FOR IMMEDIATE RELEASE June 29, 2006

CONTACT: Brendan Daly/Jennifer Crider 202-226-7616

Pelosi: Republican Energy Policy Is to Drill in Protected Areas and Give Tax Breaks to Big Oil

Washington, D.C. – House Democratic Leader Nancy Pelosi released the following statement today in opposition to H.R. 4761, which opens up new areas of the Outer Continental Shelf for oil and gas drilling and allows drilling 50 miles from the coastline:

“This bill is bad for the environment of coastal states.  By revoking the ban on drilling for oil and natural gas, it will subject many sensitive coastal areas to harm. 

“In my home state of California, we have learned from bitter experience that a large oil spill can cause long-lasting damage to the marine ecosystem at all levels, including seabirds, marine mammals, and fisheries.  We also learned that a large spill can cause enormous damage to our economy by damaging vibrant, tourism-based coastal communities and businesses. 

“Like so many Republican bills, this bill is also fiscally irresponsible.  It redirects federal royalty payments from the treasury to coastal states where drilling is occurring offshore on the Outer Continental Shelf.

“We do not know what the cost to the federal treasury will be in the long run, but we know it will be huge.  Last week, the Bush Administration estimated that the bill would cost the treasury $69 billion dollars over 15 years.  In the meantime, the bill’s supporters have been scrambling to make it look less expensive by bringing down the costs in the near-term.

“A small number of states – the ones where drilling is already occurring offshore – will do quite well if this bill passes.  But for most states, this bill will mean more cuts in federal initiatives that are essential to all Americans – initiatives that provide for education, health care, public safety, clean water, transportation, and so many other essential services. 

“The Republican answer to our energy crisis is to drill in protected areas and provide tax breaks to Big Oil.  Though Republican leadership has declared this to be ‘Energy Week’ in the House, we are merely considering one energy related bill, and it does nothing to provide relief at the pump today.  It is just a ruse to cover up Republicans’ failed record on energy, which has resulted in record prices for consumers, record profits for Big Oil, record contributions from Big Oil, and record dependence on foreign oil.

“Democrats have a New Direction for America.  We will energize America with farmers fueling our energy independence.  We will invest in the Midwest, not the Middle East, to end our dependence on Middle East oil in 10 years – developing American alternatives, including biofuels, and promoting energy efficiency and advanced technologies.  We will also investigate and punish price gouging, eliminate billions of subsidies for oil and gas companies and use the savings to provide consumer relief.  Democrats’ commonsense plan will help bring down skyrocketing gas prices and achieve energy independence.”

“ Democrats are united in presenting a New Direction for America, one that will make our nation as strong as its people, one that brings opportunity, security, and prosperity to all Americans. ”

Democratic Leader Nancy Pelosi