and
• Increase the supply of gas at the pump by cutting bureaucratic red tape that hinders the construction of new refineries.

To improve energy conservation and efficiency, the legislation will:
• Provide tax incentives for businesses and families that purchase more fuel efficient vehicles;
• Provide a monetary prize for being the first to develop an economically feasible, super-fuel-efficient vehicle (reaching 100 miles-per-gallon); and
• Provide tax incentives for businesses and homeowners who improve their energy efficiency.

To promote alternative and renewable energy technologies, the legislation will:
• Spur the development of alternative fuels through government contracting, the repeal of the "Section 526" prohibition on government purchasing of alternative energy and promotion of coal-to-liquids technology
• Establish a renewable energy trust fund using revenues generated by exploration in the deep ocean and on the Arctic coastal plain
• Permanently extend the tax credit for alternative energy production, including wind, solar and hydrogen
• Eliminate barriers to the expansion of emission-free nuclear power production

"Democrats once again show that they would rather play election year politics and extend the burden on Americans, than support a common sense plan that will help every American family and business," Rep. McCaul said. "America needs leadership on this important issue and Democrats refuse to provide it."

Polls have indicated that a vast majority of the American people favor a comprehensive energy plan that includes drilling in the Outer Continental Shelf, in mountain shale, and in the Alaskan Arctic region, which are currently off limits. These areas contain billions of barrels of oil and trillions of cubic feet of natural gas that would put our country well on the road to energy independence and lower gas prices.

American Energy Act