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FOR IMMEDIATE RELEASE
7 , 2005
CONTACT:
Brian O'Malley 202-675-6279
David Willett 202-675-6698

ENERGY BILL EXPLOITS TRAGEDY OF HURRICANE KATRINA

The Energy Bill Weakens Environmental Protections and Fails to Solve America’s Energy Problems

By the closest of margins, the Republican leadership today forced through yet another energy bill that fails to solve America’s energy crisis. The bill repeats the mistakes of the past by proposing the same failed energy policies that have led to high gas prices and America’s oil dependence. The Sierra Club sharply criticizes those members of Congress who voted to exploit the tragedies of Hurricane Katrina and Rita to eliminate environmental safeguards to benefit the oil and other polluting industries instead of providing real solutions to help Americans. Faced with losing the vote, the Republican leadership abused their position of power to hold the vote open until enough arms were twisted to produce a razor-thin majority of 212-210.

The Sierra Club praised those members of Congress who stood up for Americans and their communities by voting against this bill.

"This energy bill exploits the tragedy of Hurricanes Katrina," said David Hamilton, Director of the Sierra Club's Global Warming and Energy Program. "It is time for Congress to put real solutions to work to help lower energy prices and cut America’s oil dependence instead of weakening environmental protections and subsidizing the oil industry."

In a victory for Americans who breathe, Republican leadership was forced to remove a scheme to gut the Clean Air Act's New Source Review program. This program requires older factories, including refineries, to install modern pollution control technology when they make changes that increase pollution. A manager's amendment also removed a provision that would have repealed a federal law protecting Puget Sound by banning the construction of new oil facilities east of Port Angeles, Washington, and barring existing refineries in that area from expanding their operations to meet out-of-state demand.

The energy bill that barely passed today (HR 3893) eliminates a wide range of bedrock environmental standards that protect communities and public health. The energy bill tries to increase refinery capacity by waiving environmental standards and subsidizing the oil industry, even at a time when the industry is making record profits. From 1975 to 2000, the U.S. Environmental Protection Agency (EPA) received only one permit request for a new refinery. Oil refineries are not being built because the industry, not because environmental laws are holding them back. Just this week, Edward Murphy, group director for refining and marketing at the American Petroleum Institute, commented on the proposed energy legislation (H.R. 3893) in the U.S. House of Representatives by saying:

"I don't think you can honestly say there's a shortage of capacity, because there is worldwide capacity...We did not go running up [to Capitol Hill] and say, 'Mr. Barton, will you please do this?' We are supportive of it." ("Clean-Air Advocates Criticize GOP Gas Bill," Washington Post, October 6, 2005).

In addition to the refinery provisions, the energy bill exploits the tragedy of Hurricane Katrina to enact completely unrelated provisions. Specifically, it weakens provisions of the Clean Air Act in order to allow cities with unhealthy air quality to postpone improving air quality and limits the ability of individual states to promote cleaner fuels.

The energy bill not only weakens existing law, but the Republican leadership refused to allow a vote on raising fuel economy standards, which is the single biggest step we can take to saving money at the gas pump and cutting America’s oil dependence. The rules governing the energy bill vote prevented the House from voting on the Boehlert-Markey amendment which would have saved the average driver $3,800 at the gas pump and reduced America’s oil consumption by 1 million barrels of oil per day.

"This energy bill enriches the oil companies and tries to use environmental protections as a scapegoat for America’s energy problems," continued Hamilton. "We have the solutions today to cut our oil dependence and save money at the gas pump, but the leadership in Congress wouldn’t even allow a vote."

Instead of focusing on losing issues like giveaways to the oil industry, Congress should have taken this unique opportunity to lay out a vision for a new energy future that will lower energy bills and cut America’s dependence on oil so we do not repeat the mistakes of the past. The federal government can raise fuel economy standards - the biggest single step we can take to saving money at the gas pump is to make our cars, trucks, and SUVs go farther on a gallon of gas. Because oil companies are posting the biggest profits in corporate history as a result of skyrocketing prices, Congress can institute a windfall profit tax on the oil industry that could be used to help lower energy costs and be invested in technology to make America less dependent on oil. And finally, the EPA should enforce the Clean Air Act to ensure that all Americans are breathing clean and safe air.

In addition, there will be a major vote, likely following the Columbus Day recess, on the fate of the Arctic National Wildlife Refuge and possibly on lifting the moratorium on off-shore oil drilling. Drilling proponents in Congress are trying to use the Budget process to advance these controversial issues. Congress has included anticipated revenues from lease sales in the Arctic in the Federal Budget Resolution, even though the revenue projections are inflated to 80 times the current average. And Congress is pursuing this course despite the fact that a majority of Americans oppose drilling in the Arctic Refuge and a full 73 percent of Americans oppose sneaking this provision through the budget. The Sierra Club agrees with the American people: Congress should give the Arctic Refuge the complete and careful consideration it deserves - not as a backdoor addition to the Budget Reconciliation.

America needs real energy solutions - not flawed, recycled policies.

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