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June 30, 2006

Statement of Rep. Carolyn C. Kilpatrick
H.R. 4761

Mr. Speaker

I rise today in opposition to H.R. 4761, the Deep Ocean Energy Resources Act. I believe the measure deceptively undermines states’ rights to protect their coastlines, compromises fragile coastal environments, and ultimately would cost taxpayers billions in lost revenue, adding to the already record-setting national deficit.

H.R. 4761 presents the illusion of granting states more control over drilling, when in actuality it makes it more cumbersome for states choosing to continue protecting their coastlines. States desiring to opt-out of drilling would be required to pass legislation every five years, subject to approval by their governor, and present it to the federal government. If state legislatures and their governors are unable to come to agreement on drilling policy within one year of this bill’s enactment, they would lose their right to decide as the federal government would then have authority to begin granting leases within 50 to 100 miles off their coastlines.

This bill attempts to bait states, already suffering fiscal restraints due to the Majority’s consistent practice of cutting states funding for vital services like Medicaid/Medicare and public education, with a greater share of revenue if they are willing to sacrifice their coastal protections. It would take the second largest funding source of the federal government, after income taxes, and redistribute those funds only to the coastal states that will allow drilling. This comes as a sacrifice to all other states as the Interior Department has estimated the alteration of current federal-state revenue sharing provisions on royalty payments will result in a loss of approximately $70 billion in revenues over the next 15 years; adding to the public debt burden.

It is important to note that 80% of known oil and natural gas reserves are in areas where drilling is already permitted. The Department of the Interior has already offered leases for 267 million acres of the outer-continental shelf; however, energy companies have only taken the initiative to explore 24 million of those acres already available to them. It would be insensible to risk these coastal environments before companies have even exhausted the exploration of areas they are already permitted to drill.

America’s families need real relief from high-energy costs. Even if this measure had addressed this issue in the most optimal manner, offshore exploration remains an expensive, slow, and risky way of addressing the nation’s energy crisis. The federal government should be investing resources to advance energy efficiency, conservation, and the development of alternative fuels, which can provide immediate relief to American citizens, not reinforcing our nation’s gluttonous appetite for oil.

I urge my colleagues to vote no on H.R. 4761.