Refinery Permit Process Schedule Act

REFINERY PERMIT PROCESS SCHEDULE ACT

Ms. McCOLLUM of Minnesota. Mr. Speaker, I rise today in opposition to the Refinery Permit Process Schedule Act--H.R. 5254. This bill wrongly attempts to streamline environmental regulations in an effort to spur construction of new refining facilities, while doing nothing to move the country toward energy independence.

The Refinery Permit Process Schedule Act--H.R. 5254--mandates additional Federal oversight and requires State and local governments to comply with a new Federal schedule for approving permits to site, construct or expand a refinery. This bill fails to address legitimate concerns over the slow pace of expansion and increasing geographic concentration of America's oil refining facilities.

Supporters of H.R. 5254 blame state and local environmental regulations for obstructing the construction of new refining facilities. But private oil refining companies are choosing not to construct new facilities based on their own economic projections rather than local environmental hurdles. The Wall Street Journal recently reported that Exxon is not building new refineries because it expects growth in U.S. demand for gasoline will be too insufficient to justify the capital investment. The chief executive officer for Shell Oil testified before Congress in 2005 that he knows of no environmental regulations that have prevented his company from expanding refinery capacity or siting a new refinery. Clearly, undermining State and local laws will do nothing to change the market-forces that are the true basis of companies' decisions regarding refinery construction.

In addition, H.R. 5254 does nothing to promote home-grown biofuels, a critical element of America's energy independence strategy. In the last 30 years, 97 new bio-refineries have been built in the U.S. and more are needed. But this bill will not expand America's biofuel industry for the same reason it fails to expand oil refining capacity--State and local regulations are not the barrier to growth. Biofuel industry experts have testified that State and local regulations have not prevented the siting or permitting of new bio-refineries.

It is time for leadership, vision and commitment from Washington to make the smart investments that will protect our Nation's economic security and our planet's future. In Congress, we should start by rescinding the billion of dollars in subsidies for oil and gas companies to expand drilling. We must invest in research and extend incentives for alternative energy sources such as wind, biomass and biofuels that keep energy costs down, create jobs and make us more competitive in the global economy. A clean energy future that addresses oil dependence and environmental concerns such as climate change is achievable.

But we should not expect our energy situation to change until the Bush administration and the Republican leaders in Congress get serious about tackling our oil dependence.

H.R. 5254 is a thinly veiled second attempt by the Republican majority to pass the controversial Gasoline for America's Security Act--H.R. 3893--which the House narrowly passed in 2005 and the Senate ignored. As with that bill, H.R. 5254 has had no hearings, no markups, no opportunity for Congress to make necessary inquiries. Real solutions to America's energy challenges will result from a transparent legislative process, bipartisan cooperation and visionary ideas. The Republican majority has once again offered energy legislation that falls far short of a real solution.

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