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June 7, 2006
Statement of Representative Pete Stark
In Opposition to an Unnecessary Attack on Environmental Regulations
Mr. Speaker, I rise in strong opposition to H.R. 5254, the Refinery Permit Process Schedule Act of 2006.
Though the Majority disingenuously argues that environmental regulations are responsible for high gas prices, the facts don’t support their claim. Refining costs have increased because oil companies have deliberately decreased capacity to boost profits. In the late 1980s and early ‘90s, oil companies shut down 30 refineries in an attempt to raise profit margins. The scheme worked: refinery revenues increased by 255% last year.
In response to market pressure, refining capacity has increased in recent years. Between 1996 and 2003, capacity increased by 1.4 million barrels per day. As a result, the American Petroleum Institute believes that H.R. 5254 is completely unnecessary. The free market that the Republicans claim to love is working, but this legislation is about politics, not about solving the priorities of America’s working families.
This legislation would:
• Allow the President to place new refineries on closed military bases. The military base in my district would probably be an appealing target for this President: it’s the site of a planned National Wildlife Refuge. Like many communities around the country, the City of Alameda has undergone an extensive planning process to convert the base to civilian use, but if the President said the word, the City’s work could be suspended while the federal government decided whether or not it wanted a build a refinery on the premises.
• Undermine environmental review processes and make state and local environmental officials answer to a new refinery czar appointed by President Bush.
The one good thing you can say about this bill is that it’s not another gift to oil companies -- they readily admit that environmental regulations have not prevented them from building new refineries. This legislation is just another ill-conceived talking point for Republicans desperate to appear responsive to rising energy prices. I won’t play that game and I urge my colleagues to join me in voting no.
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