VOTES AGAINST LEADERSHIP BILL LACKING ROYALTY SHARING, LIMITING OFFSHORE DEVELOPMENT, AND PENALIZING FLORIDA WITH MANDATES

Washington, Sep 16, 2008 - “Our country needs comprehensive legislation to increase domestic production of oil, natural gas, and renewable energy sources,” said Rep. Cliff Stearns (R-Ocala). “I am pleased to vote for the bi-partisan substitute bill that would help American consumers and improve our economic and national security. However, I strongly oppose the House Leadership bill that would impose vast restrictions on energy drilling and penalize states such as Florida with heavy-handed energy mandates.”

Stearns voted for the substitute bill, H.R. 6709, the National Conservation, Environment and Energy Independence Act. This measure was defeated by a vote of 226 to 191 and the House approved the leadership bill, H.R. 6899, by a vote of 226 to 189.

Stated Stearns, “I support removing restrictions on deep-ocean development while allowing states the option of allowing development closer to their coasts.” H.R. 6709 would prohibit development within 25 miles of the coast and allows states to opt-out of production from 25 to 50 miles offshore. The substitute also would provide for states that allow development to receive 30 percent of all revenues generated from offshore production.

H.R. 6709 would also repeal the federal ban on oil shale development. Explained Stearns, “Oil shale in the western United States is estimated to contain as many as two trillion barrels of oil, enough to replace all of our oil imports for 500 years.” In addition, H.R. 6709 would extend the tax deductions for producing renewable energy and for energy conservation.

The measure approved by the House would impose vast restrictions on offshore development and deny royalties to states, removing any incentives for states to allow offshore development. It would also prohibit 48 companies from competing in future offshore-development leasing. “The measure approved by the House includes harsh penalties for consumers living in Florida and other states,” added Stearns.

The Leadership bill, H.R. 6899, would require all the states to derive 15 percent of their electricity from limited renewable sources, sources that states such as Florida lack. Said Stearns, “Florida does not have the resources to meet this standard. According to one Florida utility, this provisions would cost its consumers $2 billion, and that’s just one utility.”

“The bill put forward by the House leadership is a political move that contains no meaningful relief for American consumers. There is so much that our nation can and must do to promote domestic energy production, conservation, and the expanded use of renewable energy sources. This bill failed to meet these goals,” concluded Stearns.