September 22, 2005

Rep. Pitts offers plan to put refineries on BRAC sites

New legislation seeks to use land to increase refining capacity

Washington—Congressman Joe Pitts (R, PA-16) today introduced legislation calling on the Administration to identify three military bases slated for closure by the Base Realignment and Closure (BRAC) Commission suitable for locating oil refineries.  The plan would eliminate one hurdle companies must clear before building a new refinery, finding land.

“Our ability to refine oil and supply gas to consumers has not kept pace with demand for gasoline,” said Congressman Pitts.  “That’s because we have not built a new refinery in more than thirty years.  This is a driving factor in the level and volatility of gas prices.  No matter how much additional crude oil is made available, we simply do not have the capacity to refine it.  But experts say just one new refinery would make a significant dent in gas prices here at home.

“The problem is volumes of regulations and skyrocketing litigation costs prevent the construction of new refineries.  While we need to pass a comprehensive bill to streamline these regulations, there is one thing the federal government can offer right now: land.  If we set aside unused military bases for new refinery construction it could eliminate several steps and lead to several new refineries

“There might come a day – and I hope this day comes – when we find a suitable alternative to oil and gas.  But that day is still a long way off.  Until then we must find an environmentally-responsible way to cut through excessive red tape to increase refining capacity and lower gas prices for working families,” said Congressman Pitts.

If enacted Congressman Pitts’ legislation would give the Secretaries of Defense and Energy ninety days within which to identify three military sites closed under BRAC that would be suitable for refinery construction.  Once identified, that land would be set aside for two years, reserved exclusively for oil refineries.  After that time, the land may be sold or otherwise used as the military sees fit.

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